Companies' Sensex tenure pared by 80% post liberalisation: Economic Survey

Higher dynamism has helped the emergence of new firms which have challenged the old order, survey notes

A Sensex company which could expect to stay in the index for sixty years before liberalisation, found its tenure cut short to as little as 12 years after India's economy opened up. One-third of firms exited the index every five years shows data from the economic survey.

Higher dynamism has helped the emergence of new firms which have challenged the old order, noted the economic survey. 

“…the years following 1991 liberalisation saw the rapid emergence of new firms, new ideas, new technologies and new operating processes, causing a steep revision of the Sensex…,” it said. 

Half the firms were replaced in 1996. Subsequent