The city that hosted the BRICS Educational Expedition, Ahmedabad, is one of the largest in India (top 10) and is one of the most dynamic urban centers in the country, with expansion being driven by growth in the chemicals, pharma and textile industries[1]. The city is also designated as the main venue of the summer Olympics in India’s bid to host the games in 2036. Preparations are already underway to create the sports and residential infrastructure, including via exploring the possibilities for bringing in foreign companies with infrastructure expertise and capital.
Infrastructure development has already been given a boost in Ahmedabad earlier with the construction of the Narendra Modi Stadium – with a seating capacity of 132,000 it is the largest stadium in the world. India appears to be increasingly active in hosting international competitions and global events – in 2023 the 2023 Cricket World Cup was hosted exclusively by India with matches held across ten cities. In September 2023 India also hosted the G20 summit in New Delhi. With India’s rising activism in conducting high-profile international events there may be palpable implications for the country’s infrastructure development and positioning on the international arena.
In terms of governance administration, India consists of 28 states and 8 union territories – a total of 36 regions. The state of Gujarat (Narendra Modi’s home state), in which Ahmedabad is the largest city, is India’s westernmost state and is known for its business traditions and acumen, a lot of the leading business people in India come from that state. Gujarat leads the country in terms of industrial output and exports, while also registering one of the lowest rates of unemployment in the country. The state is 4th in India in terms of its regional GDP and accounts for 8.1% of India’s total GDP (the share of New Delhi, the country’s capital, in total GDP of India is 3.6%)[2]. As in other BRICS economies the regional variations in terms of development and GDP per capita are sizeable (nearly 10-fold between the highest and the lowest levels across states), with coastal states generally exhibiting higher levels of affluence compared to inward regions (similarly to China and other BRICS economies).
In the macroeconomic sphere, the current focus in India’s performance is on the nexus of growth and job creation, with estimates from former RBI governor Raghuram Rajan pointing to the need for India to exceed the 8% GDP growth mark to generate a sufficient amount of new jobs[3]. In the fiscal year to end-March India’s economy grew by more than 8%, but in subsequent quarters growth decelerated to 6.7% YoY in April-June and according to the most recent Reuters poll is expected to slow down to 6.5% YoY in July-September (data due to be out on November 29)[4]. In the discussions with BEE participants one of the themes on growth and job creation that came up on a number of occasions was the potential of the services sector, with IT as well as health care having the most potential.
Across sectors, BEE participants pointed to India’s ambitions in areas such as pharma, EVs, semi-conductors, and heavy engineering. Digital payments were termed as crucial for raising financial inclusion and facilitating the growth in financial services. I was presented with a demonstration of how the UPI system was used to transfer funds within seconds and just several clicks – the system is widely used by street vendors and notably reduces the reliance on cash settlements. Another development I was referred to by my Indian counterparts was the Gruha Udyog business model that enables Indian entrepreneurs and small companies to operate from one’s residence. The home-driven business model adds greater flexibility to the operation of the Indian economy as its raises the scope for self-employment and does not require sizeable start-up investment[5].
Some of the notable companies from Gujarat that were mentioned included Amul – a dairy producer that became the driver of India’s White Revolution that transformed the country into the world’s largest producer of milk and milk products. In 2023 Amul was ranked as the world’s strongest dairy brand by the Brand Finance Food and Drink Report 2023[6]. Another company was Wagh Bakri – a tea group that has actively pursued IT transformation and is leveraging technology to advance sustainable practices[7]. In the past several decades the company became a market leader in Gujarat by focusing on quality and the needs of its customers[8]. India is the largest consumer and the second largest producer of tea in the world[9].
Apart from the BEE interactions I also had the chance to visit one of the High schools near Ahmedabad. The Apple Global School (AGS) was impressive in terms of both its facilities (including great sports facilities) as well as its students. The young learners exhibited great knowledge about international developments (including with respect to BRICS and its expansion), some of them participate in international sports competitions and greatly excel in their chosen fields. All of the students that I talked were patriots of their school calling it their second home.
The school’s mission is formulated in one of the billboards as follows: “to transform lives by instilling 21st century skills by engaging all learners in meaningful learning experiences that meet the highest educational and ethical standards in a caring, collaborative learning community… To work in partnership with students, their families and the community to ensure that each student acquires the knowledge, skills and core values necessary to achieve personal success and to enrich the community”.
At the school’s entrance the students are greeted with world leaders’ words of wisdom (the Wall of expressions), including Gandhi and Einstein; there are also various tips about learning (including on how to become a better reader). AGS is a Green school that actively promotes sustainability and environmental awareness as key parts of the educational process. According to the school’s website, “the students are involved in … [Green]-projects right from awareness and implementation of Zero-Wet Waste management, organic vegetable garden, to the plantation of fruit trees along the periphery of the large sports arena”[10]. The school is equipped with science labs, including math, physics and chemistry labs. My overall impression was that this school is one of the building blocks of India’s brighter future.
Overall, my sense is that all of the main drivers of economic growth – labour, capital and productivity – have sizeable potential. Infrastructure development, sustainability and the growth in India’s “green economy”, as well as further urbanization accompanied by the expansion in the country’s services sector will drive growth in the coming decades. The young population of India is a tremendous reservoir of energy and ambition – what India clearly needs is a more pro-active approach to job creation that would allow it to transform this huge “potential energy” into “kinetic energy” for the national economy. Without India’s economic success in the coming decades the world economy will miss a major growth driver and an opportunity to take global welfare to the next level.
[1] https://www.brigadegroup.com/blog/residential/fastest-growing-cities-in-india
[2] https://indianexpress.com/article/trending/top-10-listing/top-10-richest-states-in-india-by-gdsp-and-gdp-per-capita-as-of-2024-9601172/
[3] https://timesofindia.indiatimes.com/business/india-business/former-rbi-governor-raghuram-rajan-jobs-in-india-unemployment-in-india/articleshow/105116543.cms
[4] https://www.reuters.com/world/india/slackening-demand-likely-weighed-indias-gdp-growth-september-quarter-2024-11-25/
[5] https://swayampaak.com/blog/gruha-udyog-business/
[6] https://www.dairyindustries.com/news/43085/amul-ranked-worlds-strongest-dairy-brand-says-report/
[7] https://www.cio.com/article/3613599/wagh-bakri-tea-group-leverages-data-to-understand-evolving-consumers-taste-tarun-vijh.html
[8] https://www.forbesindia.com/article/leadership-awards-2024/wagh-bakri-brewing-a-slow-and-steady-growth-story/92117/1
[9] https://www.cio.com/article/3613599/wagh-bakri-tea-group-leverages-data-to-understand-evolving-consumers-taste-tarun-vijh.html
[10] https://appleglobal.in/ags-the-green-school-campus-old/
Yaroslav Lissovolik, Founder, BRICS+ Analytics
Image by jorono via Pixabay