Battling On

When will we see the turn of the tide?

Making an investment in India today, as in other jurisdictions around the world, is arguably all about taking a long view. Blackstone, which has about US$13 billion invested in India after 13 years of being here, has said, as far as its real estate investment was concerned: “India is a story of patience”. Other investors from within India and abroad will have had similar experiences. For while having the stamina to endure is all important, good things surely come to those who wait.

But does this hold true for an India battered by covid-19? The challenges that lie ahead for the country are daunting, and while efforts to tackle it are underway, there are questions about whether enough is being done. With little by way of good news on the pandemic front, prospects are bleak. We would all agree that the time for decisive and effective action to help companies and the population at large is now. There is little to be gained by waiting.

As our Cover story details, there is similarly little to be gained by delaying the privatization of many of India’s public sector enterprises. While several have been undergoing a winding-up, liquidation or strategic disinvestment, many others have negative net worth. Privatizing such volatile government entities – which are financially burdened and adversely affecting the public purse – to make them self-reliant appears essential.