“The key to surviving in the VUCA world is innovativeness”, stated Dr Krishnamurthy Subramanian, Chief Economic Adviser, Government of India, at the CII Annual Session 2019 during the session on ‘Navigating Volatility, Uncertainty, Complexity and Ambiguity (VUCA)’. Firms operating in sectors which are subject to moderate competition are the ones which need to be most sensitive to innovation.
Dr Subramanian’s analysis shows that globally, there has been a significant increase in uncertainty. Interestingly, though, in India, uncertainty has reduced over time despite spikes during events such as demonetisation and GST. Thriving in a VUCA world, he said, requires Vision, Understanding, Clarity and Agility.
Mr Borge Brende, President, Member of the Managing Board, World Economic Forum stated that countries which excel in implementing new technologies such as Artificial Intelligence, Internet of Things, etc. will emerge as the most prosperous. “India has huge opportunity in this”, he said. Some of the input factors are already in place: the largest exporter of ICT, second largest English-speaking population and young workforce. It was now upto the government and citizens to formulate an aggressive reform agenda involving investment in education, R&D and infrastructure. In addition, a reduction in red-tape is required, as also greater openness to inward investments and investing abroad.
“Innovativeness and entrepreneurship are key to leadership in Industry 4.0”, Mr Brende added.
Ms Nisha Biswal, President, U.S. - India Business Council emphasised the need for a more adaptive mindset in the government for India to fully unleash its growth potential. The disruption we are witnessing today creates opportunities for emerging economies such as India. Countries which are adaptive and innovative are the most likely to benefit from the VUCA world. Ms Biswal was appreciative of the innovativeness exhibited by Indian entrepreneurs.
Elaborating on the many areas of collaboration between India and China, Dr Wang Huiyao, President, Centre for China & Globalization, stated that China could share its experience with India in air pollution and urban infrastructure, amongst others.
Diversity ensures that Indians do not have a challenge with creativity, which, in turn, prepares us for ambiguity, said Dr Naushad Forbes, Past President, and Chairman, CII International Council.
4 April 2019
New Delhi