India is projected to grow from current $2 trillion to $5 trillion by 2020. Also by 2020, India is set to become worlds youngest country with 64% of its population in the working-age group. It is widely believed by experts that India’s emergence as a strong global economy and firmly entrenched in the ‘Top-3’ will be driven by this youth power. Also, as is evidenced over the past 250 years, this transformation will be driven by corporations through their path breaking innovations through people and technologies.
Making your investments work: CSR, Business and Research funds
Over $100Bn+ of funds are spent in India alone in Research, CSR and Growth business funds. There are also new forcing factors in the economy now for these funds to be spent and CEOs are looking to make these work very innovatively for the corporation as well as for the society.
CSR Bill (2% mandatory spend) would drive an inorganic growth driven by legal mandate, NIRF (National Institution Ranking Framework) is a research opportunity driven by the highest weightage given to this factor and as innovations for BoP (low cost solar lighting by SELCO or Godrej’s low cost refrigeration) become core strategies marketing funds would be diverted to this sector.
The Glaring gap: Need for disruption
About 12 million people (300K graduates) entering labor market every year less than 10% have requisite skills, 42% of Indians live below international poverty line defined as $1.25 per day, India ranking has slipped to 81 in global innovation index. There is a need to bring together all the actors onto that common agenda in order to create the large-scale impact. The government has been very progressive in building policies and initiatives. What’s required is for the ecosystem to work together and create a difference.
There is clearly a need to do better execution across the value chain by leveraging technology, program management & consultancy. This can be provided by technology led scale, digital marketing led outreach and analytics led logical collaboration. These spends must work like strategic investments and pay back to the corporate in enhancing the enterprise value in both ways – quantitatively as well as qualitatively.