Future of India: The Winning Leap

[Pages:148]Breaking new ground by deploying solutions for rapid, sustainable and resource-efficient growth

Future of India The Winning Leap

Table of contents

2 Preface 4 Executive summary

18

Chapter 1: Growth ambition and exemplars

32

Chapter 2: Sectoral challenges and the Winning Leap

pwc.in/thewinningleap

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Chapter 3: Role of the private sector: Building capabilities

88

Chapter 4: Entrepreneurial sector

96

Chapter 5: The ease of doing business

108

Chapter 6: Capitalising on India's growth story

128

Chapter 7: Realising our ambition

140Appendix I:

List of interviews

143Appendix II:

PwC Contributors

144Appendix III:

Research Methodology

22 PwC PwC

Preface

Future of India The Winning Leap

A young India, with a large digitally enabled middle class is asking for growth and change.

Without building the skills and capabilities necessary to drive innovation, the nation risks stagnation. However, if India can create capabilities for growth and new solutions, the opportunities, both at home and abroad, are limitless.

Our report, Future of India - the Winning Leap is driven by the belief that India can build shared prosperity for its 1.25 billion citizens by transforming the way the economy creates value. Corporate India has a critical role to play in this story, not only by creating value by addressing key societal needs, but in supporting a vibrant entrepreneurial sector. Additionally, it needs to partner with the government in order to implement new developmental approaches.

PwC's analysis of key sectors such as education, healthcare, agriculture, financial services, power, manufacturing, retail, urbanisation, digital and physical connectivity suggests that new solutions are necessary in each sector. These Winning Leap solutions will enable sectoral growth with a fraction of the resources to attain desired outcomes. As the world increasingly confronts technological change and sustainability challenges, we believe India and the Winning Leap can offer an exemplar for other growth markets. Our report also outlines how government will need to create national platforms and improve the ease of doing business.

A sixth of humanity, with the intellect, energy and creativity of a young nation is poised to grow rapidly. At PwC, we are energised and humbled by this opportunity and the benefits that can flow to India's citizens, its businesses, investors and the government. This journey will have its own sets of challenges, and by no means guarantees growth. But, with a concerted effort we believe rapid, equitable and sustainable growth is achievable.

As a global business with over 9,000 people in India and a 130-year relationship with the country, the possibilities highlighted by the report are exciting. PwC is committed to playing its role in India's Winning Leap.

Dennis Nally Chairman PricewaterhouseCoopers International Limited

Deepak Kapoor Chairman PricewaterhouseCoopers India

Juan Pujadas Vice Chairman Global Advisory Services PricewaterhouseCoopers International Limited

Future of India 3

Executive summary

4

PwC

The Winning Leap Noun; Breaking new ground by deploying solutions for rapid, sustainable, and resource-efficient growth; a play-to-win approach by young and growing nations seeking a radically different development path; a phrase denoting small steps by millions of people that can culminate in a giant leap forward for their nation; a phrase that citizens, entrepreneurs, business leaders, investors and government leaders associate with a `once-in-a-lifetime opportunity' to lift millions into prosperity; an approach that industry leaders can use to build new capabilities for profitable growth; a state of mind focused on possibilities while recognising roadblocks in solving a wide set of challenges facing a nation

In its seventh decade of independence, India stands on the cusp of major change: a transformation that could lead to unprecedented economic growth paired with radical improvements in the nation's Human Development Index (HDI). Over the past two decades, India's gross domestic product (GDP) has risen by more than US$1tr, in the process bringing millions of citizens into a new cohort we call the emerging middle class. We set out to understand what it would take for India to increase its GDP by 9% per year to become a US$10tr economy over the coming two decades.

Anything less than US$10tr would not secure India's future. The nation needs to create 10-12m jobs every year in the coming decades to provide quality of life for its growing population. Young Indians, particularly members of the emerging middle and the middle class--a billion strong by 2034--have rising aspirations. They are also more empowered to demand change, thanks to ever-greater access to the internet and mobile connectivity. The recent electoral mandate for development is a more immediate signal of Indians' desire for growth and for the benefits of growth to be extended to all members of society.

A 9% GDP growth rate with a per capita income rising from US$1,500 to just under US$7,000 per year will boost quality of life for more than 1.25bn citizens. This would be the largest national development effort any democracy has ever attempted. Reaching this goal will call for a concerted effort--from businesses, entrepreneurs, investors, and government leaders. It will also require new solutions we collectively term the Winning Leap. Our research focuses on the role that corporations and entrepreneurs must play in helping to deliver this growth while building new capabilities.

Future of India 5

The national ambition

Building a $10 trillion economy

If India continues on its present growth course, it could have a US$5.6 trillion economy in 20 years. To create a US$10 trillion economy, India will need to accelerate its growth to 9% CAGR over the next 20 years.

$10.4 trillion

$5.6 trillion

Real GDP (US$, 2010 prices)

$1.9 trillion 2014

Baseline

2034

Creating new capabilities

Five key themes for the corporate sector

To lead the Winning Leap, companies will have to address five key themes requiring new capabilities

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