India can lead World out of slump - Auditing and Consulting
November, 10th 2009
Jim Quigley, global CEO of auditing and consulting giant Deloitte Touche Tohmatsu, says India has the capability to lead the global economy out of recession. Speaking to ET, he appears gung ho about the India growth story and disclosed plans to spruce up Deloittes headcount in the country by as much as 30% over the next three years. Excerpts:
What is your view on the current economic scenariohave we come out of the downturn? The global economic slowdown was absolutely unprecedented and it did cast its spell on the West. In my view, countries such as India, China and Brazil were better off and were not impacted to that extent.
In other words, technically they did not go through recession at all. With regard to India, I would say it is enjoying a superior GDP growth at a time when many countries are still struggling and it definitely has the potential to lead the global economy out of recession.
Have you reviewed Deloittes expansion plans in the country?
India is a very attractive market and Deloitte has a strong presence here. We already have 11,500 people and want to raise the number to 15,000 by the end of 2013. We have a powerful business model, based on strong local roots and global connections, united by a common culture.
It is a winning model and has resulted in substantial growth worldwide in audit, tax, financial advisory services, consulting and merger & acquisition services. In line with Indias economic expansion, our firm is providing services not only to Indian companies doing business in the rest of the world, but also to foreign companies operating in India.
According to you, what are the hurdles that India needs to overcome to tap its full potential?
India should liberalise the FDI regulations further, especially in sectors such as retail and insurance. Financial reforms are imperative for any nation to succeed. Plus, we must remember one thumb rule, capital goes where capital is welcome.
In light of the recent Satyam fraud, is there any need for special belt-tightening in terms of accounting and auditing practices in India?
One incident like this cannot affect our business practice. We have the right people, the right talent and the right client base in India, so there is hardly any chance of faltering. Plus, we adhere to a very stringent quality control and carry out an annual inspection exercise to ensure there are no loopholes anywhere, be it accounting, auditing or any other practice areas.