A View on India Vision 2020

Shailesh Gururani MBA 1st Sem NBA (GJU batch) May 2012

Content
1. 2. 3. 4. 5. Preface Introduction Oppertunities Ahead Challenges Ahead References

Preface
Every country needs a vision statement which stirs the imagination and motivates all segments of society to greater effort It is an essential step in building a political consensus on a broad national development strategy, which encompasses, inter-alia, the roles and responsibilities of different agents in the economy, such as Central, State and local government, the private corporate sector, the small and tiny sector, peoples organizations etc. It must identify the potential risks and bottlenecks and their possible solutions in order to mobilize efforts in a focused manner. It is clear, therefore, that to meet these objectives, a vision statement has to operate at several levels of generality and specificity. It has been said that the battles of this century will be fought and won on the power of ideas. Societies will increasingly become knowledge based and promote knowledge-based industries. A vision statement has to operate at several levels of generality and specificity. In this report I have tried to generalize whether India is going to be a developed nation by 2020 or its just a dream which is not achievable by the stipulated time.

Introduction
India Vision 2020 is a Master Plan to transform India into a developed country by 2020. This idea was the brainchild of former President of India A.P.J. Abdul Kalam. Based on the opportunities ahead and looking at the present scenario, there is a hope in the optimists of this country to live in a developed country by 2020. The objective of this study is to find out whether this is realistic goal or the citizens of this country are running behind an impossible dream. The Planning Commission constituted a Committee on Vision 2020 for India in June 2000 under the chairmanship of Dr. S.P. Gupta, Member, Planning Commission. This initiative brought together over 30 experts from different fields. Their deliberations, extending over a period of more than two years, has helped to throw up a range of interesting possibilities, critical issues and crucial decision-points for government and private bodies for future action. Kalam said, A developed India, by 2020 or even earlier is not a dream. It need not even be a mere aspiration in the minds of many Indians. It is a mission we can all take up and accomplish. There are several reasons to cheer about, Indian agriculture will witness a revolution in productivity. There will be more employment opportunities for the rural folks, thanks to the massive afforestation efforts and developments of wasteland. There will be advances in the fields of IT, Bio-technology, medicine, and other nascent areas of technology. This will create more jobs for educated youth and enhance Indias stature in the eyes of the world.

There will be a more equitable distribution of wealth and resources so that India shines for everyone rather than a privileged few. Infrastructure will be modernized to compare with global standards. Better roads, cleaner and less polluted cities will be a reality. More investments in public transportation will decongest roads. People will use cleaner fuels and conserve energy. Hybrid cars will become more popular. Energy efficient buildings will become common. Suburban townships will take the pressure off crowded cities. Renewable energy, like solar and wind power, will be much in demand. There will be more participation of the young and the intellectual classes in politics which will lead to better governance. India will also become a formidable military force to counter the threats from across the border. Differences of caste, class, religion, language and region will be seen as irrelevant leading to a more united and secular country. India will also be more integrated with the global economy. It will be a big player in trade, technology and investment. But we cannot neglect the present situations which are hampering the growth of this country. This study is going to highlight on both the aspects.

Opportunities Ahead
An essential requirement for envisioning Indias future in the new century is to recognize that the parameters which determine national development have changed in recent years and will change further in future. This will open up greater possibilities than ever before. A powerful set of catalytic forces is accelerating the speed of social change throughout the world. They include a rapid rise in levels of education, high rates of technological innovation and application, ever fasterand cheaper communication that dissolves physical and social barriers both within countries and internationally, greater availability and easier access to information, and the further opening up of global markets. These trends are representative of a relative shift in the engines that drive development from manufacturing to the services sector and from capital resources to human and knowledge resources. Technology, organisation, information, education and productive skills will, therefore, play a critically decisive role in governing the future course of development.

Knowledge and Information technology

In IT, India has built up valuable brand equity over the years. In IT enabled services (ITES), India is emerging as one of the most preferred destinations for business process outsourcing (BPO). Being an integral part of the global sourcing strategy, the sector has gradually increased its contribution in the domestic economy. According to Nasscom estimates, the Indian IT-BPO industry is estimated to cross USD 100 bn during FY12, increasing its contribution to GDP from 1.2% in FY98 to 7.5% in FY12. The 14 software and ITeS companies featured in Top 500 2011 collectively accounted for about 3.1% of overall revenue of all Top 500 Companies in FY11. The featured companies accounted for nearly 9.1% of the total market cap of all Top 500 Companies in FY11, indicating the premium valuation commanded by these companies. Exports continue to be the mainstay; domestic markets witness increasing traction In FY11, total income of featured software and ITeS companies stood at ` 1,114.8 bn recording 20.2% growth in FY11. The software and ITeS companies that formed a part of the Top 500 publication accounted for approximately 28% of overall industry revenue during FY11. The Indian IT market traditionally derives a major chunk of its revenue from the export market. Export revenue of software and ITeS companies registered a moderately healthy growth of around 13.2% to ` 876 bn in FY11. However, despite a healthy y-o-y growth, the share of export revenue in the total revenue of the sector declined from 83.4% in FY10 to 78.6% in FY11. Small-cap companies in

this sector outpaced large-cap and mid-cap companies by registering a faster growth rate of 17% y-o-y. On the other hand, with continued growth in consumption of IT-BPO offerings, the domestic market proved to be more lucrative for the domestic software and ITeS players. In FY11, the domestic market grew 62.7% to ` 204.9 bn. Both large-cap and small-cap companies contributed around 16.8% and 6.4% respectively to the percentage share of total income in the domestic market in FY11. However, the mid-cap companies were in a better position in terms of percentage share since their coverage was equivalent in both domestic and export market. Favorable economic scenario; emergence of innovative technologies lead to increased adoption of technology and outsourcing among corporate and SME segments; and e-governance initiatives undertaken by the government are some of the factors contributing towards the progress of domestic market. According to Nasscom estimates, the government plans to invest around ` 340 bn in e-governance projects over the next five years. Overall sector expenditure increases by 21.1%; employee expenditure remains consistent The total expense of software and ITeS companies featured in Top 500, increased 21.1% to reach ` 814.2 bn in FY11 as compared to previous year. Resembling the previous years trend, employee cost emerged as the most significant cost component, accounting for more than 50% of overall expenditure of the Top 500 software and ITeS companies during FY11. Noticeably, tax expenses not only registered the highest growth; but also witnessed an increase in share compared to last year mainly due to end of tax holidays through STPI.

Human Resource
The steam engine (and its successor, the internal combustion engine) heralded the industrial revolution that led to economic growth in the West. These engines required fuel - coal and petroleum. As the industrialised countries exhausted their own sources of supply they turned increasingly to other sources, which resulted in the economic growth of the supplying countries, such as the oil producing countries of the Middle East. This pattern is unfolding again. The growth paradigm of Western economies requires another kind of fuel knowledge workers and skilled professionals. For example, U.S. growth rates of the 1990s are primarily attributed to productivity increases enabled by a highly skilled workforce. In the next two decades developed countries will face a shortfall of fuel (skilled professionals) and once again will have to look towards developing countries to make up the shortfall. While India struggles with a burgeoning population of educated youth, the rest of the world, especially developed countries, faces a shortage of working-age people, caused largely by lower birth rates and an ageing working population. While the requirement for skilled workers in these markets is increasing in line with economic growth, the availability of skilled people simply isnt keeping pace. In professions like IT services, medicine, and education, the problems are already beginning to be felt.

Healthcare sector
The Indian healthcare industry is witnessing growth at a rapid pace and it is expected that the sector will touch US$238.76 billion by 2020. According to the Investment Commission of India, the healthcare industry in India has experienced remarkable growth of 12% per year during the last 4 years driven by a number of factors such as increase in the average life expectancy and average income levels, and rising awareness for health insurance among consumers India provides the best-in-class treatment at affordable prices as compared to countries like USA and UK. India's private hospitals excel in fields such as cardiology, joint replacement, orthopaedic surgery, gastroenterology, ophthalmology, transplants and urology. India has also emerged as a destination for medical tourism which serves its consumers with well-educated Englishspeaking medical staff, state-of-the art private hospitals and diagnostic conveniences, along with a huge cost advantage over the expensive healthcare services in the Western world. There have also been a number of striking initiatives taken up by the Government for promoting the healthcare industry in the country. These initiatives centre on investments that are closely linked to provide better medical infrastructure, rural health facilities, etc

Tourism Industry
Tourism industry is one of the major segments of our economy, it contribution major part of foreign exchange and generates employment and helps infrastructure development. Government of India has formulated policies to boost the tourism industry. Tourism will expand greatly in future mainly due to the great revolution that are taking place in demand and supply. Thus the study is a critical issue in tourism industry. And new product development and innovation is essential for survival. Health tourism in India is promoted as hightech healing destinations, which provides world-class treatment at low cost , incorporating the Indian system of medicine ayurveda, naturopathy, unani, siddha and allopath. India is the seat of spiritualism, it is the confluence of different religious: Hinduism, Sikhism, Islam, Christianity and Jainism, etc. The followers of religion built many lavish temples, mosques, monasteries and Churches across the country. These are attracting both domestic and international tourists. This says that the tourism development should meet the needs of the present without compromising the ability of future generation to meet their needs. India is one of the best places for all types of healthcare treatment. People around the world have started considering India as the Global Health Destination. Indias health care industry is already growing at 30 per cent annually. It has become one of the largest foreign exchange revenue earners. Tourism development provides better infrastructure like road, airports, telecommunications, water, power and transportation etc; both central and sate government along with private participation are trying to develop the most

needed infrastructure for the promotion of tourist centers. Better roads, sanitary facilities etc; will confirm better benefits to the resident population. It is an important source for generating An Overview of Benefits and Opportunities of Tourism revenue. The tax income to the government from tourism sector may be direct or indirect. Taxes on tourists accrue in the form of VAT on tourism spending, import duty on goods imported for the use of tourists. Entertainment tax, property tax on accommodation, service tax, and luxury tax is the benefits accrue to the state revenue. Tourism in India has a strong relevance to economic development and employment generation. It creates huge employment opportunities, provides equitable distribution of wealth, helps to acquire the much needed foreign exchange, bring out a speedy development and improvement of infrastructural facilities, improves international understandings by bringing diverse people together and helps to create a social, cultural, political and educational understanding among the people. Developing countries have given a special importance for the development of tourism, for its the main source of earning foreign exchange, thereby the economic status of the country goes up.

Education
India has one of the largest education systems in the world. The sector is primarily handled by the Government through the Union Budget outlays and school infrastructure. In the recent years, the sector has been witnessing growing momentum due to factors such as increasing demand for skilled employees, availability of education loan and growth in e-learning platforms. Following the guidelines laid by late Prime Minister Shri Jawaharlal Nehru, the government is aiding the emergence of an independent and literate generation of young India. As the country spreads the light of education in diverse fields like bio-technology, information technology, space research business administration, engineering, health and medicine, the government is splendidly backing the youth in this endeavour. Not to forget the growing gap between the urban rich and the rural poor, the government has plenty of policies and initiatives lined up. These are mainly aimed at promoting free and mandatory education, irrespective of gender, age, religious backgrounds and cultural ethnicity. Structure The Indian education system is divided into two major segments: core and noncore businesses. The core group consists of schools and higher education, while the non-core business focuses on segments such as pre-schools, vocational training and coaching classes. Indian education system

The country has 544 university level institutions, which includes 261 state universities, 73 state private universities, 42 central universities, 130 deemed universities, 33 institutions of national importance and five institutions established under various state legislations, according to the Ministry of Human Resource Development (HRD) Annual Report 2010-11. Further, India has 31,324 colleges, which includes around 3,432 colleges for women.

Conclusion
Looking at above all factors we can say India is definitely shining, but we cannot overlook the present scenarios which are telling different story. The growth rate with which India is progressing we can say that this dream is certainly going to come true. The main question is, is it going to happen within 2020 or not. The current scenario says that some recent happenings in the environment may postpone the attainment of this dream. Maybe not by 2020 but hopefully before2025 or 2030.

References
AIMA report on India Vision 2020 APJ Abdul Kalams Book Planning Commission report on Vision 2020 Google