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Can Asia become an economic Superpower? – Rajat Gupta
JAIPUR: ‘Asian companies would have to change their mindsets if they are to emerge as global champions’ was consulting guru Rajat Gupta’s verdict this morning.
Moving away from much discussed brands, Gupta, senior partner – worldwide, McKinsey & Company, USA widened the scope of the discussion to the possibilities of Asia as a region emerging as an economic superpower. Gupta argued that becoming a large supplier of skilled resources or creating a large consumer market in itself was not enough to bring about this transition. In his opinion, for Asia to justifiably earn this distinction, the region would not only need to make a significant contribution to the world economy, it would also require the emergence of not few but several successful global companies.
Drawing attention to the need for Asian companies to become global leaders, Gupta cautioned that with the globalisation of the world economy, the players would increasingly have access to the best resources the world has to offer. “At the same time however, the risks will increase because they would now have to compete with the best in the world. With this will dawn the realisation that their ‘global strategies’ are in reality, little more than expansion tactics,” said Gupta. He further warned that if locally successful companies such as Tata Motors in India, Hang Seng Bank in Hong Kong or Legend in China do not go global their arena would be captured by established global giants. He then went on to define globally successful companies as those which show outstanding market performance, have significantly outperformed the market in terms of returns to share holders and have more than doubled their share of total world market capitalisation in the last ten years.
Before going on to recommend what companies could do to become global, Gupta looked at the following reasons why many Asian companies had met with limited success in this endeavour –
* Low global competitiveness with limited focus on operational excellence and excessive government protection and support.
* Local workforce and management culture with no experience of handling diversity.
* Lack of organisational sophistication.
* Limited global ambition with senior management unsure of prospects
Admitting that there were no standard recipes or shortcuts to success, Gupta emphasised on the need to have a strong and stable home market position, develop high quality operations by building on local comparative advantages and identify one’s distinctive capabilities as essential prerequisites before embarking on the globalisation journey.
Citing the example of HSBC, Samsung Electronics and LG Electronics – three Asian companies he called as truly global champions, Gupta demonstrated that the journey to global championship involved the following three key elements:
* Working out the winning formula which required a staged build-up of capabilities and matching them with markets.
* Grooming a cadre of global executives who can seamlessly operate in multiple markets and transfer capabilities across borders; executives who can not only spot opportunities in markets but also marshal resources to capture them.
* Mastering the matrix organisation by developing a global organisation structure, building a strong corporate centre and integrated corporate processes and setting up ‘soft processes’ for fostering a collaborative culture that would include defining shared values and beliefs.
Gupta concluded by saying that what was required was a complete shift in the attitude. Selecting attractive markets, hiring experienced locals, or setting up an international division to handle international efforts without finding solutions to the cultural issues will not suffice. Asian companies will need to secure their home markets, develop world class capabilities, select markets that leverage these capabilities, groom executives from within the organisation to be their trusted lieutenants, moving to a global organisation structure and implementing strong integration processes. Asian companies, he said, would need to move from a ‘going global’ to a ‘becoming global’ mindset.
NEW DELHI: Hamdard Laboratories gathered a cross-section of India’s achievers in New Delhi on Friday, handing out the Hakeem Abdul Hameed Excellence Awards to figures who have left their mark across healthcare, education, sport, public service and the arts.
The ceremony, attended by minister of state for defence Sanjay Seth and senior officials from the ministry of Ayush, celebrated individuals whose work blends professional success with a sense of public purpose. It was as much a roll call of achievement as it was a reminder that influence is not measured only in profits or podiums, but in people reached and lives improved.
Among the headline awardees was Alakh Pandey, founder and chief executive of PhysicsWallah, recognised for turning affordable digital learning into a mass movement. On the sporting front, Arjuna Awardee and kabaddi player Sakshi Puniya was honoured for her contribution to the game and for pushing women’s participation onto bigger stages.
The cultural spotlight fell on veteran lyricist and poet Santosh Anand, whose songs have echoed across generations of Hindi cinema. At 97, Anand accepted the honour with characteristic humility, reflecting on a life shaped by perseverance and hope.
Healthcare honours spanned both modern and traditional systems. Manoj N. Nesari was recognised for strengthening Ayurveda’s place in national and global health frameworks. Padma shri Mohammed Abdul Waheed was honoured for his research-backed work in Unani medicine, while padma shri Mohsin Wali received recognition for his long-standing contribution to patient-centred care.
Education and social development also featured prominently. Padma shri Zahir Ishaq Kazi was honoured for decades of work in education, while former Meghalaya superintendent of Police T. C. Chacko was recognised for public service. Goonj founder Anshu Gupta received an award for his dignity-centred rural development initiatives, and the Hunar Shakti Foundation was honoured for empowering women and young girls through skill development.
The Lifetime Achievement Award went to former IAS officer Shailaja Chandra for her long career in public healthcare and governance, particularly in the traditional systems under Ayush.
Speaking at the event, Hamdard chairman Abdul Majeed said the awards were a tribute to those who combine excellence with empathy. “These awardees reflect Hakeem Sahib’s belief that healthcare, education and public service must ultimately serve humanity,” he said.
Minister Seth struck a forward-looking note, saying India’s young population gives the country a unique opportunity to become a global destination for learning, health and wellness by 2047.
The ceremony also featured the trailer launch of Unani Ki Kahaani, an upcoming documentary starring actor Jim Sarbh, set to premiere on Discovery on 11 February.
Instituted in memory of Unani scholar and educationist Hakeem Abdul Hameed, the awards have grown into a national platform that celebrates those building a more inclusive and resilient India. For one evening at least, the spotlight was not just on success, but on service with substance.
