India Growth Story: Some Priorities

India has earned a rightful place for itself today. The developed West has realized it and also recognized it. It gets revealed even in the name of the successful Hollywood movie, ‘Avatar’.

When China is moving on fast track of growth and building infrastructure that even developed countries today envy, many think, the Indian model is likely to prove far more sustainable than the Chinese one. India must focus on certain areas where it’s strong. It’s happening already. Here are some areas where India can really excel and it’s on the right track.

R&D: Zennov Management Consulting, which helps multinationals explore opportunities in India, estimates that 640 multinationals have together set up 750 R&D centres in Bangalore, Delhi, Hyderabad, Pune, Mumbai and Chennai. If you look at the pink papers, you can find the new ones coming in or the existing one expanding regularly.

And it’s not only the technology companies. For example, Emerson, the $21 billion US-based technology giant, has set up a design engineering centre in Pune to provide product and software design, and engineering services for Emerson’s divisions worldwide. Siemens is making India a major hub for R&D related to computer aided detection products for medical diagnostics tools.

Win Africans: China has gone a long way to win over African countries on its side, and India must not fall behind. India has certain advantages and can very easily win the race if Indian government makes a right move taking cue from a recent statement of Nimisha Madhvani, the Ugandan high commissioner to India, who belongs to a family that owns and runs one of the biggest business conglomerates in East Africa. “The Indian government has not really focused on the Indians in Africa which is why many of the big Indian business groups of Indian origin in that continent do not look at putting their money in India but instead tap business opportunities in Europe and America.”

Export Indians: India huge human resources will be its great asset and export. With the government facilitating the supply and if it does it right, India could emerge as the talent supplier to the world. India has signed two CEPAs, with Singapore and South Korea. CEPA, the Comprehensive Economic Partnership Agreement (CEPA) covers movement of both goods and people. It is currently negotiating for two more on the same lines, with the European Union (27 countries) and Japan. And the special thrust on improving the quality of education raises hope for better performance by Indians all over the world in larger number.

India will have to leapfrog its dominance in manufacturing sector. It has all the potentials. The government must take steps to open and encourage defence and other sectors primarily with government to private players. Clearly, the sectors such as aviation, power equipment, satellites, and even railways have got the potential to flood the country with manufacturing possibilities. Is it not a shame that the country can’t build sufficient number of power plants as there is one supplier of power plant equipment named BHEL? How can one think of having any development without power?

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