Financial Daily from THE HINDU group of publications
Wednesday, Jan 08, 2003
Financial Daily from THE HINDU group of publications Wednesday, Jan 08, 2003 |
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Industry & Economy
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Economy Lack of will hampering growth, says Prahalad Our Bureau
Mr Sunil Kant Munjal, Managing Director, Hero Corporate Services Ltd (right), with Prof. C.K. Prahalad of the University of Michigan Business School, US, at the 9th Partnership Summit in Hyderabad on Tuesday.
HYDERABAD, Jan. 7 INDIA has a good knowledge base and all the prerequisites to achieve 10 per cent growth rate but it lacks the will to put it to best use, Dr C.K. Prahalad, Harvey C. Fruehauf Professor of Corporate Strategy at the University of Michigan Business School, said here today. At the plenary session on "Innovation and scale: Imperatives for India" at the Partnership Summit, he said that to achieve 10 per cent growth, it was necessary to create at least 10 million new jobs. It was not a budgeting exercise but an aspiration. Global opportunities presented themselves before the country and it was necessary not only to grab them but also to leapfrog, he added. There should be clarity of imperatives especially through investments in labour-intensive industries, education, health care and other infrastructure schemes. Focus should be on next practices while learning from the best practices available, keeping in view the mismatch between resources and aspirations, he said. Dr Prahalad said that to achieve 10 per cent growth, it was necessary to think differently. Innovation was more critical now than efficiency per se. Technology was not a limiting factor for reaching goals. There were multiple approaches to value extraction and discontinuities challenged the firm centric view of the world. No industry was immune from convergence of technologies and industry structures ceased to be decided by companies. The boundaries of industry and technology were breaking up and it was the consumer-driven approach that decided the value of companies. He said the country was in the forefront of human resource management and traditional industries and now it must experiment with new concepts keeping the global markets in view. For this leveraging non-traditional advantages and investment in core skills were necessary. If Reliance had come out with the offer of cellular service at 0-40 paise a minute, no one in the world could match it and it should worry the US. Dr Prahalad said it was the achievement of a company and the nation as a whole should reach such heights. He felt that it was not necessary to seek $3 billion FDI at a time when the country had cash reserves in the shape of foodgrains which was 500 times more than what it was seeking from elsewhere. Vacuum in political leadership was good for the industry to flourish.
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