{"id":222869,"date":"2023-01-17T20:18:43","date_gmt":"2023-01-17T14:48:43","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=222869"},"modified":"2023-02-20T19:08:11","modified_gmt":"2023-02-20T13:38:11","slug":"five-priorities-for-india-inc-could-help-us-reach-ahead-of-the-curve","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/five-priorities-for-india-inc-could-help-us-reach-ahead-of-the-curve\/","title":{"rendered":"Five priorities for India Inc could help us reach ahead of the curve"},"content":{"rendered":"\n

Source<\/strong>: The post is based on an article\u00a0\u201cFive priorities for India Inc could help us reach ahead of the curve\u201d published in <\/strong>Live Mint <\/strong>on\u00a017th<\/sup> January 2023<\/strong>.<\/p>\n

Syllabus: GS 3 \u2013 Economy<\/strong><\/p>\n

Relevance: <\/strong>priorities need to be adopted by Indian private companies to make India a global leader<\/strong><\/p>\n

News<\/strong>: The article discusses the priorities which Indian private sector should have in order to make India the leader in the global economy.<\/p>\n

What are the priorities which Indian private companies should focus on?<\/strong><\/h2>\n

Take sustainability seriously:<\/strong> According to a McKinsey report, effective decarbonization would require India to spend $7.2 trillion on green initiatives.<\/p>\n

This is a big amount but it would also offer an opportunity to build sustainably from the start as around 75% of the industrial capacity that will exist in India in 2050 is not yet built.<\/strong><\/p>\n

Moreover, businesses have the opportunity to become global leaders in areas such as green steel, hydrogen, carbon capture and clean tech because these all are at a nascent stage.<\/p>\n

Further, India is a major exporter of two- and three-wheeled vehicles<\/strong>. So, it could also use this position to lead the change to electric vehicles (EVs<\/strong>).<\/p>\n

Effective capital spending strategies<\/strong>: In recent years, most capital expenditure (capex) in India has been driven by government spending and by public-sector companies.<\/p>\n

However, there has been low growth in net fixed assets<\/strong> along with little growth in the productive base of many large companies.<\/p>\n

Therefore, companies that have proper spending plans can execute capex projects faster and more cost-effectively, positioning themselves for sustained growth.<\/p>\n

Increase in innovation:<\/strong> India has improved its ranking from 81st in the 2015 Global Innovation Index to 40th in 2022.<\/strong>\u00a0 However, there is room for even more improvement.<\/p>\n

Indian companies account for less than 40% of total research and development<\/strong> (R&D) spending compared to more than 65% of large economies.<\/p>\n

Therefore, Indian companies can examine themselves and learn their \u2018innovation quotient\u2019 (IQ)<\/strong>, which evaluates their readiness, strengths and execution capabilities.<\/p>\n

Further, large manufacturers could incentivize innovation among<\/strong> their suppliers by offering grants for breakthrough innovations.<\/p>\n

Companies could also work together to create innovation clusters or economic hubs<\/strong> where capital, expertise and talent collaborate on nascent technologies.<\/p>\n

Build digital technology capabilities<\/strong>: The global tech services market is expected to grow about 5% annually in the coming years. India\u2019s digital consumer sector is also growing fast and India\u2019s consumer digital economy could be a $1 trillion market in just a few years.<\/p>\n

One of the efforts taken by the government is by bringing Open Network for Digital Commerce<\/strong>. It may help by cutting costs and enhancing interoperability. However, it will be upon businesses to make e-commerce and digitization a reality for most Indians.<\/p>\n

Further, there is a need to re-skill workers in traditional tech services and take advantage of new opportunities<\/strong>. Creating industry-wide skills and certification would be of help.<\/p>\n

Recognize that resilience and growth go together<\/strong>: Indian companies can strengthen their resilience by building stronger relationships with suppliers and localizing operations along with focusing on growth.<\/p>\n

There is a need to build partnerships that prepare comapnies to address disruptions<\/strong>, such as energy security, cyber shocks and weather events.<\/p>\n

Further, business leaders can build positions that would enable them to take advantage of new and emerging opportunities.<\/p>\n

India could also use its low labour costs and manufacturing expertise to capture up to $1.2 trillion in global trade flows by 2030.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

Source: The post is based on an article\u00a0\u201cFive priorities for India Inc could help us reach ahead of the curve\u201d published in Live Mint on\u00a017th January 2023. Syllabus: GS 3 \u2013 Economy Relevance: priorities need to be adopted by Indian private companies to make India a global leader News: The article discusses the priorities which… Continue reading Five priorities for India Inc could help us reach ahead of the curve<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[216,10501],"class_list":["post-222869","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-3","tag-live-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704875140},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/222869","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=222869"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/222869\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=222869"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=222869"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=222869"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}