Vision – 2025

Dr. APJ Abdul Kalam had a vision for India – Transforming the nation into a Developed Country in five core areas:

• Agriculture & Food Processing
• Infrastructure Development & reliable renewable power
• Education & Health care
• Information & Communication Technology
• Self-Reliance in Critical Technologies
• India has started with a very good pace to achieve its vision & many reforms were launched nation vide to improve the growth & make India a 5 trillion economy with faster GDP Growth.

Some of the important reforms are:

• Introduction of GST to simplify the process of tax collection with uniformity
• One stop shopping for Central & State Government Clearances
• Revision in FDI polices to welcome investors including Defense & Railways
• Reducing Corporate Tax rate from 30% to 25%
• Creating an outside restructuring process to ease the burden of the NCLT
• Revision in Labour laws – 4 Codes are getting introduced
• Agriculture Bill /policies to boost farmers income
• Education policy to give focus on employability & vocation trainings
• Allowing Companies to conduct layoffs without Govt permissions
• Privatization of Public Sector/Corporations which are into losses such AIR INDIA/PAWAN HANS/RAILWAYS ROUTES to name few
• Amendments in Land Acquisition Acts
• Paperless Court System & processes
• Go VOCAL for LOCAL

These were some of the major initiative taken in order to achieve India Vision 2025 ….

Year 2020 has marred with the after effects of Covid 19 pandemic. The year, which has started on a positive note and many reforms in pipeline suddenly come to a standstill with the lockdown across the globe due to pandemic. These lockdowns meant confining millions of citizens to their homes, shutting down businesses and ceasing almost all-economic activity. Everything halted – people, businesses, markets, economies.

The initial 2-3 months, took the Governments worldwide to figure out what has suddenly happened which put a hold on to their economic growth plans. Every country moved all their resources towards healthcare safety and security of people.

According to IMF, the global economy is expected to shrink by over 3-4 per cent in 2020 – the steepest slowdown since the Great Depression of the 1930s. The pandemic has pushed the global economy into a recession. Many advanced economies in the world have rolled out support packages.

A global recession now seems inevitable. But how deep and long the downturn will be depends upon the success of measures taken to prevent the spread of COVID-19, the effects of government policies to alleviate liquidity problems in SMEs & MSME’s and to support families under financial distress. It also depends upon how companies react and prepare for the re-start of economic activities. The country is facing an extra ordinary challenging time in this financial year. India has to urgently find a way to cushion the demand side shocks induced by potential lockdowns and other ongoing containment measure.

Even as economic activity resumes gradually, the situation will take time to normalize, as consumer behaviors change as a result of continued social distancing and uncertainty about how the pandemic will evolve. This pandemic has introduced the world to a “New Normal” where more and more people are working from home, technological advancements which were 3-5 years ahead has pushed to “Now”

The investment in the technology-based solutions has increased manifold and the same goes with pharma sector whereby many Governments around the world have pledged billions of dollars for a Covid-19 vaccine and treatment options. A number of pharmaceutical firms are in a race to develop and test potential drugs that could help nations get back to “normal”.
This crisis like no other will have a recovery like no other….
This crisis will generate medium-term challenges. Public debt is projected to reach this year the highest level in recorded history in relation to GDP, in both advanced and emerging market and developing economies. Countries will need sound fiscal frameworks for medium-term consolidation, through cutting back on wasteful spending, widening the tax base, minimizing tax avoidance, and greater progressivity in taxation in some countries.
At the same time, the crisis will also present an opportunity to accelerate the shift to a more productive, sustainable, and equitable growth through investment in new digital technologies, widening the reach of the workforce, introducing the hybrid models / work structures and wider health /social safety and security systems
Global cooperation, as ever, also become important to deal with a truly global crisis. All efforts should be made to resolve trade and technology tensions, while improving the multilateral rules-based trading system.
Once the vaccine will be developed and administered, countries and businesses will regain their focus back to the Future Vision but with newer mindset of Post Covid19 era encompassing the ‘New Normal’
Future Vision – The growth trends with New Normal Mindset
Investing in future trends early ensures that businesses reap the benefits tomorrow. Some of the future trends that will help SME’s and MSME’s to stay ahead of the game:

1. Technology will be the foremost priority for any business whether it be AI, Machine Learning, IOT, Robotics, automation AR or VR
2. Hybrid work structures – A mix of WFO (Work from Office) & WFH (Work from Home) will help in reducing infrastructure costs, bring in flexibility for employees, create wider options / reach for hiring managers. Recruiting for knowledge workers can expand to new geographies and include previously underrepresented populations like disabled or chronically ill workers.
3. Embracing the GIG economy – The USA GIG economy is around 35% as in 2020 is going to expand across the globe and by 2025 it is expected to contain a major chunk of global workforce. As the coronavirus pandemic forces a re-think of entrenched work culture norms, the opportunity arises for disruption of professional services via the gig economy.
4. Introducing AI for creating ‘WOW” Customer experiences & Use of Bots in most of the routine / mundane jobs
5. Focus on Employee Health & Wellness will increase so as to prepare the World for any future pandemic like situation
6. Digital market will become a norm
7. Availability of Big data support the businesses in taking better and informed decision making
8. Technology will bring a level of intelligence to HR that will thrust HR into a role of a Consultant, a Coach or a Mentor
9. 3D printing – It could enable unprecedented levels of mass customization and dramatically reduce the cost of supply chains
10. Continuous New learning & Re-trainings – The impact of technological and other changes will be shortening the shelf-life of employees’ existing skill sets. Businesses will need to put talent development and future workforce strategy front and center to their growth. Firms will no longer be passive consumers of ready-made human capital. They continuously require upgradation of skills and a new mindset to meet their talent needs.
11. Cloud technology – One of the biggest buzzwords of the last decade will continue to impact the next. Nearly all IT services and web apps could be delivered through the cloud with more enterprises using the public cloud as cyber security improves.
12. Internet of Things – More than 9 billion devices are currently connected to the internet – that number is estimated to grow between 50 billion to nearly 1 trillion in the next decade. Organizations will face monitoring and securing products, systems, devices and even people.
13. Human Skills will still matter – Even with the technological advancement in every field of business and in our lives, the need for honing the human skills that a machine cannot possess will still be there. Social Intelligence, creativity, networking negotiation and relationship building become as important as technical skills
14. Distributed Teams – The “Future OF Work” report by Upwork revealed that by 2028, 73% of companies will function on distributed teams. Flexibility of work is a high priority demand. The new generation workforce will require Quality of life and work flexibility and that has gained higher precedence for them. Distributed teams will bring in more productivity and better business outcomes.
15. Energy transformation – By 2025, carbon footprints will be viewed as socially unacceptable. The COVID-19 pandemic will have focused the public’s attention on the need to take action to deal with threats to our way of life, our health and our future. We will experience the advent of diversity of new technologies aimed at both reducing and removing the world’s emissions

The last quarter of 2020 has shown tremendous recovery & we are on a steady path… with the kind of initiatives taken by Government, we are confident that INDIA will emerge as a DEVELOPED COUNTRY by year 2025

DEEPAK BHARARA
DIRECTOR
People A2Z Advisory n Solutions