These equities were sold at a high premium. The time between his raising of debts and repaying along with interest was utilised by Dhirubhai to convert them into equity shares. These included bonds, treasury bills, mortgages etc. Dhirubhai used to raise high-cost debt instruments from the market. He used a clever sleight of hand to reduce the capital cost to near zero. Along with his political outreach, he used his business sense as well to bypass socialism. His assertions and thoughts did not go unheard in government. He had his friends at each echelon of administrative machinery, whether its peon or an IAS officer serving as secretary in ministries. Slowly, Dhirubhai started to mark his presence in administrative circles of Delhi. Used political outreach as well as business sense to defeat socialism

This was virtually impossible when a businessman had to feed a broker standing in disguise of government servants. To mark itself as a competitive business, the cost of capital (daily needs to operate a manufacturing unit) needs to be negligible. Unfortunately, his vision collided with ultra-socialist policies of the 80s and 90s. He had already spent nearly two decades trying to cross through the maze of corrupt bureaucracy armed with central government’s unfavourable laws and rules of engagement.Īlso Read: ‘ Socialism was inserted during Emergency,’ BJP MP Rakesh Sinha calls for Socialism to be removed from Preambleĭhirubhai now set his eyes on globalising the Indian business space. He knew that a country or any forward-looking business organization cannot sustain itself on redistribution policy.

Since Dhirubhai Ambani had already flirted with socialism during his younger days he was well-aware of the nitty and gritty as well as negative outcomes of this doctrine.

Indira Gandhi’s economic socialism imposed by brute force majority rule of emergency translated into various leaders emerging as regional voices of socialist redistribution agendas.Īlso Read: ‘We need 40% Income Tax & Wealth Tax,’ IRS officers suggest bringing back Indira Gandhi’s socialist era The 1970s and early 80s were times when the socialist movement in India was at its peak.

Dhirubhai ambani ispeech