Time to make right investments, leverage R&D strength: N Chandrasekaran

His remarks come against the backdrop of century's worst crisis triggered by the pandemic. India's GDP is expected to contract by at least 2.5% next year

The Covid-19 has been a harbinger of economic hardship and unleashed an unprecedented crisis on all aspects of life.  But it contains within it an opportunity for profound change and if we’re brave, we too can imagine a new way of living, said N Chandrasekaran, chairman, Tata Sons said in his opening remarks at the 26th Lalit Doshi Memorial Lecture on Tuesday.

The current scenario, pointed Chandra, is an opportunity to make the right investments and leverage the strength the country has in R&D, science, technology, AI, advanced manufacturing and next generation products and services. “We have the right human capital. We have the scale. It’s time to make the right investments. “We need to start with our fundamentals,” said the chairman of the Tata group holding firm.

His remarks come against the backdrop of century’s worst crisis triggered by the pandemic. India’s GDP is expected to contract by at least 2.5 per cent next year. Drawing a parallel with the Spanish flu of 1918, he said history shows that, with the right sprit, progress can follow a setback.

In  a recently released report, brokerage Nomura said the June quarter will be the 'nadir' from a growth perspective and the economy will contract by 15.2 per cent and the GDP will not come into the positive territory in the remaining part of this fiscal.

It estimated contractions of 5.6 per cent in September quarter, 2.8 per cent for December quarter and 1.4 per cent in the March quarter, which will give a full fiscal GDP at negative 6.1 per cent.

 “A century ago the response to a pandemic inspired a movement that became the change that people saw in the world. That is what we have in our sights now,” said he adding that is India’s opportunity in the decade ahead.

The pandemic, according to Chandra could be a catalyst towards the adoption of digital technology which will open health and education to millions. It can also be a starting point to towards building a more resilient economy and creating a more sustainable future.

“These are the three things we need to do to repair and fortify the fabric of the country. This is the springboard into a new India. This is the promise hidden in this crisis,” said the marathoner and the Tata lifer who has been steering the conglomerate since the current crisis.