Two things have defined India’s entrepreneurial spirit over the last three months.
The first one is the INR 20 lakh crore Atmanirbhar Bharat package, which has a two-fold approach. Firstly, the policy aims to mitigate the debilitating impact of COVID-19 through crucial measures. Secondly, it intends to revive and strengthen the economy by lowering the entry barriers for entrepreneurship and making room for expansive growth. The measures announced as a part of the package will boost liquidity, restore confidence among entrepreneurs and encourage enterprising minds to start their own business. The multiplier effect of entrepreneurship on the economy and employment are well-known. As I’ve said in an earlier blog, if implemented successfully, the package holds the potential to catapult India into the USD 5 trillion economy club.
Some may call be overly optimistic. But I firmly believe that I am realistic.
To illustrate my point, let me dwell on the second event that has defined the country’s entrepreneurial prodigy over the last quarter. Since March 2020, Jio Platforms Limited, the digital subsidiary of India’s largest company, Reliance Industries Limited (RIL) has led a slew of massive investments from the largest global investors. On the strength of these investments, the parent company declared itself net debt-free last week. The achievement is enormous in itself. But to accomplish it amid a worldwide pandemic is even more remarkable.
To my mind, both these events are indicative of three things:
- India’s entrepreneurial zeal
- the promise of the Indian customers
- the vibrancy of India’s policies
Each of the factors mentioned above is inter-related and will play a critical role in the future of our country. Let me elaborate.
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India’s entrepreneurial zeal:
The entrepreneurial spirit is inbuilt in our DNA. It is this zeal that evolved RIL from a small business started by a petroleum pump attendant into India’s largest enterprise.
The COVID-19 pandemic has brought several other instances of our entrepreneurial zeal to the fore. Take, for example, the manufacturing of personal protective equipment (PPE) kits. We started manufacturing these kits indigenously two months after the outbreak of the pandemic. Last month, the Ministry of Textiles announced that our country had become the world’s second-largest manufacturer of PPE overalls. We now can export 5 million PPE suits per month. From being a net importer to becoming the world’s second-largest manufacturer in a timeframe of a few months speaks volumes about our inherent ingenuity.
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The promise of India’s customers:
At 1.3 billion, India’s consumer potential represents an unmissable opportunity. India is Asia’s third-largest retail market and the world’s fourth-largest after the US, China and Japan. Our consumer landscape is the core of the nation’s economic potential. It is on the strength of this ‘asset’ that India is projected to be the world’s fastest-growing economy. Internet penetration across all urban and rural centres is enabling unprecedented participation in the digitalized economy. Consequently, new-age industries such as fintech are rapidly growing and traditional industries such as real estate are witnessing a never-before opportunity to modernize their offerings. The new economy opens up opportunities for consumer-driven and tech-propelled investments in the country.
While consumption across a range of products and industries has witnessed a slowdown since the outbreak of the pandemic, I’m confident that we’ll bounce back soon. A large fragment of India’s recovery will stem from its consumer opportunity. The positive ripple effect will be witnessed on every sector- from retail to realty, from financial services to agriculture.
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The vibrancy of India’s policies
Sustained business legislations over the past few years have significantly enhanced the ease of doing business in India. In 2014, our country ranked 142 out of 190 countries in the World Bank’s Ease of Doing Business index. In 2019, we ranked 63. These reforms have opened up the country for new business opportunities.
The policy momentum has further accelerated amid the COVID-19 pandemic. The slew of cross-sector policy reforms announced by the government, many of which are under the ambit of Atmanirbhar Bharat Abhiyaan package, are steps in the right direction. These policies will lend guidance to our efforts and go a long way in ensuring India’s self-reliance in the post-pandemic era.
As the Chairman of Capital India Corp., I have been a first-hand witness of the genius of India’s enterprising minds. As we look to reset the economy, these factors will nurture innovation and enable our entrepreneurs to build creative solutions for the challenges facing the world today.
