BHAG-Driven Futuristic Vision Central To Realising Viksit Bharat

There is a need for educational institutions to focus on emerging technologies and creating labs with corporate support programs in order to innovative new technological tools that can assure global commercial value

All of us desire that the country’s economy should accelerate its growth story on a continued basis year after year as we collectively strive to become a developed economy by 2047. Towards this, it is imperative that the per capita income has to be enhanced from the current low level it is in.

Prime Minister Narendra Modi has been reiterating, and rightly so too, that Viksit Bharat should not merely be a slogan but a self-belief in our capabilities. The determination to go about the goal should be ingrained in every citizen, more so the young talent who can play a pivotal role in taking forward India’s journey to its destination within the next 23 years.

The advantage of a large young population that India possesses at the moment needs to become the springboard for a vibrant economic growth, despite the disadvantage of a high aged population.

A good augury is that the Union Government has launched several initiatives that are aimed at achieving the 2047 goal. Some of the workable initiatives and schemes include tapping the potential of large market of consumption, new investments, creation of new capacities like infrastructure, connecting sophisticated modern logistics with global supply chain, the Production Linked Incentive Scheme (PLIS), building a large industrial corridor, large agricultural and fruits processing parks and focus on rural crafts and rural products which can make a name in the global market.

Undoubtedly these measures can help attract massive domestic and international investments.

Agriculture and allied activities need greater investments and technology adoption, high variety seeds usage, innovation and research and development, climate resilient seeds, marketing and logistics facilities at an affordable price, better and fair price for agricultural products, new thrust on substantially enhancing agricultural products, and making food and fruits products to cater to the international market. There is no doubt that these measures can transform agriculture into a major growth engine.

It is likewise with the manufacturing sector where there is a need to bring in qualitative and quantitative improvement and enhancement by way of a larger labour force, generating more employments and at the same time strive for a more refined global visibility, infuse additional investments for global scale manufacturing operations and strive for capturing a bigger market across segments, including in emerging economies where efforts should be made to popularise Brand India. A way out would be in reducing logistics costs, while simultaneously come up with an incentive mechanism in line with world trade laws, which can result in a more regulated foreign exchange inflow.

We need to attract global corporates and multinational companies to set up large scale manufacturing hubs in India. On the other side of the spectrum, Indian corporates should think big and make a bid to scale global levels by pumping in more investment, research and technology adoption.

The initiative taken by the government to become Atmanirbhar Bharat should find more traction, which can be achieved by becoming self-dependent and promoting local products.

The forward and backward integration in manufacturing, focus on productive enhancement, creating more clusters for high-value products and joining the global value chain will be safer bets. Most importantly, these should be implemented in the PPP mode. The PSUs should plan for collaborations with global giants for investment, research and technology transfer. Towards this, Indian Navarathna and Maha Navarathna companies make take giant forward steps in order to enhance their contribution to GDP.

Moreover, big corporates should invest in MSMEs, who are their supporting units. Being cost-effective, they can adopt new technologies and in due course supply superior raw materials, machinery parts and services, which can be advantageous to big corporates that patronise MSMEs. The proposal, which is in its final process, whereby the government will provide for guaranteed credit facility up to Rs. 100 crore in term loan for technology adoption, large scale expansion, global marketing, which is a welcome step the government has taken.

The service sector, which has a large share in the GDP and is a great contributor to services exports must utilise their cash for mergers and acquisitions, knowledge-based products and services in the international market, especially in emerging new technologies like Artificial Intelligence and Machine Learning apart from focussing on human resources.

Indian must spend on newer areas of specialisation, which have hitherto been to the advantage of only developed economies.

There is a need for educational institutions to focus on emerging technologies and creating labs with corporate support programs in order to innovative new technological tools that can assure global commercial value. We cannot sit on fast laurels in the service sector and move beyond the comfort zone and make strides.

A combination of private and public sector and involvement of all stakeholders can bring new momentum and energy to activate all drivers of India's development story. Additionally, we need to create new enablers and new levers for scripting a spectacular growth story.

Temporary setbacks should not discourage and slow down our aspiration. After all, speed is the essence and human and financial capital the key. Every established institution, both public and private, must have solid medium and long term Big Harry Audacious Goals (BHAG) by way of a higher degree of planning and execution as that is bound to us on the desired path.

The ensuing Union Budget should be ideal launching pad for putting such ambitions with policy enablers and futuristic steps.

(The author is former Chairman & Managing Director of Indian Overseas Bank)