Ruchir Sharma, Chairman of Rockefeller International, has highlighted the challenging business environment in India, which is driving many entrepreneurs to establish their firms in places like Dubai and Singapore. While he acknowledges that India’s macroeconomic management has been “reasonably good,” he raises concerns about the microeconomic challenges and the overreach of investigative agencies that are causing domestic talent to look abroad.
In an interview with Network 18’s Zakka Jacob and Bodhisatva Ganguli, Sharma emphasized that India’s regulatory and investigative apparatus is perceived as being “out of control,” instilling a pervasive sense of fear among entrepreneurs. He noted that the complexity of rules and regulations often forces businesses to operate in a way that risks non-compliance, making them vulnerable to government scrutiny.
Sharma also pointed out that this environment is stifling private investment, which is crucial for India to break out of its current “6 percent-type growth rate,” which he described as the country’s steady state equilibrium. He further commented on the issue of underemployment, indicating that while the stock market boom benefits a relatively small segment of the population, the majority, around 500 million to 600 million people, remain unaffected.
Moreover, Sharma remarked on the diminishing returns of the BJP-led government’s Hindutva strategy and the growing demand for strong opposition, particularly in the context of the recent Lok Sabha elections. These elections saw a spirited performance by the opposition, which denied the BJP a majority in the lower house and reduced the NDA’s seat count to 293, down from 353 in 2019. The conversation also touched on allegations that the government had used investigative agencies to pressure businesses into making donations through electoral bonds, an issue raised by Congress and other parties.
