Last week, in an article, I looked at the reasons behind the slow growth of wages in India. They have a lot to do with the slowdown of profit growth. One way to boost profits is to invest, but for this you need to raise capital; so let’s take a look at the background and prospects for capital raising by Indian companies.
Demand slowdown has hit top line growth for Corporate India for a while; companies are maintaining profitability by operational measures. And when one digs deep into long-term data, interesting findings come to light.
From an employee’s perspective, the impact of low profitability varies among sectors. If you are working in the right one, you are lucky!
“My dear gentlepeople!” I do hope this is the way in which Indian Prime Minister Narendra Modi starts his address to our American friends, during his upcoming visit to the USA. The quirky title is intentional — replacing “ladies and gentlemen” with “gentlepeople” just like the term Chairperson has increasingly replaced Chairman. The aim is to show a deviation from the traditional, to prove that one has changed with the changing times.