Opinion: Building a self-reliant India
Even though some may sponsor successful athletes, a genuine understanding of broader societal issues is often lacking.
– By Ssushila Ttiwari and Samarender Reddy
Recently, there has been talk of very wealthy individuals and big business owners potentially leaving India. While this may seem like a setback for the economy, it gives us a chance to rethink our priorities for the nation’s growth. It’s often felt that many super-rich people are disconnected from the real issues faced by regular Indians. They may focus mainly on making more money, with little concern for problems like unfair treatment of different groups, struggles of farmers, or the challenges faced by poor communities. Even though some may sponsor successful athletes, a genuine understanding of broader societal issues is often lacking. India’s real economic strength lies not with a few elite businessmen, but with the millions of small and medium businesses spread across the country. These enterprises are not only innovating with new ideas but also creating massive job opportunities. According to government data, over 117 million people (nearly half of India’s workforce) are employed by small and medium businesses. They make a huge contribution to the nation’s GDP and promote balanced growth across different regions.
Burden on Taxpayers
While India’s big businesses have benefited from easy access to loans and credit over the years, there is growing concern about the repayment ethics of some of these large corporate defaulters. Data from the Reserve Bank of India shows that Indian banks wrote off a staggering Rs 10.72 lakh crore ($145 billion) in outstanding loans from nonperforming assets (NPAs) between 2004 and 2021. A large portion of these bad loans and defaults can be attributed to big businesses and industrialists failing to repay debts owed to public sector banks. This ends up being a massive burden on the Indian taxpayer, as the government has to bear the cost of recapitalising these banks and absorbing the loan losses. According to data compiled by the MSME body Alliance for Protection of Indian Producers, the top 12 non-performing corporate accounts in India defaulted loans worth Rs 3.62 lakh crore as of December 2020. This amount is enough to fund India’s healthcare budget for the next three years!
Level-playing Field
While loan defaults by large corporations put a strain on the banking system, small businesses and individual borrowers often face tougher scrutiny and higher interest rates when accessing credit. This uneven playing field needs to be addressed. As we move towards a more self-reliant economic model, there is an opportunity to not just clamp down on wilful loan defaulters, but also ensure more responsible lending practices by banks while making credit more accessible to MSMEs, entrepreneurs and those driving growth from the ground up.
If big businesses exit, we can fill that gap by boosting small and medium enterprises through steps like:
• Making loans and investments more accessible to help them grow
• Developing skills and training programmes suited to their needs
• Improving infrastructure like roads and internet connectivity in rural areas
• Simplifying rules and taxes to make it easier for them to do business
• Enabling them to sell products easily through e-commerce platforms
Handicraft Heritage
India’s handicrafts, from Kashmir’s intricate embroidery to Kanchipuram’s vibrant silk saris, are a part of our rich cultural identity. However, limited market reach often restricts the growth of our skilled artisans and craftspeople. They struggle to get space in major retail stores dominated by large brands. The Indian handicrafts industry provides employment to over 60 lakh artisans, including those in the carpet trade. It is a highly labour-intensive cottage-based industry that is decentralised and spread across rural and urban areas of the country. The handicraft sector has a strong potential to provide massive employment to the rural sector. In addition to creating jobs for a million weavers, the carpet and handicrafts industry contributes $847 million in export revenue to the Indian government. In contrast, as of March 2022, Reliance had approximately 3,35,000 employees worldwide across its diverse sectors such as oil refining, petrochemicals, retail, and telecom. The Adani Group directly employed over 27,000 individuals as of 2021, spanning industries like resources, logistics, energy, and agriculture. Meanwhile, the Tata Group companies collectively provided employment to over 8,00,000 people in India as of 2022. However, when compared to the handicrafts industry, these top three industrial conglomerates combined employ only about 20% of its workforce. We now have an opportunity to revive this vital handicrafts industry by creating dedicated marketplaces, promoting direct sales to customers, and branding/marketing initiatives that showcase our traditional arts and crafts. Integrating Indian handicrafts into modern designs can further increase their appeal. Inclusive Economy With reduced monopolies of ultrawealthy corporations, investments can be diverted to critical sectors like agriculture, clean energy and social enterprises that actually benefit local communities. This diversification will make our economy more resilient and create entrepreneurial opportunities across the nation. There will also be more scope for businesses to develop customised, innovative solutions suited to the unique needs of our people. From agricultural technologies for Indian climatic conditions to sustainable sanitation models for villages, local enterprises can better understand and address grassroots challenges.
Power of Consumer Choice
As consumers, we have immense power to drive positive change through our choices. By consciously buying Indian-made products and supporting local businesses, we directly contribute to creating more jobs and sustainable economic growth. This can be done by: • Seeking out brands that source materials and manufacture products within India • Frequenting local stores, handicraft exhibitions and farmer markets • Choosing ethical companies that provide fair wages and follow ecofriendly practices The real question is – are India’s wealthy business tycoons actually willing to abandon the country completely? That remains to be seen. But more importantly, are we as a nation prepared to build a stronger, self-reliant India? The India that empowers its people at all levels and drives innovation from the grassroots up? By shifting our economic focus away from a few billionaires to India’s vast pool of workers, farmers, artisans and entrepreneurs, we can unleash the nation’s true potential.
(Sushiila Ttiwari is Managing Director and D Samarender Reddy is Director, 7Qube Biz Solutions. https://7qube.com/)
