Piramel

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Liberalisation

Although it meant stiffer competition, many companies wanted liberalisation, however the government, according to the author, had a duty to help Indian companies in the face of international competition, as its previous laws had prevented them from being able to defend themselves from such strong competition.

Indian firms had to improve their businesses, but they needed the capital to do it, which they did not, due to the government's "draconian income tax laws of the past" and thus were threatened by takeovers by foreign firms.

Unfortunately, the line between giving Indian industry a fair chance and protectionism is very narrow. Infrastructure in India is dire can cannot match up to Western standards for decades to come.