Opinion: What Ratan Tata Meant For India — As He Took Tata Group To Foreign Shores, India Shone Too
The year was 1991. As India set forth on a path of radical reform with the opening up of the Indian economy after a severe balance-of-payments crisis, Ratan Tata took over the reins of Tata Group.
In the subsequent years, Tata was credited with spearheading an era of bold acquisitions and expansion for Tata Group, leading it to make a mark beyond India. But that’s not all. The business titan also helped catalyse industrialisation in India.
Even so, at this juncture of transformation of the Indian economy, one should take a moment to appreciate not just what Ratan Tata meant for the Indian economy, but also society. A notable philanthropist, he kept India’s interest at the heart of all his endeavours, and gave back with abandon.
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Many A Mark Made
Since industrialisation is considered vital for the growth of an economy, Tata Group established India’s first integrated steel plant — TISCO or Tata Iron and Steel Companies, now Tata Steel — in 1907 at Jamshedpur (in present-day Jharkhand).
Tata Group diversified into industries such as electricity and consumer goods. It’s one of the largest manufacturers of tea, and has also played its part in boosting education by establishing the Indian Institute of Science (IISc) and Tata Institute of Social Sciences (TISS). Tata Memorial Hospital, a leading institution in the realm of cancer, marks the group’s contribution towards healthcare.
After taking helm at Tata Group, Ratan Tata focused on expanding its businesses and putting the conglomerate on the global map.
To do this, he knew he had to look beyond Indian shores.
Hence, in 2000, the Tata Group acquired British tea firm Tetley for $432 million. Anglo Dutch steelmaker Corus was acquired in 2007 for $13 billion — at the time, this was considered the biggest takeover of a foreign firm by an Indian company.
The next year, Tata Group acquired British luxury auto brands Jaguar and Land Rover from Ford Motor Company for $2.3 billion
This purchase cemented Ratan Tata’s image as a visionary of the automobile industry.
In 1998, Tata Motors manufactured Indica, the first car model designed and built in India. Indica was Ratan Tata’s dream project, and he contributed to the initial sketch of the car.
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However, due to low sales, Tata Motors initially decided to sell it off to Ford Motors. A meeting in this regard between Ratan Tata and Bill Ford, the Chairman of Ford, did not go well, and the former decided not to sell the production unit.
Tatas’ subsequent acquisition of Jaguar and Land Rover has been hailed in media reports as fitting revenge. The deal made Tata a world player in the automobile industry. The manufacturing of Tata Indica and Tata Nano — billed as the cheapest car — reshaped the Indian automobile market.
Tata Group’s contribution to India’s economic modernisation is immense. It has put India in the league of industrialised and hi-tech nations. Ratan Tata not only made Tata Group a global name, but brought India global fame too.
The author is an associate professor in the Economics Department at Aryabhatta College, Delhi University.
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