In his forceful and brief presentation, Bajaj said it was necessary that Indian companies were equipped to face the competition from foreign companies. Indian companies, he said, were now faced not only with domestic competition, but they also had contend with competition from foreign companies which had easier access to technology and capital.
Bajaj said it was necessary for the foreign companies to come to India with a clear perception of the market and with a clear strategy. It was far better for the foreign companies to float a wholly-owned company in India, instead of starting off with a minority stake in a company and later seeking to raise its stake.
The creates misunderstanding and things can become messy, Bajaj said. Bajaj said the Indian government ought to get off the backs of the Indian industry and allow it to operate with least interference and controls.
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In response to Bajajs comments, Percy Barnevik said it was difficult to describe any company as foreign in todays context. As long as a foreign company used local employees and local managers, that company could not be called foreign, Barnevik said. This is true of ABB in India as in other countries, where the foreign stake is often less than 20 per cent, Barnevik said.