3. Contents
> Preface Page 3
> Executive Summary: India's Next Generation of Growth Page 4
> Resilient India Page 10
> A Region at Risk Page 14
> Green Growth and Inclusive Development Page 18
> Tomorrow’s India Page 22
> Acknowledgements Page 26
5. Preface
This year, the World Economic Forum and shedding light on India’s future economic
celebrated 25 years of partnership and prospects. For the fifth consecutive year, the
engagement in India. Under the theme “India’s Schwab Foundation for Social
Next Generation of Growth”, over 800 Entrepreneurship presented the India Social
participants from over 40 countries convened Entrepreneur of the Year Award, this time to
in New Delhi for a milestone India Economic three winners. In addition, two special
Summit. The inauguration of the Summit by sessions were devoted to the ways in which
the prime minister of India, the active empowering women and educating girls –
participation of 14 senior ministers as well as who represent half of India’s productive
the contributions of over 100 global CEOs human capital – can be prioritized as an
underlined the extraordinary calibre of this economic imperative.
year’s gathering and attendant discussions.
Next to its strong economic fundamentals,
While the mood for this year’s India Economic India’s youthful population calls attention to a
Summit was in part celebratory, it did not demographic dividend that could see India
divert from the reality of the global economic become a hub for manufacturing,
crisis and its impact on India’s remarkable technological innovation and education,
social and economic progress over the past among other things. India’s young and eager
years. At the time of the last India Economic population has set the bar even higher for
Summit, the world witnessed the unfolding of further action and will expect implementation
what is now regarded as the worst financial of solutions with the same tempo that has
crisis since the Great Depression. As a characterized the past two decades of India’s
member of the G20 and an integrated player growth. To this end, the programme was
in the global economy, the impact of severe designed to lend a generational perspective
international economic imbalances on India on India’s growth priorities. As a result,
was inevitable. concrete recommendations were made on a
variety of salient topics that will shape the
Notwithstanding the immensity of this future of India’s young population, including
unprecedented economic transformation, the access to affordable housing, financial
outcomes of the deliberations throughout the empowerment of the poor and development
programme suggested the broad consensus of female talent.
that India could contribute in a substantial way
to a global recovery provided key challenges As you read the key points and data
are addressed without delay. India is one of presented in this report, we welcome your
the few economies to have posted positive thoughts and suggestions as we prepare the
GDP growth above 5% in 2009. With its vast programme for the next India Economic
domestic market, comparatively less export Summit, which will take place on 13-15
dependency and relative macroeconomic November 2010. Following 25 years of the
stability, India’s economy has proven resilient Forum’s successful partnership in India, we
in a challenging global context. Accordingly, are ever more committed to action-oriented
leaders sought to identify both the key dialogue drawing on the insights and expertise
enablers as well as the key obstacles to of our multistakeholder platform, and hope
achieving India’s ambitious high-growth that the India Economic Summit will continue
agenda. to serve as an important platform for
stimulating thought and creative solutions.
To generate insight on India's competitive
strengths and weaknesses, the India
Economic Summit served as an occasion to
launch The India Competitiveness Review
2009, a comprehensive overview of the Sushant Palakurthi Rao
country’s current competitiveness landscape, Director, Head of Asia
highlighting strengths and problematic areas, World Economic Forum
India Economic Summit | 3
6. Executive Summary: India’s Next
Generation of Growth
“Potential” was the leitmotif of this year’s The question hanging over the Summit was
Summit – a word that evokes much promise, not only how to deliver rapid growth, but
but also spells the significant challenges also how to deliver “rapid and inclusive
ahead. Few nations have the growth growth” – a promise made by Prime Minister
potential that India enjoys. Its many Manmohan Singh during the opening
attributes are renowned: resilience, plenary.
innovation, creativity, entrepreneurial spirit, a
young population and cultural diversity, to Klaus Schwab, Founder and Executive
name a few. Chairman, World Economic Forum, pointed
to entrepreneurship as the way forward.
Celebrating the World Economic Forum’s 25 “Few nations have the growth potential that
years of engagement with India, the Summit India already enjoys. India holds the promise “India looks to the future with
took place at a time when confidence in the of a most successful future,” he said. confidence. We are confident of
Indian growth story is intact. The country has “Entrepreneurship drives social and meeting the domestic and
weathered the financial crisis and, although economic progress; however, [it] always has
international challenges to fast and
growth dipped from 9% during the five years to serve the public interest. This should be at
preceding the meltdown, it is expected to be the base of India’s way into a bright future.” inclusive growth. We are also
what the prime minister called a better placed than any time in the
“respectable” 6.5% for 2009-2010. Most Business leaders debated what will be the recent past to push the reform
economic experts are predicting a return to next big driver for India’s growth story. Many process forward. I believe we
9% growth post-2010. pointed to the latent potential in the urban
markets. Rural retail markets are expected to
have a bright future if we make use
The World Economic Forum’s India reach US$ 58 billion by 2015. Already, rural of strengths and the opportunities
Competitiveness Review 2009 reports that consumption accounts for more than 69% of that we get.”
the country benefits from well-functioning total consumption and is growing faster than
institutions, a fairly developed financial urban consumption. Manmohan Singh
market, innovative and sophisticated Prime Minister of India
businesses, and sheer market size. But, does India have the right infrastructure
However, India faces shortcomings in some to realize this potential? The country has a
critical areas – health, education, huge deficit in key sectors – power, roads,
infrastructure, fiscal management, ICT ports, airports, telecommunications,
diffusion and labour market efficiency. irrigation and urban infrastructure. The prime
minister is looking to innovative public-
4 | India Economic Summit
7. “The world has come to recognize
the potential of India for its ability
to innovate and its growing role on
the global stage. [India has the
opportunity to become] a high
performance nation.”
William D. Green
private partnerships to eliminate this deficit, Forum; Co-Chair of the India Economic Chairman and Chief Executive Officer,
but must continue his efforts to make India Summit, pointed to the country’s potential Accenture, USA; Co-Chair of the India
an attractive destination for FDI. crippling “say-do gap”, which drew a round Economic Summit
of applause during the closing session. “The
At the same time, the country should focus problems are not growing faster than our
on broadening its economic base. The capacity to find solutions. Where the gap is
agricultural sector, which accounts for one- growing is in accountability. We are not
quarter of the economy, could be a good holding people accountable,” observed
place to start. Three-quarters of the Palaniappan Chidambaram, Minister of
population depend on farming and could Home Affairs of India.
benefit from activities higher up the
agricultural value chain, such as food The results of the May 2009 election and of
processing and better land management. the past five elections, where voters ousted
There is potential in green technologies if more than 40% of the members of
India decides to turn climate change on its Parliament, show that, while democracy is
head and meet its energy challenges. entrenched in India and coalition
governments are not going to go away,
As the country’s growth rate recovers, the people’s expectations are high and they are
people at the bottom of the pyramid are still demanding accountability. In the last
facing economic and social exclusion. A parliamentary elections, 100 million eligible
World Bank report notes that more people voters were aged between 18 and 24.
live on less than US$ 2 a day in India than in
sub-Saharan Africa, and a large proportion The younger generation – the next
of the population is excluded from education generation – is huge. Nearly one-fifth of the
and skills development – about 7.1 million world’s population lives in India and one-
children are out of school and, among 15-29 third of them are less than 15 years old.
year olds, only 2% have received formal Young people want greater transparency in
vocational training. governance and a more participative
government. They see themselves as
On a positive note, India’s Planning potential creators of wealth and stakeholders
Commission reports that, by 2020, the world in India’s future.
will need 56.5 million more skilled workers.
This is a huge opportunity if India gets its This “youth bulge” holds out both challenges
education and skills development right. and opportunities. Chanda Kochhar,
Policy-makers and business leaders should Managing Director and Chief Executive
seize this opportunity. The World Bank Officer, ICICI Bank, India; Co-Chair of the
estimates that increasing the proportion of India Economic Summit, pointed out: “If we
working age Indians who are economically skill [our young people] and train them
active from 60% to 75% would add US$ 3.7 properly, they will be a huge asset. If we do
trillion to the country’s GDP by 2020. not, they will become a liability.”
But, how can India realize its huge potential? Prime Minister Singh promised that “inclusive
Indra Nooyi, Chairman and Chief Executive growth” will provide productive employment
Officer, PepsiCo, USA; Member of the to India’s young population and raise living
Foundation Board of the World Economic standards in rural areas across the country.
India Economic Summit | 5
8. “India is in a sweet spot. We can
build banks and a variety of
services for all sorts of people. The
market has opened up and the
market looks like us. It doesn't look
like the West anymore.”
Raghuram Rajan
Eric J. Gleacher Distinguished Service
Professor of Finance, University of Chicago also promised to move ahead with
The prime minister and his government have
Booth School of Business, USA financial reform, including deepening
a huge job ahead; keeping the government’s
ambitious reform agenda on track will be no financial markets. He also committed to
easy task. In addition, India must close the working with the private sector to find
gender gap if growth is to be truly inclusive. effective models of public-private
This is no longer a “nice to have”, it is an partnership. Investment in vocational
economic imperative. education and training is needed to
bridge the skills gap.
However, Montek S. Ahluwalia, Deputy
Chairman, Planning Commission, India, • To broaden its economic base, India must
remained upbeat: “It is true that there are boost rural markets and focus on its
many reform-related initiatives on the strengths. India has a large domestic
agenda. Every one of these appears market and the government needs to do
controversial in one way or another. But in more to mobilize domestic savings,
the last 10-15 years, we have handled these currently about 25% of GDP. However,
problems and moved ahead.” escalating rural consumption may well be
the next big trigger of growth. India’s
This report on the 2009 India Economic competitive advantage is in technology-
Summit is centred on the programme’s four intensive manufacturing – India’s
themes: Resilient India, A Region at Risk, manufacturers must lead by innovation,
Green Growth and Inclusive Development, tapping the inherent creativity and
and Tomorrow’s India. entrepreneurial spirit of its people.
Resilient India • To realize fast-track growth, India must
eliminate its infrastructure deficit. The
India is one of the few economies to post a prime minister described an ambitious
GDP growth rate of more than 5% since the programme of investment in all of the key
financial crisis. Growth this year is predicted sectors – power, roads, ports, airports,
to be a respectable 6.5%. But how can this telecommunications, irrigation and urban
growth be sustained and accelerated? How infrastructure – which must be carried
can the serious constraints from deficiencies out. The lack of roads remains the
in infrastructure, education, healthcare, the greatest obstacle. The government must
legal system and the financial sector be rise to the challenge of building 20
overcome? kilometres per day, and follow through
with its public-private partnership
Recommendations scheme. It must also address a major
• India must keep its reforms on track. roadblock for foreign firms – India’s
Prime Minister Singh must keep his cumbersome bureaucracy.
promise of inclusive growth. India can see
a return to increased growth rates if • India must invest in education and
current reforms – particularly in education, training to resolve the growth conundrum.
healthcare and the financial sector – stay With nearly two-thirds of its population
on track and expand. The prime minister younger than 35, India has the world's
6 | India Economic Summit
9. largest pool of young people. Of the 22 • To attract more investment, India must
million children who attend school, only address perceptions that it is a difficult
12.4% pursue further education. India’s place to do business. The country caught
immediate goal is to raise this number to the eye of portfolio investors following the
20% by 2020. The government has May 2009 national elections and its quick
increased the national budget for higher and strong comeback from the 2008
education, but much remains to be done. global financial crisis. But, there has been
Reform is urgently needed. Participants no corresponding jump in FDI so far and
called for a complete overhaul of the institutional investors appear slightly less
education system. enthusiastic. A more assertive India – one
with an image that reflects its G20 status
A Region at Risk – could be a more attractive India.
India can always fall back on its domestic • To increase capital flows from abroad and
market to weather the international domestically, and as a buffer against any
economic storm. However, the country’s future global crisis, India should enact the
economic destiny cannot be decoupled from financial system reforms announced by
that of its neighbours. India is dependent to the prime minister. Top executives from
a large extent on how South Asian Indian and international financial
economies fare and how the region institutions endorsed these capital market
collectively manages risks, including social reforms, adding that the futures market
instability, climate change, pandemics and needs to be improved by better price
dwindling natural resources. discovery and regulation. In addition,
institutional hurdles must be removed to
Recommendations facilitate better intermediation. They
• India must develop energy resources, pointed to the insurance bill as a good
with alternative energy leading the way, to start in the asset management area.
help meet the country’s growing needs
while keeping a lid on carbon emissions. • To boost agricultural production and
“During the next two-and-a-half days,
However, 45% of Indians remain off the ensure food security, water resources
grid and 70% of the nation’s energy must be managed more prudently and we do not want to look back, but
resources are imported. India’s capacity farmers, corporations and government [want] to develop a roadmap for the
must be boosted seven to eight times in must work in harmony. Indian agriculture future. We must turn our attention to
the next 15-20 years. Some consider this lies stagnant due to poor water
an opportunity to boost the country’s management and scant innovation in
those challenges that have to be
power supply with alternative energies. farming inputs and practices. addressed as we redesign [the
Most participants agreed that the trend is Compounding problems of groundwater world] for the next generation.”
and will continue to be away from depletion and contamination, climate
traditional fuels like coal and towards change will likely disrupt rainfall. Just as
cleaner options. farmers must diversify their crops, a Klaus Schwab
myriad of responses will be needed to Founder and Executive Chairman, World
address the problem. Economic Forum
India Economic Summit | 7
10. Green Growth and Inclusive They also called for engaging politicians
Development and policy-makers and convincing men to
take more interest in the issue.
Building a low-carbon economy that
gradually embraces millions of poor citizens • Working to ensure the success of
will require India to forge “next practices” – in international negotiations on climate
other words, to innovate in the pursuit of change and taking a leadership role in the
environmentally sustainable growth and development of green technologies are
inclusive development. As it expands, the crucial. A supportive climate change
Indian economy will need growing numbers regime will help India achieve what it is
of skilled workers. Women, who are mostly already doing in its own interest. Rather
marginalized in today’s economy, can fill that than blaming each other, countries must
gap in the future if girls receive education collaborate, especially in developing
and training today. energy-saving technologies, renewable
energies and alternative fuels. Many
“[In India] there is a gap between
Recommendations noted that such innovations will come out
• India must invest in girls to enable them of India and China. what we say and what we do. We
to make greater contributions to Indian need focus on the say-do gap. We
society and its economy. The Summit • India must redouble efforts to become a have talked about a lot of issues –
focused on the contribution girls can world leader in technological innovations
make to a growing Indian economy when that provide low-cost and socially we need to show progress. It has to
they grow up. Unleashing this potential inclusive solutions. India already leads the be faster. I think the issues are
would provide India with a major engine world in frugal product planning. The growing exponentially. The solutions
of growth and could add US$ 56 billion to government can harness and expand that
capability by improving education and
are coming at a slow pace and this
the Indian economy annually, according
to some estimates. providing incentives for entrepreneurs and is not a good equation.”
researchers to address the problems and
• To guarantee continuity on inclusive needs of average citizens. The idea is to Indra Nooyi
development after the India Economic focus on solutions that are both
Chairman and Chief Executive Officer,
Summit, participants called for a task accessible and scalable.
PepsiCo, USA; Member of the Foundation
force to be convened by the World
Board of the World Economic Forum; Global
Economic Forum, similar to the Forum’s
Agenda Council on the Role of Business; Co-
highly successful disaster relief initiative. Chair of the India Economic Summit
8 | India Economic Summit
11. Tomorrow’s India manufacturing sector a number of
competitive advantages. While India is in
Few nations have the growth potential that an excellent position to serve emerging
India enjoys. But there is much work to do if economies, the government must
India is to realize its potential and fulfil the address the bottlenecks.
ambitions of the many who see it as the new
economic frontier. • India must close the gender gap if it is to
unleash the country’s vast economic
Recommendations potential. Equal rights for women is a
• India must strengthen its entrepreneurial business and economic imperative. It is
ecosystem if it is to prosper from new fundamentally important to ensure their
markets and enjoy sustainable economic talent is not wasted. Success within
growth. It needs to maximize the latent companies should be determined by
potential in “sunrise” industries such as merit, not gender. To this end, companies
IT-related business services, renewable should be made more accountable; they
energy, healthcare and others. The need to measure their progress on
country must address deficiencies in its gender parity and report on it. Gender
enterprise support system. The education parity within business is achievable –
system must be reoriented to teach possibly within the next 10-15 years –
entrepreneurship. Regulation and tax depending on political and corporate will.
regimes need to be reformed to provide
incentives to entrepreneurs and banks • Responsible and collaborative political
must make it easier to access capital. dialogue must become the norm if
Indians are to get the government they
• To become an incubator for innovation, deserve. The results of the national
India must act fast if it is to survive elections in May gave clear evidence that
growing and fierce global competition. people’s expectations are very high.
India has the potential to boost its About 40% of the members of Parliament
manufacturing competitiveness. However, were not re-elected during the last five
because of problems with power, ports, elections. A mechanism must be created
railroads, roads and water, and a to facilitate collaboration between ruling
shortage of human capital, manufacturing and opposition parties to enable
has lagged behind targets. At the same cooperation on the big-picture issues.
time, India offers potential investors in the
India Economic Summit | 9
13. India weathered the perfect storm of 2008 – excessively high. If the government
rocketing oil prices, increasing food scarcity addresses these issues, it will at once create
and hunger, accelerating climate change and jobs and help realize India’s enormous
the global financial meltdown – as one of the internal and external market opportunities.
fastest growing economies in the world. In
2009, India is set to emerge second only to The government must also focus on
China as one of the world’s powerhouse governance. India has good laws and
economies. globally comparable legal frameworks, but
lacks effective implementation and adequate
But how can India sustain and accelerate law enforcement. As Shumeet Banerji, Chief
this growth? As many participants pointed Executive Officer, Booz & Company, United
out, sustainable, long-term growth is not a Kingdom; Co-Chair of the India Economic
given. Myriad new challenges – as well as Summit, observed: “I do think that law in “Over the long run, the [sustained]
new opportunities – are on the horizon. India is a massive competitive advantage.
The regulatory structures look reasonably 9% growth rate is feasible and it is
Montek S. Ahluwalia, Deputy Chairman, attractive, but there is enormous stickiness plausible, but it is not ordained.
Planning Commission, India, was optimistic when trying to get things done.” [However] we believe that India in
about India’s potential: “There are inherent
strengths on the supply side, which make it To broaden its economic base, India one generation, 30 years from
possible for India to grow. We can handle must boost rural markets and focus on now, will be an affluent society.”
the constraints. The moment you look at the its strengths. India has a huge domestic
supply side, India has all that is needed to market and the government needs to do
Rajat M. Nag
take off.” more to mobilize domestic savings, currently
about 25% of GDP. Managing Director-General, Asian
Growth accelerated from 5.6% in the 1980s Development Bank, Manila
to 9% in the five-year period preceding the Escalating rural consumption is potentially
financial crisis. The economy grew at a rate the next big trigger of growth. Rural India –
of 6.7% in 2008-2009 and, despite an home to about 70% of the country’s 1.1
inadequate monsoon and a slowdown in billion people – has been a sleeper until
agriculture, growth in 2009-2010 is recently. Rural retail markets are expected to
predicted to be 6.5%. Most economic reach US$ 58 billion by 2015. Rural
experts at the Summit predict a return to 9% consumption, including government
growth post-2010. spending, accounts for more than 60% of
total consumption and is growing faster than
To keep his promise of “inclusive growth”, urban consumption.
Prime Minister Singh needs to include those
at the bottom of the pyramid in India’s Telecoms companies, financial service
success story and broaden the base of providers, entrepreneurs and government
economic growth. regulators should collaborate to drive
financial inclusion by better serving the
The country faces serious constraints from unmet needs of the poor, many of whom live
deficiencies in infrastructure, education, in rural areas. For example, mobile telephony
healthcare, the legal system and the financial enables the extension of financial services to
sector. To overcome these, the government the excluded – 188 million Indians with
must keep reforms on track and work with mobile phones have no access to credit or
the private sector to find effective models of banking. Already, telecom provider Bharti
public-private partnership. At the same time, Airtel has promised to invest US$ 1.5 billion
India must increase its appeal to foreign this year to improve connectivity in rural
investors. More investment in vocational areas.
education and training is needed to bridge
the widening skills gap. Because of the potential of the Indian
market, sustainable solutions need to be
Key Recommendations found for India’s increasing consumption.
Opinions differ as to whether these solutions
India must keep its reforms on track. should be driven by business or the
India can see a return to increased growth consumer. Businesses have a responsibility
rates if current reforms stay on track and to find ways of operating that are socially
expand. The prime minister promised to relevant and environmentally sustainable.
move ahead with developing long-term debt Some are already beginning to see the
markets, a corporate bond market, strong benefits of having a sustainable value chain.
insurance and pensions sectors, and futures
markets. Accelerating government India’s competitive advantage is in
“disinvestment” in state-owned companies is technology-intensive manufacturing – its
also on his political agenda. manufacturers must lead through innovation,
tapping into the inherent creativity and
Participants called for swift reform and entrepreneurial spirit of its people.
deepening of India’s financial markets if the
country is to attract FDI. Business is still To realize fast-track growth, India must
constrained by administrative hurdles and eliminate its infrastructure deficit. The
high costs of doing business. The lack of roads remains the greatest challenge.
government must also support the SME To meet the challenge of building 20
sector, the backbone of any economy. The kilometres per day, the government has
cost of starting up a business remains launched one of the largest public-private
India Economic Summit | 11
14. partnership schemes in history – US$ 20 With nearly two-thirds of its population
billion, with 60% to be raised by the private younger than 35, India has the world’s
sector. The government is planning to bid largest pool of young people. However, of
out six mega road projects in Rajasthan, the 22 million children who attend school,
Madhya Pradesh, Gujarat and Maharashtra. only 12.4% pursue higher education. India’s
immediate goal is to raise this number to
Kamal Nath, Minister of Road Transport and 20% by 2020.
Highways of India, said that the
Expressways Authority of India would be set The government has increased the national
up next year to study the specific needs of budget for higher education, but much
developing expressways in the country. “We remains to be done and reform is urgently
have already set up a division for needed. Participants called for a complete
“India has come through the crisis expressways. Next year, we are going to set overhaul of the education system, which
better than other countries. We a separate expressway authority … needs to be made accessible, affordable and
expressways are the next big thing on our accountable; there needs to be more
have growth here. This is a big plate,” he said. The minister expressed flexibility and mobility. Public-private
market and there is opportunity for optimism that road construction activity partnerships should be explored as a means
would reach the 8-9 kilometres per day mark of funding educational changes.
firms to come in here. But there is by December 2009 and the target of 20
still room for India to improve the kilometres per day would be met by March Kapil Sibal, Minister of Human Resource
2010. Development of India, invited the private
atmosphere for entrepreneurs to sector to participate in India’s education
operate.” But foreign firms are often discouraged by agenda. Sibal emphatically outlined the
India’s inefficient bureaucracy. Issues of distinction between “profit” and “surplus”,
concern include the acquisition of land; stating that enterprises must be allowed to
Lars H. Thunell
lowball project estimates that result in the make surpluses that can be reinvested in the
Executive Vice-President and Chief Executive contractor bearing extra costs; and tedious, sector. “We cannot allow education to be
Officer, International Finance Corporation exclusive, decision-making processes. exposed to risk factors,” he stressed.
(IFC), Washington DC However, the government claims it is
addressing these roadblocks. Conclusion
India must invest in education and These challenges help to explain why India
training to resolve the growth ranks 49th out of 133 ranked economies in
conundrum. Once India’s growth rate hits the World Economic Forum’s Global
7-8%, companies face a critical skills Competitiveness Report 2009-2010 and why
shortage and turnover increases from a it slipped a notch to 133rd place in the World
manageable 2-3% to as much as 20-30%. Bank’s Doing Business 2010 Index.
This creates an unstable environment for However, there are promising signs that, in
manufacturing. All sectors in the economy pursuing its reform agenda, the government
face similar challenges. is starting to recognize where it should step
back and let the private sector take over.
12 | India Economic Summit
15. “About 40% of the bank network is
in rural India but covers just 6% of
villages. [We] must think far more
innovatively about leveraging
technology platforms. Let’s not talk
about a branch in every village,
but a branch in the back pocket of
every individual [or in every
woman’s sari].”
For example, in the media and entertainment In addition, the government is aggressively
industry, the government is pushing for pursuing FDI to address challenging physical
Kalpana Morparia
reform and is very proactive in its FDI policy. infrastructure issues.
Ambika Soni, Minister of Information and Chief Executive Officer, J. P. Morgan, India
Broadcasting, said that allowing private radio However, India must urgently address its
stations to air news bulletins would help to daunting demographic challenges,
increase their economic viability. If approved, particularly its “youth bulge”. It must also be
FDI in the FM radio sector will be raised to more effective in educating and mobilizing its
26% from the current 20%. abundant human resources to ensure that
growth is indeed inclusive.
“We are preparing a cabinet note wherein we
plan to allow private radio stations to air Palaniappan Chidambaram, Minister of
news capsules using certain portions of All Home Affairs of India, summed up the
India Radio news bulletins along with other government’s mood: “The mood is one of
add-ons. These could be news about local cautious optimism. The plans are fine, but
sports events, weather bulletins and even we falter in implementation. We are very
employment news,” she said. tolerant of apathy, lethargy and free riders,”
he said. “We have to allow new players in,
The ministry is also developing a revenue crack the whip and get the job done.”
share model between music royalty owners
and FM stations over the controversial issue
of royalties.
India’s Key Economic Strengths and Weaknesses
The India Competitiveness Review 2009 released at the Summit situation prevents the government from making much-needed
provided participants with a comprehensive overview of the country’s investments. The diffusion of information and communication
current competitiveness landscape. The report highlights strengths technologies remains very low by international standards.
and problematic areas, and sheds light on India’s future economic Bureaucracy, over-regulation and corruption still affect the functioning
prospects. of markets, in particular the labour market.
India ranks 49th out of 133 countries in the Global Competitiveness In addition to analysing India’s performance in the Global
Index as a result of mixed performance across the 12 categories Competitiveness Index, the review includes two other contributions.
covered by the Index. The first is by the Confederation of Indian Industry (CII), and examines
India’s recent growth drivers as well as challenges presently facing
India displays competitive strengths in areas of business policy-makers in their efforts to foster more inclusive growth and
sophistication, innovation and financial market sophistication. The development.
country can also rely on fairly well-functioning institutions.
The second contribution is by PricewaterhouseCoopers, and
On the other hand, there is considerable room for improvement in presents the results of the 13th annual CEO Survey in India,
several of the basic drivers of competitiveness, in particular shedding light on how India’s business leaders see the nation’s
infrastructure, health and primary education, while the runaway fiscal resilience and competitiveness at a time of crisis and recovery.
India Economic Summit | 13
17. While capable of falling back on its domestic place in which to do business, even for
market to weather the international Indians themselves. That image is reinforced
economic storm, India – like all countries – by stories like the one told by Sachin Duggal,
remains tied to developments around the President and Chief Executive Officer, Nivio,
world. The country also faces security Switzerland; Technology Pioneer. Duggal
threats at home. established his company in Europe because
he found too much red tape and too little
Palaniappan Chidambaram, Minister of venture capital at home. “I am a patriot, but I
Home Affairs of India, addressed the am also a realist,” said the young entrepreneur.
domestic threat. “Our security challenges are
no different than those facing every country Nevertheless, the country caught the eye of
of the world – terrorists,” he said. “We are portfolio investors following the 2009
alive to the challenge. Every day, every week national elections and the quick and strong “Protectionism is not the answer –
and every month we are adding capacity comeback from the 2008 global financial
and building confidence.” crisis. Still, there has been no corresponding there should be collective
jump in FDI so far and, as the rest of the cooperation among the nations.”
Sundry cross-border risks were discussed, world gets back on its feet, institutional
ranging from the effects of erratic weather on investors appear slightly less enthusiastic Pranab Mukherjee
farmers to the country’s image among about India.
foreign investors. The global economic Minister of Finance of India
downturn received due attention, as did the At the Summit, there was a sense that a
energy crunch. more assertive India – one with an image
that reflects its G20 status – could be a more
Key Recommendations attractive India. “As we become a more
important economic player, we have to alter
India must develop energy resources – how we engage the world,” said Raghuram
with alternative energy leading the way Rajan, Eric J. Gleacher Distinguished Service
– to help meet the country’s growing Professor of Finance, University of Chicago
needs while keeping a lid on carbon Booth School of Business, USA. “We still
emissions. Baba N. Kalyani, Chairman and engage the world as a colonial victim.” He
Managing Director, Bharat Forge, India; Co- added: “As we have economic influence, we
Chair of the India Economic Summit, noted must also have intellectual influence.”
that 45% of Indians remain off the grid and
70% of the nation’s energy resources are India might also do well to call attention to
imported. “You’re talking about increasing comments by foreigners like Kevan V. Watts,
the capacity of India by seven or eight times Country Head, Bank of America Merrill
in the next 15-20 years,” he said. Lynch, India. Watts makes no effort to hide
his bullish take on the country: “I have
However overwhelming that may seem, Tulsi worked all over the world for 29 years with
R. Tanti, Chairman and Managing Director, Merrill Lynch. There is a reason why I am in
Suzlon Energy, India, looked on the bright India,” he said.
side. “I think it is a great opportunity,” he
said. “We are quite behind the [United] To increase capital flows from abroad
States, but we can build our power supply and domestically, and as a buffer
with alternative energy.” against any future global crisis, India
should enact the financial system
Most panellists agreed that India will have to reforms announced by the prime
rely on a large basket of both clean and dirty minister. Top executives from Indian and
energy for the foreseeable future. However, international financial institutions endorsed
the trend is and will continue to be away the capital market reforms outlined by the
from traditional fuels like coal and towards prime minister at the Summit. “We do need
cleaner options – even if international climate to do the things mentioned by the prime
change talks fail. “We will have to address minister,” said Ashok Jha, Chairman, MCX
global warming,” said Madhu Koneru, Stock Exchange, India.
Executive Director, Trimex Group, United
Arab Emirates. “If we want to attract The prime minister said, “We need to develop
investment, we will have to have de facto long-term debt markets and to deepen
compliance [with emissions targets].” corporate bond markets. This, in turn, calls
for strong insurance and pension sub-
Tejpreet Singh Chopra, National Executive sectors.” He added: “We need to improve
for India, General Electric, India, laid out a futures markets for better price discovery and
three-point plan for moving forward: regulation. We also need to remove institutional
• Encourage energy efficiency hurdles to facilitate better intermediation.” “We are extremely behind in the
• Invest immediately in “key technologies” power sector. We need more
The proposals for the bond market “will
• Aim for energy security by investing on
several fronts, notably renewable energies
facilitate capital flows [from abroad] in an energy. That could bring the
environment where there is no longer excess
capital,” said Jim Quigley, Global Chief biggest growth.”
To attract more investment, address Executive Officer, Deloitte, USA. According
perceptions that India is a difficult place to Robert Morrice, Chairman and Chief
to do business. Whatever the realities on Tulsi R. Tanti
Executive, Asia Pacific, Barclays, Hong Kong
the ground, India must overcome SAR, “The insurance bill will be a good start Chairman and Managing Director, Suzlon
perceptions, especially among investors in the asset management area.” Energy, India
outside the country, that it remains a difficult
India Economic Summit | 15
18. “This is not about the government
trying to do something and industry
trying to take advantage of the
situation. It is time for government
and industry to work together [on
agriculture].”
Sekhar Natarajan
To boost agricultural production and water security for all. We must produce with
Chairman, Monsanto India, India
ensure food security, water resources less land, water and energy. And we should
must be managed more prudently and improve farmers’ lives.”
farmers, corporations and government
must work in harmony. Forty years after Kushal Pal Singh, Vice-President, National
the Green Revolution succeeded on the Institute of Agriculture, India, pointed out that
strength of better irrigation and higher- this could only happen if the government,
yielding seeds, Indian agriculture lies farmers and corporations join forces and
stagnant due to poor water management work together.
and scant innovation in farming inputs and
practices. Compounding problems of Conclusion
groundwater depletion and contamination,
climate change will likely disrupt rainfall Sam Pitroda, Adviser to the Prime Minister
patterns – painting a daunting picture for on Public Information Infrastructure and
Indian farmers, who depend on the heavens Innovations, Office of the Prime Minister,
for 60% of the moisture that nourishes their India, was outspoken in his defence of
fields. India’s potential, and his views seemed to
reflect those of many participants. “This is a
Just as farmers must diversify their crops, country of disparity. This is a country of
myriad responses are needed to address the diversity. This is a country of confusion,” he
problem. “Instead of a single solution, there said. “We have to accept that.”
will be a great number of solutions,” said
Margaret Catley-Carlson, Patron, Global But Pitroda went beyond mere acceptance.
Water Partnership (GWP), Sweden. In the “We are living in exciting times in India,” he
view of Sekhar Natarajan, Chairman, said. “Building a nation is different from
Monsanto India, India, “The challenge building a company. It takes more than five
requires us to improve production in a years. It requires patience – especially “I was encouraged by what the
sustainable manner. There must be food and democratic patience.”
prime minister said because it
appears that he intends to go
ahead with the reforms.”
Kevan V. Watts
Country Head, Bank of America Merrill Lynch,
India
16 | India Economic Summit
19. Celebrating 25 Years of Partnership: India and the World Economic Forum
The World Economic Forum celebrated 25 years of active “Second, the 1991 economic reforms spearheaded by the then
engagement in India at its annual India Economic Summit. This year’s Finance Minister – now Prime Minister – Manmohan Singh, not only
Summit set a new record for total participation with over 800 leaders changed the competitive landscape within India, but also changed the
from industry, government, civil society and academia from over 40 mindsets in business, government and civil society,” he continued.
countries.
Schwab praised the close collaboration with the Confederation of
Professor Klaus Schwab, Founder and Executive Chairman of the Indian Industry (CII). “Through the resultant deep partnership and
World Economic Forum, looked back over a quarter of a century of friendship, year after year we have worked together to host the India
partnership with India, and noted two events in particular as having Economic Summit, which leverages our experience in providing the
played an important role in the relationship. necessary space for interaction to deliberate challenges to India’s
future growth and to formulate proposals and recommendations to
“First, 25 years ago, when the Indian economy was thirsting for address these with a multistakeholder approach,” he said.
reform and liberalization to realize its full productive potential, the late
Prime Minister Rajiv Gandhi encouraged us to create a platform with At the same time, Indian industry leaders have been among the most
which we could show the world that the country was ready to come engaged and committed in Forum activities throughout the year.
out of years of isolation and move towards a trajectory of “They have lent their time and expertise to our initiatives, our Industry
modernization,” Schwab said. Partnership programmes and our various knowledge capacities, such
as the Global Agenda Councils,” Schwab concluded.
India Economic Summit | 17
20. Green Growth and Inclusive Development
18 | India Economic Summit
21. “To imagine something that is basic
and to build something unique is a
useful talent when the world is trying
to use fewer resources.”
The idea of building a low-carbon economy While humanitarian and moral arguments for Carlos Ghosn
that gradually embraces millions of poor relieving girls of their burdens are strong, Chairman and Chief Executive Officer, Renault
citizens would seem to fall under the rubric debate focused on the contribution they France; President and Chief Executive Officer,
of what C. K. Prahalad, Paul and Ruth could make to a growing Indian economy
Nissan, Japan; Member of the Foundation
McCracken Distinguished University when they grow up. Unleashing this potential
Board of the World Economic Forum; Co-
Professor of Corporate Strategy, University would provide India with a major engine of
Chair of the India Economic Summit
of Michigan, USA, calls “next practices”. growth and could add US$ 56 billion to the
Said Prahalad: “No country has done this Indian economy annually, according to some
before, so you cannot benchmark best estimates.
practices. You must forge next practices.”
“When you look at the issue, it is no longer a
If India adopts many of the groundbreaking ‘nice thing to have’ but an economic
ideas discussed at the Summit, it may imperative,” said Chanda Kochhar,
become the global leader in next practices. Managing Director and Chief Executive
As it expands, the Indian economy will need Officer, ICICI Bank, India; Co-Chair of the
growing numbers of skilled workers; mostly India Economic Summit. “Companies cannot
marginalized in today’s economy, women miss out on a talent pool equal to 50% of the
can fill that gap in the future if girls receive population.”
education and training today.
To guarantee continuity after the Summit,
By turning climate change on its head, using participants suggested possible next steps
it to spur innovation, India could achieve to bridge the gender gap:
lower carbon emissions while becoming a
world leader in green technologies. By • The World Economic Forum should
focusing on technologies that address the convene a task force based on the model
needs of average citizens, India can continue of its successful disaster relief initiative: “I
to be a world leader in developing can sign KPMG to do that right now,”
inexpensive, practical technologies. said Lord Hastings of Scarisbrick, Global
Head of Citizenship and Diversity, KMPG
Key Recommendations International, United Kingdom.
India must invest in girls to enable them • Encourage politicians and policy-makers to
to make greater contributions to Indian join more fully in the debate: “It is at panels “The historic accumulation of CO2 is
society and its economy. Maria Eitel, like this that I want to see policy-makers, I not the result of what we have done,
President, Nike Foundation, Nike, USA, want to see ministers,” said Rajshree
summed up the predicament of many girls in Pathy, Chairman and Managing Director, but is the consequence of 150 years
India: “There’s a complete population that Rajshree Sugars & Chemicals, India. of industrialization in the major
provides the infrastructure of poverty. An
adolescent girl, as she carries water, is the • Convince men to take more interest in the developed countries of the world. It is
plumbing system. As she carries firewood, issue of gender and why bridging the our hope … that the world’s major
she’s the electric grid. As she takes care of gender gap is an “economic imperative”.
economies will be prepared to create
the sick, she’s the healthcare system. When
a cow dies or when someone gets sick in India should work to ensure the success an environment where larger capital
the family, she’s the insurance policy. She’s of international negotiations on climate
change and take a leadership role in the
flows are available for mitigation and
the transportation system as well. As long as
she continues to provide infrastructure for development of green technologies. adaptation measures.”
poverty, it will continue to exist. What we India wants to have “a supportive climate
have to do is break that cycle. Education is change regime to help us do what we are
already doing in our own interest,” said Manmohan Singh
the answer. She cannot be in school if she’s
spending her whole day involved in chores.” Shyam Saran, Special Envoy of the Prime Prime Minister of India
India Economic Summit | 19
22. Minister of India on Climate Change. “But we Instead of blaming each other, countries
are a developing economy. We are not must collaborate, especially in developing
making our action on climate conditional to energy-saving technologies, renewable
what anyone else is doing. If we have to do energies and alternative fuels. “The
more, then we do need global support.” Any innovations will come out of China and
global climate change agreement has to be India,” predicted Deepak Puri, Chairman and
fair and equitable, he declared. Managing Director, Moser Baer, India.
Suresh Vaswani, Joint Chief Executive
The argument that growth is not compatible Officer, IT Business, and Member of the
with environmental responsibility is a “false Board, Wipro, India, said that companies
choice,” argued Lord Stern, IG Patel should “open source” green technology.
Professor of Economics and Government,
“It’s important to move beyond India Observatory, London School of India must redouble efforts to become a
Economics, United Kingdom. Major world leader in technological
looking at girls at victims. One of the developing economies such as Brazil, China innovations that provide low-cost and
issues of girl rights is that it tends to and India are outlining ambitious and creative socially inclusive solutions. India already
climate plans, he remarked. leads the world in what Carlos Ghosn,
look at girls as victims; it doesn’t look Chairman and Chief Executive Officer,
at them as a resource or an asset.” “If the rich world has that deeper Renault France; President and Chief
understanding, then suspicions that they are Executive Officer, Nissan, Japan; Member of
doing all these things and others are doing the Foundation Board of the World
Barkha Dutt nothing will disappear,” Stern noted. He Economic Forum; Co-Chair of the India
Group Editor, New Delhi Television (NDTV),
warned that protectionist measures in the Economic Summit, calls frugal product
name of carbon-emission reduction would planning.
India
be the wrong response. “The right response
is the collaborative one,” he said. “India has engineers, product planners and
designers who are second to none in frugal
Business leaders agreed. “We should product planning,” he said. “Nobody else
reaffirm the need to approach the problem can build a car for US$ 2,000 to US$ 3,000.
“Our strategy is not just to deliver multilaterally,” said William A. Reinsch, I have to come to India for that. To imagine
rapid growth, but to deliver rapid President, National Foreign Trade Council something that is basic and to build
(NFTC), USA. “We need to leap off the cliff something unique is a useful talent when the
and inclusive growth … that will together.” Ben J. Verwaayen, Chief Executive world is trying to use fewer resources.”
provide productive employment to Officer, Alcatel-Lucent, France, called on
our young population and raise governments to act now. “If we lose The Indian government should harness and
momentum and inspiration, we will not just expand that capability by improving
living standards in rural areas have a postponement of a couple of months. education and providing incentives for
across the country.” It will go off the table for a long time. We entrepreneurs and researchers to address
cannot afford it. We need leadership to get it the problems and needs of average citizens.
done and business should speak up.” “The best minds have always been used to
Manmohan Singh
Prime Minister of India
20 | India Economic Summit
23. “It is usually called governance, but
I am an old-timer so I like to call it
corruption. Corruption is an issue.
No country that is corrupt is rich;
no country that does not build up
its human resources is rich; and no
country that is corrupt builds up its
solve the problems of the rich – who don’t Conclusion
have that many problems,” said Sam
human resources. You can run the
Pitroda, Adviser to Prime Minister on Public Although he was talking about socially regressions yourself. It is public data.”
Information Infrastructure and Innovations, inclusive technology, Pitroda’s comment is
Office of the Prime Minister, India. “The poor applicable to green and inclusive
have lacked this knowledge bank.” C. K. Prahalad
development: “We want to create a whole
new business model,” he said. “The US Paul and Ruth McCracken Distinguished
The idea is to focus on solutions that are consumption model is not scalable. It is not University Professor of Corporate Strategy,
both accessible and scalable, according to workable. And it is not sustainable for India University of Michigan, USA; Global Agenda
Pitroda. “We want to create a whole new or the rest of the world.” Council on Innovation
model. We don’t want to create fancy
gadgets but rather look at the needs of the Noted Prahalad: “We have done work with
poor and address them,” he said. focus groups with people in the countryside.
Regular people, they are ready. Are we as
leaders ready?”
Close India’s Gender Gap to Open Its Competitive Potential
Women, as half of the human capital of India, need to be more A new Forum report released at the meeting, The India Gender Gap
efficiently integrated into the economy in order to boost India’s long- Review 2009, shed more light on the issue. The report presented the
term competitive potential. Two plenary sessions at the Summit results of a comprehensive survey assessing the current state of
investigated ways to close the country’s sizeable gender gap, which, gender-related corporate policies and practices in India.
according to the Forum’s Global Gender Gap Report 2009, sees it
ranked 114th out of 134 countries measured. Only 14% of the companies questioned have 40% or more women
among their employees. These women employees are mainly present
India has closed 93% of its health gender gap, 84% of its education at the entry and middle levels of management, while very few women
gap, 41% of its economic participation gap and 27% of the political attain senior management level. Most companies do not track salary
empowerment gender gap according to The Global Gender Gap gaps, despite the clear wage gaps between women and men – only
Report 2009. India holds last place among the BRIC countries in the 4% of the companies surveyed are attempting to monitor salary gaps.
Index, behind Russia (51), China (60) and Brazil (82).
“The Forum’s survey of some of the biggest companies in India
In South Asia, the country is in second-to-last place behind Sri Lanka shows that, to achieve better integration of women in the economy,
and Bangladesh and ahead of Pakistan. Sri Lanka leads in the Indian companies will need to set targets, improve policies to close
rankings by far, holding 16th position, followed by Bangladesh (94), salary gaps and promote work-life balance,” said Saadia Zahidi, Co-
Maldives (100), Nepal (110), India (114) and Pakistan (132). author of the Forum’s Global Gender Gap Report 2009 and Head of
the Forum’s Women Leaders and Gender Parity Programme.
India Economic Summit | 21
25. “We spoke about infrastructure,
education, inclusive growth and
skills development. The irony is that
each one of these issues can turn
confrontational, often violent. Elected officials
Despite continued GDP growth, India’s into an opportunity or a bottleneck.
entrepreneurial ecosystem is challenged by and political parties across the spectrum
regulation and lack of seed capital, mentors need to find ways to collaborate to help lead If we skill young people and train
and diversification of industry sectors. Yet, the country to a brighter future. them properly, they will become a
India is a potential incubator for innovation huge asset. If we don’t, they will
for many sunrise industries, particularly in the Shashi Tharoor, Minister of State for External
manufacturing and healthcare sectors. Affairs of India, raised the concept of become a liability.”
vasudeva kutumbam, which construes the
“One of the greatest assets we have is world as one, and asked the world to open Chanda Kochhar
entrepreneurship. We came to India because more windows and doors to make space for
India. Managing Director and Chief Executive
the market delivers. We find very good basic
skills. What we also need are engineers and Officer, ICICI Bank, India; Co-Chair of the
people who can work on the shop floor. “We have traditionally been willing to look India Economic Summit
There is a need to do something here,” said beyond a narrow interpretation of power. We
Joerg Mueller, President and Managing are a responsible global player. Having said
Director, Volkswagen India, India. that, we are going to have to do things so as
not to deprive our citizens of the basics of
India must close the gender gap. Women development. We can’t be altruistic at the
comprise half of India’s human capital, yet expense of our own population,” he said.
the country ranks a dismal 114th out of 134
countries measured by the Forum’s Global Anand Sharma, Minister of Commerce and
Gender Gap Index 2009. Indra Nooyi, Industry of India, noted that the last few
Chairman and Chief Executive Officer, years have witnessed major changes in India
PepsiCo, USA; Member of the Foundation and the world, during which India has been
Board of the World Economic Forum; Co- able to redefine its engagement with the
Chair of the India Economic Summit, called world as well as reshape itself and its
for relevant government ministers to meet economy, ambitions and policies.
with business and civil society leaders to
prioritize the issue. “Addressing this is Key Recommendations
urgent. Why isn’t change happening faster?
We have not created the infrastructure for India has to strengthen its
women to become achievers,” she said. entrepreneurial ecosystem if it is to “There is a really important
prosper from new markets and enjoy opportunity to take the talent that
As India’s economic prowess increases, so sustainable economic growth. India’s
does its influence on the global political success story has many chapters, involving India has and deploy it towards
stage. It is speaking up at G20 meetings and domestic and multinational companies. The innovation. The world is desperate
engaging in debate at the World Trade country’s track record in specific industry
Organization. Indian leaders have committed sectors is legendary, but it needs to for new business models. The
to finding an equitable solution to the Doha maximize the latent potential in sunrise developed world needs to
deadlock. They are also vocal about industries such as IT-related business
redesigning the global architecture to reflect services, renewable energy, healthcare and transform. The learnings will come
the aspirations of emerging economies. others. from the developing world.”
But as India plays the role of good global India must address the deficiencies in its
William D. Green
citizen abroad, closer to home political enterprise support system. The education
dialogue is proving difficult. India is the system must be reoriented to teach Chairman and Chief Executive Officer,
world’s largest democracy and coalition entrepreneurship, and role models of Accenture, USA; Co-Chair of the India
governments have ruled for two decades. successful entrepreneurs must be promoted. Economic Summit
However, Indian political culture is
India Economic Summit | 23
26. “A lot is happening on the Regulation and tax regimes need to be Numerous foreign manufacturers have met
reformed to provide incentives to India’s infrastructure bottlenecks head-on
manufacturing side. The key entrepreneurs and banks must make it with considerable success: LG uses India as
impediment to becoming a global easier to access capital. an export hub; Hyundai has set up its small
car manufacturing base there; Nokia’s
hub is not infrastructure bottlenecks, India’s trade and investment engagement handset manufactured in the southern state
but entrepreneurship and has shifted to higher trajectories, changing of Tamil Nadu costs 12% less than its
the way it does business globally. India has counterpart in China.
leadership capability. Any country eschewed protectionism and recently signed
that has these two elements can an economic partnership agreement with India offers potential investors in the
South Korea, a free trade agreement (FTA) manufacturing sector a number of
overcome the hurdles.” with ASEAN, and is working on an competitive advantages: a huge domestic
agreement with Mercosur (Mercado Común market, wages less than half of those in
Jyotiraditya Scindia del Sur, the South American regional trade China and a large talent pool, including a
agreement) and Mercosur-Sacu (Mercosur’s strong engineering ecosystem. India is also
Minister of State for Commerce and Industry
FTA with the Southern African Customs in an excellent position to serve emerging
of India
Union). These new FTAs have the potential economies in Latin America, Africa and
to open India’s manufacturing sector. elsewhere in Asia. Currently, this represents
11% of India’s export market, but it is set to
To become an incubator for innovation, grow dramatically.
India must act fast if it is to survive
growing and fierce global competition. India must close the gender gap if it is
Innovation and entrepreneurship are the to unleash the country’s vast economic
lifeblood of the Indian economy. India is a potential. Equal rights for women is a
proven centre for cost innovation. The business and economic imperative. It is
famous US$ 2,000 Nano car riveted the fundamentally important to ensure their
attention of manufacturers worldwide, talent is not wasted. Success within
forcing a rethink of production and companies should be determined by merit,
distribution economics. General Electric’s not gender. To this end, companies should
US$ 1,000 made-in-India electrocardiogram be made more accountable; they should
machine is another success story. measure their progress on gender parity and
report on it.
India has the potential to boost its
manufacturing competitiveness while “The rights of girls and women are built into
employing millions of new workers. However, our constitution … the time has come for us
because of problems with power, ports, to say we know what the issues are, we
railroads, roads and water, and a shortage of need to move on to what concrete, specific
human capital, manufacturing has lagged actions will taken by corporates, by
behind targets. government, by the various ministries. We’ve
24 | India Economic Summit
27. had a lot of discussion, but we’ve not seen between ruling and opposition parties.
enough action,” said Vinita Bali, Managing Challenges need to be corrective,
Director and Chief Executive Officer, constructive and selective, and there must
Britannia Industries, India. be cooperation on the big-picture issues.
Change is happening at village level. More Conclusion
women are elected to panchayats (village
councils) since quotas were imposed. Optimists believe India is poised to play a
Participants agreed that gender parity within pivotal role in shaping the next generation of
business is achievable – possibly within the global growth. The country certainly
next 10-15 years – depending on political possesses all of the qualities to position itself
and corporate will. at the heart of the global economy. But can
government push through its reforms to “The crisis has brought India
Responsible and collaborative political deliver rapid and inclusive growth, and can it
dialogue must become the norm if create an enabling environment for FDI to
squarely to the global table. It has
Indians are to get the government they address the infrastructure deficit? To realize a big role to play – India is the
deserve. The results of the national elections its full potential, India must play on its microcosm of the world. It is a big,
earlier this year gave clear evidence that strengths, particularly innovation.
voters’ expectations are very high. People fractious place that finds a way to
are increasingly demanding accountability Political will is paramount. “The government build consensus.”
from their elected politicians. Parliamentarians needs to execute its plans. Just do it. I think
must fulfil their responsibilities as they enjoy it is achievable,” concluded Carlos Ghosn, Shumeet Banerji
their privileges, and decisions must be taken Chairman and Chief Executive Officer,
through dialogue. Renault France; President and Chief Chief Executive Officer, Booz & Company,
Executive Officer, Nissan, Japan; Member of United Kingdom; Co-Chair of the India
Democracy is well entrenched; differences of the Foundation Board of the World Economic Summit
opinion and ideology are not only possible Economic Forum; Co-Chair of the India
but also desirable. However, a mechanism Economic Summit.
must be created to facilitate collaboration
The Davos Debates in India: Can India Become a Superpower?
Some 60 participants joined the first “Davos Debates in India” to participants tweeted from the meeting, including Shashi Tharoor,
share their views on India’s future potential. The video debate on Minister of State for External Affairs of India and H.R.H. Crown Prince
YouTube was also open to the global community, and attracted over Haakon of Norway (www.twitter.com/davos/wefindia), reaching a
5,000 views. combined audience of 3.2 million people.
People were asked, “Can India become a superpower?” Among
other participants, Chanda Kochhar, Managing Director and Chief
Executive Officer, ICICI Bank, India, a Co-Chair of the Summit,
answered: “India is sitting at a very exciting stage of economic
development … which means that a rebalancing of economic power
will take place.”
To gather different perspectives, a street survey in collaboration with
one of India's leading broadcasters captured viewpoints from the
general public.
The plenary sessions at the Summit were streamed live on
Livestream and are available on the Forum’s YouTube channel
(www.youtube.com/worldeconomicforum).
Key quotes from the sessions were tweeted live on the Forum’s The first Davos Debates in India were watched over 5,000 times
Twitter stream (www.twitter.com/davos), allowing a worldwide
audience of 1.4 million to follow the discussions. Furthermore, 17
India Economic Summit | 25
28. Acknowledgements
The World Economic Forum would like to thank the officers and staff of the Confederation of Indian Industry for their partnership in the
India Economic Summit.
The World Economic Forum wishes to recognize the support of the following companies as Partners of the India Economic Summit:
Strategic Partners Deutsche Post DHL Summit Supporters
Abraaj Capital Ernst & Young Department of Industrial Policy and
Accenture Etihad Airways Promotion, Ministry of Commerce and
Agility HCL Technologies Industry of India
Alcatel-Lucent JPMorgan Chase & Co. Genpact
AUDI AG KPMG Greater Paris Investment Agency
Bahrain Economic Development Manpower Invest in France Agency
Board Merck & Co. MCX-SX
Bain & Company METRO Group NDTV
Bank of America Merrill Lynch Microsoft Corporation Oil and Natural Gas Corporation
Barclays PLC News Corporation Steel Authority of India
Booz & Company Nike Trimex International
The Boston Consulting Group Nomura Holdings
BT NYSE Euronext Service Provider
CA, Inc. PepsiCo Taj Palace Hotel
Cisco Reliance Industries
Clifford Chance Siemens
The Coca-Cola Company Unilever
Credit Suisse Volkswagen AG
Deloitte WPP
26 | India Economic Summit
