India’s economic fortunes critical to the world: KM Birla

Billionaire and Industrialist, Kumar Mangalam Birla, who is the chairman of Aditya Birla Group, in a note  for the year gone by, said that India's position geopolitically will be crucial to the world in 2023. 

In a note, titled as ‘My Reflections’ he says, "India’s economic fortunes are critical for the world. But more interestingly, India’s rise is being welcomed by the world as it grows into a stabilizing and non-disruptive growth engine. In fact, the byline of India's G20 presidency captures its foundational values— One Earth. One Family. One Future. What we call Vasudhaiva Kutumbakam."  

"The latent economic potential of this country is being coupled with a newfound civilizational confidence born of our emergence as a strong third global growth pole. The next two and a half decades undoubtedly represent an Amrit Kaal," he adds. 

With India opening up trade and investment, forming new alliances and reaffirming old ones, Birla believes that the country will have a unique place in the global economy. 

Birla's note projects five trends that will have a multiyear impact. He says some of his beliefs such as sanity over vanity in valuations, the enduring role of large corporations as engines for growth and societal good, and the decisive return to office - WFO over WFH – have stayed true in the past year. 

Terming the pandemic as apocalyptic, Birla says that the world is "learning to live with a new geo-political normal that has reshaped everything from supply chains to the relative fortunes of different countries."

Regarding India's rise globally, Birla says that India is a country that combines economic might, a large working-age population, demographic dynamism, entrepreneurial energy, robust democracy and diversity, and has a pivotal position in current global geopolitics.

"As global corporations start to look at countries across Asia as part of their China + 1 strategies, India is a clear choice. Supply chain repositioning is complex and needs us to stay the course. However, the path we are charting is bold and certain to yield good outcomes. India already has the largest working-age population globally. The lessons learnt from the transformations of other economies through the last few decades point to the importance of this demographic dividend," he says. 

Acknowledging climate and sustainability as the definitive challenges of the 21st century, Birla says that the efforts made by the governments and corporate level will drive a multi-decade transition. "India has made some bold bets and commitments behind this transition. As a nation, we aim to generate 50% of our power requirements from renewable Kumar Mangalam Birla sources, or put another way, have 500GW of non-fossil fuel-based capacity by 2030. India is walking the talk as is evident from its pioneering leadership of the International Solar Alliance," Birla says.

Birla says that Aditya Birla Group and its subsidiaries are making investments in green energy, the circular economy, and sustainable materials. 

"The pendulum of climate change will swing globally when we can find technology-led solutions to marry the material aspirations of current generations with responsibility towards the lives of future generations," he says. 

For the startup ecosystem, Birla says that with the availability of capital, and young talents who are brimming with ideas, the country has witnessed a unique explosion of new business building. "There is much to be celebrated and learnt from the raw energy and hustle of many of these new ventures in the start-up ecosystem. At the same time, it’s also increasingly clear that there is a thin line between hustle and hubris," he says.