by Velu and Elias
In the world economy only USA and China are of the size of $10 Trillion as of 2019. For the past few years GDP growth rate of these economies have slowed down whereas India is the only faster growing economy in the world. At this phase of GDP growth India can surpass their economy one day. If we want to achieve it sooner then we need to do a deep dive and make a long term plan to make it happen.
A Country’s Growth and Economy
A country’s growth is dependent on multiple factors, like government policies, industry growth, demography, talent and health of the population, private sector development and growth, etc. As far as India is concerned even though its government policies are lopsided, its economy has grown majorly due to private sectors development and growth harnessing the
demographic dividends. Software industry growth propelled the consumption lead growth, expansion of cities, real estate market development, automobiles industry explosion, etc. All these developments further paved the way for infrastructure development of 4 / 6 lane highways, freight corridors, ports, airports, etc.
All these efforts bring sustainable growth to the Indian economy. With these strength we need to figure out, what needs to be done differently so that we can surpass the GDP of US and China sooner.
Comparison between Indian and US Companies
We can do various comparative studies to understand these intricacies. One such study is to compare the top 10 companies of both US and India to understand the reasons and chalk out an action plan.
Out of top 10 Indian companies 7 companies are consumption based companies, 1 is bank and only two are capital or growth oriented industries.
Out of top 10 USA companies 2 companies are based on technology and innovations, 2 companies are investment and consulting companies, 2 are banks and , 2 are mobile and telecom companies, 1 is oil exporting company and only one company is from consumption based company
MNC’s in USA focus on technology, innovation, process centric approach, risk mitigation, automation, etc. With the deep focus
on Technology and innovation, top 9 companies are propelling the growth of USA.
Whereas India’s top 7 companies are just consumption based, where resources are utilised on end consumption by consumers rather than developing capabilities and growing the capital, reinvesting the resource in the systematic development cycle. Scope for multiplier effect of investment growth is limited and the entire countries growth potential is not harnessed to the full extend in India.
India to become a $ 10 Trillion, private sector needs to focus on growth oriented sectors. To reach the scale of US companies Indian companies should have process centric and performance centric professional approach.
As an entrepreneur focusing on business and its challenges itself is a full time job for them in India, to make their companies focus on process centric professional companies, entrepreneurs need the support of strategic executive consultants like us, who will focus the energy of the organisation in all these areas to become fundamentally strong and professional company