Thursday January 1, 02:38 AM

Source: Indian Express Finance

Innovation is the key to growth for India

Shivinder Mohan Singh: Managing Director, Fortis Healthcare The economic slowdown and the Mumbai terror attack have clouded the India rising story. But India can bounce back fast to recovery and turn the global slowdown into an opportunity and create new growth sectors, which could add more new jobs, bring in precious foreign exchange and contribute to the overall development of the country. During the last eight to ten years, Indian companies have created millions of new jobs in the country and even abroad. They have expanded their operations in the global market, acquired foreign companies, have set up new benchmarks and increased capacities. The last few years have also seen a wide shortage of talent across all sectors and the attrition rate touched new heights. High attrition rate was affecting growth. Now with the economic slowdown, the attrition rate has come down. With money supply still tight, prices of goods and commodities will remain stable. The demand for basic services will remain strong and will not be affected much with the economic slowdown. For the next six months, the sale of luxury goods will be affected as people will defer purchase of high-end durables. There will be price optimisation as well as transparency in the real estate market. The fiscal stimulus package announced by the government will help sectors like steel and cement but the demand will slow down. Though the unprecedented inflow of FII money created the recent stock market bubble, I am hopeful that FDI investment will be favourable next year. Innovation is the key to growth for India and Indian entrepreneurs will find opportunities in the downturn as they did during the Y2K scare. Indian entrepreneurs can turn the global despair into business opportunity and the government should encourage and facilitate by providing good infrastructure support and policy directives. There is huge opportunity in the BPO sector, which should be tapped. The government should strengthen basic services, build proper infrastructure and strengthen security for its citizens. That s how we will be able to face the global downturn and create a strong economy and a better future for our country. Healthcare is a great opportunity as many companies in the US and Europe will look at offshoring medical treatment to India. Maybe, there would be a great opportunity in creating new rating agencies. The education sector remain a great potential for growth and India can become the global hub for trained manpower. The government should play the role of a developer to facilitate it.