1.When our country adopted the socialistic economic model after Independence, the Government entered business of all kinds – from operating mines to running hotels. This was the single most powerful factor influencing industrial growth in India for almost forty years thereafter.

2.The presence of these inefficient monopolistic giants owned by the Government coupled with the License-permit-quota Raj made complete mockery of free enterprise in the country. Only those with a strong capital base could survive and those who mastered the art of manipulating the system could thrive.

3.Over the years, India became established as one of the poor, developing Asian countries, which was perpetually starved for goods of all kinds. Quality was unheard of. On one hand there were millions of people employed in the textile industry, and on the other, the smuggling of cloth into the country was profitable business.

4.A bloodthirsty system of taxation would result in evasion and dwindling revenues. The leadership would panic and increase taxes, and thus drives more people towards evasion. This vicious downward spiral continues till date.

5. The resources engaged in Tax Management do not add any value to the product or services sold by Business and Industry. The burden of maintaining Excise and Taxation departments diverted precious resources from R & D and Quality enhancement. All Creativity and Innovativeness was directed towards inventing new means of tax evasion, rather than product development and excellence.

6.Local industry as a whole is globally uncompetitive – but for a few notable exceptions- in the global arena. A succession of such economically feeble governments resulted in the lack of infrastructure, which has proved disastrous for industrial growth.

7.As Government owned enterprise sunk into the red and the private sector struggled to exist against all odds, foreign companies circled our skies, swooping down and grabbing every opportunity that they could.

8.With the signing of the GATT, foreign companies will not have to even knock at our doors any more. They have the whole market, cheap labour, incentives of all kinds theirs for the asking. They see eager and welcoming governments, state and central, pushing and shoving each other for attention, and begging for investment. And as their competition, these companies usually have the harassed and frustrated and crippled local industry.

9.Professionals and self- employed individuals are essentially entrepreneurs who employ intellectual capital, creative faculties or physical skills. This class of people has their own unique set of problems. They do not have the support base of a business organization, a large number of them live from one day to the next and cannot create substantial assets over a lifetime of working. They have no pension plans, no social security to take care of them when they can no longer work.

10.With the opening up of our markets, there is all kinds of competition coming in from other countries. Professionals and self-employed people will have to upgrade their skills and compete or perish. Without easy access to cheap capital, they do not stand a chance in the difficult times ahead.

11.The gradual implementation of GATT is irreversible. It is bound to influence our entire existence. The question is, are we equipped to withstand those stresses and come through alive?