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Biyani looks at the bigger picture

It is important to look at the holistic picture and have an individual opinion rather than get swayed away by the public consensus. This is the view of the man who pioneered the retailing boom in India - Mr. Kishore Biyani, the founder of India’s largest retailing company - Pantaloon. In an article in the Wall street Journal, Mr. Biyani wrote, "Almost daily doses of bad news on television screens and newspapers have possibly done as much damage to the economy as the events on either side of the Atlantic." I completely agree with him.
Mr. Biyani’s predicament is based on the fact that an overwhelming majority of Indian consumers are self-employed, who can neither get laid off nor can have pay cuts. Consider some statistics he has provided. The share of the national income represented by proprietor-run concerns and partnerships is 35%. The share of companies is around 15%, government around 25%, and agriculture around 25%. Combine agriculture and the self-employed in industry and the service sector and nearly 60% of the national income is generated by the self-employed. This section is relatively unhurt by the economic crisis that has struck the rest of the world. A good reason why India should be witnessing an economy recovery ahead of the developed world – When? Well, that’s a very good question – let me also know – when?

Comments

Rajiv Arvind said…
I am not sure about the statement that "Self Employed" are not affected. The Self Employed may be in the business of services, manufacturing, creativity, consulting, IT, etc. and these jobs are not silo functions, they depend on clients or banks or vendors and when the entire supply chain is affected. No matter who you are, if you are in the business of business you will definitely be affected.

Rajiv Arvind (http://rajivarvind.blogspot.com)
March 30, 2009 at 8:47 PM
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