The Hindu Business Line : Two Cs and two Ds make four As

Making the top grade in four dimensions: Civil society and commerce, democracy and demography, India, to give a Hollywood metaphor, is the world's Million Dollar Baby. This has been so for long, though it has not won many contests because it has been too shy to enter them. This the US President, Mr George Bush, must recognise, says G. RAMACHANDRAN.

YOUNG INDIA: About 23 million will enter the employment market each year from 2006 and will continue to do so at least until 2025.

Americans constitute a classless, grade-conscious society. They love winners that make the grade. They love those that make straight As in examinations. At the same time, they admire the gutsy and tireless fighters, even if the contests do not make winners of some fighters. Why? Americans love chutzpah, gumption and perseverance. That is why Million Dollar Baby, the Clint Eastwood-directed film about a female boxer, won four Oscars in 2005 for best picture, actress, supporting actor and director. India is the world's Million Dollar Baby, and has been so for a long time. It has not won many contests because it has been too shy to enter into global contests. But it has all the defining characteristics of Maggie Fitzgerald, the boxer played by Ms Hillary Swank. India makes the top grade in four dimensions: Civil society and commerce (the two Cs) and democracy and demography (the two Ds). The four top grades should mean four As for India.

It would be insanely optimistic for any Indian or American to imagine that the US President, Mr George W. Bush, would emulate Frankie Dunn, the trainer played by Clint Eastwood, by endearingly and admiringly uttering `mo cuishle' (my darling, my blood) while on his two-day tour of India. But it would be inapt if Mr Bush fails to recognise that India is home to millions of Maggies and thousands of Frankies who are making the world a great place to be in.

D for democracy

India has been a proud and persevering practitioner of democracy since the time it became a republic in 1950. It is breathtakingly multicultural. It provides personal liberty and economic freedom to more than a billion people. It now possesses more cumulative competence and experience — cumulated over person years since 1950 — than any other country, including the US, in providing such liberties and freedoms.

When Mr Bush became the 43rd president of the US in 2001, he pledged to work to build a single nation of justice and opportunity. He also warned that the enemies of liberty and the US should make no mistake because America remains engaged in the world, by history and by choice, shaping a balance of power that favours freedom. It is a pity that Mr Bush did not choose to travel to India soon after his two inaugurals. The first was in January 2001 and the second in January 2005.

India may be too shy or too scared to bother too much about the balance of global power, but it meets the goals that Mr Bush has set for himself in shaping the US and (thereby?) the world. India is a single nation of justice and opportunity. It is a great practitioner of freedom.

D for demography

India is a very young country. It is not because of 1947 (India's year of independence, Mr Bush) and 1950 (the year in which it became a republic) but because of the demographic characteristics. About 52 per cent of resident Indians are less than 23 years old. That is, about 572 million Indians constitute India's youth.

About 23 million young Indians will enter the employment market each year from 2006 and will continue to do so at least until 2025. They will begin their `economic lives' each year and thereafter remain economically active for at least 40 years.

There will be at least 230 million young, affluent more Indian consumers of products and services by 2016 (the year in which Mr Bush's successor may demit office if he or she wins two terms — one in 2008 and the second in 2012). US multinational companies will be eager to serve these customers.

Moreover, US multinationals will be too eager to hire them because there may not be too many young people in the US and China available for the large-scale ramping up US multinationals. What is more, India's young may even solve the pension-funding nightmare that the US will have to face sooner than later.

C for commerce, competitiveness

India's demography is at the core of the commercial attractions it offers. Mr Bush has acknowledged without waffling that America's economic relationship with India is strong and it is getting better. India is now one of the fastest-growing markets for American exports. US exports to India grew by more than 30 per cent. The US had a trade surplus of $1.8 billion in services. These have helped companies create good jobs in America that pay high wages.

And Mr Bush has been very candid in acknowledging that American companies have become competitive in the global marketplace because of jobs that have been shifted to India. Though outsourcing has meant that a number of Americans have lost their jobs, Mr Bush has no plans to respond with protectionist policies. Why? India's middle-class is a profitable ballast companies such as GE and Boeing.

US multinationals have begun to benefit from research centres in India that have employed large numbers of India's educated workforce. These companies have begun to become more competitive globally. American consumers have also begun to pay less for goods made by US companies that have employed India's youth. Net-net, Mr Bush wants Americans to recognise that Indians are creating new opportunities for American businesses and farmers, more high-income jobs for its workers, and cheaper goods for American consumers.

It would be nice if Mr Bush recognises that the coming of age of India's young has been driven from within. Earnest parents, enthusiastic teachers, and visionary educationists acting without government support and often against the hostility of the establishment have fought to educate and empower millions of young Indians. The Frankie Dunns and Maggie Fitzgeralds of India need a pat on their backs.

C for civil society

India is among the world's successful civil societies. But it is not flashy. India is not too rich to be flashy. It does not talk loudly about the open-mindedness and the tolerance of its people. But it is a melting pot of all people. Why? It is not a theocratic state. It is not a monarchy. It is not an orchestrated democracy. Elections are not a farce; they are fought fiercely.

India's civility does not necessarily stem from its political system or from its formal Constitution. Perhaps it is the other way. A civilisation with a history that goes back at least seven millennia has influenced its political system, governance structure and leadership styles. But there is opportunity for all. Everyone is a contender; everyone is a contestant. Therefore, deal-making is not too easy. This is why India is quite tardy in almost everything.

Indians have derived invaluable benefits from such an environment. Deals are struck only if the majority sees a win or a gain. However, it is tough to orchestrate a majority merely by mouthing platitudes. Tangible benefits will have to be shown. `Show me the money' is a question that everyone has to answer. By the way, questions are asked in India. That is how this civilisation has managed to remain civil over seven millennia.

(The author is a financial analyst. Feedback may be sent to indiagrow@yahoo.com)

More Stories on : Foreign Relations | Foreign Trade

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Two Cs and two Ds make four As

INITIATIVES WELL SOWN

Focus on business continuity

Balancing populism, growth

No big picture

Coloured bright

A quick tour of the Budget for the hassled

The Big Three on the Budget

Some good, some bad, some need a re-look

ICAI's views given due weightage

Complacent Budget