In September 2018, a meeting with Prime Minister
Narendra Modi
marked a pivotal moment for Sunil Bharti Mittal-led
Bharti Airtel
, which was grappling with a severe crisis at the time, according to the Bharti Group founder.
Airtel was struggling due to the impact of free voice and data services provided by new entrant
Reliance Jio
and a series of decisions by the telecom regulator that negatively affected the incumbent market leader, Mittal told ET.
Mittal, who had recently concluded his chairmanship of the International Chambers of Commerce and used to occasionally brief the PM on WTO, G20, and other matters, sought permission to discuss the Indian telecom industry’s dire situation. During the meeting, conducted in Hindi, Mittal conveyed to the PM: “I will fight in the marketplace, but I can’t fight the government.”
In response, Modi assured Mittal that the government would not favor either side and would act in the best interest of the country. He encouraged Mittal to compete in the marketplace, emphasizing that the government would remain impartial. Mittal expressed his gratitude and considered this meeting as a crucial turning point for Airtel.
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“He told me that this government will not tilt towards either side. Whatever is good for the country will be done. You fight in the marketplace. I don’t have a view on that. But from the side of the government, you can be sure that the government will not take sides,” Mittal said. “And that was enough for me. I got up and thanked him… This was the turning point (for Airtel),” Mittal was quoted as saying.
During the interview with the financial daily after Airtel surpassed the $100 billion market cap milestone on May 27, Mittal shared his recollection of a meeting with Modi. The company had overcome numerous challenges in its nearly three-decade history to reach this point.
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Mittal expressed that the meeting with Modi provided him with an indescribable energy and inspiration. “Sometimes you need an inspiration. I do that to my troops. I needed that from someone. There was a very strong special message (from the PM): Fight in the market. Here was a man telling me-who has himself fought against a lot of odds-that you do your work and be very reassured that this government is going to only do things that are good for the nation,” he said.
This encounter led Mittal to view the regulations, which he had previously considered unfavorable to Airtel, from a broader perspective. He realized that lower tariffs might have been advantageous for the government politically and could have helped democratize data services. The reassurance that there was no hidden agenda allowed him to see things differently.
Airtel’s market cap has grown by more than $80 billion in the past five years, from around $19 billion in 2019, which was less than the total investment in the business up to that point.
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Mittal firmly believes that the notion of the government favoring only a select few is entirely misplaced. He sees Airtel’s $100 billion market cap as a testament to India’s current state, not just his company’s success.
He highlighted the influx of money, capital, and investments into the country, along with the rising stock market and massive valuations, as indicators of a stable, solid, and functional economy under a strong leader.
