What are the top 3 most disruptive, powerful forces shaping India 10 years from now?
India is one of the top 5 economies in the world that will add a trillion dollars to its economy over the next 5 years. As many of you know by 2022 India should be one of the top 5 largest economies in the world, which is a substantial increase from rank number 12 in the year 2007. If you think underlining this strong economic growth in India are multiple trends. First is consumerization. The number of consumer households in the country is expected to increase from 30 billion households to 90 billion households Another accompanying trend as a result of that is urbanisation, some of the largest cities in India by the year 2030 will be as big if not larger than some of the mid-size countries in the Western world. On top of that we have seen some three major discontinuities shaping the evolution of the country. First is digitisation India with about half a million internet users that is doubling by 2025 and about 350 million smartphone users again tripling by 2025, is one of the fastest digitising economies in the world. Second is a rapid investment in infrastructure, as you all know this country needs substantial investments. Whether it’s rail, power, ports and so forth, and finally a major discontinuity going on in the renewable energy space where the government has set the ambition to setup 100 gigawatts in renewable energy. So all of these discontinuities actually are really causing companies to really question both their existing businesses and new business models.
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How should CEOs be responding to these forces as they think about their business strategies for the next decade?
So I think CEOs in a market like India are confronted with three to four big things. One I think is the perpetual question of building their organisations and leadership, because this is a market where the ambition is high but talent is short. Second, I think is the professionalisation of Indian businesses, a lot of them have been founder-led. and many of them are now in the second or third generation so they have to figure out a way to combine their entrepreneurship with the professional systems and processes needed to scale these organisations. Third I think given the digitising economy, I think they all have to question how to create more value out of the core business and how to build new businesses and new innovative business models to serve their clients. I would say finally, I think a more recent phenomenon really has been around strengthening corporate governance standards. I think there’s been a real push with shifting investor base and investor concerns with a need to strengthen governance.
