Sustainable Finance: The Indian Way

Modern finance is often seen as a cold, heartless and faceless machine, manipulating billions with complex formulas, as if they were only abstract numbers and, overall, caring little about the very real consequences that the ups and downs of the financial markets can have on the rest of the economy. Similarly, when the corporate giants of finance are mentioned, India is generally not the first place that comes to mind. However, finance in India is a thriving sector that may have much to teach the rest of the world.

In a recent article, Financial Times correspondent David Gait explores the many faces and idiosyncrasies of Indian finance. He distinguishes three defining features special to the country’s financial culture, which could probably benefit the rest of the world. The first one is Dharma, the idea that man is responsible for maintaining the regulatory order of the universe. Dharma may be interpreted as ‘duty’, a concept arguably rare in other financial cultures. Secondly, David Gait identifies how corporate governance has become integral to financial culture in India. Whether in companies with poor governance, such as Satyam Computer, or in companies that take good governance to heart, Indian business leaders have a very clear idea of the importance of social, environmental responsibility and governance for business. According to Gait, the most financially successful Indian firms are the ones that have embraced sustainable developments by systematically innovating to provide affordable, efficient and environmentally friendly products.

All in all, David Gait’s insight into India’s financial culture shows how religious and philosophical ideas have come to mesh with real-world business sense and practical realities to form a very peculiar brand of financial culture. In a fascinating way, the best and worst of India’s industry have helped build a culture that is intent on succeeding as well as respectful of others. India’s financial sector demonstrates a culture of consensus and sustainability that is showing promising results in a world dominated by the pressure for short-term results at any cost. Let’s hope it makes more converts across the world.