Though many Indians from the corporate world have found a place in the global billionaires’ list, the matter of concern is that how many people have been able to cross the below-poverty-line post economic reforms in the country, Prabhu Chawla, Editorial Director, The New Indian Express Group, said on Friday.
He was delivering a special address on the topic ‘Creating a Balanced Business Model for People, Planet and Profit’ at the 33rd Annual National Management Convention of the Kerala Management Association here.
Equitable distribution of growth is not happening in the country, he said.
“There is no balance between people, planet and profit in India. The real result of the past 20 years of reforms in the country was creation of wealth for the rich and filth for the poor. The corporate sector in the country enjoys tax benefits worth `5 lakh crore annually. In the last 10 years, the amount comes to `50 lakh crore. Though this much mercy was shown to the corporate sector, how much impact had happened via this for employment generation and poverty eradication is a subject that should be seriously discussed,” he said.
“Service sector contributes 55 per cent of GDP but it employs only 7 per cent of people, whereas the agriculture sector employs 57 per cent of people but its contribution of GDP is only 17 per cent. This is a sorry state as we depend more on outsourcing,” he said. “India is the only country where there is no long term capital gain tax for selling off shares. Whether we need more airports or schools is definitely a matter of concern,” he said. Pointing out the need for skill development, Prabhu Chawla said the Indian corporate should contribute more towards this subject as it would benefit everyone.
“Politicians talk about opening more IITs and IIMs in the country. But setting up such an institute costs `5,000 crore and maximum 500 students could be educated there in a term. This calls for setting our priorities well. In India, half of the total aircraft belongs to individuals. After going through all the reforms in the past 20 years, the country has ultimately landed at 4 per cent growth rate, which was the rate in 1996. Every year `20,000 crore is being spent on aviation sector. But it is benefiting only a fraction of people,” he said. Urging people to develop an Indian role model, Chawla said that the approach of corporate CEOs that ‘everything in America is good’ should be changed.
“The US is the best example of imbalance between people, planet and profit as everything they do is with a profit motive,” he added.