Economy

Need a ‘full potential growth mindset’ to revive economy, says PwC India report

Our Bureau New Delhi | Updated on August 18, 2020

Besides recommending efforts in policy, digital and infrastructure platforms to enable growth, the PwC report calls for deepening, widening, heightening, formalising the economy.

The report explores nine sectors to outline growth strategies over next three years

India can come out stronger from this Covid-induced economic shock if it works on a “full potential (growth) mindset” and remove the friction holding the country back, a new PwC India report has said.

This report titled ‘Full Potential Revival & Growth — Charting India’s medium term journey’ explores nine sectors comprising 75 per cent of GDP to outline revival and growth strategies over next 3 years for India @75.

Besides recommending efforts in policy, digital and infrastructure platforms to enable growth, the report calls for deepening, widening, heightening, formalising the economy.

“If we can increase our average growth rate to 9 per cent from the pre-Covid 5-year average of 6.8 per cent and by deepening and widening our economy make the growth more inclusive, we can create 3 additional India’s with a cumulative additional GDP of $10 trillion, in a decade post recovery,” said Shashank Tripathy, Government Strategy & Transformation Leader, PwC India.

He said the report has highlighted eight pillars of recovery that constitute ‘house of revival & growth’.

Shyamal Mukherjee, Chsirman, PwC India. said this (Covid-19) is a severe exogenous shock for the Indian economy, but it can also be a transformative moment for India.

“We have an opportunity to rethink our approach, reconfigure our business ecosystem, and restart our economy. Adopting a whole-of-society execution bringing together the public and private sector along with citizens, would be key to spur faster revival and growth. This national collaboration needs a full potential mindset that could positively turn around thd economy in the medium term,” Mukherjee said.

Predicting a revival is difficult, but the report cites a recent PwC CXO survey as well a wider consumer survey done across 1,500 people from across the country, which indicates that the most likely horizon for the economic revival is second quarter of 2021-22. This will depend on the control of the contagion and administration of a vaccine.

10 value propositions

The report outlines 10 value propositions that organisations can consider as they look at a revival and growth approach. These relate to demand sensing, models for capturing decentralised demand, rebalancing the product and service portfolio; fit-for-future cost structures, comprehensive digital transformation and reorienting global and local supply chains and upskilling, reskilling and employment, gaining insights from data and capital for survival and revival. Finally, engendering trust across different elements would be important for growth.

A ‘whole of organisation’ approach will be required to drive a coordinated response in organisation. On a broader level this would encourage a whole-of-society execution approach that uses technology so that better coordination takes place.

Published on August 18, 2020

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