Financiers as Industrialists

Financiers as Industrialists
After Independence in 1947, the Government became a venture capitalist and the Public Sector Enterprises came into being. This gave the necessary impetus and India was on the way to industrialization. However, the Government turned from a venture capitalist to an industrialist during this period and to keep its monopoly, discouraged private players by introducing very difficult conditions. It was only in 90's that the Government realized that it alone could not produce everything the country needed and those difficult conditions for the private players were eased off over a decade and more. The private players thrived under these liberal conditions...which included easy funding from the public sector banks in the form of loans...! As the financial sector was also liberalized, many financial companies came up in the private sector and they too wished to earn by giving loans...the only means! So much so that the private sector promoters need not feel the pinch in their pocket...75% of the capital could be borrowed...! This has now led to a situation where the financial entities owned much of the assets...and as is happening now...if the banks tighten the screws on the borrowers...they could end up being the biggest industrialists in the world! This would be followed by other financial entities also turning the screws and stripping the assets of the borrowers to recover long outstanding loans/interest. If this actually happens, 80% of the industries in our country will belong to financiers who would not know how the fcuk to manage those industries...! No wonder then...the Government is going easy on the defaulters...! Any doubts?