As the world continues to struggle for growth, India stands as an island of possibilities amongst the despair. For a world where the largest economies are struggling to grow even 2%, India is a USD 2.225-trillion economy growing at ~ 7.5% annually. It is the world’s seventh-largest economy by size and slated (by IMF) to become the third-largest by 2030 with a USD 10 Trillion economy.
But the world as we know is shifting. This isn’t the time to be the new China of manufacturing, or the new anything from the past; rather, it is the time for reinvention. There are three meta-trends that provide a humongous opportunity for India to fulfill and reimagine its place in the world.
- India’s economic rise has been a child of globalization. This meta-trend is under threat due to rising economic disparity in the nations that drove much of globalization. The globalization of manufacturing and services can potentially give way to glocalization of innovation. This may seem impossible till we begin to challenge our own mindsets. Some of the smartest organizations on the planet like GE are already doing this.
- Digital technology is replacing human labor at a speed that makes the demographic dividend in the traditional sense less of an incentive. FoxxCon is the best example of how a factory that employed hundreds is now being run with just supervisory teams.
- Nations without legacy debt can potentially leapfrog the fourth industrial revolution. The arms race for digital capabilities is being fought by the bigger economies but the pace of adoption will necessarily be slow due to legacy. Simply put, just as India leapfrogged into mobile adopti ...