This document discusses India's rapid urbanization and economic development over the past 50 years. Some key points:
1) India's population grew significantly and 350 million people became urban dwellers, driven by factors like education sector growth and the preference for service sector jobs over manufacturing.
2) India invested heavily in building its education infrastructure with over 200 world-class universities offering international-standard curriculum and programs. This fueled growth in knowledge-based industries and services.
3) Rapid urbanization was managed through proper infrastructure development while also focusing on job creation and managing effects like uncontrolled urban sprawl. The government took initiatives to encourage global partnerships, trade, and immigration to support urbanization.
4) While
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Contents
1. Introduction ..........................................................................................................................................4
1) World population growth .................................................................................................................4
2) World urbanization...........................................................................................................................5
3) Employment growth: India’s preference for service sector growth.................................................7
2. Human resource growth in India ........................................................................................................10
1) Education sector growth.................................................................................................................10
2) Real estate sector growth...............................................................................................................13
3. World population growth and peak of new mighty “middle class”....................................................15
1) New demographics and product basket.........................................................................................16
2) Urban living, business and services focus.......................................................................................17
3) Technology and brand savvy...........................................................................................................17
4) Peaceful existence, consumption, consumerism............................................................................17
4. Rapid urbanization phase management.............................................................................................18
1) Proper management and control of urbanization knobs ...............................................................19
2) Job creation for the masses (jobs in all categories and classes).....................................................20
3) Effects and outcomes of urbanization............................................................................................21
5. Case of India’s economic development & urbanization: “One Country” approach...........................22
1) Swadeshi movement in 1970..........................................................................................................22
2) SEZ/EPZ setups: Easy import/export infrastructure .......................................................................23
3) Confused nation: Problems at home and their intelligent solutions..............................................23
4) Special Rajeev Gandhi drive............................................................................................................23
5) UN Package & Modernization move...............................................................................................24
6) Current situation.............................................................................................................................24
6. Support from outsourcing, global companies & immigration in urbanization...................................25
1) Outsourcing industry.......................................................................................................................25
2) Global and multinational companies..............................................................................................25
3) Benefitting from immigration out of India by co-creating growing gob markets...........................25
7. International class Urban infra & Real estate sector growth between 1990 and 2010 .....................27
1) Grass root infrastructure ................................................................................................................27
2) Economic resource and talent development/categorization.........................................................28
8. Hurdles in urbanization and economic development of India ...........................................................31
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9. Major opportunities in India’s economic and urban development....................................................33
1) International class job markets.......................................................................................................34
2) “World” middle class ......................................................................................................................36
3) Modern world.................................................................................................................................37
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India: Move from rapid urbanization phase to two-pole rural development &
urban development phase
Hey Ram, Hey Ram – Mahatma Gandhi
1. Introduction
Last four decades in world history have no parallels. It was simply a period of “growth” in
almost all aspects of “human” race’s life on this planet. Here are some of the “uniques’ of that
growth (Of-course, India was no exception):
Human “race” lived mostly peaceful (Baring US in middle east)
Rapid population growth in last 50 years (population almost tripled, new
population plateau in modern way of living would be at 10 billion)
Rapid urbanization supporting housing and living of “new” population (World
more than 50% urban now, war scale construct worldwide in last few decades)
Capitalistic and middle class focused politics & policies in almost entire world
(money, banking, stock market private enterprise, financial sectors growth)
Good education, hygienic living conditions and health focused “youth”/No
hippies – good and planned “socialist” development as well
In next sections of this discussion/essay, we would detail out some of the unique drivers of
worldwide capitalistic urban, social and economic growth of last 5 decades:
1) World population growth
Source: Internet
5. 5
Above chart trends the population growth in world (although most of it was localized in Asia
in beginning with minimal trend in rest of the world, chart shows world trend) since dawn of
civilization. As one would notice that last 150 years had been crucial in world history as world
population has quadruple from 2 billion to 8 billion over this period. This change had been so
significant that we can actually almost ignore human race’s history before this period of
exponential growth i.e. pre 1800 history is no history at all.
At around 10 billion, population of world would plateau in next half a century as we could
quickly learn and adjust birth rates and family sizes even with changing death rates, life
expectancy and average age etc and could control this growth. Not only that we could urbanize
and improve standards of living all across the world in unity while maintaining peace and
without putting much pressure on rural masses, environment and natural resources of our planet.
Re-balancing and redistribution of population and economic resources has already started
across continents and worldwide living standards are now going through normalization with
realignments/relationship improvement in business partnerships, research and development co-
operations and better trading balance sheets.
2) World urbanization
Second most important theme that kept the world busy over last 50 plus years of uniform
growth is “standardized” urbanization running off of mostly service centric economy dependent
social living culture (some localized industrialization in China). Rapid urbanization was not just
a local phenomenon unique to India. The whole developing world worked hard on managing this
tsunami of ever growing and young new faces. Here are some of the achievements of last half a
century in this crisis management:
China: Approximately 700M newly urbanized folks or twice the size of US as first
generation “civic” human
India: 350M more urban dwellers or almost the size of US first time in towns and cities
US: 20% more urban over 30 -40 years: 80M
Germany & UK: From low 70% to high 70% urban over 30 years
Japan: 2000 to 2010 additional 10% urbanization kick
This would sum up to approximately 2 billion humans’ first time and fresh urbanization. On
top of it, this newly minted “middle class” type urban population is connected, has global reach,
consumes global products, feeds on global media when it comes to politics, economics and
financial infrastructure from the word get go even if understanding of society and culture is
dismal at the best with very little understanding of civic and connected community living.
Since war footing efforts across the high growth population zones of world were on during
this rapid and almost “re-habilitation” type of human settlement, little attention was given to
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education, healthcare and planned living. (e.g. 50% of Utter Pradesh, India is illegal urbanization
and it is a state of approximately 200M people, urban development business opportunity )
Following table and graphs after that show the magnitude and enormousness of this feat:
Recent “joinee” or member in group of greater than 70% urban or almost fully urban
countries is China. Out of leading countries of the world, if there is any room left for further big
build out of urban agglomeration, it is in India. In case someone would want to get into newer
destinations such as Nigeria, Indonesia and Pakistan (all Muslim countries) they would have to
start working on baseline infrastructure and culture development and start almost “fresh”.
While India and China had grounds and bases covered for globalization centric urban
development efforts at governmental levels and were socially and religiously very open for
international participation in local politics and economics, these new destinations might show
some reservation, resistance and friction. They might even restrict these global efforts and revert
to home grown policies and strategies.
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3) Employment growth: India’s preference for service sector growth
An important initiative in this area of economic development project is creation of service
sector that creates plenty of jobs in all categories and for all types of workers. Initiatives like
privatization, liberalization, industrialization, globalization and institutionalization help support
supply side of service economy. In economies which reward knowledge, education, talent
development, special skills and credentials, service sector is usually preferred economic segment
over industrial sector. If we look at two fastest growing world economies of today i.e. India and
China and compare preferences of common man of two countries when it comes to vocations,
jobs and careers we would notice following differences:
1. China’s common man opted for manufacturing based industrialization. Skills and
vocation jobs were preferred jobs over knowledge, communication skills, talent
management and education based long-term careers.
2. India developed its education infrastructure and created approximately 200 world class
campuses which run curriculum in English language. These programs create talent for not
only local but also international job markets. China built factories.
3. Instead of creating factories which produce daily use retail products and take out 10% of
average family’s monthly budget, an approach and theme that was central to China’s
economic development investments, India focused on long-term infrastructure creation
for service sector talent supply/support with pre-focus on global markets that would give
it access to up to 40% of average family’s monthly budget in finance/banking/high-tech.
4. World class Travel and tourism sector and media sector alongwith70 years of democratic
learning would only benefit Indian common man in today’s mostly democratic and
capitalist world. On top of it country opted for international banking and financial sector,
knowledge and consulting sector and is very open for new services unlike China.
In 1991, under similar development efforts and same service sector and economy
development goals, India started a reform program with the help of UN. Here are some of the
results and still developing areas in Indian democracy since that change in government thinking:
Liberalization: boundaries, openness, rules, regulations, environment, culture, society
Privatization: institution, entity, corporation, company, business and business unit, a team
Globalization: government interaction/connectivity, political thinking, all types of relationships
including cross border, social, business, sports people
In industry development segment also, India focused on very high end manufacturing or
manufacturing support functions over assembly lines. In an economy, Service and Industry
segment could have multiple types of organizations. At very high level, these are the major types
of organization structure and management outlook plays:
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Alpha Management, Alpha Organization Companies: Top end management, Top end
talent hiring e.g. Goldman, Mckinsey, GE
Alpha Management, Beta Organization Companies: Usually industrial sector i.e. worker
hiring, management owned
Beta Management, Alpha Hiring: Wealth management, Customer facing (Better suits)
Beta Management, Beta employee companies: Routine work-Railways, Transportation,
Shipping
A good example of industry development from recent periods in history is as follows.
First real global industry in internet connected world: Online advertisements
Recently I was looking at the growth data of worldwide advertising industry and paid
special attention to Internet/Digital segment growth. This industry segment’s growth has given
us not only more than two fortune 500 companies but also has done it in just 25 years, possibly
the fastest ever industry creation in history. Following table shows the trends in overall
advertisement industry growth over this same period:
If you just create two scenarios and study revenue growth, you would notice that more
than innovation driven new economic profits growth, this channel did feed itself on existing
industry channels’ cannibalization. Here are two scenarios:
A) Normal industry growth without internet/digital as it was growing in pre-internet
bubble years
B) Current case: Existing industry - internet/digital channel
One would notice very strange occurrence. Cannibalization of about $170B US dollars
worldwide in all other channels' revenue only created completely new economic profits of just
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$220B US dollars i.e. an almost 1 is to 1 factor. Some of other high end innovation driven
industry or industry segment creations would only show 1 by 10 or even better cannibalization
results such as optical networking and wireless communication. We would have to wait for some
real miracles from internet/digital advertising channel for making it little better "breakthrough".
And that too would just probably be operational if not any of fundamental technology changes
such as far reach, magnitude-ly better delivery methods or sales/auction methods.
Here is a chart that shows cannibalization (Assumption that existing channel would have
sustained their long term growth rate is universal as overall globally advertisement industry
budgets have grown on same lines over years and in absence of new channel, old channels would
have captured that growth i.e. a higher level industry growth driver would have stayed whole and
universal; would have maintained other channel’s growth).
Here is graphical representation of same finding.
10. 10
If you just want to compare two major players in this new industry segment i.e. Facebook
and Google, you would not help but notice a race towards industry monopolization by ignoring
any operational controls and monitors. Industry would probably grow for another 5 years and
these companies want to capture as much share of total market as they could. Comparisons
clearly show a strong focus on maintenance of growth rate and revenue capture and total
ignorance on operations side. Of-course, headcount growth directly correlates with top line
growth. Even though competition seems to follow same baseline philosophy i.e. grab, apples to
apples, Face book has better operational ratios when it comes to capex management and
operational cash use along with having some sense of bottom-line and profits. Here is high level
“operational performance” comparison over last 5 plus years:
One can do similar kind of study on India’s growing industry segments such as outsourcing,
knowledge management, back-office, business and corporate infrastructure etc and compare
those segments at global level. As such, at very high level though performance is good but it is
not “global” comparable just like internet advertisement industry.
2. Human resource growth in India
Next stage of growth in development process that is mentionable in case of India’s
urbanization story would be people’s own growth. This would include living standards and life
style growth along with development of understanding around government, politics, social and
cultural segmentation.
1) Education sector growth
Education focus is must if country has to develop service sector over manufacturing and
industry sector. Everyone is intended to participate and create knowledge, develop talent and
11. 11
gain education in service centric economy development. For high end talent development, all
levels of education sector should perform as well. Here is India’s story:
Although tertiary sector is yet to perform at international level, investments had already
been made or channeled into this sector’s growth and results should follow.
At primary and secondary levels through India’s performance now compares with
developed world economies. With few more years, results of strong focus and investment along-
with strong preference for knowledge and talent centricity, results at tertiary would only bolster
countries position in list of developed world countries and would certainly help service sector
internationalization/globalization. Chart shows global benchmarking of education:
12. 12
Source: Internet
Like rest of the world, India also favored middle class development, knowledge and skill
set base employment, “whole-economy” view and uniform country development.
Education infrastructure in country has gone through a big overhaul in last 40 years. It
boosts of around 200 world class campuses and international standard primary secondary and
tertiary education infrastructure. Along with new rigor in education delivery, job calibration and
selection standards are world class as well. Curriculum is also world class and there is wide
range of choices when it comes to subject selections. At around undergrad graduation time when
I looked at my choices of subjects for UPSE IAS mains (one of India’s top job selection exams),
I only found 2.5 science, technology and engineering subjects’ choices:
Science, technology and engineering
Physics
Chemistry
Electrical Engineering (Half)
Just recently, I was looking at the course choices again and noticed that now I can choose my
electives from 12 subject areas. This move of my choices from 2.5 to 12 over 20 years covers
most of my BS/undergrad and MS/MBA programs coursework. Now that I can measure
curriculum better and see that subject matter is not only international level (Post IIM & post IIT
course-work) but also covers many corners of knowledge world, I appreciate it much more.
Coursework is Stanford and Cornell class course work. These types of class A job testings in
India test all-round development including things like psychology, logic and reasoning, research
ability, personality, visioning, thinking, self-learning, patterning and calibrate you on physical
standards as well. Selected candidates certainly would have very strong foundations. Just for
example here are my new subject choices (notice diversity of curriculum):
Full science, technology and engineering
Mathematics
Physics
Chemistry
Electrical Engineering
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Full management
Public Administration
Statistics
Commerce and Accountancy
Economics
Management
Full social studies
Geography
Indian History
Political Science and International Relations
This is just one job selection process example from India. When you have that kind of
background behind your selection processes, your job market becomes very different and
competitive. Let’s say you would want to work it out for SF Bay area high technology industry.
With this kind of background, your job choice would certainly be multi-field, multidimensional,
multidisciplinary work and you would probably choose business-technology job over just
business job or technology job or for that matter techie-type business management job etc. You
wouldn’t also just restrict yourself to one skill one company. Hence your job market would be
ordered in class “A” category fashion below and not class “B” category (should start happening
since now many job aspirants come here in SF bay area from India with similar kind of
education and profiling background, similar things would follow worldwide).
A) Silicon valley, High Tech, Software and Solutions, “Any” Company
B) Company ‘A”, Programming, Software, “Pinata Project”
By mid-career as a person you would have grown as someone who would prefer broader-
view and wider responsibilities. Business as well as technical education is must for these kinds of
roles and you would have opted for both. Technical education in India is benchmarked by
AICTE and it follows global standards.
AICTE international standard benchmarked campuses in our times (year 1995 +/-) were
just 10 or so. Since then, AICTE worked on development of top class campuses throughout
entire country and now that number stands at around 100. These colleges graduate around 50,000
technology graduates every year now a number that was just 10 colleges, 500 students each and
total of 5000 students per year about 25 years ago. These graduates do very well in international
top end job markets. Similarly top MBA graduates out of India do perform well in international
management jobs and there is going to be more standardization and profiling in that area too.
2) Real estate sector growth
Urbanization in India had been stellar and country has added about 30%age points of new
living quarters in urban and suburban housing over last 30- 40 years, but it has already started
testing limits at around 50% of urban/rural divide. There could be many more constraints going
forward. Some top level concerns would be around historical growth management and social
context in new relationship formations. India is a country of countries with many cultures and
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themes showing very local needs of their own. Depth of population groups open for transparent
mingling, showing penchant for connectivity, learning, moving, sharing etc is already starting
showing shallows.
These kinds of trends are usually highly and quickly visible in migrations, jobs and cultural
mix data in urban areas. Long term slowness in growth of an urban center, usually becomes
visible in real estate growth and job market growth etc first and would point to lost luster in area.
Here is real estate data of some of the highest growth areas from last 30 years up-rise in India:
Real estate prices are heavily dependent on sustained local economic growth and job
opportunities. By shear economy driven development, growing metros would show good real
estate growth trends as well.
Same trend is better visible in “log” plots of real estate price growth in our test areas:
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Sub-urban growth has shows real slowness. Urban growth is also not spectacular in these
areas. As country has many rural population pockets and has avoided mass methods in agri-
business (silo-ed and local mode, no farm consolidation and disappearance of some of the
cultures and sects), engagement in rural and agri-business segment is going to stay high for many
years in future. About twenty plus cultures with their own identity and local economies of their
own would atleast command 2-3% of rural population for each group adding up to 40% of total
rural divide putting 60% wall on urbanization i.e. 10% of more leg room.
From now onwards, incremental urbanization is going to difficult as cost of educating,
skilling, culturing and moving additional population is going to be much more than usual
including highly visible cultural and social “puts” on both sides of leadership. The approach,
India followed since 1980s would probably not work for some of these next targets of
urbanization. As it stands today, here are India’s five largest and perhaps the fastest growing
metros and their total GDP numbers for comparison (new or old question?):
Big economic zones in India (GDP per annum in US$):
Mumbai-Pune: $260 billion
Delhi NCT: $200 billion
Bangalore-Chennai-Hyderabad: $200 billion
Kolkota: $160 billion
Ahmedabad-Surat: $120 billion
3. World population growth and peak of new mighty “middle class”
In absence of any major wars, environmental calamities, disease outbreaks or other social
obstacles the whole world has been progressing smoothly and peacefully in mostly harmonious
way since last half a century. And this has all been happening in the face of ever growing
population and its desire of housing itself, feeding itself and employing itself in decent ways. In
the modern way of politically & economically connecting and living, world population would
peak at around 11 billion human on this planet by end of century.
That is a steep rise from around 2 billion we had in first half of last century before world got
into two mega size, multi-country wars and then unstoppable population growth/urbanization
drive. In modern times, preferred way of connecting is by trading with each other, socially
interacting and building up cultural, sports, economic and political relations while respecting
each others’ peaceful presence and that stayed universal over last half a century.
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Out of 11 billion folks on this planet, about 20% of them would make upper strata and about
same number would probably fall in lower strata (simple 1 in 5 human group play formulae). But
middle 60% would mostly deal with each other on equal footing doing similar types of economic
activity jobs, studying in same way and in similar schools (not very high end jobs or education,
non challenge seekers as well) while making both ends meet in same kind of lifestyle and living
in same type of housing in similar/normal neighborhoods.
This class of people would be marked and named as “middle class” and it would sum up to
around 6 billion folks on this planet by end of decade, a significantly large number of “same
class” of human. We are almost already there after sprinting through last half a century’s race of
creating housing, jobs and living for this class that created very big hump in growth all across the
globe.
Now that we have basic infrastructure almost ready for this segment, growth in lifestyle,
economic valuation of work and socio-political developments would drive its progress in sort of
on “developed” world economic growth levels way. Basic drivers for this new growth are going
to be as follows:
1) New demographics and product basket
There has been big change worldwide when it comes to lifestyle, health and hygiene,
childhood development and schooling. There is plethora of product choices and thousands of
products out there these days and global products are available in almost all geographies of the
world. At high level major shift that world would see is
New center of middle class in Asian developing countries
Demographic shift in world middle class; Aging population “places” and young
population “places” and targeted “Productization” would follow
Increase in purchasing power globally and hence product target markets shifts
Here is a table that shows middle class purse shift to Asia over next 10 years:
17. 17
2) Urban living, business and services focus
Middle class in India voted in favor of urban living and working in service industry and gave
rise to urban and sub-urban sprawls with rows and towers of new planned unit housing. Political
views of this newly wealthy and powerful class show mix of capitalist and socialist form of
democracy. Semi-rural and rural segment that gets involved in agri-business and arts/crafts
activities (Indian brands: Eicher, Vita, Verka etc) would connect with this new and busy urban
middle class in just business and services settings in now time.
For this new class next frontiers in development process would be automation (very high
opportunity) and growth in women education and employment like it happened in western world.
There are many other new varieties of services this class would get exposure to as further urban
growth roles out such as travel and tourism products, local entertainment avenues, financial and
stock markets, plethora of wealth management, insurance, retirement and pension products etc.
Hectic lifestyle is going to be norm. This is very unlike China likes it.
3) Technology and brand savvy
Middle class is technology and brand savvy. It supports private enterprise. This preference
has given rise to many new local brands and supported growth of multinational/international
brands such as:
Technology: Microsoft, Oracle, Samsung
Retail: Arrow, Hunt, Kirkland, Subway, Mcdonald
Shoes: Reebok Nike Adidas
Confectionery: Coca cola, Pepsi, Laher
Question: Who does better? India or China
4) Peaceful existence, consumption, consumerism
With preference for peaceful living and clear support for democratic government and
policies, most of the population of India has favored western style of consistent and constant
development over socialist, monarchy or military controlled form of government.
On top of it development model that is successful is consumption and consumerism driven.
Normal development track of societal development includes introduction to:
Education system
Preference for sport hygiene and health
Banking
Private business and brands
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Again this is very unlike china that favored enormous size factories, big communist
government and industrial type of urban townships.
4. Rapid urbanization phase management
After independence in 1947, country faced this uphill task of establishing democratic
government that could establish home rule, regulations, law and order in the whole Republic of
India. Because of centuries of foreign rule (Mughal and British rule from 1525 to 1947), its
economic, education, political and business infrastructure was in semblance. Projects like
creation of electricity distribution network, irrigation system in country, education institutions
including higher education universities in science, technology and engineering were some of the
initial big wins in 1950s and 1960s. But then country could not avoid problems which were
outcomes of ever growing population in 1970s and 1980s, a global phenomenon.
Like many other newly independent and developing countries, it also started facing problems
of big growth in population that the world went through in last half a century. Countries did have
to adjust their strategies and had to focus on basic real estate and infrastructure development for
housing this new growth, urbanization of new masses of people, educating them and keeping
them healthy while putting away projects which would create high end army and military
technology and class living, aid sports and welfare, help science and technology research, luxury
transportation and entertainment and tourism infrastructure and much more.
Here are some of the challenges which India overcome and wins it attained during this four
decades of unprecedented growth in population and urban growth that is now coming to a mostly
normalized trend in many parts of the world including pockets of urban set ups in India:
a) 30% more Urban population (or 30% less rural): 80% to 50% rural or 20% urban to 50%
urban i.e. a migration and re-housing of 350M people a population of size of USA
b) Rural self dependence and reliance in face of big migration
Still feed the whole country with just baseline agri-business infrastructure,
collection and distribution networks and refrigeration technologies
Resist amenities of urbanization while helping feed and support cost of living in
urban lands of new growth
Self-develop living quarters and life style
Balance and debate between models of country development i.e. better option
between rural-semi rural world/Only focus on high-end urban development and
improve management of waste lands etc
c) Urban infrastructure development
19. 19
Costlier living and just delta improvement, below average in world rankings.
Category-break difficult; middle-class upper class move not only difficult but too
cumbersome as well
Mostly false sense of reliance
Just incremental upgrades with needed skill set gain .but this was only choice
Plans and strategies which India used for management of this humongous country
development task that was in front of this new Republic were not easy to follow but management
of was mega scale project was superior. Some of the achieved results out of 40 years of this
effort are as follows:
1) Proper management and control of urbanization knobs
These knob controls need planned developments in Healthcare, Housing, Education,
Transportation, Banking, Government services and other economic segments of new growth.
Some of the top end successes in urbanization process management through efficient knobs
control and test points are:
Economic segmentation even visible in basic amenities delivery that would generate
competition and product/lifestyle development knowledge
Healthcare and Hygiene, Primary care, Emergency and Urgent care, Specialty care etc
like western world, generates personal care knowledge
Learning focused development and at global par talent calibration
Primary education, Secondary education, Tertiary education system development; already
invested for world class and top rankings
New knowledge gains at each and every stage of life and life’s challenges
For example my US job search and MS/MBA admissions efforts included (apart from
applications/ETS):
1. Top end undergrad projects
2. Some industry “consulting” student projects
3. Research work (Publications, Papers, Articles)
4. Class room and other campus talks/presentations
5. Networking and interviews
Another good knob i.e. student benchmarking that also played out in my favor was multi-
field, multi-disciplinary, multi skill development and total academic focus. Here is my new
grading scheme that would include “multi” attribute in talent assessment in actually just
education exam scoring. This method of scoring and ranking would marginalize just one
dimensional focus in education and world reward holistic all round academic career thinking
20. 20
(BTW this scoring is just for exams and doesn’t include weight for extra-curricular activities
sports, media, scouts, politics).
2) Job creation for the masses (jobs in all categories and classes)
Another important project was at home job market creation and with following features:
Fight themes such as “base of the pyramid” in global technology and multinational
private sector
Special needs and skills matching and benchmarking in new world jobs even with
rudimentary education system at the start of project
Specialized work force at home in “National level” projects
Fill high end special and confidential jobs in government, defense, army etc for
indigenous growth at home
Overall results of 40 years of work are good though. Pay structure in private and public
sectors/government jobs in India has become much better and can play-out in global salary
comparisons now. Skill-set and base educations levels are good as well. Salary structure in
public and private sector job markets is as follows:
Public sector/Govt Private sector
Class 1/Grade A: IAS,
DRDO-RA, Top
Army and Railway
etc.
12 lacs Top jobs Top IIMs
multiple years of exp.
Executive
12 lacs
Class 2/Grade B 8 lacs Eng/Mgmt jobs 9 lacs
Class 3/Grade C 5 lac Business jobs:
Customer support,
technical and business
6 lacs
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support
Class 4/Grade D 2 lacs Industry jobs 3 lacs
Work force is much better and overall better performer as well. India A jobs are now world
comparable. India B job market now competes with global power house in investment banking,
consulting and knowledge. Normal US industry jobs now compare with India C job market in
terms of skills, pay package and total wealth/lifestyle impact as shown above.
3) Effects and outcomes of urbanization
Urbanization has created a new class of leaders in India that has
Modern economic and socio-political thinking
Sustainable, resilient, modernization focused economic and lifestyle growth policies
Changed views on population-segments/religion/castes
Belief in new genetic branding of social classes and regions
Five “virtual” states i.e. North, Center, South, West and East have almost merged at central
government level. Genetic groups such as Indo-greek, Indoaryan, Indo Iranian, Dravidian and
Indic have now mostly taken on the identity of “Indian” or Bhartiya” and that has happened over
just last less than 100 years, a phenomenon that has wiped out last thousand plus years of wars,
immigration and refugee trails.
End result is four major sub-sections in society i.e. categories and traits based economic,
work or skills status. Genetic disposition and generational experience effect on population make-
up, family environments, social network effect etc has mostly disappeared. Here is new
classification at high level:
1) Language, Discipline, Conduct, Analytical ability (Education, Finance, Law and order,
Research, Science and technology, Value add services)
2) “Farmers” of some sort, Harvesting cycles (Agri-business, Governance, Policing,
Industry)
3) Hands-on crafts and arts (Carpenter, Tailor, Gardener, Goldsmith, Iron-smith, Barber,
Electrician)
4) Support work, peasantry & servitization (Construction-Plumbers, Mason, Service
workers-Hotel, Travel-Tourism, Social amenities)
Overall, rapid urbanization phase that is coming to an end in most of the parts of the world
has been managed very well by all constituents of leadership. Performance had been better than
almost all of the developing countries.
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5. Case of India’s economic development & urbanization: “One Country” approach
Unlike rest of the developing countries, India’s development, urbanization and modernization
challenges were very different. One country that may match India in magnanimity of challenges
and could come out as good benchmark would be China. Some of those challenging/obstacles
are:
1. Large country: Many local cultures, many languages, many religions, exposures to many
governmental systems and beliefs such as social, capitalist, monarchy, democracy and
multiple ruling clans’ history,
2. Large population: Second largest -to- largest country population in the world, was mostly
rural and un-educated, lived in poor housing, studied in primate education system and
had disastrous hygiene and healthcare practices
3. Diverse geographical spread, difficult transportation connectivity. Non-existent
indigenous international connectivity by air or seas
4. No corporate infrastructure and retail culture, very few choices in local or international
class products, poor urban developments , dawdling trains and buses on patchy roads
However, will-power and might of newly independent democracy and its “student” middle
class did take on the challenge and did remove even the toughest road blocks in its way to get to
the international and world scale development successes so that it could think liberal, participate
in global economy and be entrepreneurial while creatively performing responsibilities of career
oriented jobs skillfully. Here are some of the top class initiatives:
1) Swadeshi movement in 1970
Some of the successful projects in this category of initiatives which made India not only
deliver and cater to local markets but also show its class in product design and innovation,
engineering business acumen and more at international levels are:
Multiple dams and electricity distribution network
Irrigation system
ITI Bangalore
Coca-Cola & IBM
GE
Maruti Udyog
HCL computers
Patni software
23. 23
2) SEZ/EPZ setups: Easy import/export infrastructure
At present there are eight functional SEZs located at Santa Cruz (Maharashtra), Cochin
(Kerala), Kandla and Surat (Gujarat), Chennai (Tamil Nadu), Visakhapatnam (Andhra
Pradesh), Falta (West Bengal) and Noida (Uttar Pradesh) in India.
In addition 18 approvals have been given for setting up of new SEZs at Positra (Gujarat),
Navi Mumbai and Kopata (Maharashtra), Nanguneri (Tamil Nadu), Kulpi and Salt Lake (West
Bengal), Paradeep and Gopalpur (Orissa), Bhadohi, Kanpur, Moradabad and Greater Noida
(UP), Vishakhapatnam and Kakinada (Andhra Pradesh), Vallarpadam/Puthuvypeen (Kerala),
Hassan (Karnataka), Jaipur and Jodhpur ( Rajasthan) on the basis of proposals received from
various state governments.
3) Confused nation: Problems at home and their intelligent solutions
Faced with democracy and “united one country” republic approach to governing and
economic planning when it came to infrastructure development, job creation, secular practices,
some factions and groups of people had problems coming to par with “nation” approach. Some
of the resulting problems were:
Punjab problem
North-east problem
North India – South India divide
Big government
Some of solutions included local population’s national and international exposure, all round
education, economic packages and cultural integration programs. They have worked and
situation now is much better. Here are some of the visible trends:
Priorities and better private hand in infrastructure development projects
Gross root level understanding of democracy in most of the country
Entrepreneurial culture setup and opening up of private sector doors for needy folks
looking for competitive opportunities and jobs even in some cases with financial help
International job markets development/participation opportunities
4) Special Rajeev Gandhi drive
Programs such as modernization of education system and office technologies for productivity
improvement under Rajeev Gandhi’s mid-80’s government have resulted in tremendous
developments in
1. Telecom, Computers, Electronics, IT, Organized retail, Banking sectors development
2. Panchyat Raj, Foreign relationship improvement, Urbanization and planned development
24. 24
3. Knowledge, Consulting, Back office, Outsourcing, Tourism and Travel, Finance and
Investments sectors development
5) UN Package & Modernization move
There was a major government policy shift towards country development post 1991
economic crisis. New model of economic development over business development, service
sector development, internationalization and middle class focused development centric policies
have helped country achieve big successes such as
Success of 1991 UN economic reforms package
Liberalization, Privatization and Globalization
Foreign relationship and country’s international image
International class business corridors in the form of SEZ/EPZ
6) Current situation
Last 5 or so decades of constant progressive development centric programs’ management at
central government level wasn’t an easy feat but exactly similar stage play at international level
with almost same rigor that was noticeable at India level was even more difficult task. Further
growth is going to be much more difficult. Some of the “already” visible obstacles which we
would have to fathom are:
1. At this point India is the only really growing democracy in the world. Service sector
centric employment development polices at local as well as global level have created a
very large working people group that would need “job” insurance of some sort. Not only
management of job market size but also management of even size of its components
would become important.
2. Less focus on defense and army development during this last phase of country
development has created significant balance of military power differences. US with its
10T dollars worth of flying machines and uncertain relationships with India could pose a
threat and growing might of China in neighborhood could play out against India. Both
countries have played hostile in conflict situations. Only solution is focused investments
in indigenous programs.
3. All-round education background, talent management programs and international
benchmarking of Indian talent can become a problem for a country that has started
depending heavily on outsourcing industry’s growth and international job markets. As
someone who has studied for 20 years in US sponsored English medium (Harvard-oxford
education development program) at home or in US universities in preparation of
international career in computing/electronics etc and has learned from such leaders and
their work as Einstein, Steve jobs, Hargovind Khurana, Eric Schmitt, Carl Lewis, John
Nesh, Usain Bolt, Bill Clinton, Medline Albrigh, Ronald Regan, Barack Obama, Bill
25. 25
Gates, Larry Ellison in US industry, government and academia with good exposure of
frictions and blockages in business/industry co-development, I can very well see
problems ahead in relationship growth and partnerships if it does not including country
status upgrade as developing country develops.
6. Support from outsourcing, global companies & immigration in urbanization
Global situation, new political & business thinking/happenings and economic development
theme of past few decades supported globalization uphill “task” of country. Details follow:
1) Outsourcing industry
India has gained a big pie of global outsourcing industry in many segments of it such as:
Cheap work
Back-office
Knowledge
24x7 shifts
Hard to find skills
Small off-shore offices
Localized sales and marketing activities
International projection’s domestic office staffing
Brand “India” is selling and results are so far so good.
2) Global and multinational companies
There are many multinational corporate players in India now with state of the art offices,
business campuses boosting modern workplaces with highly productive and connected
employees. Bangalore, Gurgaon, Pune, Mumbai, Ahmedabad, Hyderabad, Delhi, Chennai are
host to many such companies. Just to name a few: GE, IBM, Accenture, Cisco, Juniper, Intel,
HP, Apple, Amazon, Facebook, Google, Ebay,Samsung, LG, Sony, Huawei, ZTE, Goldman,
SAP all have presence in India now.
3) Benefitting from immigration out of India by co-creating growing gob markets
Job market blockages in immigrant job markets can be marginalized by tools such as co- job
market creation. Co-technology and business segment development would create at par talent in
partner countries. This talent can be employed in any of the participating geography. This co-
effort does make job market participation based immigration easy and employment opportunities
portable between source and destination countries.
Many new industrial, services and medium and small business segments have been added in
Indian economy over last five decades. There are many choices of profit and employment
generating new economic actives in India these days like western world for people to choose
26. 26
from. More than that, even some new high end technology business segments have been added
over same period almost in sync with developed world which also proves India’s prowess and
big leap in development theme. One such example would be the case of new next gen internet
based telephony industry setup that happened almost contemporarily with rest of the world.
All major stages of industry development and hence business and employment generation
through this new industry’s creation happened in tune and at par with rest of the developed world
even when and if it came to rules, regulations and government policies creation just like its
sibling technology “internet service” business segment. Here are internet telephony business and
market development stages and its four job creation phases before industry structure finally set in
(even in India).
Venture capital created job markets
Financial markets and private equity created job markets
Government created job markets
Amateur and professional players entry created job markets (industry formation)
It all happened when India-Europe-US entrepreneurship track was being supported and
promoted by government of India/with partnership and relationship with US/and EU foreign
governments and entities such UN and SAARC etc. Internet telephony industry is now big and
generates billions of dollars of annual revenue.
Here is a list of some of the big players in US internet telephony industry commanding
billions of dollars in stock market caps and annual revenues as well. Many of them are global
with good size operations in India.
27. 27
7. International class Urban infra & Real estate sector growth between 1990 and 2010
With focus towards privatization, liberalization and globalization under Manmohan Singh’s
policies and UN sponsored economic reform program of in and around 1991, India started
opening up its economy for foreign companies and foreign investments. Hundreds of
international and multinational companies made India their home along-side and started doing
business and trading using existing infrastructure. However, cracks in political setup, financial
system, economy and fixed infrastructure started appearing pretty soon and a gross-root level
upheaval was not only needed but was must.
1) Grass root infrastructure
International pressure, bulging middle class, increasing foreign and local trade mounted
pressure on central and state governments and they had to make infrastructure development their
top priorities. Some of the major projects which not only improved India’s business climate for
at-par global business activities but also provided seem-less and improved international
connectivity and modern industrial/corporate corridors to even local businesses are:
10 more international airports
Approximately 8 ports and shipping infrastructure upgrades
Golden quadrangle project
25 more SEZ/EPZs and new metro like Ahmadabad, Pune, Hyderabad and Bangalore
Education infrastructure also went through same unprecedented development drive and
now there are about 30 IITa and around same number of IIMs and medical colleges.
Not only business infrastructure but strategic and defense infrastructure was also part of
the renewal process. Projects like Dhola-Sadiya bridge Assam and Kudankulam Chennai-
nuclear power plant are some good example of this type of infrastructure upgrade.
28. 28
2) Economic resource and talent development/categorization
Main categorization of talent as economic resources at high level can be done in many
ways including body parts movement, brain and hard labor based classifications. Some of
these classifications are:
Source: Internet
29. 29
1. Class/Grade based : i.e. Class 1/Grade A is top grade and Class 4/Grade D is the lowest
level in good government jobs in India
2. Work hours-industriousness based: Repetitive green-field jobs, hours harvesting - some
hand skills, some knowledge, some balanced brain
3. Entrepreneurial work: New companies/businesses, systems solutions or total product
ownership orgs, socialist or capitalist entrepreneurship and immigration/emigration jobs
4. Skills and knowledge bases: Brain valuation in outsourcing and talent job markets
(depends on level of globalization, liberalization and internationalization in a country)
Use of level of brain vs. body in job functions also decides class of job and dictates
salary/rewards package and career growth in most type of workplaces. Verbal skills jobs would
need and use “Temporal” and “Frontal” cortex more, however this may not directly mean that
person has deep and theoretical understanding of concepts and can reasonably/logically separate
out chaff from husk or whey from cheese skills which would need back of the brains. Little
deeper drilling in subject matter/science behind core job functions would need help from or
would exercise “Pre-frontal” brain and that exercise would develop your sense for or give you
good tools for comparing apples to apples and oranges to oranges.
Back of the brain communication would stress “Cerebellum” and deeper thinking skills
would start developing neuron connections and networks. Memory stressing jobs would burn
blood sugar and create stronger Amygdala. Multi-field stressful and thinking jobs would switch-
on hippocampus and similarly beginner’s brain (start working on something new every few
years/switch jobs/social setup frequently) would develop active “Neocortex” and that would help
your interest in multiple areas such as arts, multi-field study, creativity and penchant for
innovative work, project changes and new learning.
Based on brain parts use at mentioned above, one can divide jobs in multiple categories
as well such as:
1. Frontal brain of creamy layer jobs
Surface knowledge and just job specific work over entrepreneurial
2. Middle brain jobs: Category mapping or middle man jobs
“Class” and “network” hiring,
Relationship management jobs
3. “Back of the brain” classes of jobs:
System & solutions talent
30. 30
Specialized service talent
Multi-skills jobs market talent
Any-job jobs talent
Two or three main types of classifications we normally come across for job
categorization would help us divide India’s human resource in following main class and
economic work categories:
Apart from experience and normal class room studies, skills gain and depth of knowledge
also depends on person’s learning faculties. “How many” methods of innovation a person uses
dictate his/her development as human resource over time. Here are some of the methods usually
human use for skills and knowledge development (Breakthrough: Stefiks):
Needs driven: Your or customers want
Data driven: Analysis, Studies, Surveys
Theory driven: Ideas out of reading material but person has to be a beginner, experimentation
helps
31. 31
Method driven: Engineering and operational learning
Rules and regulations driven: Government, safety and security
Customer special requests driven: Big customer and customized innovation
A good resource would also be a good student, good engineer, good artist, good designer,
good player and above all a good moral citizen.
8. Hurdles in urbanization and economic development of India
Here is very good history on frictions and problems (some of which would have proved fatal
without some good & timely headway solutions) faced by India through its political stabilization,
rapid urbanization and economic development efforts. List is by decades of last half a century:
1960:
Two wars (1962-65): With both big neighbors China and Pakistan
Economic impact and nationalization of banks
Start of Russian relationship in army and defense technology programs
Change in congress leadership around death of Jawaharlal Nehru and political drama just after
that – division of power between young leadership and old leadership
1970:
Bangladesh war: Division of Pakistan, UN and Russia mediation
Political and economic crisis in 1975 and state of emergency declaration by Indira Gandhi
1977: First time ever non-congress government in center
Up-rising in Punjab
Ouster of IBM and Coca-cola from India under socialist-democracy theme
1980:
Financial and economic crisis, political division on internal issues, neighbor relations,
population and development planning problems
1980: Pre-term elections, Congress back in power, Sanjay Gandhi’s death
1983-84: Stable Punjab, Indira Gandhi’s death
1985: East Germany crisis and its impact on India; unification of Germany
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1987: Russian crisis and its impact on India’s centrally manufactured economy (3+ centers now)
1989: Middle-east problem, UK economic situation and later EU expansion and euro currency
1985-90: Up-rise in Kashmir; Young political leadership and old political leadership crisis –ago
Rajeev Gandhi’s death
1990:
Start of era of change and reforms:
1991 UN lead economic development package (liberalization, privatization, globalization theme)
1991 – 2000 Multiple political and financial changes during Manmohan Singh’s economic
reforms projects and privatization drive
Isolation, political disarray, social unrest, debt crisis, employment situation, international
image, globalization hurdles ridden late eights and early nineties forced India into rethinking its
democratic governance model. Something wasn’t working and every decade before it ended with
wipping out all the progress of the past decade. On top of it there was an era of political turmoil
since 1977 defeat of congress. First time government of opposition could not settle in center.
Division of political parties followed. Results were
1. Death of Indira Gandhi, Rajeev Gandhi, Sanjay Gandhi
2. Number of Prime ministers: Morarji Desai, Charan Singh, Indira Gandhi, Rajeev Gandhi,
V P Singh, Chandrasekhra, P V Narsimarao ( 7 within 15 years, before that 3 over 30
years)
3. Poor economic situation
4. Terrorism and boarder disputes
With theme of economic development and internationalization while working with everyone
in world, India has done well since:
1. By keeping economic and middle class development focus
2. Focusing on education and service sector development
3. By creating job markets and developing banking and finance infra
4. By focusing on export/import segment of business economics and thereby working on
development transportation, shipping, air and SEZ/EPZ development
5. By keeping central government stable
2000 onwards:
Since dawn of this century, political situation has been much more stable even with many
more parties and even with any single party gaining enjoyable majority in government. Banking
and finance sector development has supported retail and industry sector development along with
33. 33
real estate boom and private service sector growth in education, healthcare, business support
services etc.
9. Major opportunities in India’s economic and urban development
Like many obstacles, there had been many opportunities which not only added to growth and
success of country India but also to the personal development of its citizens. Some of them have
been windfall as well and busted India’s ranking in world order. Major drivers and support
factors which helped India achieve its goals are
Peaceful and planned existence
Supported rapid urbanization
Grew world middle class
Respected globalization, internationalization, liberalization
Industrialized multinational-ly
Maintained democracy with right mix of socialism and capitalism
This level of success couldn’t have been possible without service over industry focus, science
and technology development focus along with “global” business infrastructure creation.
Here is a chronology of successes and achievements:
1960:
US steel
Army return settlement (post world-war education and army programs)
Science and teaching talent (NASA, Supercomputing, Universities)
Doctors in UK
Russia technology partnerships
Nationalization of bank
Dams (Russia) and IITs
1970:
Swadesi products’ “movement”
ITI Bangalore
Coca-cola
Maruti
IBM
1980:
34. 34
Solution to Punjab and Kashmir problem
Success in Electronics, Computers, telecommunication and IT
Panchayat raj: Bridge Rural-urban divide vs. rural development and urban development
1990
UN economic development package (privatization, liberalization, globalization)
Sri-lanka problem
H1 job market success (tech jobs specially ;) )
2000 onwards
Outsourcing industry (3M big)
New middle class
Knowledge economy
Details about some of the most stellar successes are covered in following sections of the
document.
1) International class job markets
Job markets come in many flavors especially when you deal with it in international context.
Here are two examples (extreme cases but any job market in the world would lie on a line
continuum between these types of extreme points)
1. Capitalist angle:
Life time employee’s total earnings value over 35 years would be for
A-class jobs = $6M lifetime
B-class jobs = $4.5M lifetime
C-class jobs = $3M lifetime
D-class jobs = $1.5M lifetime
Total payment of a team of 4 people working in this job hierarchy = $15M life time
2. Socialist angle payment for same hierarchy:
$15M/4 i.e. $3.75 M mean for everyone and abolishment of grade gaps and tags etc.
Payments to employee’s: $3.75M + 2 Caps, $3.75M + 1 Cap, $3.75M – 1 Cap, 3.75M -2 caps
35. 35
What would happen in long with socialist type of hiring and with caps types of payment
along-with growth limits on grade hierarchy?
A. Performers would notice differences in work outputs, attitude and inclination. They
would leave towards non-socialist/private “world” work/jobs.
B. Even with similar payments and perks, genetically different peoples’ work attitude,
lifestyle choices and social connectivity behavior would make them realign/move
towards one side or the other side of behavior spectrum i.e. towards $3.75M + 2 Caps or
– 2 Caps, a phenomenon that would create two natural poles in society and then same
process would repeat in new sub-classes thereby creating more and more culturally
disparate groups of Grade/Class “Caps” and social gaps that would it difficult for extreme
groups to connect on issues.
C. Different type of work develops different parts in human body and brains. Research
oriented, long term focus and innovating/creative work with lots of learning develops
back of human brain. Soft-skill jobs develop frontal brain. Back of the brain (Neo-cortex,
Hippocampus, Amygdala) skill-set market pricing vs. 8 hours of language ‘soft-skill”
jobs’ market pricing along with gaps and differences in communication skills/language
word clusters of employees in each group would create two very different job markets
even in same work place. International self-grading of jobs and right job categorization
would force this job market into just one category either “soft-skill” friendly job land or
“hard-skill” friendly job land in long run making people do pre selection over job market
grading them post employment and skill gain.
Here is a “Case” of job market that has very good background data on it and is actually
labeled as “talent placement and hiring” job market i.e. US H1B job market. By now
demographics of this job market is well set with India’s 70% share in it. Job categories and
hiring though doesn’t seem to consider economic output valuation of participants in this “talent”
job market category while grading and paying.
Salaries are almost socialist band pays. Economic valuation of people’s output differs.
Some classes of people are inherently entrepreneurial and create greater economic worth with
theit work over others. Sometimes genetics also plays a role like in India case, its Indo-greek
gene-pool area creates economic contribution of 3x while Indic gene pool are only produces an
economic contribution of .5x.
Here is last three years data on major player around trends in US H1B job market.
36. 36
Since hiring is now almost mechanical process and puts very little emphasis on total H1
duration’s economic out of immigrants, lots of sourcing companies have now started playing in
this space along side technology companies. And since sourcing industry is almost global
industry, one can clearly notice a big shift and strong “entry” of international players in this
market and job market in mostly driven by annual salaries and short term focus work by now
over long term research and breakthrough developments. .
2) “World” middle class
Almost thirty years of high growth rate development has created big size middle class in
India even if by lifestyle and standard of living, it might just rank average. With such a long and
continuous growth cycle in economy people have become habitual of working their way in new
mode of “middle-class” every day schedule and busy life. Social classes and genetic traits of
people have started fading and long term relationships are now based on workplaces and
neighborhoods. Middle class itself is a new social class in one of the oldest culture in the world,
India. Relationship philosophies are different and so are decisions based on and for those
relationships.
Game theory is very well in play in social relationship management and middle class
attributes of people and lengths/quality of their relationships correlate (i.e. people can be easily
categorized in buckets, friendly, shallow, professional, amateur etc and length/quality of
relationships visibly depends on those attributes i.e. up/down relationships are becoming
uncommon). Some of the new relationships categories are:
1 year: Get the work done
37. 37
8 years: Meet and greet
10 Years: Family?
20 Years: Life?
Employment thinking of the people in the country has started shifting as well. Public sector
employment category in which sources of funds, employment goals and social upliftment targets
are well defined and are mostly insured by government also provides all most life time job
guarantee. However, Private sector creates its own sources of funds and set its own goals. Life
time commitment to one job is almost non-existent. Moves, hiring/firing and ownership changes
are also norms.
Private sector businesses’ owners/workers have to worry about source of revenue and cost,
stock performance, goodwill, tax and profit generation for all stakeholders along with quality of
their customer product. Private sector is now middle class’s biggest employer and people have
started learning and adjusting to workings of it. Job hierarchies and career moves are also
differently management in this sector. Developed world’s theories are now very much applicable
to local jobs and businesses of middle class of India.
Theories and principles like Maslow’s hierarchy of needs, Adam Smith’s Nature of the beast
and collective decisions of masses or acronyms such as scaling “the wall” and glass ceiling are
very common in business practices in India. Decisions around careers have also difficult with
many choices and all of the following decision criteria are important:
o Challenge – Low or High
o Choice – Average or “The best”
o Commitment – Long term or short-term
o Continuity - Entire life/career or daily-wage
3) Modern world
World is a very different place now over what it was about 30-40 years ago. Definition of
developing countries and developed countries is very different. United nation’s role has changed
over years. Instead of military and defense science might countries have started competing on
economic, business and human resource development might. Poles of world power have shifted
and economic controls of world have very different drivers and knobs now.
Middle class product’s targets and feature input sources are very different individuals and
they are in very different geographies over where they were about 40 years ago. Western world’s
middle class has lost its sheen, its buying power and mighty purse. Buying habits and total
market size purse which controls middle class product’s design, marketing and placement is now
developing countries’ purse. Job market has significant number of developing countries
38. 38
employees. Transportation means like cars and other autos have found new high growth markets
like China and India. And many other products did too.
Preferences of two biggest middle class consumers of the world and employment seekers of
the world have started affecting the way we look at professions and live our life. For example,
India’s developing middle class decided in favor of IITs over ITIs, PhD degrees over handyman
and skills programs and medical colleges over nursing programs. Some of these choices would
not only decide India’s future but also world development directions.
For example, Indians preference for urban mazes avoidance and slow and “study” life style
growth would dictate not only countries but world’s suburban development and planned unit
development “housing” products market at global levels. Big vote in favor of services and high
end manufacturing would force low end products factories in other parts of the world.
On the other hand side of it, China’s preference for low end manufacturing, skills and trade
jobs has helped creation of manufacturing giants like Foxconn there. The most rapid ever and the
quickest move towards 80 % urbanization almost at par with developed countries of world only
augmented problems for rest of the world, when it comes to developing human resource,
planning natural resource usage and protecting environment for generations to come because
country could not keep baseline standard of development while working it.
It is very clear by now that China did not “solve” the urban “maze” puzzle in a democratic
fashion. It also now has divided “socialist” vote with growth of low end middle class that works
in industrial economy, has cookie cutter low end skill set and deals with international community
but earns relatively very low wages that makes this class heavily dependent on government’s
workforce development programs. And this all happened because population of China favored
low-end skill set and vocation jobs, preferred quick and dirty route to development and mostly
bought international business presence with “size” part of its population’s might over intellectual
and talent might.
On the other hand, India’s huge success in telecom, computing, optical networking and
internet access/connectivity needed for communication services and cellular telephony growth
can be attributed to strong science and technology development focus since almost
independence. Other new focus areas of development are also high end choices only such as:
Knowledge
Business infrastructure
Consulting and back-office support
Technology/IT support operations and outsourcing
India did well in local infrastructure development baseline technology sector development
as well:
39. 39
Optical networking connectivity (Second most dense optical network in the world)
Recently focus of India has shifted to not only developing at home banking, finance and trade
infrastructure but also making its presence felt in international job market with its expertise in
outsourcing, knowledge, back-office and consulting sectors’ development. This would help
creation of global level modern investment, finance, business corridors, office parks and research
infrastructure in country and following business sectors would see development:
Private banks
Financial markets
Shipping and transportation for
Worldwide trade
Multinational and global companies local offices
Tourism and travel
Published media
Sector-wise Economy of India today is as follow (very uniform growth across all sectors):
40. 40
Not only economic development, India also focused on educating it’s new citizen on
democracy, education thinking, health care and citizen’s responsibility. Results are noticeable.
For example on Gapminder’s chart, India now has better spot when it comes to wealth and health
of its citizens, almost the best in still urbanizing and developing countries as shown below.
Overall India’s growth story is better growth story and it also has strong foundation for
future planning.
Ref:
1. Hans Rosling Health and wealth chart ( North means healthy, east means rich)
Someone said “Life is very different from what you learn in books.” My question was very simple
“From where do the books come?” Anonymous