India have to own Global Brands

India’s ascent to becoming the world’s 4th largest economy will be a statistical milestone.

It will not make us ‘richer’ than Japan, which has a per-capita income more than 10 times India’s. it doesn’t bring us significantly closer to No.2 China’s GDP, which is 5 times. But for an economy that languished in the lower-middle ranks 30 years ago, it is an achievement worth recognising.

India’s quest to become a developed country by 2047 requires rapid growth, faster than roughly 6% the country has averaged since 1991. The only period in which India grew at 8-10% a year was between 2003 and 2008, when global tailwinds played a major part. That was the peak era of globalisation.

India isn’t a product nation because it doesn’t spend enough on R&D. Every successful country owns products and global brands.

India is highly import-dependent on Raw – materials, energy and minerals. It needs to be more self-sufficient to ensure no disruptions.

India’s R&D spending is around 0.6-0.7% of GDP, which is low by standards of any advanced country. Both the government and private sector under-spend on R&D. often, their priorities differ, and there is limited collaboration.

The private sector spends too much time battling regulation and other structural rigidities in land and labour, which add to cost of doing business and distract from R&D.

India cannot afford to import energy and minerals worth almost $400 bn a year, or 50% of its total imports. This is money spent on creating jobs and growth outside India, when India has the geological potential to produce domestically. The story of dependence on oil imports may be repeated with critical minerals.

Manufacturing new technologies will be key for rapid growth. It cannot flourish without a secure and affordable supply of raw materials.

India’s growth strategy needs to be tailored to prevailing times and opportunities. There will be no stopping India’s rapid rise if we adapt.

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