Why India’s future depends on entrepreneurs

At the same time as India is applauded for its vibrant democracy, it is derided for its lost potential on the economic front. With the arrival of a new government, who have a clear mandate for development, the time has come for India to find out how to grow. With a young democracy and a youth population so large it is the envy of other nations, India is facing a once-in-a-lifetime opportunity to develop, both economically and socially.

So, who will drive this effort – the government, the corporate sector or entrepreneurs? Recent research by PricewaterhouseCoopers has indicated that to raise current growth projections by 2-3%, the private sector (both corporate and entrepreneurial) should take the lead. The government also has to step forward, on two counts: creating national platforms that enable growth and improving India’s ranking in the World Bank’s Ease of Doing Business index.

But the issues confronting the nation are enormous and complex, certainly in light of time expectations from citizens and the lack of resources currently plaguing the economy. Growth needs to be thought-through and approached in a way that is sustainable, both economically and environmentally.

This requires a wider consensus that is open to newer solutions and approaches. It also requires a renewed focus on innovation, and for companies to invest in building capabilities that can cope with an economic situation worthy of a much larger economy than the $2 trillion mark India is approaching. The entrepreneurial sector will play a valuable role, since creating jobs and spreading wealth beyond the prosperous top layer is only possible via the widespread founding and nurturing of enterprises.

There is some urgency here: without a radically higher growth rate than currently envisaged, India will not be able to create the 10-12 million jobs necessary to cope with the population explosion expected over next 20 years. In a young democracy, with increasing digital empowerment, this could lead to a significant social rift. Also significant are the challenges of energy security, food scarcity and environmental degradation. This is why growth needs to be rapid, and will require all the ingenuity and innovation India can muster.

This once-in-a-lifetime opportunity will not be available to coming generations. It is India’s responsibility to act now. If we are able to marshal our resources to create widespread prosperity, only then will coming generations applaud our efforts and enjoy the benefits of living in such a large democratic nation. The World Economic Forum’s India summit is a wonderful platform on which to tee up this discussion. Here in New Delhi, leaders from all over the world are gathered to focus on and execute the largest nation-building project available to mankind today.

Author: Shashank Mani Tripathi is lead partner of Global Growth Markets, PwC, India

Image: Employees walk in front of a pyramid-shaped building at the Infosys campus in the Electronic City area of Bangalore September 4, 2012. REUTERS/Vivek Prakash