By Vavani Sarmah
Pennsylvania
In recent months a vibrant and strong entrepreneurial culture seems to be emerging in India. Assam seems to be no exception in this front. As the young generation is exposed to international practices, entrepreneurship is likely to emerge as a source of competitive advantage for the country. India is progressing a lot particularly in the service sector. It has been observed that the seeds of entrepreneurship are less government interference and its increased role as a facilitator, fewer bureaucratic hurdles and easy access to capital etc. Recently, the Government of Assam has taken a few significant measurers in this regard. Though India is rated amongst the most corrupt countries globally, the fact is that de-regulation is happening in various domains. The Government needs to expedite the process to de-regulate a few more sectors that are breeding ground of corruption. The setting up of independent regulators in sectors like infrastructure, insurance, telecom, capital markets and improving regulations in sectors like power is a key positive and very important. Historically, people of Assam are not very entrepreneurial. This has slowed down all of our development after independence. However other constraints on these fronts have resulted in brain drain. But recently because of global technological advancement and other related matters, we have witnessed a number of such people coming back to the country to enable entrepreneurs in India as well as Assam to fulfill their objectives. Of course, they bring along with them international best business practices, technological knowhow and, more importantly, capital. As we move forward with more positive thinking from the Government side, all these factors are likely to keep the spirit of entrepreneurship alive in the long run. The English language, a legacy of the British, has provided a long-term competitive advantage for the country and each every individual should take advantage out of it. After the language movement in 1970 Assamese language has got an opportunity to show its strength in the global map. However, we have a long way to go to meet the global challenges in 20th century. Combining this with other advantages like high level of skill-set, low cost structure and time differences, India has emerged as a country with a large talent pool. Assam still needs more homework to meet the requirement. However, Assam can still take advantage of a strong platform for fast growing sectors like IT, pharmaceuticals and agricultures, which now service clients worldwide. This kind of initiative not only has the benefit for the local entrepreneurs but also for the India as a whole. It has also aided the country's objective to move up the value chain and definitely help development of the state in particular. The backbone of development is, of course, proper basic education, strong social bonds and respect for talented individuals. This is likely to add to the talent pool and enable us to sustain the competitive advantage over time.
The per-capita consumption of most goods and services in the country compares poorly with other economies developing and under developed countries China in particular. For instance, the table above lists India's (Assam’s) low penetration vis-à-vis its nearest competitor, China, in fast growing areas like cellular telephony and Internet subscriptions. With a growing middle class and rising income levels, the market size of each of these products and services could double in a decade's time. This would entail larger investments by the government and corporate. If we compare the FDI with China, it will be more clear the picture.
Also, it is accepted that the financial sector is the backbone for development of any country or state. The strength of the country's financial sector can be gauged from the fact that it shelved us from the crisis. The Reserve Bank of India is independent in its true sense. The Reserve Bank of India strictly adheres to international and national rules and regulations. On top of that the recent Dr. Manmohan Singh’s Government with strong financial background, as a whole, has set a platform to support India's long-term objectives of growth.
We need strong and visionary leaders to capitalize on all these positive movements to bring true development to the State of Assam. In doing so, bureaucratic hurdles and corruption, which are seen as probably the biggest factors that might deter investors from investing into India's growth story, should be eliminated. Also this bureaucratic nature has led to rampant corruption and otherwise breeding ground of corruption. While factors like acquaintance with the English language and high levels of technology skills play a very vital role, sustenance in growth can only be brought about by addressing basic needs of the populace and the basic operational system. The table below shows, India has been a laggard on some of these human development factors. It is also showing the huge workforce and inability in proper distribution of wealth. A large proportion (around 35%) of India's population is poor.
All these factors, if not taken properly, there are likely chances to ruin India's chances of building up a solid and sustainable growth model for the future. Policy makers and the government have to balance decisions between rural and urban development keeping the global competition and local growth in mind.
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