The report titled Future of India- The Winning Leap was released on 24 November 2014 by global professional services firm PricewaterhouseCoopers (PwC) International Ltd.
The report revealed the winning solutions required to lead India to unprecedented economic growth along with radical improvements in the Human Development Index (HDI) over the next two decades.
The report emphasises that India has the potential to achieve 9 percent growth rate and become a 10 trillion US dollars economy by 2034. To achieve this growth, a concerted effort from Corporate India, supported by a vibrant entrepreneurial ecosystem and a constructive partnership with the government will play a critical role.
The report is outcome of the research that comprised interviews with about 80 leaders in India and abroad, workshops with sector leaders, insights from academic and economic specialists, and an online survey completed by more than 1500 people.
Highlights of the report
India can only build shared prosperity for its 1.25 billion people by transforming the way the economy creates value. For India, to create 10-12 million jobs every year in the coming decades, corporations and entrepreneurs must work together to help deliver new solutions and build capabilities for growth.
The report investigates 10 sectors- education, healthcare, agriculture, retail, power, manufacturing, financial services, urbanisation and enabling sectors such as India's digital and physical connectivity. Together, these sectors constitute over 70 percent of India's GDP.
The report states that each of the sectors face challenges whose resolution will require new and scalable solutions that are resource efficient and environmentally sustainable. Moreover, all of these sectors are interconnected and hence a setback in one spawns setbacks in others and vice-versa.
The report stresses that linear growth in each sector would not be enough to meet the growth ambition envisioned for India. Given the complexity and scale of the challenges facing India, the resources required, and the urgency of demands for change coming from Indian citizens, sector players must deploy solutions that deliver non-linear growth.
To enable such non-linear growth, organisations must focus on five key themes which should form the basis of their capability building measures and investments:
• Serving informed and empowered customers
• Creating flexible and adaptive operating models
• Drawing on non-traditional resources and partnerships
• Adapting a growth and innovation mindset
• Focusing on accountability, integrity and sustainability
The government also needs to extend support by creating national platforms that enable this growth and improving the ease of doing business index. For instance, immediate changes that could be harvested could be in areas like ease in starting a company and in paying taxes.
Winning Leap solutions from private sector fall within three broad categories:
• Fierce Catch-Up: This involves following traditional approaches or technologies to surmount challenges, but at an accelerated pace. For example Improving energy transmission and distribution efficiency.
• Significant Leap: This involves adopting new or different approaches or technologies, which may have been developed elsewhere but would also work in India. For example Shifting from coal-based power generation to nuclear or solar energy.
• Leapfrog: This represents a radically different approach- a paradigm shift that entails applying a new and potentially disruptive business model. For example moving from central to distributed power generation.
According to the report, if each sector of the Indian economy executes solutions drawn from above three categories, it will expand fivefold and can achieve 9-10 percent sustained economic growth over the next 20 years in a resource efficient manner.
Three Economic growth scenarios
With data and modelling from Oxford Economics, the report defines three possible economic growth scenarios for India, each hinging on different strategies and achievements that could come from corporations, entrepreneurs, and Government, and each reflecting a different focus for investment:
Scenario 1: Pushing old ways faster outlines a focus on investment in education, health, and other dimensions related to human capital. The analysis suggests that in this scenario, India's GDP could see a 6.6 percent compound annual growth rate (CAGR) between 2014 and 2034.
Scenario 2: Turbocharging investment outlines the impact of rapid and significant investment in physical infrastructure and envisions a 7.0 percent CAGR for GDP leading up to 2034.
Scenario 3: The Winning Leap includes investment in both human and physical capital as per the previous two scenarios but also focuses on investment in Research & Development and innovation and envisions a 9.0 percent CAGR for GDP by 2034.
About PricewaterhouseCoopers (PwC) International Ltd
PwC helps organisations and individuals create the value they are looking for. It is a network of firms in 157 countries with more than 195000 people who are committed to delivering quality in assurance, tax and advisory services.
In India, PwC has offices in Ahmedabad, Bangalore, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune where it provides Advisory and Tax Regulatory services by presenting finely defined deliverables.
When: 24 November 2014
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