Importance of Management Education in India


By

Prof. Sameer S. Pingle
Professor
MIT School of Business
Pune
 


India and the Indians have undergone a paradigm shift. There have been fundamental and irreversible changes in the economy, government policies, outlook of business and industry, and in the mindset of the Indians in general.

From a shortage economy of food and foreign exchange, India has now become a surplus one.

From an agro based economy, India has emerged as a service oriented one.

From the low-growth of the past, the economy has become a high-growth one in the long-term.

Having been an aid recipient, India is now joining the aid givers club.

Although India was late and slow in modernization of industry in general in the past, it is now a front-runner in the emerging Knowledge based New Economy.

The Government is continuing its reform and liberalization not out of compulsion but out of conviction.

Indian companies are no longer afraid of Multinational Companies. They have become globally competitive and many of them have become MNCs themselves.

Fatalism and contentment of the Indian mindset have given way to optimism and ambition.

Introvert and defensive approach have been replaced by outward-looking and confident attitude.

In place of denial and sacrifice, the Indian value system has started recognizing seeking of satisfaction and happiness.

The Indian culture, which looked down upon wealth as a sin and believed in simple living and high thinking, has started recognizing prosperity and success as acceptable and necessary goals.

Indian management graduates no longer queue up for safe government jobs. They prefer and enjoy the challenges and risks of becoming entrepreneurs and global players in the emerging private sectors.

Stable country and institutions

India being a largest democracy with stable, mature, vibrant and exemplary democratic governance and institutions, boasts lots of quality B-Schools attracting intellect student community in large number every year.

Possess strong and transparent legal and accounting system.

Numerous watchful and proactive NGOs.

Free, vocal, alert and quality media. 5600 dailies with a combined circulation of 60 million, nearly 15000 weeklies and 20000 periodicals in 21 regional languages.

Legal protection for intellectual property rights.

Consumer market

Large and growing market of 1 billion people out of which 300 million are middle class consumers.

India offers a vibrant market of youth and vigor with 54% of population below 25 years of age. These young people will work harder, earn more and demand more from the market and thereby sustaining growth in the long-term.

Every month, there is an addition of one million cell phone subscribers. By December 2005, the total number is expected to reach 100 million. The domestic demand is expected to double over the ten-year period from 1998 to 2007. The number of households with "high income" is expected to increase by 60% in the next four years to 44 million households.

Economy

India is a fastest growing economy that the developed nations always looking the country as a best global market to market the products. The fundamentals of the Indian economy have become strong and sustainable. The macro-economic indicators are at present the best in the history of independent India with high growth, foreign exchange reserves, and foreign investment and robust increase in exports and low inflation and interest rates.

India is the second fastest growing economy of the world at present.

A unique feature of the transition of the Indian economy has been high growth with stability. The Indian economy has proved its strength and resilience when there have been crises in other parts of the world including Asia in recent years. 

The interest rate continues to be reduced and is around 6%. This is the lowest in the last thirty years and this is stimulating consumption and investment.

Agriculture

One of the world's largest food producers (600 million tones).

World's largest producer of milk, sugarcane and tea.

Second largest exporter of rice, wheat, fruits, and vegetables. India produces 30 million tones of fruits and 59 million tones of vegetables.

Industry

Diversified and large industrial base, which is becoming globally competitive. Examples, Tata Steel and NALCO are the lowest cost manufacturers of steel and aluminium in the world. Moser Baer is one of the top three manufacturers of CD Roms in the world. Bharat Forge is one of the leading suppliers to auto giants, such as Ford, General Motors, and Toyota.

India's Hero Honda is the world's largest motorcycle manufacturer with 2002 production of 1.7 million units.

The Indian companies have drawn up ambitious plans for expanding and diversifying their manufacturing activities with about 12 billion dollars in the next three years. Most of the companies have been able to generate the funds from their own operations. The areas whose output is being scaled up are automobiles, auto parts, metals, chemicals, pharmaceuticals and electronics.

Some of the Indian companies have gone global with presence in 60 countries, including USA, Europe and China. India is one of the top ten producers of bulk drugs in the world and 60% of India's bulk drugs production is exported. India has the highest number of annual bulk drugs filings (77) with USFDA. India is home to the largest number of pharma plants (61) approved by USFDA outside US.

The chemical industry is becoming competitive and has very high growth potential for production for local market as well as exports. Bayer AG, the German chemical and pharmaceutical company has identified India as the outsourcing hub for basic and specialty chemicals.

There are 150 biotechnology companies whose business is growing exponentially.

The auto parts industry has emerged as one of the country's fastest-growing manufacturing sectors; this is expected to reach US$ 8 billion in 2006. 'Bharat Forge' of India is the world's largest manufacturer of front axles for trucks. India has emerged as an outsourcing center for auto parts. Visteon and Delphi, the world's largest component manufacturers have entered India for production. Toyota is opening a transmission parts unit in India. Volvo and GM have set up purchasing offices. A rising share of Indian auto parts exports goes to original equipment manufacturers (OEMs).

India is the second largest cement producer in the world with 110 million tons.

India is the world's premier center for diamond cutting and polishing. Nine out of every 10 stones old in the world pass through India.

India has a large entertainment industry, which produces more than 1,000 movies per year overshadowing Hollywood.
 


Prof. Sameer S. Pingle
Professor
MIT School of Business
Pune
 

Source: E-mail May 21, 2007

       

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