Produced by: Tarun Mishra Designed by: Mohsin Shaikh
In an interview with Chairperson of Manipal Global Education, T.V Mohandas Pai on Podcast ' The Record', Infosys founder Narayana Murthy provided an insightful and comprehensive reflection on India's remarkable journey since gaining independence in 1947. He delved into the historical, political, and social dynamics that shaped the nation, offering nuanced perspectives on the challenges, progress, and aspirations that had defined India's path
The discussion around India's 75 years of independence was a profound exploration of the nation's evolution over the years. It encompassed a detailed examination of the significant milestones, achievements, and struggles that had characterised India's development as a sovereign nation
Narayana Murthy provided an in-depth historical analysis of India's early embrace of socialism as a core economic and political philosophy. He said that Indian leaders shouldn't be blamed for embracing socialism as the political climate pre-1991 was different across the world. "Whether it was Europe. Whether it was South America, Africa, all the leaders somewhere had embraced socialism, even in the UK," Murthy said
Narayana Murthy explained that before his trip to France, he was a staunch socialist due to his upbringing and patriotic influences. However, his perspective shifted during his stay in 1970s France, where he witnessed prosperity and efficiency. "I went to France in early 70s and I was in for a surprise. Everything was prosperous. There were clean roads. I didn't see any beggars. The trains ran on time. Every supermarket was full of goods. Then my belief in socialism started slowly crumbling," Murthy said. Murthy also said that in France, he explored economic ideologies, leading to three key realisations: job creation to combat poverty, facilitating entrepreneurship, and the government's role in public goods provision
Narayana Murthy delved deep into the pivotal transition India underwent in 1991, shifting its focus from a socialist model to one centred on job creation and economic growth. He elaborated on the role of liberalisation and economic reforms as key drivers in addressing poverty and unemployment
Narayana Murthy offered a meticulous and comprehensive analysis of the transformative impact of the economic reforms introduced in 1991. It elucidated how these reforms had reshaped India's economic landscape, ushered in substantial growth, and facilitated fundamental transformations in the country's economic structure. Murthy said, "Pre-1991 days were hell for business people. India was absolutely anti- business." He gave an example of a case with Communication Minister back then. He said that business people approached the minister, requesting phone connections for communication with distributors, customers, and import-export needs. However, the Minister stated that not even the Prime Minister's phone was functioning properly, implying that everyone should manage with the available communication tools
The conversation paid a rich tribute to India's first Prime Minister, Jawaharlal Nehru, acknowledging his pioneering efforts. It provided a detailed account of Nehru's investments in critical sectors, including atomic energy, infrastructure development, and the establishment of premier educational institutions such as the IITs and AIIMS
The discussion offered an intricate examination of the role of India's bureaucracy during the early years post-independence. It drew comparisons between Indian bureaucratic guidance and Western economic doctrines, shedding light on the unique challenges and complexities faced by the Indian administrative system
Narayana Murthy highlighted that Indian might have gained political freedom in 1947, but it gained economic freedom in 1991. He provided a detailed account of the economic reforms introduced by then-Prime Minister Narasimha Rao and Finance Minister Manmohan Singh, outlining their impact on the nation. Murthy said, "We owe it (1991 reform) to Sri Narasimha Rao. Yes, Dr Manmohan Singh was his finance minister but If the Prime Minister had not fully supported Dr. Manmohan Singh, I don't know if it would have been possible."
Narayana Murthy articulated the extensive challenges faced by businesses in pre-1991 India, such as excessive government control and bureaucratic hurdles. However, he acknowledged that after the reforms, India is since moving in the right direction. Murthy said, "I think we have been doing well economically. Particularly in the last 20 years. There is a realization of Compassionate capitalism, encouragement of entrepreneurship and honouring honest taxpayers. They were all been accepted, and I'm very happy that both the political leaders and the bureaucracy in India have realized that."
The conversation delved into the multifaceted concept of compassionate capitalism. It offered a detailed examination of how this approach sought to achieve a delicate balance between economic growth and benefiting all stakeholders, including employees, investors, and society at large
Narayana Murthy called for a strategic shift from agriculture to low-tech manufacturing. He said, "Agriculture contributes somewhere between 15 and 18% of our GDP, but about 40 to 45% of the people are directly or directly employed there. . When we say that the per capita GDP of India is approximately $1,000-2000. That is to be divided by 2.5. When you think of rural India, people have a per capita GDP of approximately $1,000. And then add to that this dispersion due to standard deviation. That means there are a lot of poor people in India. So the only way that can happen is to shift people from agriculture to low tech."
Narayana Murthy talked about the subsidy programs of the government and how they should be not be the way forward for a growing economy. Murthy said, "While we have all benefited significantly from globalization, there is a certain part of India which the government is trying to help. But subsidy is not the way to help them. Subsidy is needed to a certain extent, but we need to create jobs for them. We need to create confidence in them. We need to say that every month I get my salary and I will take care of my children. I will take care of my parents. I request that our governments, both at the central level and at the state level, look at this very important issue."
Narayana Murthy also emphasised on the youngsters and how they could lead the way forward for India as the number 1 economy in the world. "My request is that our youngsters must say, this is my country, I want to work 70 hours a week. This is exactly what Germans and Japanese did after the Second World War. The German leader, he sat down with the German corporate leaders and he said, we have to rebuild, and that's your job. And they made sure that every German worked extra hours for a certain number of years."