Reverse protectionism new global concern-Analjit Singh

Mr Analjit Singh, Chairman, Max India Ltd., has cautioned India Inc about the adverse fallout of the “reverse protectionism” consciously followed by the developed world to stall the enviable economic growth achieved by countries like China, India and Brazil. “Hard postures taken by them on Doha Round of trade negotiations, attitude towards outsourcing business, raising of non-tariff trade barriers, etc. taken by the developed world are indicative of the growing trend of reverse protectionism.” he observed.

Giving his insight about a range of global and domestic issues relating to business and beyond at the PHD Chamber’s CEO Lecture Series, yesterday in the evening, Mr Singh, said that the blatant protectionist undertones from quarters, which once advocated high moral ground of liberalisation, should trigger a “new wake up call” for the developing world. Contemporary writings, particularly Thomas Friedman’s book, “World is Flat” catalogues the concerns of the developed world to the emerging architecture of growth, where India and China are perceived as key drivers of global economic growth.

In the new global dispensation, the stock of India Inc has been considerably raised on account of the pre-eminent position being occupied by the country as a global investor and the inherent strength of its continental market. Corporate savings, which lagged behind the household savings rates earlier, are now going up enabling them not only to undertake expansion and diversification activities within but also mergers and acquisitions abroad. “It is a happy augury that the demographic profile of India, which once was considered as a drag on growth, is fast becoming an asset. In 2025, 66 per cent of India's population will be 35 years, while 66 per cent of China’s population would be plus 65. Significantly, by that time, the average productivity of the Indian workforce will increase by four times,” he added.

According to Mr. Singh, crucial parameters like the inflation rate, interest rates and foreign exchange rate needed to be maintained as India needed more structured rather than cyclical growth.

Mr Singh, however cautioned about the jobless growth that is being experienced in the country, which can adversely affect the societal relations. More job opportunities should be created to productively employ millions of youngsters who enter the job market. That requires sustained growth and a higher degree of partnership between the private and public sector based on trust and mutual respect. Growth paradigms would become hollow if they are bereft of “value focus” and instead concentrate only on wealth creation measured in terms of zooming Sensex and market capitalization.

There should be clarity of purpose, focus and compassion and business should be built on high ground of ethics. “Life is not about you, you are about life,” he said adding that a businessman should be close to his customers from whom he should draw sustenance, goodwill and trust.

Referring to his business model, which has been constantly adapted and evolved through the collective decision of his highly motivated and focused workforce who has high degree of integrity, Mr Singh said that he had exited many traditional avenues and entered new areas to make his business close to the people. His forays into life insurance, health care and pharma, etc. have helped him build a strong and lasting bond with the customers. “ That synergy runs much stronger than enhancing mere wealth generation and distribution among the stakeholders,” he added.