We must use our demographic assets: Steria India CEO

Mukesh Aghi, chairman and CEO, Steria (India) said today in a panel discussion at the Nasscom India Leadership Forum that the country's demographic assets must be used effectively, else the next 20 years will go waste.

The discussion was moderated by Kiran Karnik, former Nasscom president, and included panelists N Chandrasekaran, CEO and managing director Tata Consultancy Services, Rajiv Bajaj, managing director Bajaj Auto and Mukesh Aghi. The talks were about "Crisis of confidence: Economic aftermath of a fractured polity".

Aghi said that although the present economic situation looks bleak, the government is suffering from policy paralysis. It is focussing on more populist agendas such as the Food Security Bill, which is likely to add to the country's economic woes, rather than support a faltering economic system in which international investors are beginning to lose confidence.

"Ours is not an export-oriented economy like China. We better improve on our policies to be able to grow in the next 5-10 years," he emphasised.

Echoing Aghi's sentiment, Chandrasekeran said that we are in a unique point in time where different economies need different remedies for their problems. Europe needs to restructure itself, the US needs to reinvent itself and India needs to re-energise. There is too much negativity and the general nervousness due to the economic crisis is only adding to it, but we need to move on, he added.

Chandrasekaran added, "We can see from the US markets that the recovery is gaining momentum, but the path of the trajectory is still unpredictable."

However, he seemed more positive about the IT sector. "Technology will play a bigger role than ever. Optimisation and the opening up and combination of new technologies will be trends that will change the face of businesses in five years' time and in a way which cannot be predicted now," he said.

Bajaj, presenting a completely different perspective on the subject, said that by working withing the policy framework laid out by the government, a lot of sectors have benefitted.

"The stringent manufacturing standards of two-wheelers and three-wheelers in India have always helped us maintain a focus on quality and weeded out manufacturers who could not adhere to the standard. It has helped consolidate the automobile sector in India. Even China, the biggest motorcycle manufacturer in the world has not been able to enter India due to these high standards," he said.

In response to questions posed by the audience, the panel highlighted the need for education, infrastructure and employment to sustain the economic momentum of India. The speakers were united in the opinion that our problems are self-made. Bajaj pointed out that if businesses specialise and stay healthy, banks that finance their investments stay healthy leading to a healthy financial structure and consequently a healthy government. A healthy government forms healthy policies. Hence it is the responsibility of businesses within the system to create a healthy economy."

In conclusion Aghi said that there is light at the end of the tunnel because the Indian youth has powerful ambitions, while Bajaj said we must identify our susceptibilities and overcome them. Chandrasekaran was confident that India has the talent and the technology to get the better of issues that are plaguing our economy. Karnik closed the discussion with emphasis on a policy framework that finds the right balance between financial and social stability.