Calls for measures to prop up demand urgently 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 TNIE’s 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 firm...
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 atma 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 atma nirbhar.
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 the large enterprises will take care of themselves, which I think is not true. Our playground may be bigger, but we have challenges, too.
If I were to ask the government to do something, I would say pull up demand. People are losing jobs, 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 pros of Work From Home and should 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 per cent of people who will take advantage. But, we need to move past this, because it is not like the 10 per cent 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 if they are doing that.
What do you see happening if 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, while some 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.