Why India cannot give birth to Google??

Every time our current PM visits any country, there is a lot of buzz around the media. We all know who creates it. Our PM is definitely the most Media-centric  PM we ever had. We had one a year ago who was media-shy. This post is not for his modest travel plans which we all talk about. 

Mr. Modi has started many notable initiatives like "Swacchh Bharat" or "Clean India Campaign" and I must say finally we do have someone who does understand the root of problems in our country. However, Mr. Modi's recent meeting in California with the CEO's of the top tech companies does give me a doubt on his intentions. India we all have conglomerates. I searched for its definitions, it meant a number of things or parts that are put together to form a whole. 

So in Indian terms, if Google was in India, it would be definitely having a bank, a fertilizer plant. IBM would be having a petroleum refinery. Apple would be having retail chains, Investment banking. Microsoft would for sure have power plants and airline. But they are US companies. They do what they excel at. 

Talk about Indian top companies. They do everything. We have Petroleum to Retail honchos, Then telecom to power plants. We have some in textiles to fertilizer. We have some from car to infrastructure. Basically, we are omnivorous. WE can do everything and make more money. So what makes our Indian companies different from the US. 

Well, in my view our companies are more government policy driven or say they drive he government policy. The policy is drafted, consulted and well rehearsed with these top companies even before it's tabled in the cabinet. It's actually payback for their help in elections every 5 years. Not to mention tax breaks where they want to recover that money. The result, you have companies who rise 1000% every year in net worth. All foreign investment bankers know who drives government and they invest in such companies. So actually the profitability of these companies is drafted by the government. So why not a good bet. 

Now if you just see a few policies, they are so much favored towards one or two industrial houses (as they say), you just cannot ignore. But there are a few who can complain. Who would fight the might of Politicians and Industrialists combine? Imagine someone monopolizing the coal supplies in the government and no one raises a hand. Everything is distributed equally so that the top 30 do not have the chance to complain. No wonder we have helicopter JV's with a company which also manufactures tractors. 

Hence my advice to all people who are under the "startup" stage. Have plenty of government resources and have plenty of time to engage with our bureaucrats. Who knows when can you strike the cord and have a policy in your favor. 

A few companies which I have respect for lately is Flipkart, Snapdeal, Ola and a few more. But see who found out the talent in their schemes. IT was foreign fund houses. Which Indian Nationalized Bank funded a startup and can be proud. Why because they are busy funding our Corporate who share 80% of the NPA and then do restructuring and all sorts of window dressing. Very few would understand that if you experiment  with a business you haven't done before or which is not the Only business for you, there is a 100% chance of you failing. So when our corporates who are into Pharma enter into Infrastructure business thinking they have all the funding, they fail. But little do our banks understand that. Foreign funds do. 

Last but not the least, our govt. recently arbitrarily gave these corporate's banking licenses or a back door entry to banking. Remember a few decades ago when these private banks were nationalized. When these banks do mistakes (which I'm sure they would in a decade), Our govt. would be bailing them out and nationalizing them back. 

Conclusion

We shall never give birth to world class companies as we all, as they say, are "JUGAADU". In order for that let us be focused on what we are best at. If you want everything of all spaces, you can invest through the stock market and buy shares. Let the professionals do what they are trained to do. Let's just focus on one see what space is within that focus. And when you think, India is saturated for your focus, you have 202 more countries to go to. Let's build a world-class company with a focus to become world class. That's the true meaning of  STARTUPs. 

The world has a lot of wealth. Not everything belongs to us. 

PS: These are my personal views and in no way to insult or to demean any company or individual.