Business journalism in India

By V Balasubramanian & K T Jagannathan
We have ventured to write this article on Business and Financial Journalism utilising our leisure time during Covid, drawing on our over three decades of experience in the field. We do realise that Covid has made the job of a business journalist a lot more difficult. News generation has become complicated in times like these when face-to-face meetings are avoided. We are indeed hoping that this phase too shall pass sooner than later. The emerging new economic order in the post-Corona phase, to be sure, will make the role of business journalists more relevant. Nevertheless, the new order will mean more challenges.

With the proliferation of communication channels (especially social media) in the Internet age, readers and viewers are looking for credible business news. The mainstream business media, including leading business dailies and TV channels apart from established newspapers, are better placed to serve
the need. We do hope this article will serve as a useful guide and reference material for all those stakeholders in the field of business journalism.

 

A peep into the past
Business and financial journalism has grown and sailed smoothly along Free India and its planned economic growth through Five-Year Plans. Since 2014 when the NDA Government led by the BJP returned to power, the Central Planning Commission has been replaced by a Think Tank called Niti Aayog. Over the past few decades, Business and financial journalism has consistently gained momentum in the country. Indeed, mainstream political publications sensed the potential for business news long ago. That gave birth to full-fledged financial newspapers in the country. Financial Express and The Economic Times were launched in 1961. Then came Business Standard, which was launched from Calcutta in 1970. The Hindu Business Line came into being in 1994 and the HT Mint came much later. Business and Political Observer, originally launched by the undivided Ambani Group, and Financial Chronicle, published by Deccan 

Chronicle, had since moved into the pages of history after being in the field for some years.

About the authors

 V. Balasubramanian served Financial Express in Mumbai and Chennai from 1979 to 1989 and ET Chennai from December 1989 till retirement in March 2013. He was heading the Chennai Bureau of The Economic Times. He scored first class in MA Economic from Kumbakonam Government Arts College. He was Assistant Resident Editor of ET Chennai.

K T Jagannathan worked in various publications - Financial Express, The Economic Times, The Indian Post, Free Press Journal, Business Standard, Business India, Indian Express and The Hindu. Jagannathan now writes for The Wire, Telangana Today and the like. And, he held the position of Associate Editor at The Hindu.

The change
Business journalism has seen a big metamorphosis over the years. In a controlled economy with plan models and a lot of centralisation, the focus was on reporting and writing articles on Central Government, Five-Year plans, Union Budget, and public sector undertakings, which, once upon a time, dominated the national economy. As it was a control and licence raj till 1991, private sector could enter only limited areas with licence and capacity limits. Capital markets, both primary and secondary ones, had limited roles, and not much funding was raised through public issues and other instruments. Along with Mumbai Stock Exchange, we had regional stock exchanges in Calcutta, Delhi and Chennai which had some listings by some local companies.

During former times (much before the onset of liberalisation and globalisation), the job of a business journalist was to inform the readers (mostly business and industry) the policy actions of the governments and provide key inputs for stakeholders of all kinds to arrive at an informed decision. Mostly, the job of a business journalist was one of a facilitator (of information). He/she provided a useful link or tool in the decision-making process. After all, information on critical numbers at that point of time was hard to access by all and sundry. Given this backdrop, business/financial journalists did serve as the bridge in those times between the establishment and the industry. Much water has flown under the bridge since those pre-liberalisation days.

From our long experience, we can say that the profession of business journalism is challenging and demanding. While it is exciting, it now calls for a more creative mind, alertness, patience and perseverance. We have very discerning readers. Business journalists have to be watchdogs. There is vast scope for specialisation. There are so many beats now available to cover.

Liberal era
Things really changed in India when Prime Minister P.V. Narasimha Rao combined eloquently with his Finance Minister Dr. Manmohan Singh to push India into a hitherto unknown path. The country has come a long way since then. Thanks to this duo, liberalisation started sweeping the Indian shores. De-control, de-licensing, liberal foreign direct investment/joint ventures and easy rules for raising funds from the capital market, the country had been witness to unthinkable changes.  There was a big shift from a mixed economy model of having PSUs (public sector undertakings) and private sector units to opening up of several sectors to private corporate sector, MNCs (multinational companies) and foreign players. Capital markets developed manifold with a plethora of instruments such as public issues, mutual funds, debentures, GDRs (global depository receipts), FRNs (floating rate notes), PNs (participatory notes) et al. Sweeping changes and amendments have been made in the Companies Act, laws relating to starting a business, operating a business, industrial relations, human resource management, CSR (corporate social responsibility), service providers. The SEBI (Securities and Exchange Board of India) has come to play an increasingly critical role as a watchdog to monitor the stock markets, corporate governance and disclosures. Also, new generation entrepreneurs have entered and grown fast in a number of fields with the

scope for raising funds from private equity and venture capital. Similarly, the role of RBI (Reserve Bank of India) and other regulators, statutory bodies, courts, company law-related institutions and others, too, has undergone an incredible transformation.

Content mix
We have seen a big change in the content of business papers in the last 30 years. No doubt, they continue to cover news relating to government policies, corporate sector developments and stock and commodity markets. However, business papers, business TV channels, online media and content writers have realised the need to insulate the circulation, readership and viewership from the vagaries of ups and downs in stock market, business and economic slow-down. They have started diversifying the content with more stories and analysis on lifestyle, healthcare, business life, leisure, education and careers, HR, consumerism, brands, advertising and marketing apart from covering political developments at
the national and state levels.

Business journalism
For a long time, a career in business journalism, either in reporting or editing, was pursued only by those who studied Economics and Commerce or English and by those who had a flair for writing. Over the years, dedicated journalism schools have started offering courses. As time went by, the profession also started attracting specialists such as bankers, CAs, MBAs, engineers and techies.

Importance of Economics

After the global financial crisis and melt-down, Economics as a subject has gained importance. It governs the life of individuals, society and modern States. Knowledge of Economics helps in solving many problems, and the study has practical advantages. Increased importance is also given to studying Business Economics, which is defined as the integration of economic theory with business practices for the purpose of facilitating decision-making and forward planning by management. It is also known as Managerial Economics.

Joy in breaking news
More than the salary and positions, we would say there is more joy for business journalists in breaking a big story ahead of competitors. This is called the power of prior knowledge. It is acquired based on the solid contacts they have developed over the years, trust they have built with their contacts and the passion and knowledge with which they followed up a news development. The way in which a newsbreak is presented to readers has changed a lot over the years. There is a sea change in the style of reporting and the way in which a news break is presented in TV channels, online media and print editions.

Today, news breaks are about delivering a “distributed information’’ first! In our times, news break was about delivering exclusive information (not available to competing-journalists). In an era when there was no Internet, no Google and poor phone connection, news breaks often gave us enormous satisfaction and immense pride. More than the monetary compensation, we cherished a word of appreciation from our boss. Such words were enough to make good for all troubles and tribulations we had to encounter as business/financial journalists in those days.
In news reporting, there is a big shift from B to B to B to C. That is, the news is reported not just to cater to a specific industry or enterprise. Today, we have to keep in mind the interest of a wide range of readers who are like customers for business media. Business journalists have a lot of responsibility in writing a report without bias. They have to look beyond news releases and press meets and package their reports with wealth of information about the news development. Their perception should reflect the market. They should discern emerging trends and write reports and articles (disseminate information) in a simple language and in an easy-to-comprehend manner. The objective must be to educate them and enable readers across canvas in their decision-making process. They should don the role of a catalyst - a change agent - for public good.

Regional media
Of late, business dailies and business TV channels have been facing competition from general newspapers and TV channels. Also, foreign media such as Wall Street Journal, Financial Times, Bloomberg and Reuters (whose contents have been sourced) have turned the turf tough. Regional newspapers in different languages, TV channels, online media and the like have also started tracking and reporting business news. Global melt-down and financial crisis in 2008, big ticket economic reforms and demonetisation have all created a big awareness among the readers and viewers about economic and business news.More than a decade ago, in a pioneering move, The EconomicTimes and Daily Thanthi, the number one Tamil Daily, forged a tie-up with one page of ET published in Daily Thanthi. It proved a big hit, helping Thanthi readers understand the business developments. Later, other publications tried to copy the model with limited success. Exclusive business journals were also launched in some regional languages. Along with business TV channels, regional  TV channels, too, started covering business news.

Globalised environment

We see increasing scope for business news and, in turn, career prospects for the business journalists with India coming to play an important role in the global economy and contributing a lot to global growth. After reforms and liberalisation, India has moved to the centre-stage in the economic space. As it had weathered several internal and external shocks in the past, it is sure to weather this Covid storm as well. It is set to become a vibrant economy seeing good growth in manufacturing, infrastructure, housing, agri-related fields and service sectors such as IT, financial services, healthcare, education etc. It is also set to emerge as a major exporter of goods and services. India has seen the emergence of a new class of entrepreneurs. Every business is becoming organised. Public expenditure by the Centre and States will play a
major role in stimulating growth in the economy. Alongside our growth story, the job market will be expanding. Every year, the organised sector alone is estimated to be generating a million new jobs by over 1,000 companies across 11 industry segments- banking and financial services, education, energy, hospitality & travel, IT, ITES, real estate & construction, trade, transport and manufacturing.
Following are major developments that will increase the scope for generating business news.
1. India has moved to the centre-stage in the global economy and is on the threshold of becoming an economic super power. Clearly, India pride stories are very in order.

2. More global players\MNCs, NRIs and people of Indian origin have entered the Indian market directly or through joint ventures (for marketing, manufacturing & outsourcing. With increasing privatisation, corporatisation and big ticket investments in infra projects, the opportunities are plenty.

3. States are vying with one another to be a part of the India growth story. Good politics has come to drive good
economics (in terms of better governance, ease of doing business, transparency and quick decision-making). Again, these throw up a host of writing assignments for a journalist.
4. With the increasing size of India Inc, more billion dollar companies, more number of Indian companies going global and M&As, there is a lot to learn and report.
5. Youth power, aspiring middle class, consumerism, increasing disposable income, wealth distribution, growing investor population – all these have the potential to excite a business journalist. Indeed, there is immense scope for dipping deep and doing quite a research to come out with lovely reports.
6. New class of first generation entrepreneurs are entering the
manufacturing and service sectors, and they are open to raising funds from the market and private capital. This provides an entirely new knowledge space for business journalists to explore and disseminate.
7. India-born and educated professionals are shining as business leaders, CEOs in MNCs and global organisations.
8. Every business is becoming organised - be it retailing, recreation, tourism, facility management, film making.
9. Agri and rural India is joining the India growth story. Better price for farm produce, investment in farm gate
infrastructure and the like are exciting subjects to probe and write.
10. Structural change in the economy is still on. Service sector is contributing maximum to the country’s GDP and job creation. Indian manufacturing sector has stood the test of time, riding on the Make in India policy.

11. The emerging new business models post-Covid, increasing work from home and work from anywhere practices, relocation of work places, decongestion of metro cities, development of tier-two and three cities – all these present a host of opportunities for business journalists to explore.

Role of stakeholders
Everyone should understand the changing dynamics of business journalism. They should treat journalists as partners in their progress. In turn, journalists should have a dream to excel in their career path. Unlike their colleagues in general papers, they have tremendous learning opportunities. They can utilise the opportunity by participating in meetings conducted by industry bodies and professional institutes and listening to CEOs, experts, resource persons and business achievers. This will help them in networking and building their contacts. Developing contacts and sources is an art - it can be built by way of courtesy, trust, honesty, integrity, fostering long-term relationships and humility. Seniors should share their experience, knowledge and contacts and groom their colleagues without any hesitation in the interest of the media. PR managers and corporate communication heads should be equally knowledgeable, understand the changing dynamics of news content – the shift from B to C, and share what is of interest to readers instead of only their clients and educating their staff on the business of clients.

Finishing school 
Business media journalists have to constantly upgrade their knowledge and sharpen their writing style, copy editing and page-making. Like in other professions, there is a need for finishing schools for running orientation and training sessions for them with the help of seniors, business leaders, professionals and resource persons.

Challenges aplenty
Market is opening up to more players. A platform or brand pull will no longer fetch them exclusive stories. Whoever is alert will get it first. The trend of companies getting delisted and becoming privately-held means less disclosure by MNCs compared to Indian companies. The SEBI has widened disclosure norms for listed companies. It will be increasingly difficult to spot the news ahead and break it before others. But, with contacts and domain knowledge, it is possible to give more value addition in the reports.

Career opportunities
After a formal degree in journalism and communication, the candidates can look for working in the mainstream media world consisting of newspapers, magazines, TV channels, online, FM Radio, or take up a job as communication executives for corporates, governments, public sector firms, NGO, research bodies, credit rating agencies, institutions et al. Depending on the educational background (science, arts, commerce), one can pursue career in general fields or specialise in business or economic journalism. It is essential to have knowledge of Economics
and business terms even for general journalism.

Roles & responsibilities 

 Business media should not become another mass media that is seen growing without masses. Instead of reporting on trivial things, it should highlight legitimate causes of national pride, good work being done in every nook and corner of the country - be it by an individual, department, agency, organisation, NGO or a corporate. It should become a vehicle for spreading good messages and soft stories. Business media has a big role to play in nation building. When the media begins to identify and deal with development issues on a sustained basis, they will generate public discussion and help governments and the people like to arrive at well informed opinions. We want to transform India into a developed nation. That means achieving complete freedom from poverty, illiteracy, unemployment and regional and social disparities. Therefore, development journalism should move to the centre stage. If the media has the power to shape and mould public opinion, it has to be done within a framework of fairness and impartiality. We need to move “from freedom of information to free flow of information, from the free flow of information to the free and balanced flow of information” as a UNESCO report said.