Ajay Piramal, chairman of the Piramal Group, stated that India is competitively better placed than most countries amidst current global uncertainties. Speaking at the launch of the Indian Chamber of Commerce's centenary book, Piramal highlighted several challenges facing the world, including the COVID-19 pandemic, geopolitical conflicts, climate change, and the impact of artificial intelligence. Despite these, he views India's position as a 'glass half full'.
India's Economic Advantages and the Push for Manufacturing
Piramal pointed to India's large domestic market as a significant advantage in an era where global trade is increasingly shifting towards national boundaries. He also underscored the nation's substantial youth population as another competitive edge, especially when much of the developed world grapples with an aging demographic.
However, Piramal stressed the critical need for India to enhance its focus on manufacturing. He noted that over the past 10-15 years, the country's economic shift leaned heavily towards services. While services are vital, they do not adequately provide employment for the semi-skilled and lower-skilled workforce. "We have to move towards manufacturing," Piramal asserted, suggesting opportunities in precision manufacturing and defense production. He cited the growing exports of electronics from India as evidence of potential in these sectors.
AI, Job Creation, and Wealth Generation
Addressing concerns about Artificial Intelligence (AI) and potential job displacement, Piramal drew parallels to historical fears surrounding the introduction of cars and computers, which ultimately led to more jobs. He believes AI can be a force for good, citing its role in financial services to identify new customers and provide faster, more efficient credit access, thereby expanding credit availability to even the smallest individuals.
Acknowledging that some jobs might be displaced by AI, Piramal emphasized the responsibility to upskill people and create new opportunities for them. He also advised against solely focusing on wealth management through family offices, urging business families to actively run businesses instead. "It's businesses who create wealth, and then you can invest," he stated, suggesting that wealth management alone can foster complacency.
Finally, Piramal highlighted the necessity of bridging the economic divide between eastern Indian states and their western and southern counterparts to achieve the goal of a developed nation by 2047.