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MUMBAI:
CNBC-TV18, India's No.1 business medium, together with Hay Group,
a global management consultancy, that works with leaders to transform
strategy into reality, presented for the first time a panel discussion
on 'Coupling or Decoupling' in Mumbai today. The panel discussion
was an interactive session that focused on the aspect of understanding,
the challenges faced by Indian CEO's in managing growth within a
world of turmoil.
Many
have started to say that emerging markets have ceased to be simply
'emerging' anymore and that, they have actually 'emerged' finally
on the global economic stage, driven by strong domestic demand,
robust capital flows, easing of trade & investment barriers
and ever enthusiastic policy regimes. Presumably, it needed a major
financial crisis in the US and Europe, for this new "decoupling"
reality to sink in.
However
is this really true or is the 'decoupling' theory of the emerging
markets such as India a myth. Do Indian business leaders need to
re-evaluate the euphoria that surrounds the realization, that India
can now lead the global growth. Most economists believe that the
US recession might still not hurt India too much as the country's
economy is slightly decoupled from America's and also because India's
domestic growth engine is powerful enough to churn up a high growth
rate, with the spending power of its 300 million-strong middle class
rising.
Keeping
this in mind Hay Group & CNBC-TV18, structured this discussion
to understand the situation better since it's a time, when the Indian
CEO must think glocal, act glocal and must be well versed with global
realities and yet not get undone by it.
While
speaking at the discussion, Mr. Neel Chowdhury, VP - Marketing,
CNBC-TV18 & CNBC Awaaz said "We at CNBC have always recognized
the significance of organizing such discussions in the context of
helping our viewers understand India's sustained and rapid economic
growth. Hence taking up this same agenda CNBC-TV18 in association
with Hay Group structured the 'Coupling or Decoupling' panel discussion.
This debate comes at the right time of an impending US recession,
slowdown in the west and a global liquidity crunch, and when the
eyes of the world are set on the NEW global giants, especially India
to anchor growth and lead a new wave of prosperity and market optimism.
The
panel of experts at the forum consisted of India's leading corporate
leader such as Mr. Pradeep Dokania - MD, DSP Merrill Lynch Limited,
Mr. Nick Boulter, Global Managing Director, Reward Services, Client
Development & Global Research Council, Hay Group, Mr. Vaughn
Richtor - MD, ING Vysya Bank, Mr. William Rattazzi - CEO, Emaar
MGF, and Mr. Neeraj Bhargava - Group CEO, WNS Global Services
India
has emerged, but it is still continuing to emerge. Panel Member,
Mr. Neeraj Bhargava from WNS Global Services felt that, India is
still coupled, as his customers are all globally situated. He feels
that US in terms of size is substantially bigger than the emerging
countries, such as India, hence to say we are completely decoupled
from the US is thus hard to say. There is a degree of momentum in
Indian & China, irrespective of what happens in the US. However,
Mr. Neeraj Bhargava said that ever since the US recession, there
has been a slowdown in their customers, but yet there has not been
a slowdown in the business. Hence in some ways India has coupled
itself with the US.
Mr.
Nick Boulter from Hay Group said that the domestic consumption in
US is 6 times than in India, because as compared to India's GDP
growth at 8.7%, the Impact of this growth in the country is lower
than 1%. However India is growing fast and its economic dependence
on the US is not significant, as the domestic consumption in the
country is working well for the economy.
On
real estate boom and weather this is coupled with the US Mr. William
Rattazzi from Emaar MGF said that the real estate sector always
does well, even in the short term if it goes up or down; in the
long run it always goes up.
Don't
know if India has emerged, but it will definitely continue to grow
in terms of infrastructure, manufacturing etc said Mr. Pradeep Dokania
from DSP Merrill Lynch Limited, he also added that India is not
coupled, but is more globalized.
Mr.
Vaughn Richtor from ING Vysya Bank said that in India there is plenty
of demand domestically and so policy maker are trying to develop
the manufacturing and infrastructure in the country, hence the domestic
and banks locally are very strong.
On
India's skill pool majority of the panel member said that India
is blessed with the best demographic and talent as compared to the
talent absence in Europe. However they also expressed the standard
of the education system in the country is not adequate enough and
requires change, but they were also positive that this change will
take place.
One
questioned raised at the discussion was that why India is always
compared to China and to that the panel members felt that China,
especially Shanghai has only a fascinating infrastructure, but India
has a large work force and that cannot be underestimated. However
the panelist also said that there is a talent crunch in the country
at all levels and this is because there has been no investment on
development of talent. If there is substantial development then
this gap also could be filled.
The
discussion ended partly on a note of optimism and partly on a note
of caution. A compromise was found only on the matter that Indian
companies and, indeed, the government will have to tackle the specter
of uncertainty in the coming weeks.
The
interactive panel discussion was moderated by CNBC-TV18's Veteran,
Suresh Venkat. The discussion charted the blue print of India Inc.,
and ensured that aspirants are able to empower themselves for global
opportunities clearing all their doubts clouding the issues of decoupling.
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