What Reliance can Teach Self

Context: India must follow Reliance India Limited’s (RIL) Business strategy to reignite its economy and actualize the dream of a self-sustained economy without compromising the benefits of globalized economy.

Lessons from RIL’s Business Strategy

• Reduce debt by selling equity in over 85 listed PSUs (market cap of ?18 lakh crore): through block deals with foreign and Indian institutional investors. This would lead to:

• Reduced fiscal deficit.
• Available funds that can be invested in infrastructure. 

• Recognize the importance of globalization: 

• Avoid bureaucratic hurdle: that may transform the “Be vocal about local” agenda into an anti-globalisation campaign. 
• Harness potential of Global Depository Receipts and American Depository Receipts: like RIL which was the first Indian company to launch them, for using foreign money for Indian benefit.

Conclusion: In assessing the magnitude of policy space, it is important to take into account the weak growth momentum and assure benign financial conditions ahead of the economic recovery.