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'The only way patronage can disappear is if decision making is removed from the hands of the government'

No, I don't think so. I think it should be left to the entrepreneur to decide. Who should tie-up, who should come. It should not be restricted. I don't think that the government has a role to play here. The government may lay down some broad policy which should be more in terms of welcoming people rather than restricting them.

For instance, should the cellular phone business only have x number of foreign entrants coming into India?

I think in certain infrastructure businesses certain regulations are necessary. Because if you do not restrict you cannot have an efficient organisation. If you have 20 power companies supplying one city, none of them will be efficient or economical. So in infrastructure there needs to be some regulatory authority. That's all over the world. In non-infrastructure areas I don't think the government has any role to play.

What would be a reasonable policy for the federal government to adopt towards MNCs?

I think the policy should be very liberal. Open up more and more. Get out of the way of decision making more and more. Allow Indian and international entrepreneurs a freer hand all the time. They are the best decision-makers, not the people sitting in Delhi.

Do you think the government's industrial policy has been successful in eliminating the environment of patronage that flourished under the license raj regime?

I think it has reduced considerably. If they free decision making further then it can be totally eliminated. If decision making is not done in Delhi, then what is the need for patronage? What is the reason for patronage? The only way patronage can disappear is if decision making is removed from the hands of the government to the people.

Are industrialists still compelled to pay court to politicians to get faster clearance for their projects? Can politicians still stall projects?

I must say much less than before. It will not be totally eliminated until the government has absolutely no decision making power which is unlikely because in infrastructure etc it will always have a role to play. I don't think there is any country in the world where patronage doesn't exist. It is a question of shades of gray. Neither black nor white anywhere.

Yes, of course, politicians can still stall projects. To a certain extent, yes, but much less than before.

Do you think corruption can ever be eliminated from India? Liberalisation is all very well, but can it change the Indian mindset?

I don't think corruption can be eliminated from any country in the world. But it can be contained at the roots very considerably and it should be.

Gradually, the Indian mindset can change. I think the mindset of the young people is certainly very different than the older lot who have grown up in the socialist time. Yes, I feel it is changing.

Adi Godrej continued ,