Dear students and distinguished faculty of the Business School of the University of Applied Sciences and Arts, Northwestern Switzerland. It gives me immense pleasure to address you today in the ambit of Focus India Seminar and to share with you my thoughts about the opportunities and possibilities awaiting you in the New India. I am glad to note that Focus India Seminar, organized by the students of the School themselves, has been running successfully at the University for sixteen years now and that it has provided a valuable sneak-peak into India over these years.
[Introduction]
Allow me to start with a story about Chanakya. Chanakya was a strategist and scholar who is credited with being the brain behind the founding of the ancient Mauryan Empire in India, around 300 B.C. He is famous for his book on economics and statecraft known as Arthashastra, in which he lays out the principles and practical tactics to successfully rule a kingdom. Chanakya is sometimes compared to Machiavelli from Italy; but Chanakya lived and wrote his masterpiece on statecraft, almost two millennia before Machiavelli. In his treatise, Chanakya explains why a king should always be benevolent and interested in the welfare of his citizens. Chanakya explained that happiness and consent of the ruled was vital for a ruler to stay in power. He even gave theories for how a state treasury is to be organized and how foreign relations can be understood in terms of the geo-political interests of neighbouring states.
The story about Chanakya goes like this. Once Chanakya and the young Chandragupta, were walking in a street. Chandragupta was Chanakya’s disciple and had tried to overthrow the Nanda Empire by attacking its capital city Pataliputra but had failed after being overwhelmed by the opposing army. While walking on the street, Chanakya heard a mother scold her son for eating only the middle portion of a cake and throwing away the edges. She was explaining to the child how he should not consider the edges as less important. Listening to this conversation, Chanakya devised a war strategy and advised Chandragupta to lay siege to the periphery of the kingdom, slowly moving inwards and choking supplies to the capital. Finally they conquered the mighty Nanda empire despite having a smaller army.
What I wish to highlight from this story is that while youth brings in energy and ambition, the right strategy is necessary for achieving success in our endeavor. What was true two and a half millenia ago continues to be true even today.
I am happy that the University as well as this Focus India Seminar series will provide you with a comprehensive understanding of Indian economy and will also provide tactical and strategic tools for entering, engaging, and expanding in the Indian market.
The Indian economy with its immense size and large geography may seem daunting to the a young Swiss entrepreneur, straight out of the Business School. But with events such as this Seminar, I am sure you will learn the win-win strategies that will eventually go into strengthening India-Switzerland bilateral relations.
Friends, I arrived in Switzerland as the Indian Ambassador to your beautiful country, about six months back. In my time in Switzerland, I had the opportunity to see the beautiful snow-covered mountains, rolling green hills and lakes. But I have come to realize that, what makes Switzerland stand apart is its capacity to innovate, plan and execute with precision. Switzerland has managed to carve out for itself a brand identity of quality and reliability. I understand that each one of you have imbibed these qualities and are eager to make your mark across the world. I am here to invite you to a wonderful country, one of the fastest growing economies and a young and energetic demography, that is India.
From the ancient times of Chanakya, India has come a long way to where it stands now. Mahatma Gandhi, the Father of the Nation of India led the first non- violent struggle in history to liberate India from its colonial rulers. Today’s India with its fast growing infrastructure, rapid urbanization and tech-savy youngsters is quite different from the India during its Independence in 1947. Next year, India celebrates its 75th Anniversary of independence, looking back on its journey through these years.
[India and COVID-19 pandemic]
COVID-19 pandemic has changed our world and our interactions in ways which were not imaginable earlier. Unlike the previous editions of Focus India Seminar, we are today obliged to interact virtually and limit ourselves to a digital screen in view of the dangers posed by the corona virus. But this event today is also testimony to our resilience to adapt and our commitment to carry on despite all challenges.
India faced unprecedented challenges in the wake of the COVID-19 crisis. India tackled the COVID crisis with proactive and pro-participation approach. India worked on strengthening the COVID specific health infrastructure, trained its human resource to tackle the pandemic and used technology massively in testing and tracking the cases. India managed to contain the spread of the virus with one of the lowest mortality rates in the world. India’s success has global implications.
India’s actions throughout the pandemic were guided by the ancient Indian philosophy of ‘Vasudhaiva Kudumabkam’; which means ‘the world is one family’. During the pandemic, despite the initial challenges of augmenting production of medical supplies, India supplied essential drugs and medical equipment to more than 150 countries in the world. Since January 2021, India has launched the largest vaccination campaign in the world, with the launch of its COVID-19 vaccine campaign. In the first phase, which is currently underway, India is looking to vaccinate thirty million health workers and front-line corona warriors. India has used its position as the ‘Pharmacy of the World’ to manufacture Made In India COVID-19 vaccines, which have been supplied across the world to a large number of Asian, African and South American countries, since January 2021. The ‘Vaccine Maitri’ included not only supply of vaccines manufactured in India, but India also trained medical personnel and administrators to organize the vaccine drives in many developing countries. The world community has realized India’s potential as the Pharmacy of the World. Few days back, in the context of the global vaccination campaign against corona virus, United Nations Secretary General, António Guterres said at a press conference that, “The production capacity of India is one of the best assets the world has today”.
[Atma-Nirbhar Bharat]
Since the breakout of the pandemic, India is pursuing the vision of ‘Atma Nirbhar Bharat’, which means 'Self-Reliant India’. When India speaks of becoming self-reliant, it is not advocating a self-centred system. Rather, India’s vision of self reliance includes care and concern for the whole world. India’s belief to become self reliant is underwritten by a strong conviction that India has the potential to catalyze global economic resurgence after the COVID-19 crisis. India’s commitment to self reliance is rooted in the theme that a self-reliant and resilient India can be a Force Multiplier for the post- COVID economy and can contribute strongly to global value chains. Indian economy is expected to bounce back in the current year with a sharp V shaped economic recovery.
[Economic Reforms / Ease of Doing Business ]
The resilience shown by Indian economy during the pandemic is unprecedented. The increased foreign direct investment into India, which was 15% higher during April to September in 2020 compared to 2019, stands testimony to this economic resilience and potential. This is due to a number of fundamental reforms, which have taken place in India in the last few years. Recently, Government of India has taken multiple initiatives to improve India’s manufacturing potential. It ushered in One Nation and One Tax system in the form of Goods and Services Tax (GST), one of the lowest corporate tax rates and installed various incentives for setting up new manufacturing units. Government has put in place a face-less regime for income tax assessment and appeal and has brought in a new regime of labour laws, balancing the welfare of workers and ease of doing business for the employers. Government has recently announced various Production Linked Incentive schemes in specific sectors to boost domestic manufacturing. It has also put in place an empowered institutional arrangement to hand-hold foreign investors in India. Each of these measures have contributed towards improving Ease of doing Business in India.
Even during the pandemic, India has maintained economic activity by starting infrastructure projects worth billions of rupees and initiating special schemes for employment. The Government has planned that under the National Infrastructure pipeline, projects worth 1.5 trillion US dollars will be implemented in India in the next five years. A pioneering multi-modal connectivity infrastructure master plan is being finalized. India has embarked on a massive infrastructure building spree of highways, railways, metros, water-ways, airports across the country. We are building millions of affordable houses for the neo-middle class. We are looking at investments not just in big cities but smaller cities and towns too. The latest annual budget presented in the Indian Parliament on February 1, 2021, addressed each of these areas with vast outlays and road maps for implementation. The budget also includes various measures to reduce regulatory compliance burden which will improve ease of doing business for industries.
[Digital Transformation]
On January 28, 2021, when Indian Prime Minister, Narendra Modi addressed the World Economic Forum’s Davos Dialogues, he spoke about the ‘Fourth Industrial Revolution- using technology for the good of humanity’. India is witnessing an unprecedented Digital transformation. India’s digital profile has been completely transformed. India is working on all the four factors of Industry 4.0- connectivity, automation, artificial intelligence or machine learning and real-time data. India is among the countries where mobile data charges are the cheapest in the world. Mobile connectivity and smart phones have reached far and wide. India’s automation design expert pool is vast and the country has made a mark in the field of AI and machine learning. Growing digital infrastructure has made digital solutions part of everyday life in India. Today 1.3 billion Indians have a universal ID- Aadhar which is connected to their bank account and mobile phone. India could transfer, 1.8 trillion Indian rupees worth of assistance, through direct benefit transfer to the accounts of 760 million Indians during the pandemic. Digital Infrastructure has made public service delivery efficient and transparent.
This Digital transformation is also reflected in the number and success of technology Start-Ups in India. India has one of the largest Start-Up ecosystems in the world. The young entrepreneur, brim with new ideas, encounters an expanding digital economy in India. The increasing middle class and growing purchasing power in the economy provides unprecedented opportunities in this market.
[MISSP Programme]
The Embassy of India in Berne has been running a market entry programme known as Momentum in India: Swiss SMEs programme, to handhold Small and Medium Swiss Enterprises and enable them to explore and enter the Indian market. In its two editions, close to 130 Swiss companies have onboarded on the programme and are at different stages of expanding their business in India.
[Frugal Innovation]
For Businesses entering India, it is important to remember that India is a price sensitive market. Indians are famous for their frugal innovations- simple problem solving techniques, which may not be ideal solutions, but manage to get the matter done at the lowest possible price. Many commentators have a tendency to associate competitive prices directly with a lack of quality or lack of compliance with environmental standards. But this is seldom the case. Frugal innovation is a technique of problem solving which is sensitive to price restrictions. But Indian industries and start-ups are proving that this can be achieved in compliance with quality and environmental standards. It is these parameters that make Indian market a challenging and interesting one.
[Sustainability]
Environmental considerations and Sustainability goals are central to India’s current developmental strategies. India played a prominent role in the formulation of the United Nations Sustainable Development Agenda 2030 and much of India’s National Development Agenda is mirrored in the Sustainable Development Goals (SDGs).
Prime Minister Modi in his speech at the G20 side event ‘Safeguarding the planet’ held in November 2020 reminded that India is not only meeting our Paris Agreement targets, but is also exceeding them. India has taken concrete action in many areas. There are efforts to eliminate single-use plastics; Our forest cover is expanding; The lion and tiger population is increasing; We aim to restore 26 million hectares of degraded land by 2030; And, we are encouraging a circular economy. India will meet its goal of 175 Giga Watts of renewable energy well before the target of 2022. Now, India is taking a big step ahead by seeking to achieve 450 Giga Watts by 2030. The International Solar Alliance (ISA), which is a treaty based international organization jointly launched by India and France, is among the fastest growing International Organizations, with 88 signatory countries. With plans to mobilize billions of dollars, train thousands of stake-holders, and promote research and development in renewable energy, the International Solar Alliance will contribute to reducing carbon foot-print across the globe. One more example is the Coalition for Disaster Resilient Infrastructure (CDRI). 18 countries and 4 international organizations have already joined the Coalition. CDRI has started work on increasing resilience of critical infrastructure. Infrastructure damage during natural disasters is a subject that has not got the attention it deserves. The poorer nations are specially impacted by this. Therefore, this Coalition is important.
[Conclusion]
With more than 50 % of the population below 30 years of age, India has a high requirement to rapidly skill its young population if it is to gain from its demographic capital. The dual education system of Switzerland, which provides ample skilling opportunities to its youngsters is a good model for India. India considers Switzerland a natural partner in this.
It makes me immensely happy that the students in the University have conducted the Focus India Seminar for sixteen consecutive years. The seminar has thus seen India grow through the transformative changes that I discussed throughout my talk today. I congratulate the organizers of the seminar as well as the faculty for their efforts and commitment to ensure that the students get an opportunity to experience India, while still at the University. I am also delighted to see the long list of associated organizations in the Seminar, showcasing the vibrancy of India- Switzerland Commercial relations.
Despite the temporary uncertainties and apprehensions brought about by COVID crisis across the world, there are exciting opportunities awaiting those venturing into India. As Ambassador of India, the message I bring today, from the 1.3 billion Indians is one of hope and positivity. The determination and the spirit of industry of this 1.3 billion is getting the Indian economy back on its feet despite unprecedented sufferings during the pandemic. India believes that its revival can be an engine for global recovery. While sharing its pharmaceutical, vaccine and production capacity with the world, India is but only embodying its age old philosophy of the World being one family – Vasudhaiva Kudumbakam.
I thank you for inviting me to this seminar and I wish Focus India may more years of success.
Thank you
*****
