India’s Skill Gap and the role of China
Introduction
- India faces a significant skill gap, particularly in manufacturing sectors, hindering its ability to compete globally.
- Chinese technicians possess valuable expertise that can bridge this gap and boost India’s manufacturing capabilities.
- However, India’s restrictive visa policies for Chinese nationals, driven by security concerns, are impeding this potential collaboration.
The Skill Deficit and Need for Chinese Expertise
- Indian industries across sectors, from textiles to electronics, acknowledge a “significant skill gap” compared to Chinese counterparts.
- Chinese professionals are recognized for their higher productivity and ability to optimize resource utilization.
- Numerous Indian companies, including major players like Gautam Adani’s solar manufacturing facility, are awaiting the arrival of Chinese technicians to fully utilize their production capacities.
Government’s Stance and Contradictions
- The government has officially acknowledged the skill deficit but maintains stringent visa restrictions for Chinese nationals citing national security concerns.
- This approach contradicts the stated goal of promoting “Atmanirbhar Bharat” (self-reliant India) as it hinders the development of domestic capabilities.
- The slow processing of visas for even the approved quota of 1,000 Chinese electronics professionals highlights the bureaucratic hurdles.
Learning from East Asian Experiences
- South Korea successfully leveraged foreign technology and expertise in the 1980s, but it had a strong educational foundation in place.
- China’s rapid industrialization was built upon a combination of a relatively strong primary education system and strategic policies to attract foreign investment and knowledge.
- India, despite increased school enrolment, suffers from poor learning outcomes, as evidenced by the abysmal performance in PISA assessments.
The Urgent Need for Educational Reform
- China’s continuous investment in education has propelled it to the forefront of global technological advancements.
- India’s neglect of education is a major impediment to its economic progress and ability to compete globally.
- The focus on technology-enhanced service exports is misguided without a strong foundation of high-quality education.
Missed Opportunities and Stagnant Growth
- India has missed the “China+1” opportunity due to factors like restrictive policies and inadequate infrastructure.
- Labor-intensive manufacturing exports remain a small fraction of global trade, lagging behind competitors like Vietnam.
- The ongoing brain drain and struggles of even IIT graduates highlight the challenges in the job market.
Conclusion
- India’s overemphasis on self-reliance and neglect of education is a recipe for economic stagnation.
- Embracing foreign expertise, particularly from China, coupled with urgent educational reforms, is crucial for India’s economic competitiveness.
The global economic landscape is rapidly changing, and India risks being left behind if it fails to address its skill deficiencies and create a conducive environment for growth.
ESG - Key to Sustainable Business
Introduction:
In a world grappling with environmental degradation and social inequalities, Environmental, Social, and Governance (ESG) considerations are no longer a fad, but a critical factor for business sustainability. This shift prioritizes practices that not only ensure profitability but also address pressing global challenges.
Importance of ESG in the Post-Pandemic World:
- Collaboration & Cooperation: The pandemic highlighted the need for collaboration in tackling global issues. ESG aligns with India’s goals of achieving ambitious climate targets, fostering a digital economy, and expanding global trade.
- Sustainable Development: Businesses play a crucial role in promoting sustainable development. India’s G20 presidency and B20’s focus on ESG standards exemplify this growing recognition.
- Long-Term Vision: ESG emphasizes non-financial metrics like environmental responsibility, ethical practices, and social well-being alongside financial returns. This promotes a long-term vision for businesses.
- Improved Standards of Living: Transitioning to cleaner energy and efficient technologies can improve living standards globally and contribute to long-term decarbonization. (Example: Promoting sustainable practices in AYUSH can reduce the environmental footprint.)
Challenges and Solutions:
- Diverse Definitions & Standards: Inconsistent definitions and standards across entities create complexities in reporting and hinder universal adoption of responsible practices.
- Need for Harmonization: A unified framework for ESG disclosure, reporting, and rating would streamline processes and encourage broader participation in the sustainability movement.
Benefits of Adhering to ESG:
- Reduced Disruptions: Companies addressing ESG risks experience fewer disruptions and gain stakeholder trust.
- Consistent Financial Performance: ESG adherence aligns with a triple-bottom-line strategy, focusing on financial returns alongside environmental and social responsibility.
Examples of ESG Adoption in India:
- Performance of ESG-Indexed Companies: Data from the National Stock Exchange (NSE) shows ESG-indexed companies outperform non-ESG-indexed companies.
- Green Bonds: The Ghaziabad Municipal Corporation issued India’s first green bond to fund its water treatment plant and sewage system.
- SME Priority: A survey by DBS and Bloomberg found 92% of Indian SMEs prioritize ESG measures, compared to 83% across Asia.
- Alignment with Climate Science: Thousands of Indian businesses are adopting initiatives like the Science-Based Targets to combat climate change.
Conclusion:
ESG is rapidly becoming the cornerstone of responsible business practices. By implementing transparent ESG practices, fostering multi-stakeholder partnerships, and engaging in continuous dialogue, Indian businesses can contribute to a more sustainable future. Progressive ESG reporting standards will be crucial in this endeavour.
