Global transitions working in India's favor; inclusive growth is challenge
In a speech at the JRD Tata Oration on Monday, N. Chandrasekaran, Chairman of Tata Sons, highlighted India's favorable position in the face of global transitions, citing its potential to emerge as a significant force in the uncertain world. Despite these advantages, Chandrasekaran pointed out that inclusive growth remains a major challenge for the country.
Acknowledging the inevitability of Artificial Intelligence (AI), he emphasized the importance of India preparing for its impact. Chandrasekaran noted the shift from the post-cold war era's stability to the current landscape of unpredictable conflicts and economic uncertainty, exacerbated by the pandemic's substantial supply chain shocks.
He highlighted ongoing global transitions in AI, energy, and supply chains, seeing them as opportunities for growth and innovation. India, with its strong macro stability, robust banking system, increasing exports, and digital infrastructure, stands to benefit from these changes, according to Chandrasekaran.
However, he also highlighted challenges such as a lower per capita GDP compared to the global median, significant income disparities among states, and gender-based disparities in the workforce. Inclusivity and 'Inclusive Growth' emerged as critical challenges, requiring improved access to basic education and healthcare for all.
Chandrasekaran stressed the need for skill-based secondary and tertiary education, combining classroom and industry-based learning. He called for equal opportunities for girls and boys and emphasized the vital role of economic transformation in sustaining social change.
Regarding AI, he acknowledged differing views on its impact but expressed belief in its benefits if adequately prepared for. Chandrasekaran also addressed the escalating energy requirements associated with AI, emphasizing the need for new energy sources and substantial investments, which could, in turn, generate new jobs.
Discussing global supply chains, he noted their concentration over the past four decades and highlighted the fragility exposed by the pandemic and geopolitical uncertainties. Chandrasekaran mentioned the emergence of alternative supply chains to ensure redundancy and continuous operations in response to these challenges.