Over past couple of weeks, I had exciting interactions with some professionals from the IT capital (Bengaluru), Pharma Capital (Hyderabad), Engineering capital (Chennai), Financial Capital (Mumbai) and political capital (Delhi) of India. From these interactions I learned that a definite new paradigm is emerging in Indian commercial space. The following are some key take away from my interactions:
1. Traditionally, a majority of Indian
entrepreneurs have not aimed for global scale in their businesses. Despite a
rich history in the areas like culinary and textile, few businesses of global
recognitions and scale could be created in these areas. However, now the first
generation entrepreneurs have materially widened their vision. Many of them are
now working on business ideas with global markets and scale in sight. No eye
now widens on the mention billion dollar figures.
2. The skills in Artificial Intelligence are
becoming common place. In late 1990s Indian youth acquired skills in basic
programing and coding of computer programs. This helped them crossing ocean in
hoards and make a good career. A similar phenomenon is developing in artificial
intelligence skills. The difference however is that unlike 1990s, now a large
proportion of the young professionals want to become entrepreneur of
independent professionals. They are not looking just good salary. I am sure a
few of them would certainly be able to repeat the fables of Bill Gates, Jack
Ma, Jeff Bezos et. al.
3. The best part is that there is a strong
start up ecosystem already in place. There are numerous investors who are
willing to risk money on a good idea. Not many are looking at government for
support. In fact, if I were to take my sample as representative, the only
support neo entrepreneurs are seeking from the government is (i) less
interference; and (ii) supportive tax structure.
4. A
lot of people of Indian origin, who are settled abroad are positive on Indian
skills and entrepreneurship. They are helping the new ideas with financial and
technical support. Many of them appear to be keen to have substantial exposure
to Indian startup ecosystem.
5. Though,
the visibility of startups in technology enabled financial services (FinTech),
retail, food delivery, and gaming is highest, some amazing developments are
happening in the area of agriculture technologies, space technology,
engineering design, water management, logistics management, pharmaceutical
research and healthcare.
After this round of discussions, I am even more
convinced that we have already entered into a business and economic paradigm. I
believe that over next couple of decades, maximum value creation shall happen
in businesses with technology leadership. Intellectual property shall derive
significantly higher premium over conventional property. “Services” will
continue to be key driver of economy rather than “Goods”; notwithstanding the government’s
focus on manufacturing and construction.
On the negative side, the pace of elimination
of smaller businesses, which cannot invest in technology and are not equipped
to become ancillary of a large business, will continue to accelerate. The
inequalities shall rise on multiple levels – economic, skills, access and
opportunity.
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