India, today, is a widely preferred business location for companies all over the world because of its robust regulatory framework, sustainable environment and a polished talent pool. However, was this the case in the earlier days after independence too? The answer, without any thinking is, a clear ‘No’. So, what has made a difference? The answer to this question is the advancement that has been constantly and promptly captured and curated in the corporate governance sphere. Decades ago, there were a majority of family businesses which crowded the market, with minimal accountability and maximum resistance to regulations. When liberalization hit the economy, what came was a seismic shift in the manner in which corporations were governed in India.
Globalization and liberalization brought with themselves immense competition, wherein Indian companies had no choice but to up their standards by getting regulated and abided by the law. This is where the real shift started, from nepotic business houses to board-room supremacy. Therefore, it is safe to say that corporate governance in India has seen its evolution not in a linear motion but through blazing its own path through demands, crisis, reforms and necessities.
