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In 1991, the 87-year-old J.R.D. Tata had been the chairman of the Tata Group for over 50 years. The group was known for its stability but lacked energy and dynamism. That year, a relatively young Ratan Tata, aged 53, was chosen as the new chairman. His selection raised doubts about his capabilities and acceptability, especially among the older leadership. However, these questions were answered over time, and Ratan Tata gradually earned acceptance, often by making tough changes.

Two decades later, as Ratan Tata planned his retirement in 2012, the Tata Group had transformed into a symbol of vibrancy and innovation. Under his leadership, the group embraced daring ideas, expanded overseas, and maintained a tight brand discipline. As Rahul Bajaj remarked, “Ratan Tata has changed the DNA—almost entirely for the better.”

When India began its journey of liberalization, globalization, and privatization in 1991, the Tata Group underwent a significant transition with Ratan Tata taking over from J.R.D. Tata. The older leadership, loyal to J.R.D., initially resisted the change, as Ratan Tata had no major achievements to inspire confidence. Still, J.R.D.’s decision went unquestioned, and Ratan Tata’s era began.

With the introduction of a younger leadership, the Tata Group evolved into a forward-thinking organization, pioneering bold strategies and maintaining its status as a leader in Indian industry.

Why Ratan Tata's appointment as chairman initially raise doubts among the senior members of the board?

Solution

✅ Correct Option: 3

Option 1 -> The passage doesn't mention he was unfamiliar with the Tata Group.

Option 2 -> Opposition to traditional methods is not cited as a reason for initial doubts.

Option 3 -> The passage explicitly states he was "relatively young" at 53 and "had no major achievements to inspire confidence."

Option 4 -> There's no indication he was unwilling to take on the chairmanship.


Hence, Option 3 -> The passage clearly mentions that Ratan Tata's selection "raised doubts about his capabilities and acceptability, especially among the older leadership" because he was relatively young and "had no major achievements to inspire confidence" at the time of his appointment -> correct

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