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Journalism of Courage
The Tata-Corus deal represents a significant marker in India8217;s economic reform trajectory. This is not so much because the 12 billion deal happens to be corporate India8217;s biggest takeover to date, but because it outlines the potential of economic liberalisation and globalisation in transforming the country8217;s future.
It is almost a cliche to say that the Tata-Corus deal could never have taken place even 15 years ago. But cliches often hold interesting truths and this one throws up five such insights. One, economic reform allowed Indian companies to grow and take wing. Earlier they were told what to produce, how they were to produce, and for whom. But once they were given the freedom to make these crucial decision for themselves, many found themselves graduating to the big league. Two, liberalisation in the era of globalisation allowed corporate India to access world markets. Three, financial restructuring made it easier for India Inc to integrate with global financial systems. Four, economic reform gave Indian entrepreneurs the confidence to compete in the world8217;s markets on their own terms and understand business cultures that were different from their own. Five, economic reform gave Indian business houses a new profile as global players, helping to end earlier prejudices about doing business with India. It is useful to remember that in the case of the Tata-Corus deal, the management of Corus 8212; incidentally, a company that is four times the size of Tata Steel 8212; had considered the Indian company its best bet in terms of strategic fit.
