India has winning opportunity which it lost three times beforehand

COVID -19 pandemic and the global plan of China has raised an alarm on the wellbeing of the corporations of major players in the world. If India pushes Indian embassies to the active face to create opportunities and New Delhi offers execution support, India has a chance to rise to the world decisively in 2030.

By Prof. Rahul Singh

New Delhi, May 01, 2020:

India had opportunity in past as well but leadership was not ready with ingredients to transform. Prime Minister MODI has necessary leadership impact in the world to give confidence to the world to make economic co-development process.

India has only believed in ‘SarveBhavantuSukhinah, SarveSantuNiramayah’, thus it can also offer co-existence and economic co-development of the world, and we call it Trusted Globalisation as economies don’t have to be within borders to have their economic development. Other nations with high development agenda do not have the co-existence philosophy.

The Prime Minister MODI’s (15^th Prime Minister of India) vision could prove to be equivalent of vision of Abraham Lincoln (16^th President of USA) who transformed the USA economy from an Agriculture based economy to Industrial economy which is how we know America today.

The initiatives of the MODI 1.0 government have been transformative for the country and time has come when it can decide on the 50 years of the economic and technology future.

Nation has already missed the opportunity two times in past, one at the time of independence and second at the time of 1980s phase of globalisation.

COVID -19 pandemic and the global plan of China has raised an alarm on the wellbeing of the corporations of major players in the world.

South Korean and Japanese companies are working on shifting their manufacturing units from China to their own land or searching other locations to shift.

India has been a Trusted Partner in economic development with the world and has high credentials on the managerial capabilities, government support, conscience for culture and society and respect for the co-existence.  

Japan has announced a re-establishment package for companies wanting to return from China or shift to some other country.

Germany, Italy and Spain are changing the FDI laws, which India also has done, to prevent the companies from hostile takeover by Chinese firms or agencies or hedge funds.

China is already shopping in many countries with help of its 3 trillion dollar foreign reserve. 

World has always looked for the risk diversification. The risk concentration increased due to non-availability of the options since companies did not want to experiment an investment under high pressures of profit and stock markets. 

The present global pandemic has taught the lessons of existence and removed the pressures of death from money numbers.

Prime Minister NarendraModi, in MODI 1.0 cleaned the system to remove the policy paralysis and created few national programs to give loaded stress to industrialisation, such as Make-in-India Program.

Government has undergone a high end structural reform giving a global repute in improving the business environment in India.

The systems are recognised by various global rankings such as World Bank, 63rd position from 79th places; from 108th to 52nd position in Resolving Insolvency; Global Innovation rankings position from 74th to 52nd position; improving 10 positions Logistics Performance Index; and from 52nd to 34th position in the World Economic Forum’s Travel and Tourism Competitiveness. This has helped forex reserves to new high USD 475 billion.

India invested in the field of education right after independence to rise from the commodity based economy to industrialisation oriented economy.

However it missed out on the opportunity to the manufacturing and technology innovation as it could not present preparedness to the world and the opportunity went to South Korea in 1960s. It had worked hard to achieve the position.

Second opportunity came in the 1980s when the industrialisation moved to next level of manufacturing and world wanted to explore options.

This opportunity was closed by Taiwan as they could present the readiness to host and offer the environment. It slowly developed the capabilities to produce the smart technology but started with the learnings from plastic toy manufacturing.

The third chance emanated in the late 1990s when the world was again ready to expand for the next phase of industrial location and India could not present itself which was picked up by China.

By then China had learned the need to prepare for the global partnership and be an active player. However, in the last phase we did not miss the bus completely and picked up on the services industry.

India became the first country to shift from agriculture economy to service industry based economy. Manufacturing is considered the backbone for industrial development, and India missed the chance to develop it several times even when the global relations were in favour.

As China was made the manufacturing capital of the world, it was so done by the world and not by China. India can make it now as world is looking towards the change. 

MAKE-IN-INDIA program by government is a game changer in the plan. Government has to act in speed, offer appropriate ecosystem of business, create a close network of Product-Supply chain Nations (countries which are already doing business with India and have high considerable dependence), present Tax benefits for shifting cost, and allow their land universities to operate in India as part of company. 

The special Investment Dialogues by the central government and the state governments will help the corporations to explore the possibilities and start the conversation.

India’s FDI policy, Doing Business support, special financial provisions, and single window service will convince not only the companies which already decided to shift but also to those which are exploring this in their Board Rooms for future.

Globalisation has always been under the leadership of governments or the institutions like IMF.

If India pushes Indian embassies to the active face to create opportunities and New Delhi offers execution support, India has a chance to rise to the world decisively in 2030.

Prof. Rahul Singh is Professor of Strategy and Globalisation at Birla Institute of Management Technology and Secretary General, World Responsible Development Foundation. rahul.singh@bimtech.ac.in

Image Courtesy – narendramodi.in - PM Narendra Modi hold a Meeting on May 01, 2020 on Education and Power sectors.

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