THE ECONOMY NEEDS A REBOOT

We have achieved staggering accomplishments in India in the last decade as more than 200 million people have been lifted out of extreme poverty. This is no minor feat and we can be justifiably proud of it. The accelerated economic growth over such an extended period of time has helped us to create access to opportunities to many, but still the benefits from this growth spurt has eluded many more!

As if this was not enough of a challenge, there is undoubtedly a south bound turn in our growth curve. Banks, non banking finance companies and cooperative banks are reeling under non-performing assets, bank frauds are being regularly unearthed, and management is being found implicated in financial misdemeanor, hand in glove with corrupt politicians. There are problems at both ends of the sales spectrum.  If big corporate houses are feeling the stress as demands plummet and huge inventories of cars, bikes, farm equipment remain unsold, and flats and shops are no more in demand, even the modest buyers of biscuits, toothpaste, underwear and shaving blades are being super selective with their purchases. The investors are justifiably worried and wondering what happened to the domestic demand of 1.3 billion people?

This has led us today to a chicken and egg situation. The investor will only invest when he sees an increase in demand and the buyer will only buy when the investor and / or the government invests in newer technologies and creates better paying jobs for him / her. This has been further complicated by the newest Nobel laureate Amitabh Banerjee with his idea of Universal Basic Income. Provide money to the poor for doing nothing to create demand and a level playing field is his NYAY. When people have a fair and level playing field and are able to participate in and benefit from the growth, the economy is strong and the society is safer, healthier and happier. 

The fact of the matter is that three quarters of the businesses globally expect the process of automation and technological up-gradation in near future. Workers will have to learn newer skills with evolving demands. Our education and skill development planners should be able to prepare our youth for these new and very different jobs. So instead of rigid syllabus format our institutions will have to be extremely flexible and the study resources material should change with changing demands of future employers. Education planners like the University Grants Commission and management of ITIs will have to sit with the industry and be creative enough so that their degree and diploma holders are not unemployable when the occasion comes up. Only then will eager and talented job seekers get their dream jobs!

Thus the new education and training protocols will have to anticipate, plan, formulate and eventually align with tomorrow's demands. Almost every sector, technology,  retail, healthcare is on the verge of change with inputs from the 4th industrial revolution - Autonomous robots, Simulation, Big data and Analytics, Augmented Reality, the Cloud, Cyber security, Additive manufacturing, Internet of things and Artificial Intelligence, and our youth has to be prepared for the workplace of future. 

Productive and employable youth, engaged in well paying jobs will help to create stronger communities, robust economy and a powerful nation. So businesses, government and community leaders all three have vested interest in assuring that our youth acquire the necessary education and skill set to become a part of tomorrow's successful global workforce. This will require educational reforms that are long overdue. 

Businesses need vibrant, honest and prosperous societies to succeed just as societies need dynamic, honest and innovative businesses to create jobs and boost commerce. The role of the government should be that of a facilitator, help our businesses to compete globally. How can smaller economies like Vietnam and Bangladesh do better than us? Vietnam has become the second largest exporter of mobile phones, exporting 40% of the global demand and Bangladesh has acquired a prime position in footwear and apparel industry because their governments were smart to restructure their tax system and make manufacturing cheaper and competitive while we were left napping. We have unreasonable caps on FDI limits and are in a habit of increasing tariffs to protect inefficient domestic industries. We desperately need industrial reforms and labour reforms and these tested and failed left of centre gimmicks need to be given up once and for all.