The short view from Davos - India and the future of change - Part 1 of 2.

This afternoon (1/27), India Future of Change organised a panel discussion in Davos on the sidelines of the World Economic Forum. The panel, moderated by Martin Wolf of the Financial Times, featured heavyweights from the Indian and international business community including Dr. Montek Singh Ahluwalia, Dr. Raghuram Rajan, O. P. Bhatt, Doug McMillon, Beth Comstock and Prashant Ruia.  It was attended by more than 100 eminent business personalities and academia from India and abroad.

The discussion revolved around the theme of 'How will India grow faster than China? - What can government and business do to make that happen?' was quickly broadened by Dr. Montek Singh Ahluwalia to what the Indian government is and will be doing irrespective of the path taken by China. He spoke about some of the issues that currently occupy the thinking space of the Indian government and policy responses.

Taking a cue from this start, O. P. Bhatt spoke in detail about the sustainability and quality of current Indian growth rates. Challenges, he said, exist in areas such as the relevance and focus of the current education system, the waste generated by growth, inflation, and the size of the Indian banking system. It was interesting to hear the head of India's largest and most important bank declare that Indian banks do not have the size or the critical mass for the economy to sustain 7-8% growth in perpetuity.

Dr. Raghuram Rajan was very focused in his comments— stating, he believed, that there is no comparison with China, and that the current perception of the India’s 'Hindu growth rate’ risks falling back to the 3% levels of the 1980s if structural changes in the fiscal system are not implemented in time. India, he stated is 'running out of time'.

Prashant Ruia spoke about the vibrancy and positive outlook of the Indian manufacturing sector.  His views were unique as being the only panelist to have a direct interest and background in Indian manufacturing.

Beth Comstock was bullish on the opportunities presented by India. She spoke about the refocusing that has happened within GE over the last year, in terms of the focus now shifting to GE India developing products that will foremost succeed in the local market, and then porting the products to the western, hitherto 'high margin,' markets.

Doug McMillon spoke of the importance of India to Walmart, the venture with Bharti, some of the current initiatives such as talent hiring and training, and some of the obstacles faced by foreign retail due to current policies barring FDI in the sector.

As a business school student invited to attend the conference, it was heartening to see seasoned executioners from the frontlines cut through the hype that frequently surrounds the Indian growth story and to provide critical insights into issues affecting policy, business, execution and sustainability. We now move on to Day 2 and our next theme on innovation, design and entrepreneurship.

Nilav Bose is an MBA student of the London Business School. This blog represents his own views.
Photos available at INDIA Future of Change's Facebook site.