Come on India, the time is now

Even as dark clouds hover over the economy, there are reasons to be optimistic about the future

It was the best of times, it was the worst of times” was the phrase coined by a famous author that enthralled us when we were studying English literature. Suddenly, we find this to be an apt description for the phase we are passing through in the world and in India.
 
The slowing of the Indian economic engine is evident from the decline in gross domestic product (GDP) growth, from 9.13 per cent in January-March 2016 to 5.72 per cent in April-June 2017. The residual effects of demonetisation and the goods and services tax (GST) may still affect GDP growth for a few months before they start delivering the benefits that are bound to unfold. Private investment and consumption growth have both been sliding over the last year, with capital formation and growth of credit remaining anaemic. Industrial production is a matter of concern and continuing sluggishness in large export industries such as software and textiles are resulting in export numbers much lower than one would like for a country that can provide so much to the world. A strong rupee is causing a surge in imports and a widening current deficit. Government expenditure, which has shored up the economy at this critical time, may have to be reined in if fiscal deficit commitments have to be met.
 
Despite these clouds darkening our economic skies and the world economy continuing to be sluggish, what is the basis for optimism that this can still be the beginning of the best of times? For one, we have a strong leader, who has most of the nation behind him, and a new Cabinet, which raises hopes that strong actions across a variety of areas is around the corner. The new focus on skills and education should also encourage agencies and institutions, which are engaged in preparing the 10 million plus job seekers who enter the market each year. After a predictably slow start, initiatives such as Digital India, Start-Up India and Skill India are on the right track. The availability of access across the country will open the floodgates for a slew of applications that will touch every panchayat and citizen in the country.
 
However, there are two clear areas that will need razor-sharp focus in the build-up to the next Budget; the crucial fiscal year, 2018-19, will demonstrate the success of this government in the economic sphere. The first is to spur the investment climate in India; the second, probably a related challenge, is to accelerate job creation in the formal sectors as well as in innovative new areas of human endeavour around the country.
 

SET FOR A FILLIP Export markets, which have traditionally been the sweet spot of the information technology sector, need to be tapped with new solutions created by trained Indian engineers

The last area needs to engage the attention of policy planners and organisations such as Social Venture Partners (SVP), which are trying to identify scalable skilling agencies that can enable millions of Indians with limited education to build sustainable livelihoods for themselves. Entities that the SVP is working with — SEWA, Vrutti, industry, Jagruti and the NES Milestone initiative that applies technology to scale skill development initiatives like the Pune Skills Lighthouse success story — have all shown that they have the potential to enable and prepare people for millions of new jobs and entrepreneurial pursuits in health care, infrastructure, agriculture, tailoring and artisan areas. Recently, Prime Minister Narendra Modi alluded to the many jobs that could be created around the new statue planned for Sardar Patel and the efforts of new entities like Live History India to showcase relatively unknown tourism destinations can lead to huge number of jobs just in the areas of history, culture and tourism. We need to look beyond the obvious and explore new areas that can keep both the young and the old gainfully employed.
 
Finally, there is life yet in the old sectors, manufacturing and information technology (IT). We need to address the demands of the fast-changing global economies where every large firm is engaged in digital transformation. Export markets, which have traditionally been the sweet spot of the $150-billion IT sector, need to be tapped with new solutions created by well-trained Indian engineers, deploying their skills in large and medium firms as well as start-ups and new model product and platform companies. Every manufacturing firm, small medium or large, must embrace Industry 4.0 technologies, processes and culture and transform customer access, supply chains and shop floors to build global competitiveness through appropriate use of technology everywhere.
 
Finally, we would do well to remember that India’s prowess in IT is what brought one industry to world leader status and inspired confidence in an entire generation of Indians that they could truly be citizens of the world. That prowess is still intact and needs more new firms and existing large incumbents to apply their technology innovations to the problems that are facing the country and also the opportunities to build globally competitive capabilities — in India-specific and globally needed areas of opportunity. The country needs to spur new technology research, development and solution building for the future. It will need true collaboration between the government, corporations, universities and social enterprises to work together to build the India of our dreams.

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The author is founder and chairman of 5F World. He can be reached on Ganeshn@5FWorld.com