We need to ensure a more resilient rural economy for India’s sustainable growth: Sanjiv Puri of ITC

Indian economy is at a crucial juncture when the country and its stakeholders are aggressively betting on a Viksit Bharat or development nation by its 100th year of independence in 2024. While the government is bullish and is betting heavily it, the economy of late have faced macroeconomic  challenges post-pandemic. Talking to Business Today Editor Sourav Majumdar at Business Today India@100 conclave leading business honcho and Chairman and MD of diversified conglomerate ITC - Sanjiv Puri shares his views on how India can achieve the desired goal.

First, we need inclusive growth and we need to invest for that, which is very much visible. Second, we need to address the issue of climate emergency - steps on that are being taken. And third, we need to achieve these within the fiscal right path, for macroeconomic stability. All of these have been addressed in the budget,” says Puri.

While the country’s economy - fifth largest in the world, behind the USA, China, Germany & Japan - is well equipped to grow further and faster, there are challenges that are unique to India that no other major economy had to face. Unlike other major economies, which have achieved the developed status during the carbon positive era, India is growing in a carbon negative generation. Highlighting the fact, Puri says, India has a unique challenge charting its growth while lowering carbon emission.

Additionally, to scale its economy India needs to focus more on generation of intellectual property (IP) and invest heavily in research & development (R&D). “A lot more needs to be done on that front. IP & R&D can win the future. That is where you can create brands because brands can give you surpluses that can be shared among all stakeholders and can be reinvested,” says Puri.

One of the key pain points, the stress that has been faced by the economy in terms of subdued consumption post-covid, especially in the rural economy. According to Puri, the weather and climate related disruptions have impacted the rural economy more. That, however, is changing - albeit slowing. “We are seeing signs of improvement and we will see better growth going forward in terms of consumption. However, we need to ensure a more resilient rural economy” which will help the country’s economic prospects further.

Stressing on the role of large corporations in boosting India’s fortunes, he also says that how they can support the MSME sector which will be crucial. “The growth path has to be inclusive and sustainable.”

Further, value addition is important for India’s growth. “Increasing our participation in global trade as 70% of the global trade is in global value chains. That can be done through acquisitions or partnerships or it can be done on a build model. Today, developments that are taking place in corporate India, macroeconomics is good, better balace sheets and credit access - the platform has been set for India to play a greater role in global value chains,” he explains.