India Predicted To Become The World’s Highest Growth Nation In The 21st Century
55 percent Indian executives’ surveyed trust “ecosystems” will drive India’s economic advancement
Improved Governance, Strong Social and Physical Infrastructure identified as the top drivers for economic growth
The 21st century can be the “Indian century,” as the country readies itself to emerge as a global leader, finds the new IBM study. More than 51 percent of executives stated that improved governance and the removal of excessive regulation will be a crucial driver of sustained economic growth. While building a strong social infrastructure was identified as the second most important contributor to economic productivity, over 40 percent of respondents identified good quality of physical infrastructure and availability of skilled resources as important drivers of growth.
The IBM study, “Indian Century: Defining India’s Place in a Rapidly Changing Global Economy” is based on interviews with 1,088 Indian executives across large enterprises, start-ups, academia and government to get their perspective on opportunities and roadblocks for the Indian economy.
Where is India heading? India benefits from entrepreneurialism and diversity, currently ranking as the fourth-largest source of technology start-ups globally. By 20201, India will constitute 30 percent of the world’s workforce and by 20301, the nation is projected to have the largest middle-class population in the world. A young population equipped with the right skills and growing middle class will reinforce economic activity through increased consumption and investment.
“India is witnessing a transformation that promises to minimize constrains and support economic advancement. The build out of social and digital infrastructure, powered by local innovations will help India become an integral part of the global ecosystem. The study rightly points out that India has immense potential to leapfrog traditional growth paradigms. If we are able to capitalize on the opportunities present in front of us, the next decade can definitely mark the beginning of the Indian Century,” said Vanitha Narayanan, Managing Director, IBM India.
Ecosystems are Driving India’s Growth Story: Executives rated ecosystems at the top of the list of factors to drive economic growth [55 percent of respondents], while 52 percent plan to start the ecosystem journey by collaborating with organizations from other industries. More than half of the executives surveyed, pinpointed India’s engagement in new global economic ecosystems as a means to sustainably place India in the ranks of the global economic elite.
Innovation is the backbone of Indian Economy: Emphasizing on the importance of innovation, 57 percent of executives said it helps them stay ahead of customer expectation, while 41 percent used it to reduce cost. This is a clear indication that India is well positioned to transform its role in the world, moving from a provider of low cost technical services to a strategic leader with niche skills.
The study states that for India to realize our developmental goals; it needs to avoid being caught in a middle-income trap. It’s essential for start-ups, corporates, educators and government to come together in pursuit of economic collaboration and advancement. India will need to look at itself as a knowledge economy – built on skills, innovation and technology, to indeed make the 21st Century, an Indian Century.