Base of pyramid reflects growth of Indian economy: Tata

Calling out academicians, management professionals and students alike to look for "provocative and innovative" means to address the base of the pyramid, Ratan Tata on Wednesday said that the segment reflects growth of the Indian economy.

In his keynote address at the Strategic Management Forum (SMF) Conference on 'Challenges to Inclusive Growth in the Emerging Economies' at the Indian Institute of Management, Ahmedabad (IIMA), Tata said that the consumer market at the base of the pyramid is of around 500-600 million people. A biennial event, SMF is being conducted at various IIMs since 1997.

"We have to find a way to deliver to that market. Can we use innovation and technology to do that? We need to find provocative means for redefining means, products and services to address the base of the pyramid. If we take telecom for instance even a paanshop owner is today as connected as a billionaire. The base of the pyramid is a growing segment and reflects growth of the Indian economy," he said.

 

Tata also mentioned on how his group has worked towards inclusive growth through products that are aimed at masses like Nano car, Swach low cost water purifier and Ginger budget hotels. "With the prosperity that India enjoys today, there is an upward movement of people into the consuming market. We need to be able to devise products to give everyone an opportunity," he added.

Meanwhile, Samir Barua, director of IIMA urged participants at the three-day conference to deliberate "with an aim to measure the words inclusive growth".

"How should we conclude that the growth has been more inclusive? Should it be in life expectancy, literacy, decrease in malnutrition, increase in human development index or decrease in income disparity? These ought to be part of discussions as far as inclusive growth is concerned. The need for inclusive growth is being felt even by the developed world, wherein even the developed nations are talking the language of emerging economies like job creation," Barua added.