India will have a unique place in the global economy: Kumar Mangalam Birla
As it opens up to global trade, India will have a unique place in the global economy, leading industrialist and chairman of Aditya Birla Group Kumar Mangalam Birla said in an annual note on Tuesday. He added that the world is welcoming India’s rise.
“India’s economic fortunes are critical for the world. But more interestingly, India’s rise is being welcomed by the world as it grows into a stabilising and non-disruptive growth engine. The byline of India’s G20 presidency captures its foundational values— One Earth. One Family. One Future. What we call Vasudhaiva Kutumbakam. The latent economic potential of this country is being coupled with a newfound civilisational confidence born of our emergence as a strong third global growth pole. The next two and a half decades undoubtedly represent an Amrit Kaal,” he said.
Birla listed five trends that will have a multi-year impact on the world.
First, he said that India would be a “clear choice” for global corporations as part of their China + 1 strategies.
“A decadal reshaping of supply chains is underway. As global corporations start to look at countries across Asia as part of their China + 1 strategies, India is a clear choice. Supply chain repositioning is complex and needs us to stay the course. However, the path we are charting is bold and certain to yield good outcomes,” he said in the note.
Second, he said that the world would rapidly transition towards green energy.
“While the short-term flight from natural gas has been to coal, broader efforts to clean energy transition are now truly underway. Governments and large corporations globally finally see a confluence between what is virtuous and financially prudent. And this convergence will drive multi-decade transition will drive a multi-decade transition,” he added.
He further said India has made “bold bets” on the transition.
Third, Birla said that even though India has seen a “unique explosion of new business building,” the focus must be on maintaining the balance well. The businesses must focus on their fundamental strengths.
“Big bets need to be orchestrated based on your own fundamental strengths – better unit economics, massive scale, network advantages, speed etc. If you do not continuously reshape the terms of the industry based on these big bets, someone else definitely will be playing to theirs,” he added.
Fourth, he said that “a unique challenge for businesses today is to harness the trust and stability that comes from longevity while ensuring that we can continuously reinvent ourselves.”
According to Birla, companies will be asked pressing questions regarding their futures.
Lastly, he said that their purpose statement would act as a talisman for the Birla Group.
“In a world of increasing opportunity, and also accelerating uncertainty, our purpose statement is meant to act as a talisman and remain at the core of our business decisions,” he said.
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