The 6th day of International research Colloquium constituted the session by Dr. Ejaz Ghani, Senior Fellow at the Pune International Center, on the topic “India’s New Growth Model.” Dr. Ejaz Ghani has been the lead economist at the world bank and frequently contributes to the economic columns of leading newspapers such as The Hindu, The financial express, Mint, etc. He has edited several books throughout his career, such as ‘Reshaping Tomorrow,’ ‘The four half-billion in South Asia’ and many more books released by Oxford University Press.
The session started with an introduction to our country’s economy and how India is facing a delicate moment due to inflation, a slow rate of investment, and wealth creation. However, the long-term growth in India remains the same due to the Youth population and Entrepreneurship. He pointed out how fiscal stimulus can maximize finance for infrastructure development by closing the infrastructure gap, eliminating factor market distortions, and solving twin balance sheet problems. He mentioned how the Monetary policy easing had been facilitated by lower inflation globally and in India. The session also highlighted land markets in India. Entrepreneurship is based on three leading factors -Capital, Land, and Labor Markets. The land has been a significant aspect in India as it is widely used as collateral for most bank loans and capital markets. Borrowers pledge 80% of land values against bank loans.
The talk continued on how India can promote entrepreneurship. Mr. Ghani mentioned that physical infrastructure- constituting roads, technology, access to electricity, etc., and Human Infrastructure – Skills, education, etc., are the key drivers for getting new enterprises on board. New enterprises contribute to job creation and growth. Despite it, entrepreneurship in India is as low as 20% or 15% in manufacturing. However, these upcoming firms are heterogeneous.
Dr. Ejaz Ghani also mentioned that India’s growth has been spearheaded by services than manufacturing and highlighted how the fourth Industrial Revolution had benefited India. He focused on the role of gender in the contribution of the whole by stating that gender is a new driver of wealth creation and economic growth. India has entrepreneurship, and jobs are the lowest. Improving the gender balance is the first step of India’s development and achieving more significant economic growth and gender equality.
The role of the middle class has been touched upon too. As a young population-dominated country, India will have a young population for decades, and growth will benefit from a demographic dividend until 2050. Rise of the middle class, wealth creation, and education causes and consequences of a demographic dividend. Demographic change creates the potential for a faster pace of economic growth through several channels. Mr. Ghani concluded by focusing on how India can reach double-digit growth rates by scaling up wealth creation, Entrepreneurship, and the pace of entry of new firms.
With this valedictory talk, International Research Colloquium 2022 was concluded. The sessions throughout the six days have been very enriching, with impaneled guests from various domains providing their opinions, thoughts, and insights about the trending topics in the business world.
-Management Committee, SCMHRD