‘India is likely to be the world’s most important economic power by 2030’.
And what are the reasons behind this optimism?
Perhaps one of the major and visible indicators is in business start-ups. Business start-ups in India in 2007 numbered 20,000. And these start ups are amazingly varied and spread across the remotest corner of the country.
The country has certain unique innovative traits among its people. Some call it Jugad, but if refined can change the country’s growth and it speed.
If China is not brought in for comparison, India has fairly widespread manufacturing sector. One can find its example in Hero Honda, the largest producer of two-wheelers or Essel Propack Limited, the world’s largest entity in the business of laminated tubes.
And the quality image of ‘Made-in India’ has totally changed. Its number of Deming Prizes is the highest outside Japan. 13 per cent of automobile production is slotted for exports, and it is 40 per cent for pharmaceuticals.
Surprisingly, India’s automobile industry is one of the fastest growing in the world, boasting exports greater in number than China.
The $52-billion textile manufacturing sector with example of Tirupur can easily be the world’s leader. Perhaps the most unique for India is its many ethnic regional textile centres, be it Kanchipuram, Bhagalpur, Madhubani, Varanasi, and perhaps hundreds of them, waiting to be explored and improved to be contemporary competition.
India is not only one of the world’s leading outsourcing destinations with annual revenues of nearly $60 billion. And now it is the outsourcing destination of high-end assignment such as R&D and engineering. For example, EMC India has the largest lab in Bangalore outside the US. And so is the case with many Fortune 500 companies.
India has already started acting as a feeder for the global leadership.
Nano from Tata Motors has already showcased India as a possible world leader in innovation. I wish the Indian entrepreneurs and business leaders start putting similar thrust on product development in every sector. And that only can win the battle today.
India has some other advantages that can make it grow fast.
India relies only about 20 percent of its GDP on external trade as against 75 percent for China. The middle class is up to 28.4 mn households.
Remittances from overseas Indians remain robust, reaching $46.4 billion in 2008-09.
And Foreign Direct Investment in India has reached $27.3 billion in 2008-09, a rate of $1 billion per week in May 2009.
With defence, railways and many other PSUs using local manufacturers, the manufacturing can get a further boost. And with a thrust on bringing a revolutionary growth in education sector, no one can stop India from becoming an economic power.
In the 16th century, India was the second largest economy in the world in the 16th century. It can again gets its rank back.