Globalisation : India, the Super power in making

Target 2025: India, the Global Economic power

Dear friends,
I spent my last weekend attending the 18th Annual conference of Karnataka State Chartered Accountants Association. The theme of the conference was Power of CA-Challenge the potential. The conference revolved around how the profession needs to adapt itself to take utmost advantage of the changing global scenario and provide leadership to the business community in its endeavor.

However, the best part of the conference was the keynote address by Shri Mohandas Pai, CFO, Infosys Technologies. In his impeccable style, Mr. Pai addressed the gathering on Globalisation and its challenges and its impact on India. I would not dwelve much on the other aspects and would confine my article to points that should be of interest to the common Investor.

The world dynamics are changing
The world is shrinking into a global village and the dynamics are changing. US and Europe, which used to rule the world, are now bowing before the developing economies. The opening up of bilateral trade has done wonders to the developing economies and has provided them bigger muscle power. Not only US and European countries are worried about the trade balance with Asian countries, they re also worried on the front that even if the inter-asian countries trade flourishes, it would pose a major challenge to them. China has already proved its mettle and India is fast approaching the big league.

India is Young
Yes friends, more than 70% of India’s population consists of the middle age working people and the younger generation. That means the large population of India, which was once considered as a drag on its growth has finally converted itself into its strength. The young workforce of India will convert India to a global economic super power in the next 20 years. This advantage to countries like china and India is due to the old population in European countries and US. The fertility rate in these countries has fallen sharply and poses a threat to the economies of these countries in long term. These countries will need to source young workforce from countries like India to maintain their economies and will open the gates of wealth for countries like India.

Right skill sets required
Though India has an advantage of large and young population, a significant part of India resides in villages and good education is still a distant dream for a bigger part of the society.
If India has to take utmost advantage of this young generation, it has to invest significantly in providing education to this section so that they can equip themselves with the right skill set to exploit the maximum.
One more thing Mr. Pai pointed out was the contrast between Indian and western farmers. A major part of Indian farmers are poor while the farmers in western countries have a good standard of living. India has one of the highest cultivable lands in the world, still our farmers are poor. It is high time that our farmers are educated about the best way of framings so that they can also in turn add to India’s success.

This is India’s century
The 16 & 17th century belonged to the English, the 18th & 19 th century belonged to the European countries like Germany and the united states. China ruled the 20th century with its robust growth. Now this is the turn of India to become the global economic superpower. So guys, cheer up to be part of India’s success.
The stock markets are considered to be the barometers of the economy and the way Indian markets have grown up in the recent past is the testimony of India’s potential.