Vishal Sikka is now heading Infosys. The advent of Sikka, a rank outsider that too with a technology/product background, will be a twin experiment for Infosys that has been founder-centric and service-based. Todays IT is not even about tomorrow but the day after and beyond, and the trend is for a seamless merger between product-service-social media-Apps and so on. Sikka would only need to get at that grand overview and facilitate an open house for talent within Infosys. The bread and butter business will carry on the strength of its brand name and there are capable men to handle it. When Infosys is rebooting itself, others like promoter-driven Wipro too must take up course correction. In the rapidly changing world of IT, time is the arch rival, not competitors.
The column Eliminate uncertainty, reduce litigation (FE, June 23) is a right pointer on the wrong taxation policies of the government to keep both foreign and domestic investors at bay. As it is pointed out, high pitched assessments arise from a lack of understanding of business facts. The incorrect application of law is another major lacuna. Further orders with retrospective effects will kill initiatives of huge investors like Vodafone. The new government has to come out with a moderate and encouraging tax structure. And it has the best opportuntity in the upcoming budget to effect such a change that encourages the investors and revives the economy. It must not squander it away sticking to old policies and then saying that the previous government had put in place the policy. Lately, the new government has been doing that with alarming frequency. It shouldnt forget that it got a mandate for change.
Subsidies must go
This refers to the article 'Logic of market reforms' (FE, June 27). Given the hubbub over the price hikes, withdrawal of subsidy in various sectors and the panic that the country is involved in, India appears to be undergoing a withdrawal effect. The blanket of subsidy that has been cloaking us for decades from the real-market scenario has reached a tipping point where it is no longer possible to support a dole economy. Successive governments had always deferred price hikes due to political reasons to a limit where our weak economic fundamentals had sent the rupee crashing to a lifetime low. Now the govt has no other option but to hike prices along the entire supply chain, albeit in doses to get the country out of the subsidy mindset forever. As long it keeps deferring imminent price hikes, production will not increase, be it oil or electricity. The govt needs to be tough on its stand of price hike and not roll back time and again. It has got to show some political muscle and go ahead with market reforms.