Himanshu Agarwal, Young Leader - IndiaGlocal
Himanshu Agarwal is a full time post graduate candidate at Indian Institute of Management, Kashipur. This article was submitted as part of his selection process as an IndiaGlocal - Young Leader. The views and opinion in the article are solely of the author.
“India should walk on her own shadow – we must have our own development model” – APJ Abdul Kalam. Independence in 1947 brought hopes, dreams and aspirations to millions of Indians, their relentless pursuit of growth and prosperity has transformed India into a $3 Trillion economy.
The graph of Indian GDP is a conviction of our exponential growth. If your money had grew at this pace, 100 bucks in 1960 would be equal to approx. 8000 bucks today. Let’s go in brief with the evolution of Indian economy with respect to business
In the era of 1950s and 1960s, industrial policies and public sector growth with state interventions added fuel to the economic prospects of India. This era saw the emergence of highly respected business leaders like JRD Tata, Azim Premzi, Narayan Murthy, Champaklal Choksi and many others who even today, continue to inspire millions towards their ideals and principles. The expansion of power, steel, heavy industrialization put India on the economic map of the world. White revolution and the evolution of the beloved brand AMUL lead by Verghese Kurien, gives immense energy and motivation to all as only visionary leaders can take such challenging pursuits.
1970s was the era of banking sector. We saw financial developments, nationalization of banks and credit was promoted to boost various sectors. Financial sector is the core pillar of any developing economy and the growth of economy is directly proportional to robustness and efficiency of the financial sector. In 1980s businesses started to focus on overall productivity enhancement for the first time. This decade saw the big improvement of policies.
Before 1990s India’s main focus was on internal economy and little reliance on international markets. Liberalization opened the door to international commerce and Indian businesses experienced tremendous improvements in productivity and modernization. Competition from international markets grew innovation by leaps and bounds. Plethora of businesses mushroomed in 2000s.
The current era is the era of startups. Lot of passionate people are moving from the idea of job in a high rise corporate offices in metro cities to working towards problems of society and innovative solutions. India has around 50,000 startups registered and the best part is 2-3 startups are born every day. This makes India the 3rd largest startup ecosystem in the world. The importance of startups is clear from the fact that it creates more than 40,000 employment opportunities each year.
Bengaluru, famously known as India’s Silicon valley, ranks among top 20 startup cities in the world. This growth is driven by conducive government policies, corporate connect which support budding entrepreneurs and many communities like Nasscom startup hub. World’s renowned and big venture capitalists and Private Equity funds are investing in Indian ecosystem, which serves as a testimony to the ecosystem. In 2019, seven startups reached unicorn status by grabbing massive funding. Envisioning about short-term trends, social commerce, buying things through social media platforms like Facebook, Instagram, will consolidate. Shadow banking can provide massive lending by technology-driven products that will enhance the quality of loans and masses can reap the benefits. Fintech with their skills, technology deployment and market prowess can deep dive in making India a true digital economy. Bigger the success of startups, brighter and shinier will be the future economy of India.
Current sentiment of the world towards China is not so friendly and it opens a plethora of opportunities to rising aspirations and development of India. In many areas like diamonds, nuclear reactors we have an advantage because the quality of Indian exports is better than its peers. While we are eyeing global prosperity and growth, we must realize that for the first time in the history of mankind, we got the opportunity to correct past mistakes of western countries and solve the biggest problems ever, like climate change. As we are moving towards a developed economy our carbon emissions are increasing. Huge potential exists in green businesses that can reduce or at least limit the per capita carbon emissions. Businesses can create product differentiation by developing and marketing green products. To fulfill the dream of making India the world’s leading economy, contribution from all sectors is required that will help us in diversified growth. Robust and resilient growth can take us to the path of $5 Trillion economy that our Prime Minister Narendra Modi has envisioned. We don’t want a $5 Trillion economy we want a sustainable $5 Trillion Atmanirbhar Bharat.