Only when wealth is created can there be investments in creating support infrastructure & services
In 2012, as India enters its 66th year, our first Prime Minister?s rousing speech ?Tryst with Destiny? is yet again worth reading. Are we anywhere close to redeeming the pledge made? While very impressive strides have been made in many areas, still 15% of the world lives in India and over 68% i.e. about 700 million, live on less than $2 a day. Over 17 million people are born, over 500,000 students graduate each year, over 12 million join the workforce each year, and about 40 million are unemployed. The investment required to educate, train, and deploy these large numbers into gainful jobs is pretty huge. Now imagine the public healthcare, water & sanitation, communication, security, education, travel, housing, electricity, entertainment, and banking & financial services that have to be provided to these huge numbers; Can we automatically assume there will be jobs for these millions?
Euphoric talk about India?s growth and success hid the fact that crony socialism had quietly given way to crony capitalism which was as insidious. Governance, vision and policy making took the last rows in the stadium that was cheering ?India?s arrival?. The penny naturally dropped on the India story.
Today, we?re confronted by the stark realities of India that the breathless comparisons with China and other BRIC countries had somehow managed to paper over. The hubris is painfully giving way to the realisation that the parties celebrating India as a super-power had begun too soon. And that there was, quite simply, an enormous amount of work to be done.
Jobs are created by entrepreneurs, not by government. Governments are facilitators and regulators to make sure that everyone?s playing fair, and by the rules that have been created to facilitate job creation. Wealth is then created by entrepreneurial actions. Only when wealth is created can there be investments in creating the support infrastructure and services.
The UK, Canada and the US realise the value of entrepreneurs and startups?job creation, innovation and the taking of risks. They have moved or are moving legislation that will allow qualified entrepreneurs from overseas (via initiatives like the Startup Visa Act) to come to their shores and create businesses. They are removing hurdles and easing the already easy-to-do-business environment. The recent JOBS (Jumpstart Our Business Startups Act) in the US makes it easy for startups to go public and raise money. In India, we?re still to wake up and act, and make it easy for entrepreneurs and small businesses to start, grow and exit. The government, instead of facilitating, still acts suspicious of its own citizens, believes it knows best and wants to control and command. There seems to be an 18th century mindset operating within a 19th century infrastructure, holding back the aspirations of a 21st century mindset exemplified by a young, energetic entrepreneurial India.
?At the stroke of the midnight hour, when the world sleeps, India will awake to life and freedom.?
When will we wake up? When will we redeem the pledge?
Sanjay Anandaram is an advocate of entrepreneurship. He?s involved with Nasscom, TiE, IIM-B and Insead. Email: sanjay@jumpstartup.net
