According to Mukesh Ambani, India can be as wealthy as the United States and China by 2047.

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Monday, 16th August 2021

Three decades of economic reforms in India have benefited citizens unevenly, and the "Indian model" of development must focus on creating wealth at the bottom of the pyramid, said Mukesh Ambani, the richest Indian, exuding confidence that the country can be on par with the US and China by 2047.

In a rare column commemorating 30 years of economic liberalization, the chairman of Reliance Industries Ltd, India's largest company by market value, said bold economic reforms helped GDP of $266 billion in 1991 grow by more than ten times.

"In 1991, India transformed its economy from one of scarcity to one of sufficiency by 2021." By 2051, India must have transformed itself into an economy of sustainable abundance and equitable prosperity for all. Equity will be at the heart of our collective prosperity in India.

According to Ambani, India demonstrated foresight and courage in changing both the direction and determinants of its economy in 1991. "The government also placed the private sector at the commanding heights of the national economy, which the public sector had occupied for the previous four decades."

It abolished the quota system, liberalised trade and industrial policies, and liberalised capital markets and the financial sector. "These reforms unleashed India's entrepreneurial energy and heralded a new era of rapid growth," he wrote.

These reforms aided India's economy in becoming the fifth largest in the world, halving poverty rates despite a population increase from 88 to 138 million.

"The critical infrastructure has advanced far beyond recognition. Our expressways, airports, and ports, as well as many of our industries and services, are now world-class "He stated.

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It's unfathomable, he said, that people had to wait years for a phone or a gas connection, or that businesses had to seek government approval to buy a computer.

"We have earned the right to dream big as a result of our accomplishments over the last three decades. What better dream than to be able to mark the centennial of our independence in 2047 by making India one of the world's three wealthiest nations, alongside America and China? "He stated.

Ambani stated that the road ahead is not easy. "But we must not be discouraged by unexpected and temporary problems, such as the pandemic, or distracted by trivial matters that sap our energy. We have the opportunity, as well as the responsibility, to make the next 30 years the best in independent India's history."

According to Ambani, the model of self-sufficient India cooperating with the rest of the world may be the answer.

"So far, economic reforms have benefited Indians in an uneven manner. The disparity is both unacceptable and unsustainable. As a result, the Indian development model should prioritise creating wealth for the people at the bottom of the economic pyramid "He stated.

Ambani went on to say that the way we think about wealth and how we pursue it must change and be rooted in the primacy of empathy.

"For far too long, we have defined wealth solely in personal and financial terms. We have ignored the fact that achieving 'Education for All,' 'Health for All,' 'Employment for All,' 'Good Housing for All,' 'Environmental Safety for All,' 'Sports, Culture, and Arts for All,' and 'Opportunities for Self-Development for All' - in short, 'Happiness for All' is India's true wealth "He stated.

Care and empathy must be brought to the core of everything in business and society to achieve these redefined parameters of prosperity, Ambani said, adding that nations become prosperous when they expand their markets.

"Our most significant advantage is India's continent-sized domestic market, which remains largely untapped. When we create a middle class of one billion people with rising incomes, our economy will begin to grow miraculously. In terms of demographics, this equates to adding the entire population of the United States and Europe to the current size of the Indian market "He continued.

To accomplish this, India must lead the fourth industrial revolution by rapidly deploying technologies to increase productivity and efficiency in not only large industries and services, but also agriculture, MSMEs, construction, renewable energy, and arts and crafts, according to the RIL chairman, adding that the country must become a nation of innovators.

"Historically, India has been a leader in low-tech innovation. Now we must replicate this prowess with high-tech tools so that they can serve as catalysts for faster growth. Our entrepreneurs will be able to provide high-quality, yet extremely affordable, services and solutions to meet India's needs thanks to innovation "he added, adding that the same can be offered to export markets, where they will fetch a higher price.

The News Talkie Bureau

Source

Business-standard.com