Article Dated: 29 January, 2007
DAVOS, Switzerland—In the last decade India has resurfaced as one of the world’s leading economies, but the strengths that led to its growth could also work to slow potentially slow development, says a new paper from Deloitte Touche Tohmatsu.
The white paper, India: Linking into the global services economy, asserts that regulation, people, and technological innovation have all contributed enormously to the country’s success, but India must strengthen its educated workforce and fix infrastructure so that technology can enable a more sustainable services economy.
“India had enough of the right ingredients to become the services-driven economy it is today, including a suitable regulatory environment, available workers at the right age, and connectivity to global technology infrastructure,” Deloitte Touche Tohamtsu CEO William G. Parrett told an audience at the World Economic Forum at Davos last week. “But these are the very ingredients that need more attention more quickly.”
India’s educated workforce is only a fraction of the country’s population, and future sustainability will depend heavily on changing this—especially in technology-intensive areas.
“While 3.1 million English speaking graduates help the country attract IT outsourcing opportunities, and 350,000 new engineers graduate each year, many Indians lack the skills to participate in the service economy, and continue to be employed in low skilled, rural occupations,” said Parrett.
Another critical need: improvements in infrastructure to enable technology to drive India’s development. The challenges include roadways, erratic power grid, and limited availability of clean water, which can individually or collectively slow growth and development, according to the white paper.
“It is no secret that regular blackouts are commonplace across the country. As improvements are made, so too will the distribution of technology-based infrastructure across many industries,” said Parrett.