Agriculture & Allied Industries

india: How India Inc can drive growth in priority sectors

600 million jobs and a six-fold increase to ₹1 million per-capita income with a doubling of female labour force participation, reduced carbon emissions and access to clean water for all. These objectives are absolutely within India’s grasp in its run up to 2047. Ficci-McKinsey’s December 2022 report, ‘
India’s Century: Achieving Sustainable, Inclusive Growth’ sets out where and how companies can drive growth in 10 priority sectors.

An objective view has been taken of the challenges like sharp disparities across states and inflation that need to be overcome through a persistent collaboration between companies, state governments and GoI, and regulators to ensure prosperity for all. The initiative, developed through inputs from over 200 companies and 10 academic institutions, sets out specific goals by sector through 2030, and 100 specific execution priorities to achieve them.

Agriculture: Double exports from $50 billion to $100 billion by 2030, and the food processing industry from $300 billion to over $600 billion.

Manufacturing: Triple high-value exports to $400 billion, increase overall productivity, drive down import manufacturing as a percentage of imports to 15%.

onsumer technology: Grow the number of e-retail transactors to 770 million by 2030 from 162 million in 2021, and increase the share of the digital and organised market in consumer spend from 27% in FY2020 to 54%.

Information and communication technology: Increase India’s share of global software-as-a-service (SaaS) revenue from 1% to around 6% by 2030, and strengthen India’s position as the global factory for digital, cloud and analytics.

Financial services: Double the credit penetration of MSMEs to 80% using the full power of digital infrastructure – account aggregator (AA), Open Credit Enablement Network (OCEN), Open Network for Digital Commerce (ONDC) – and remove gaps in the cost of commercial borrowing relative to other countries.

Healthcare: Double the number of doctors, nurses and allied healthcare professionals per capita, reduce disease-adjusted life years by over 30%, and become a ‘hospital to the world’.

Infrastructure and logistics: Reduce costs from 14% to 8% of GDP, reduce project cost overruns from 20% to less than 5%, and increase skilled construction workers as a percentage of total workforce from less than 10% to more than 40%.

Energy: Double the share of renewables in power generation to 40% and become the world’s cheapest producer of green hydrogen by producing 5 million tonnes a year.

Water: Grow the percentage of households with tap water connections to 100%, the percentage of wastewater treatment from 30% to 100%, and reduce the use of non-revenue water.

Education: Improve the higher education gross enrolment ratio to 60% and the student-teacher ratio to 1:15 in primary schools and 1:20 in higher grades.

While there are company-specific actions to achieve each of these goals, there are also four major shifts that will be required across industries:

Strengthen our innovation muscle, where the data shows companies are not able to move at speed and scale on commercialising R&D and on productive partnerships.

The Ficci-McKinsey partnership will, therefore, focus on launching a series of innovation clusters – for example, in clean energy, smart mobility, water – that bring together startups, research institutions, domestic and global companies, and state governments to accelerate results.

Help SMEs build the skills and access the capital to scale up in the next five years so they can also take full benefit from India’s structural advantages. We need to have at least 1,000-plus firms with more than $500 million revenues (about 2.5 times today’s level) to generate productive jobs and growth.

Companies and industry bodies will have to drive a major digital, analytics and tech reskilling programme for tens of thousands of tech-services employees.

We need to do more work to ensure India is a preferred destination for both equity and debt capital for global investors.

There are exciting opportunities ahead, and many companies are already leading the way. But to achieve this scale of ambition will require a fundamental and persistent change in how Team India operates. We will need an unprecedented partnership between companies, state and central governments, and regulators to address our collective challenges.

If we get this right, companies and investors will benefit from tremendous value creation. India can then be a beacon for the world in how to harness digital transformation, energy transition and modern infrastructure development for sustainable and inclusive growth.

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