Elephant Dances: India Emerges

Prepared By:
Group 4
Introduction
 India today looms large globally, where it hardly loomed at all twenty years ago :1991,
when the Prime Minister admitted while presenting the annual Budget that the crisis in
the economy was both ‘acute’ and ‘deep’. The financial crisis forced the government to
loosen stiff regulations hampering economic growth and initiating reforms in various
sectors.
 These reforms helped kick-start a nearly dormant economy. It is likely to be a key global
actor throughout the twenty-first century and could well emerge soon as one of the top
five global powers.
 The rising GDP has turned India into one of the fastest growing economies in the world.
But to really get into the big league, it must grow at 10% in the coming years. The
question now being asked is: Is this growth possible? Will the elephant keep on dancing?
 The master is well-protected as depicted in the picture seating inside the brain of the
elephant and sending the instructions and the elephant just dances to the tunes of the
master.
 To find out the retro prospective of the elephant or master the SWOT analysis of India
was done and it was very interesting to see that what we thought of the threats were the
pushing / music for the elephant to dance.
SWOT Analysis of India
(1/4)
STRENGTHS
 Highly educated , skilled ,young, capable & dynamic human resources
 English speaking & analytical students
 World class business-social-spiritual -political leader, Professor, scientist, Manager-
Doctor-Engineer-Civil servants etc
 Very rich in Natural & Living resources
 Biodiversity & Traditional knowledge base
 Diversity vs. Ideas-Innovation-Integration
 Powerful spiritual strength (yoga-Ayurvada-Healing-therapy services)
 Geographical location
 India Strategic position at various platforms
 Big democracy, Big market & free media
 Range of emerging professional champions
 IT & Software superpower
SWOT Analysis of India
(2/4)
WEAKNESSES:
 Lack of spirits of entrepreneurship, patriotisms and leadership skill
 Lack of effective & execution framework
 Lack of Indian management models
 Lack of transparency-Trust-Responsibility
 Lack of learning habits & Team work spirit
 Fear of sharing knowledge & taking risk
 Thinking win-lose lose-win look-outside
 Slow absorption of Innovation & change
 Absence of greater technology impetus
 Unawareness: Quality-Standardization
 Lack of Emotional-Spiritual development
 Rush of getting high marks not Development
 Blindly respect anything taught by elders
SWOT Analysis of India
(3/4)
OPPORTUNITIES
 Big potential market in education Sector & emerging new market Segment in services (create it)
 General Agreement of trade on Services
 Research & Development capability
 Generate intellectual property
 Resource Building capacity
 Competition- cost - Quality service
 Collaboration : win-win thinking
 Hybrid solution-balancing & blending
 Tourism, health sector, food processing
 Rural economy development & social transformation
 Need modernization of infrastructure , Library and laboratory
SWOT Analysis of India
(4/4)
THREATS (Internal & external):
 A feeling of unstable government
 Self centered political leadership
 Slow & Dysfunctional judiciary and corrupt law enforcers
 Regulation, protection and restriction
 Mechanistic -stable-Layered-complex system
 Corruption, Ignorance & Complacency
 High competitive & marketing forces
 To patent Indian intellectual property by outsider (unawareness about own research)
 Fast change Internet-information technology& new Inventions-Technology-Innovations
 Diversity vs. Imbalance- clashes
 Regional-Religion-caste-culture conflicts
 Migration of all branch to software job
 Job seeking mind sets, not job creator
 Unnecessary social pressure on students
 Excessive rich & powerful mindsets
India : Infrastructure
 Many international business rating agencies and businessmen highlight weak infrastructure
as the key impediment for India's growth. According to estimates, poor infrastructure adds
3-6 percent to the Indian manufacturer’s cost of doing business.
 The growth that has occurred to date has happened in spite of poor infrastructure. But for
this momentum to continue, India needs better highways, ports, railways, airports and most
of all, urban infrastructure that meets world-class standards.
 Public-private partnership can come together to develop state-of-the-art infrastructure that
will push sectors like manufacturing, agriculture and retail to reach their true potential.
India : Education
 India’s population potential is tremendous. But paradoxically, in a country of 100 billion,
lack of skilled manpower may yet prove to be the biggest hurdle in attaining double-digit
growth. The reason: Educated people do not necessarily translate into employable people.
Estimates indicate that only one out of every 4 engineers passing out in India is
employable. And this shortage of skilled manpower is pushing salaries northwards,
gradually eating away at India’s cost-advantage.
 The government has come up with some innovative schemes to bridge the gap. It plans to
launch ‘Finishing Schools’ for graduate engineers. Working in collaboration with IITs and
other reputed colleges, these ‘finishing schools’ will admit students graduating from
engineering colleges and attempt to enhance their conceptual knowledge.
 This is a welcome step, but the problem requires a long-term solution. The availability of
highly skilled manpower at a reasonable cost gave India a distinctive advantage. People are
the biggest asset of any country. India must invest in its people, or there will be a serious
repercussion on its long-term growth prospects.
India : Agriculture
Sluggish development in rural India is aggravated by the near-stagnant growth of
agriculture. Although services and manufacturing industries are driving economic growth,
60 % of India’s labor force is still dependent on agriculture. Agriculture also remains the
single largest contributor to the country’s GDP.
Currently, agriculture is too heavily dependent on monsoons. India’s GDP tumbles every
time there is an erratic monsoon. India also has one of the highest wastages in the world,
touching nearly 90% in some cases.
In addition, external factors like global climactic changes also play havoc with
agricultural productivity. To quote an example, every 1 degree rise in temperature above
normal in the second half of December causes a wheat yield loss of approximately 315 kg
per hectare. There are also other culprits like soil degradation.
The proposed entry of foreign biggies like Wal-Mart, along with Indian hotshots like
Reliance, in organized retail is expected to benefit agriculture. They could explore ways
to enhance productivity by reducing inefficiencies & wastage during transportation. And
as these retail outlets integrate their supply chains, farmers are expected to get a better
price for their products.
Apart from allowing FDI in retail, drastic initiatives in areas such as land reforms,
irrigation, knowledge enhancement and effective credit are required to jump-start the
sagging agricultural growth.
India : Inside Story
 India’s growth has benefited its prospering middle class. Engaged largely in the fast
growing services sector, they are both contributing to India’s success and also
enjoying its benefits.
 But this growth story has an ominous side as it has left behind a large majority of
Indians. According to a recent survey, one out of every five poor people in the world
is an Indian. This skewed economic ratio must be addressed, as any growth that is
not inclusive can never sustain itself on a long-term basis.
 In this context, one of the biggest sufferers is rural India as it lacks the basic social
and infrastructure services in healthcare, roads, education and drinking water.
India IT Sector
 Indian IT industry market growth, the
variation in the size of deals, technology
complexity and contractual innovations
emerging in Indian domestic market is
often overlooked by media and industry
analysts.
 The Indian domestic market, often
shunned for lucrative export market has
grown from $ 7.8 million in FY 05-06 to
$13.9 Million in FY2009-10. When the
export market due to economic downturn
grew just at 5% in last two years, the
domestic market grew by almost twice
the growth rate.
 The domestic total outsourcing market
that has witnessed trailblazing CAGR of
over 60% in last three years grew by
18% in the last year.
Conclusion and Recommendation
 The Indian elephant has now learned to dance – but can it rock ‘n’ roll? The answer
is blowing in the wind of whether we can keep it dancing all the time.
 In order to keep it alive we should concentrate on the grey areas of our economy
instead of getting happy on the progress of the IT Industry and other sectors.
 Still we are far behind than china in terms of infrastructure , education (in terms of
no of Phd’s) and for that we should all join hands and dance along with the elephant.