NEW DELHI: Calls for measures to urgently prop up demand have occupied centre-stage in most corporate wishlists and the Lenovo India CEO's is no different. On Wednesday, Rahul Agarwal, chief executive of the China-headquartered computer major, sat down for a chat with author and senior journalist Kaveree Bamzai as part of The New Indian Express' Express Expressions, a series of live webcasts with people who matter. Excerpts:
There is a lot of talk about Aatma Nirbhar and you are in an unenviable position of running a China-led company...
We don't know what that means, to be honest. I don't think it's being interpreted in the right spirit. Because the world is integrated and we need FDI. So, this cannot mean isolation. It means that India has to become self-sufficient.
Our per capita GDP is low, half our population lives in substandard living conditions. That is not aatma nirbhar. Our fiscal deficit is quite high, our exports are not that high, our balance of payments can improve. Those things, I think, is more about us becoming aatma nirbhar than anything else.
Do you have a wish list from the government?
The government has a very tough job and you can't please everyone. But, I feel that it is assumed that large enterprises will take care of themselves, which I think is not true. Our playground may be bigger, but our challenges are too.
If I were to ask the government to do something, I would say pull up demand. People are losing jobs, are not getting increments... For the larger good, the government should take the bitter pill of leaving more money in the hands of the middle class. They are the ones who will spend.
What are the advantages of Work From Home and why shouldn't it become the new normal?
I think a hybrid approach is good. Work from home gives some flexibility. For me, I feel so much better, I have hot lunch at home, I've reduced the number of meetings, I have more time to think.
The flip side, however, is a reality. Many people may not have comfortable living spaces or private enough workplaces. And, there are always 5-10% of people who will take advantage. But, we need to move past this, because it is not like the 10% delivered more anyway. We also have to move from an input-based to an output-based system (while assessing work).
So, what if (employees) are at a movie. What is important is what they are supposed to deliver for the company and whether they are doing that.
What do you see happening if migrant workers do not return?
I'm now not sure that migrants will not come back because it is a paradox for them. Maybe, the social fabric is stronger, they have a more spacious house. But the income is pathetic back there. Here, I think they earn money, but they're away from their loved ones. So, I'm not clear. Some might have to come back, but some may stay and rediscover the joys of the rural world and may find refuge in farming. But, let's see.
Is this an opportunity to reinvent the rural market?
A market depends on two factors: need and a buying capability. If you look at computers, people were not sure about the need and it is still an expensive product. A good laptop still costs you at least Rs 30,000.
I think that rural market penetration is less than 2%. For metros it is 50%, so the opportunities are there. But, it all depends on peoples' incomes.
What are the innovations that are possible in the rural economy with technology?
Maybe rural schools can start teaching more technology. Can they all have PC labs? I think this is a space where the government will have to play a role.
There was a big initiative of Digital India, maybe it's time to revive that and put a lot of money on bandwidth technology, technology in education, and also affordability.
Maybe we can give an income tax exemption on PC purchase, if you have children between 12 to 18. From the private sector, we can try to build up some appetite to give products on credit.
Lenovo has launched a smart education platform. How is that taking shape?
We have a shortage of 1 million teachers, so we launched this platform where we are inviting people with good intent and good competence, willing to dedicate some time to teach children who need it online. A teacher in Bangalore can teach a student in a small town in Bihar, and all they need is maybe a smartphone or a tablet or a computer. Our challenge here, really, is to reach out to people and increase awareness about the platform.
Looking forward, what is the role of laptops, smartphones in online education?
Historically, the education system has been a laggard in terms of change. But now, Covid has forced them to begin online education. Today, one teacher can teach 500 students at the same time. Quality is suspect, yes, and there are social aspects, because we learn outside the classroom as much as in the classroom. Which is why I think it's gonna be a hybrid system.
You've tweeted earlier on the reaction of businesses to the lockdown where they have resorted to job cuts, not paid wages...
A business that can't sustain for three months was not a business well run. I've also seen that the small and medium enterprises… many of them did not display character.
Even landlords. They were just way too quick to ask people to vacate houses. Our urban society could not take care of the workers who maintained it for even three months.
We should never criticize the government because it is a reflection of society... even the bureaucracy is. So, if they're being inefficient, it's because you know we are inefficient and that's the harsh reality.