Focus should be on smart talent, not labour arbitrage: Ronnie Screwvala

he highlighted that India has a significant opportunity to position itself as one of the world's most innovative nations by focusing on developing its talent pool

Amid debate over a 90-hour work week, serial investor and upGrad Chairperson RONNIE SCREWVALA argues that both companies and countries are now seeking the brightest minds, rather than simply relying on labour arbitrage. Screwvala, who was in Davos last week for the World Economic Forum (WEF) annual meeting, tells Peerzada Abrar in an online interview that India has a huge opportunity to position itself as one of the world’s most innovative nations by focusing on developing its talent pool in areas like artificial intelligence (AI) and emerging technologies. Edited excerpts:

 

What are the key takeaways from the WEF? 

Five years ago, networking was key. I think people are now finding that they need to be there to connect. But I don’t believe the ROI (return on investment) on business comes through. I’m not talking about India. This is a general observation. The second takeaway is that all of Europe is more scared of US President Donald Trump than his Russian counterpart Vladimir Putin. That is actually good in some ways. However, I think there are going to be a lot of knee-jerk reactions related to politics, defence spending, and alliances. The third takeaway is the incredibly high decibel noise about AI.

 

Do you see any impact of Trump’s tariff policy on India? 

India is a very different place for the US. There is mutual respect on both sides for different reasons. Personally, I feel the India-US relationship will be about give and take, which is how it should be. People recognise that the entrepreneurial power and work discipline of Indians around the world is incredible. What we’re accomplishing in space exploration and various other fields is respected globally. It is now recognised not just as outsourced labour, but as the work of smart people. The crux of everything today is going to be who has the best talent pool.

 

Could you elaborate on it? 

Organisations and countries are looking for the smartest people, not labour arbitrage. That is a massive opportunity for learners. I think the future for the next generation is going to involve multiple jobs. This is how the DNA of people is going to change. I can be a specialist in two different areas. This is why I think the whole conversation about the 90-100-hour work week is redundant. The younger generation is looking at a “switched-on work-life balance.” So, what Infosys co-founder Narayana Murthy and L&T Chairman and Managing Director S N Subrahmanyan may call work, the younger generation terms it “how switched on are you?”

 

What role are edtech firms like upGrad playing in shaping these talent pools? 

At Davos, upGrad signed a partnership with Maharashtra to create a world-class AI talent base for global jobs and drive job opportunities across the state. With an initial outlay of Rs 2,150 crore, the initiative will establish upGrad Institute of AI Excellence Centres across Maharashtra to equip over 1 million students in AI and emerging technologies. In this state, if we’re going to be the commercial capital, we will not achieve the required level of investments and innovation unless there are talent pools. That is the role I want to play. In various states where most organisations are going to set up their most innovative manufacturing facilities, data centres, and Global Capability Centres (GCCs), the talent pool must meet a particular standard.

 

What gap do you aim to address related to AI and emerging technologies, and what impact would that have on career trajectories? 

There is a baseline level of AI that everyone in India needs to achieve, which is very important. This applies to everyone, from CEOs to workers at the bottom. For instance, many in the advertising field lost the plot because they didn’t understand the digital era and relied solely on television and broadcasting. The other part is that we need to be extremely innovative. This is a recent trend in the world, and there will not be a clear winner as a country. India can really step up. As Indians, we have incredible work discipline and a touch of entrepreneurial flair. Our work ethics are second to none globally. When I look at the talent base and psyche of people in both rural and urban areas, if anything has shattered our self-confidence, it was the British colonial rule. It has taken us 40-50 years to overcome the belief that we are subservient. Today, there is a clear sense of self-confidence and pride. We have the demographics, talent pool, and work ethic, and if learners are trained in AI, we can be on par with any other country in the world. This would create new jobs. By 2047, India is expected to emerge as one of the world’s youngest nations demographically, with a projected per capita income between $18,000 and $20,000, up from $2,000-$3,000 now. I believe AI and technology will spearhead that per capita growth.

 

Is upGrad planning more partnerships with various states as well as tech majors to train talent in areas such as AI and emerging technologies? 

I wouldn’t classify the pact signed with the Maharashtra government as a public-private partnership. The government here is an enabler, providing support and promoting it. Those models work better; PPP tends to slow things down. We also plan to partner with many corporations. Many of them are looking to set up GCCs and training centres and want access to the talent base. Today, we must design courses that are relevant to the workforce. Otherwise, we will continue to talk about the need to train talent when they join organisations.