‘Indian firms need global standards of governance’

Indian corporates need to hold themselves accountable to global standards of governance if India wishes to reshape the global economic order, Aditya Birla Group Chairman Kumar Mangalam Birla said on Tuesday.

Speaking at an event here, Birla said that with changing times the core business philosophy is rapidly moving away from shareholder capitalism to stake holder capitalism which includes investors, customers, employees and value chain partners.

"For India to reshape the global economic order, Indian companies will have to hold themselves accountable to global standards of governance. I believe this cannot happen by running roughshod over minority shareholders," Birla said.

Issues such as professional CEOs acting as promoters and founders wielding undue and disproportionate clout also need to change, he added.

Birla said that increasingly all the the stakeholders are demanding a higher value, order, accountability and additionally the businesses will have to earn their license to operate in the society as a whole.

"As ease of doing business improves, the way of doing business needs to change... If we want to make our mark in the world we have to be prepared for the world to leave its mark on us," he noted.

Birla said there were various sectors in India which had the potential to grow into billion dollar business over a period of time.

"There is one severely under-exploited sector and that is tourism. Only 11 million foreign tourists come to India annually. This is roughly the same as Bali and possibly close to half of what Barcelona gets," he said.

If Stonehenge in UK can get close to million tourists in a year, the historic world heritage sites of Hampi and Gaya and Ajanta Caves have potential to get ten times more, he added.

"Tourism alone, I believe can be a USD 100 billion industry. Same is the story with various sectors in India. The country for example can be centre for development of healthcare solutions, in the digital domain India can generate trillions of data points due to its sheer size and hence it could position itself as a hub for data analytics industry globally," Birla said.

So from tourism to health care to data sciences, the sheer scale of Indian economy will ensure that India's imprint is felt on the world, he added.