THE EXCHANGE. What about the development agenda?

The phrase, ‘stay the course’ is used in the context of a strategic mission, signifying a focused pursuit of goals regardless of obstacles or criticism.

The main setting for the government elected in 2014 — the sum and substance of its development policies — was the creation of employment and meaningful, sustainable livelihoods across sectors for an increasingly youthful population. Voters backed this shared aspiration.

Unleashing the spirit of commerce and industry — supported by transparency and clarity, business ease and disallowing of all collateral agendas — can create value and sustainable gains for all entrepreneurs. This in turn creates a level playing zone where domestic and foreign businesses both remain eager to keep investing.

The fall in the appetite for risk-taking in Indian business is yet to be overcome. Much of the foreign investment fructifying seems to leverage domestic market opportunities, as distinct from creating expanded markets, or plugging into existing global supply chains in a major way.

Huge capital has poured into start-ups, most of which tilt towards intermediary or service or market-redistribution roles. In some cases, job creation in these start-ups cannibalise present jobs in commerce and services. But, as a recent study by Mohandas Pai, chairman of Manipal Global Education, points out, a large number will likely fold up or consolidate in the medium-term due to intense competition or high capital-burn. He expects 10 per cent to do well, 25 per cent to carry on and 65 per cent to fail.

Therefore, despite the fact that interim employment can go up in the short run, it is possible that this will head back south. To put things in perspective, if things go right, startup firms may account for up to 3.5 million jobs in 10 years out of the national need to create120 million jobs in that time.

So clearly, while startups potentially add hugely to innovation and efficiency with value creation (much of this value goes to foreign investors), it is necessary that much larger initiatives see the light of day in all sectors, ranging from manufacturing to services and infrastructure to agriculture.

We are faced with the contradiction between decent GDP growth plus strong future prospects on the one hand, and a famine in the domestic investment on the other — particularly in the brick-and-mortar segment, which is essential for driving employment both in manufacturing and services. The previous cycle of growth in the real economy was propelled as much by optimistic sentiments about growth (resulting in investment into hard assets) as it was by real demand on the ground.

That estimated growth did not occur. This left businesses stressed materially and psychologically, and rendered them incapable of taking up investments based essentially on positivity.

A return to the virtuous investment cycle will require building real sentiment. This should be reinforced by unambiguous evidence of government policies and timely execution, and ‘staying the course’ for its goals.

It was interesting to catch Minister of State Jayant Sinha acknowledging hurdles on the “execution mindset” that the Centre must overcome. For this we need more mission-mode approaches from the bureaucracy (both Union and State), accompanied by total jettisoning of the command-and-control mindset of the 1970s and 1980s.

State intervention, holding on to power or discretion to tinker, prescriptive micro-management, and an inclination to intimidate, are signs from a bygone era that we still see in draft policies and laws.

In the prevailing environment, political brinkmanship and shrill opinions overwhelm the development conversation. Increased decibel levels and air-time on many (even if entirely relevant) programmes — from general well-being to Digital India to Skilling to Make in India — overpower the central theme of sustainable livelihood creation. Why should it not be natural for an average aspirant to wonder if government priorities have been diluted?

This leads to unintended conclusions and consequences. Hence I cannot emphasise enough the importance of consistent articulation by the leadership that a series of broad-based initiatives are necessary elements of a long process of livelihood creation; the end game shall continue to be sabka saath, sabka vikas and no aberrations will be allowed.

Aspirants and advocates can get acutely troubled by non-core agendas that hog headlines and create fruitless discussions, yet do nothing to build livelihoods.

To imagine that these arguments ultimately matter to a hungry stomach is fantasy. There are enough non-business sub-themes the Centre can use to focus on social development agendas; those in power must do more to supersede negative noise with meaningful ones.

It has not yet happened.

The World Bank has just reported an improvement to 130 in India’s ranking in the ease of doing business. I remember that perhaps the first indication of a numerical target — 50 in three years — came from the Centre in September 2014 (from Ficci, I voiced the need for one in August).

Understandably, nothing earth-shattering was expected in a first review which was due around June 2015; still the World Bank terms this gain a “remarkable achievement”.

The largest improvements have come from select areas; so much ground remains to be covered, particularly in contract enforcement, tax payments and insolvencies, which in any case are works in progress. World Bank chief economist Kaushik Basu (who knows India well) observed: “If the changes can be kept up and strengthened, it is possible for India to be in the top 100 next year; from what we have see thus far, it is not impossible”. Heartening!

The business community has a solemn partnership role in the government’s development goals. Recent utterances and writings from some hint impatience — perhaps even a sort of frustration — but unfortunately without any accompanying menu of (say) 5 top items or a specific wish list.

In this same column some weeks ago I said in effect “a tradition of being deferential to authority keeps enterprise self-restrained; we must be forthright and constructive”.

It is equally our task to help keep the Centre ontrack for its developmental pledges. To quote the writer, JRR Tolkien: “All we have to decide is what to do with the time that is given to us.”

This column explores ideas and opinions on Indian enterprise and economy. The writer is an entrepreneur and former president of Ficci. The views are personal

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