India needs reforms particularly in employment creation and manufacturing to unlock economic potential: Shobana Kamineni at Davos

Shobana Kamineni, Executive Chairperson at Apollo Health, highlighted the need for structural reforms, particularly in employment creation and manufacturing, to drive the economy towards 8% growth. 

In an interaction with Siddharth Zarabi, Editor of Business Today, at the World Economic Forum in Davos, Kamineni discussed the current state of India's economy, acknowledging a slowdown but emphasizing the importance of long-term growth. She also advocated for increasing female workforce participation. 

“You should not focus solely on governments from one budget to the next but rather observe the trends over the past decade. Consumption, I believe, operates in a cycle. For instance, if you look at my business over the past 15 years, I’ve experienced a 20% compounded growth rate, and I believe my children will see the same. That’s the nature of India — it won’t come if consumption isn’t there,” she said. 

So, the key question is: what do we need to do to create meaningful opportunities? When we discuss a 6% growth, it’s clear that it’s not sufficient. We need to break free from the narrative that we, as a nation, will "grow old before we grow rich." We need to aim for an 8% growth rate. The real issue is, are we generating enough opportunities to support that kind of growth? That’s where I see the challenge, she added. 

When asked about short-term measures to get the economy back on track for 8% growth, she admitted that achieving 8% growth would be difficult. However, looking at it from a long-term perspective — when people discuss India in 2030 or India at 100 — we are on the right path. It's important to recognize that it’s not entirely our fault that the economy isn't growing at a faster pace. Global instability and other challenges play a role as well. 

Kamineni also highlighted the need to create more job opportunities, particularly noting the stagnation in the manufacturing sector. Services, while growing, haven’t contributed as significantly to job creation. More needs to be done in this area. 

On the topic of workforce diversity, she emphasized that India must focus on increasing female participation in the labour force, drawing inspiration from initiatives that have succeeded in other countries like the US. 

On the investor mood towards India, she shared that while short-term foreign direct investment (FDI) might have slowed, the long-term outlook remains strong. Domestic investors are buoying the stock market, and there is a wealth of global capital eager to invest in India. The key, however, lies in creating the right environment and opportunities to attract and retain these investments. 

She concluded by pointing out that Indian businesses must step up and present their best foot forward. The government is aware of the challenges, and it’s up to the business community to create an atmosphere conducive to growth.