Companies

The culture of micromanagement, control needs to go: Tata Sons’ Chairman

Our Bureau Mumbai | Updated on January 17, 2020 Published on January 17, 2020

N Chandrasekaran, Chairman, Tata Sons   -  THE HINDU

India can become the 3rd largest economy but is terribly under-performing now: N Chandrasekaran

The country’s business environment has to be made into a race track instead of an obstacle course for which things have to be dramatically simplified, according to N Chandrasekaran, Chairman, Tata Sons

Addressing dignitaries at the 17th memorial lecture for constitutional lawyer Nani Palkhiwala at the Tata Theatre in Mumbai, N. Chandrasekaran spoke about building India for the future.

“There is a shift in global growth, emerging nations like India will be the new drivers of growth,” Chandrasekaran said. “There is no question about India becoming the third largest economy by 2030. However, we need to accept that right now, we are terribly under-performing to our potential. Growth expectations have been adjusted downwards consistently.”

Consumption, investments and exports are the three main problem areas in the current economic slowdown. Power, real estate, banking sectors are under significant stress. The tourism sector has tremendous potential but is not being harnessed.

To revive these sectors, a conducive environment is needed. “The culture of micromanagement and control needs to be changed. The government should play the role of supervision not suspicion,” he added. Growth, according to him, does not come from driving fast but rises from the clearing of hurdles.

In the context of India’s current stage of transformation, he said that there is no magic switch that will fix everything, India is going through fundamental changes in many dimensions. “We are going through the unwinding of a legacy approach. The government needs to be credited for achieving success in changing the public delivery system,” he said.

“We have reached a considerable number of households in terms of electrification, bank accounts, healthcare and sanitation. However, to sustain such large scale social transformation there needs to be economic transformation,” Chandrasekaran added.

Steps like upskilling of our workforce, inclusion — especially when it comes to women — and moving towards sustainability in every aspect is essential for the holistic growth of new India, he said. “We are pushing people toward the education path, but it is necessary to combine that with the skill path. We need to use technology in such a manner that it bridges the gap between the skilled and the unskilled,” the Tata Sons Chairman said

“India can become a $5 trillion or even a $10 trillion economy, but no economy can ever achieve that without an educated, vibrant and skilled workforce,” he said.

Published on January 17, 2020
This article is closed for comments.
Please Email the Editor