Less Is More

- Rajiv Agarwal

While newspapers in India are covering the newly launched Goods and Services Tax (GST), little attention is being paid to a development that occurred a few days before that—banks asking 11 of the largest corporate groups to sell off their assets to reduce their debt. The list includes some large players in various industries such as infrastructure, steel, and cement. These companies have been hit by the cyclical downturn in their respective sectors or various other reasons. Additionally, the Cabinet had approved the stake sale of the state-run airline, Air India, and Indigo (India’s largest and most successful low-cost carrier) was the first to send an expression of interest.

If the sale actually happens (and does not get entangled in the legal quagmire, which earlier attempts at recovery have resulted in), then some of the implications as stated below, would be game changers for multiple reasons and could change the face of Indian industry.

Increasing efficiencies