EDITOR
Gp Capt R Vijayakumar ﴾Retd﴿, VSM
READERSHIP OUTREACH
Gp Capt Dr R Venkataraman ﴾Retd﴿
Sundar R
Vakeeswari M
DESIGN
D Rajaram, Tayub Refai
MADRAS MANAGEMENT ASSOCIATION
Management Center, New No 240 Pathari Road, ﴾Off Anna Salai﴿, Chennai 600 006
Ph:044‐2829 1133 / Email:mma@mmachennai org | mandate@mmachennai org | www facebook com/mmachennai
In an era of transformative shifts, leadership is being redefined across industries and societies. As we navigate this evolving landscape, it is imperative to foster dialogues that shape perspectives and influence action. This edition of MMA-KAS Business Mandate brings to the forefront diverse themes that encapsulate empowerment, economic resilience, global trade dynamics, ethical leadership and more.
Women’s Day is more than just a symbolic celebration it is a call to action for genuine
Through insightful discussions, the convention will provide awareness on the delicate balance between strength and vulnerability in leadership, the importance of breaking societal norms, and the ways in which tradition and modernity can coexist to foster visionary leadership.
acknowledgment, respect, and meaningful engagement. It presents an opportunity for men to go beyond token gestures and truly recognize the extraordinary women who shape their world mothers, sisters, wives, daughters, and partners who often work silently yet significantly in building families and society.
In this context, the MMA Women Managers' Convention 2025 stands as a landmark event, bringing together exceptional women leaders, innovators, and change-makers. The theme of this year’s convention, "Empowering Change, Inspiring Leadership," will explore what it means to lead in a rapidly evolving world. Through insightful discussions, the convention will provide awareness on the delicate balance between strength and vulnerability in leadership, the importance of breaking societal norms, and the ways in which tradition and modernity can coexist to foster visionary leadership.
MMA is proud to present the Women Managers Convention on Saturday, 15th March 2025, at the MMA Management Center. With the dedicated efforts of Convention Chairperson Ms. Meera Nair and the organizing committee, we have curated an outstanding
line-up of speakers and discussions designed to inspire and empower women leaders. The sessions are thoughtfully structured to address the aspirations and expectations of our women delegates, ensuring a transformative experience for all participants.
I extend my heartfelt welcome to all the delegates joining us at the MMA Management Center and to our members tuning in online. I dedicate this special convention issue of Business Mandate to the inspiring leaders of tomorrow.
The Kumbh Mela is not just a spiritual congregation; it is a remarkable demonstration of leadership, governance, and economic impact. This year’s Maha Kumbh in Prayagraj, hailed as the most auspicious in 144 years, witnessed an unparalleled gathering of over 60 crore devotees from across India, making it one of the largest human congregations in history.
Beyond its religious and cultural significance, the Kumbh Mela 2025 stood as a testament to meticulous planning, efficient administration, and inclusive execution. The event not only facilitated a seamless spiritual experience but also played a crucial role in boosting the economy of Uttar Pradesh. The influx of pilgrims and visitors significantly contributed to the state’s GDP and per capita income, fostering entrepreneurial success stories, including that of a boatman who reportedly earned Rs. 35 crores during the festival.
The global economic landscape continues to experience the repercussions of the Trump-era trade war, with India emerging as a key player in the shifting trade dynamics.
The Kumbh Mela’s execution highlights the power of leadership and governance, demonstrating how large-scale events can be managed with precision while ensuring socio-economic inclusivity. It serves as an inspiration for public administration, infrastructure planning, and tourism development, reinforcing India's capacity to organize world-class events that leave a lasting legacy.
As we reflect on this historic gathering, we recognize its broader implications how tradition and modernity can seamlessly coexist, and how strategic leadership can transform cultural festivals into engines of economic growth and global recognition.
The global economic landscape continues to experience the repercussions of the Trump-era trade war, with India emerging as a key player in the shifting trade dynamics. As global supply chains realign, India faces both opportunities and challenges.
India serves as a swing power between the U.S. and China and, to a lesser extent, between the U.S. and Europe. We are among the few countries that view closer ties between the U.S. and Russia favourably. Some of the demands Trump has made of India align with our own national interests. Lower tariffs, for
instance, could boost manufacturing exports and reduce consumer prices. Purchasing fuel from the U.S. also enhances our energy security.
Over the next few months, the impact of Trump’s policies will become more evident to the American people. This period presents a strategic opportunity for India to engage in negotiations. This edition examines the long-term impact of protectionist policies, India’s strategic positioning in global trade, and the pathways to leverage this geopolitical shift for economic growth and resilience.
I am delighted to present in this issue an article on the special session during the MMA Annual Convention on Geopolitical Resilience. I invite you to explore expert insights, read the analysis, and watch the video.
Amid selective outrage over the Beer Biceps Fiasco, let’s not forget the role of other interested parties in fostering wide disregard of truth and civility in recent years. Various sections of society have lionized influencers for their legions of followers without any concern for the quality of their content. Advertisers of consumer products instigated some of them to side step ethics of responsible communication.
In an era dominated by digital narratives, influencers wield significant power in shaping public opinion, consumer behaviour, and societal trends. However, this influence comes with ethical responsibilities. How do we ensure credibility and
integrity in the age of social media endorsements and viral trends? The ethical considerations that influencers must navigate, the role of authenticity in digital leadership, and the regulatory frameworks required to uphold accountability are critical and obligatory.
The future of work is being reshaped by technology, artificial intelligence, and evolving social dynamics, creating both opportunities and challenges for women in the workforce. The seminar on Women@Work: Powering Progress, Shaping the Future brought together thought leaders, researchers, and professionals to examine the barriers and breakthroughs that define women's economic participation today. As AI and technology open new avenues for employment and entrepreneurship, women’s inherent strengths in empathy, leadership, and interpersonal skills are becoming increasingly valuable. However, obstacles such as traditional gender roles, societal expectations, limited professional networks, and self-imposed barriers continue to hinder progress. The seminar provided a platform to address these pressing issues, offering data-driven insights and actionable solutions to empower women in the workforce.
A key takeaway from the discussion was the rise in women's employment in urban India, reflecting broader social shifts such as gender parity in education, delayed marriages, and smaller family sizes. While these trends mark progress, the gender gap in paid work remains significant. This issue
features insights from our distinguished panel on The Unseen Barriers: Rethinking Paid Work for Women’s Inclusion, highlighting structural and cultural challenges along with strategies for fostering a more equitable workplace. I am also happy to present the full research report by Great Lakes Institute of Management India’s Gender Employment Paradox which was released during the seminar. This comprehensive study underscores the need for systemic change and male advocacy in advancing women's inclusion. I encourage you to explore these insights, engage with the findings, and watch the seminar discussion as we collectively work towards a more inclusive and equitable future for women in the workforce. Link for the research report.
Agentic AI systems are models capable of taking actions without human intervention. In customer service alone, AI agents are projected to save businesses over $80 billion annually by 2026, fundamentally reshaping hiring practices. These systems can replace roles traditionally performed by humans, necessitating a shift in how IT and business teams operate. They can no longer afford to function in silos AI is driving a paradigm shift. It’s no longer just about setting governance and guardrails; it’s about strategic execution, use case prioritization, and rethinking workforce deployment. Virtual co-workers will redefine hiring practices and workplace dynamics, inevitably transforming the human resource function as well.
I am pleased to present in this issue an article on
Technology Resilience, a key discussion from the Annual Convention. I urge you to read the insights and watch the live video to explore the evolving role of AI in shaping the future of work.
I am also delighted to present in this issue insightful articles on the keynote address at the MMA Annual Convention by Mr. Vellayan Subbiah and Mr. Brajendra Navnit, IAS, and inspiring insights on Mental Resilience. As always, we would be happy to hear your views, comments and suggestions.
Happy Reading!
Urban women’s employment grows with higher education levels. Yet policy gaps, corporate biases, and domestic constraints persist. Removing barriers drives inclusive growth
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Dr. Vidya Mahambare
Professor of Economics & Director ﴾Research and Fellow Program in Management﴿
I'll highlight the key findings of the research report: Women at Work: India’s Gender Employment Paradox, prepared by Great Lakes (GLIM), Chennai. In the digital copy of the report, you'll find more detailed information.
Our focus is solely on urban areas, excluding rural
regions. Over the past few years, we've observed a significant increase in women's employment in urban India. Traditionally, urban India has had lower rates of female employment compared to rural areas, primarily because rural employment is heavily concentrated in agriculture and related sectors. We've seen roughly 10% increase in women's employment since 2017-18, and this growth spans across all age groups – women in their 20s, 30s, 40s, and 50s. This is a very positive trend.
Despite this progress, women's urban employment remains around 30%. Many women engaged in home-based earning activities may not report their involvement in surveys. The positive aspect is that urban jobs tend to be of higher quality, with women earning more compared to their rural counterparts. About half of them hold regular salaried positions, which is a considerable improvement.
In fact, in the early 20s age group, the proportion of women in higher education is slightly higher than men.
Within different age brackets, we see that women in their 40s have the highest employment rate of 38%. This likely correlates with children growing older, allowing more women to rejoin the workforce. While every age group has witnessed increased participation, the fact that only 30% of urban women are employed signifies that a substantial number remain outside the workforce. In absolute terms, this translates to approximately 89 million women in urban India not currently employed. Compared to global standards, India lags behind; even in other developing nations, female employment rates often range from 60% to 70%.
Of these, around 19 million are highly educated women graduates and above who are currently unemployed. This represents a significant untapped potential, not only for women's empowerment but also for the economy as a whole. Various reports have quantified this potential, estimating the GDP increase possible if these women were employed.
A positive trend is that the potential for increased female participation is significant. In fact, in the early 20s age group, the proportion of women in higher education is slightly higher than men. Roughly 30% of both men and women in this age group are pursuing
After marriage, there is a significant drop among all married young women. Only 33% work after marriage and with the arrival of a child, only 20% work.
higher education, indicating near-complete gender parity in urban India.
Another positive development from a labour market perspective is the trend of delayed marriages for both men and women. Around the year 2000, roughly 60% of women aged 20-24 were married. This proportion has significantly decreased to below 40%. While marriage remains largely universal in India, the trend of delayed marriages coupled with increased education provides single women with greater opportunities to participate in the labour market and secure meaningful employment before starting families.
Though there is prevalence of women in political leadership roles such as Presidents, Prime Ministers, and Chief Ministers, this has not necessarily translated into women empowerment at lower levels. The majority believe that women have higher unemployment, but in reality, men in their 20s have higher unemployment rates. This suggests that we need to create jobs for both women and men. Among the highly educated workforce, women's unemployment is indeed higher than men's and more so, in the early 20s, indicating a need for more quality jobs.
Although men's unemployment is higher in their early 20s, virtually every man is employed by their late
One in two women reported higher productivity while working from home and the stress level is essentially lower.
20s. Societal norms dictate that men must work, especially as they approach marriage, leading them to take whatever jobs are available, resulting in nearly 100% male employment. Women's job creation cannot come at the expense of men. We need jobs for both. Therefore, for the highly educated workforce in their early 20s, we need significantly more jobs to avoid a diversity backlash, just like what we witness globally.
If we compare China and India, we have lot of demographic dividend. But India will age in another 20 years. Even if China is aging and their average age of workforce is increasing, China has lot more women employed as compared to India. A majority of educated couples reported having equal career priorities. However, men’s career takes precedence. Only in 5% of families did the female career take priority. This is not unexpected, given that many of these are young couples with small children, where the mother often assumes primary responsibility.
In couples, 17% women earn more. 65% of women believe career progression is different for women as compared to men, even when the merit is same. In urban India, around 44% of single women work -that is, before they get married. After marriage, there is a significant drop among all married young women.
Only 33% work after marriage and with the arrival of a child, only 20% work. In rural India, this doesn't happen, maybe because work is much more flexible there like in farm work, where they can carry the baby as well. In urban India, jobs are essentially regular salaried type and full time.
In Corporates, we have policies like maternity leave and child care facilities. But in Western countries, there is child care in the school itself, after school hours. The advantage is the child doesn't have to be transported elsewhere.
We conducted another survey on remote work on the perceptions about stress level and productivity. One in two women reported higher productivity while working from home and the stress level is essentially lower. However, 46% are worried about longer work hours. Here, for women who work from home, it’s a dual job-managing office work as well as home. Around 40% of women believe that they do not have equal chance of promotion despite doing all the work and being productive, if they work from home. Corporates can look at how to overcome these perceptions.
In India, a large majority of women move, even in urban areas, after marriage, and it becomes very difficult to hold on to jobs. The whole job process has to be started again. Things like these are unspoken barriers. Women migrating for employment is only 3%. That also suggests there are barriers for single women to come to cities and stay in a safe environment. Tamil
Nadu state government is doing lot of work by providing women's hostel and making them safe and clean. Commuting to workplace is another major issue.
A counter intuitive finding from our study is that women who are employed face higher domestic violence. They have higher earning power, bargaining power and decision making power at home. They have more mobility. All that is positive. Surprisingly, 32% of women who are employed, justify violence against them compared to women who are not in paid work. We believe that from a very young age, women are often forced into societal roles. The ideal image of a mother or wife is thrust upon them, and if they fail to meet this ideal, they often blame themselves for not fulfilling these expectations.
We need to discuss and find ways to liberate women from these unrealistic expectations. We never hear about ‘Superman awards,’ but we do have awards for ‘super women,’ which only adds to the pressure on women. Perhaps we should stop these awards, as they impose excessive pressure. To sum up, we need quality job creation and collaboration between government, corporations, and society. Men are equal stakeholders in this process, and if we want to see real change, we must work together.
Suresh Raman
Vice President & Regional Head of TCS Chennai
When women rise, the world rises with them. We've witnessed this in the case of Western world. Growth fuels our energy, driving prosperity for ourselves, our organisations, and our country.
Organisations, governments, and individuals must have the right intent to do the right things. This includes recruitment, providing learning environments, and investing time and effort for the upliftment of women. Invest in education, online courses, and learning opportunities. Both individuals and organisations must invest in personal and professional growth.
We must ensure there are no disparities and integrate women into organisations. This year's International Women's Day theme, "Accelerate Action," reminds us of the strides women have made and the challenges they still face.
Workplace integration has improved, with more visible conversations about mental health and well-being.
Let's make "ACTION" an acronym: A: Advocate for equity by ensuring fair hiring, promotions, and compensation structures; C: Cultivate inclusive leadership by addressing unconscious biases and building diverse leadership teams; T: Transform workplace policies to support flexible work arrangements and parental leave; I: Invest in women's career growth; O: Open doors for representation; N: Normalize work-life integration.
In today's mobile and internet world, work-life integration is crucial. Technology has given us flexibility, but it's important to ensure equity in all industries. In TCS, we follow a five-pillar strategy for diversity, equity, and inclusion. Our focus is on representation, enablement, engagement, and creating a culture where employees can interact and learn from each other.
Women need to build the right skills, especially during career breaks. Organisations must provide learning opportunities for them to rejoin the workforce. High-impact roles and leadership opportunities should be based on potential, not past patterns. Opening doors for representation in boardrooms and executive positions is important. A tripartite effort from individuals, companies, and the government is essential for making things happen.
AI processes fast, but women process data faster. Women multitask more than a parallel processor and perform tasks faster than an Nvidia chip.
Equity, more than diversity and inclusion, is the foundation for progress.
Most notably, women today make up 29% of Csuite positions, compared with 17% in 2015. However, progress has been slower at the entry and manager levels. McKinsey and others talk about the ‘broken rung’ phenomenon, where fewer women are promoted to first-level leadership, limiting the pipeline to higher-level positions. As an organisation, we've seen at least 65% representation increasing at leadership levels, middle, and junior levels.
Workplace integration has improved, with more visible conversations about mental health and wellbeing. Yet, women continue to handle a disproportionate share of unpaid domestic labour, leading to burnout and career drop-offs. We need a culture that supports balance and progress.
On a lighter note, in today's world of LLM and SLM, I coin the term WLM Women's Language Model. It's more complex, comprehensive, adaptive, and intuitive. AI processes fast, but women process data faster. Women multitask more than a parallel
processor and perform tasks faster than an Nvidia chip.
Remember, the first computer programmer was Ada Lovelace, and the first bug was discovered by a woman. We're on the right track, but individuals, corporates, and governments need to invest. The future looks bright and shiny. It's up to us, men and women, to power progress and shape the future of women. Women need to support each other in career growth. Many successful women had male mentors, but we need more women mentors.
The tech industry has taken the lead, but there's still a long way to go. AI will help further, and we need to live with AI for that. I'm proud to be part of the Tata Group, which had illustrious women like Lady Meherbai Tata, who made the Child Marriage Restraint Act possible in India in the early 1900s, and Lady Navajbai Tata, the first woman director on the board of Tata Sons.
This seminar is a call to action, a platform to exchange ideas, share solutions, and commit to creating inclusive and equitable workplaces. Let's ensure a future where every human can lead, innovate, and thrive without limitations. Let's continue this journey of powering progress and shaping a future where everyone, regardless of gender, can thrive.
Conversation with Priti Arora, President, Intelligence, CRISIL
Dr. Vidya Mahambare: Priti and I were colleagues at CRISIL for several years. Priti, if I'm right, this is your 25th year with CRISIL. Over the years, you have donned several hats, and now you are President of CRISIL Intelligence. Can you tell us how you have felt the importance of sponsorship from top leadership and how important it is to move the diversity and inclusion agenda?
Priti Arora: Sponsorship from the top is the topmost enabler for success in this area. It sets the tone for the organisation. Leaders play a very critical role in how that cascades across people, managers, and teams at large. Secondly, it decides on the investments within a corporate setup and at a larger community level. It helps to modify behaviours and evolve the culture of the organisation.
At CRISIL, for performance evaluation of leaders, we use the balanced scorecard methodology. Diversity
has been a very important talent agenda from a strategic level. At the board level, we constantly review how we are progressing, what we are doing, and what initiatives we are taking. For instance, whenever a woman employee leaves after 9 PM from a location, even if they have their own vehicles, our security guard would write their name, address, and mobile number. They will call and check if the employee has reached home. It's a matter of just showing that we care. We have buddy programs for returning mothers or those seeking second career options. It's not so much about the flexible roles or the easier roles. It's also about making the role interesting. It's not men versus women whenever we talk about diversity and equity. It has to be everybody together. In the US, we have seen recently that the language of D&I is changing due to the new administration's impact.
Dr. Vidya Mahambare: What are your own personal experiences with respect to unconscious biases?
Priti Arora: Everybody faces unconscious bias, irrespective of gender. I started my career in the 2000s. I joined the ratings business, first in Brazil, which was primarily about doing a lot of factory visits on the ground to meet the management and understand the kind of business they do. I would go to newspaper factories, fertilizer factories, and so on. Probably, I was the lone woman in the room and definitely in the minority. People used to look at me in a biased way, thinking why some senior person had not come. I can give you another example. I was 8 or 9 years into my role. I was married and had an eightmonth-old son. CRISIL decided to set up a new credit business unit in Mumbai. I got to know through a
conversation that a new team was being built for this. I wondered why nobody had approached me, though I had relevant credit experience. I went and spoke to my manager, and he said, "The job requires you to move between cities. We thought you might not be interested." Then I had a conversation with my husband. Of course, the ecosystem is so critical, and we decided to move along with my eight-month-old son. But the point is there was an unconscious bias to assume that somebody may be interested or may not be interested. Therefore, having conversations is extremely important. Let's not assume people's likes and dislikes. When you're talking about achieving any organisational priorities or goals, it has to align with an individual's goal and growth as well. In those days, I used to travel to the US for probably a week or two and leave my son with the grandparents. Once, my son had to travel alone without either of us, and I used the services of airport assistance. The woman security guard at the airport looked at me strangely and asked, "Are you leaving your child alone to travel?" That made me go on a guilt trip. Here are some tips based on my experience. You need to believe in yourself. You need to build your self-confidence. No one is going to believe in you if you don't believe in yourself. Second, invest in yourself and stay relevant. You have to back your confidence with capability and relevance, especially in a time and era when technology is evolving so rapidly. Workplaces are changing. Expectations are changing. Lastly, don't give up before you need to. Don't overthink the responsibilities, both personally and professionally. Be self-aware. Be clear and value yourself. If the company values you, they will listen to you.
A dynamic panel explores data‐driven policies, societal shifts, and practical solutions to elevate women’s workforce participation, addressing overlooked burdens and championing supportive environments for growth. The theme was on "THE UNSEEN BARRIERS: Rethinking Paid Work for Women's Inclusion," and the discussion was moderated by Dr. Sandhya Shekar, Advisor for Digital & Business Strategy
Dr Sandhya Shekhar: We all hold certain perceptions about women regarding their strengths and challenges. These perceptions stem from our specific contexts and situations, leading us to draw inferences. However, what's true for one person may not be true for another. When shaping policy directions that often serve as significant enablers for women, it is crucial that policies are based on inferences and data. Therefore, a research work like this holds monumental importance. We can then ask: Can we create certain policy enablers? We have numerous examples of policy enablers having a significant impact from the grassroots level to the boardroom.
For instance, about 15 years ago, when I joined a board for the first time, I remember asking myself whether I was there because of my capabilities or merely because I am a woman and there were policy
enablers for that. Today, I am happy to say that 15 years later, I am on a board where I am not the only woman. The reason I was invited to the board is not necessarily because I am a woman, but the starting point was always a positive policy enabler. After this initial step, it becomes essential for both men and women to quickly shift to a position where meritocracy prevails.
I often emphasise that we need to argue not for equality, but for equivalence. Nuanced understandings of equality can be overshadowed by the need for a dominant role or a more vociferous voice. This is not what we need today, based on GLIM’s research findings. This is one reason why we need robust research to inform policy.
The second reason is something I discovered when I delved into research myself. I discovered, to my amazement, that data has its own way of telling a
story. It is up to us to listen carefully to these stories. Often, we are not ready to listen because we approach with a preconceived notion of reality. Research reports like these are critical to ensure that we truly listen to the real stories from real data. This data can often provide counterintuitive results.
In my case, for instance, after being part of a global MNC where I leveraged the advantages of a virtual organisation for the past couple of decades, I thought I should formally research to evangelise virtuality in all its forms. However, after conducting comprehensive research, I found instances where virtuality is not quite virtuous, which aligns with some of GLIM’s data findings.
Moving from evangelising virtual organizations as the ultimate solution for everything, including womenfriendly policies, we need to adopt a data-based inference approach. Virtuality is beneficial, but there are conditions where it can be counterproductive. Understanding and assimilating these counterintuitive results is crucial as we move forward. My work over the last couple of decades has taught me that magic happens at the confluence of industry and academia.
S. Rukmini: I come from a background in data analysis and working with large national datasets to make sense of the world. I run a public platform called ‘Data for India,’ which aims to communicate socioeconomic data about India to a lay audience, thereby advancing the understanding of the country. In the early 2010s, when alarm bells first started ringing over
low female labour force participation, I was struck by how limited the academic work from within India was, and how poor the conversation around the issue was, as only few people were discussing it.
Since then, the conversation has evolved. For the past 5 to 10 years, we have been deeply concerned about declining female labour force participation. Recently, however, we have seen an increase. What should we do more? India is a vast country where changes occur gradually. Now that we have observed five years of substantial increase in female labour force participation, we can begin to examine the reasons behind this trend.
Many women are engaged in subsidiary work, which means they are employed for a part of the year. There are many dimensions to subsidiary work, and it
Tamil Nadu can be proud that over 40% of all factory jobs for women in the country are located there.
speaks to both the quality and quantity of available jobs. While everyone desires stable employment, it is both a privilege and a pressure. Women engaged in subsidiary work can balance full-time domestic responsibilities with a part-time or subsidiary job.
This issue impacts women not only economically but also emotionally and mentally. Labour statistics often remain disconnected from discussions about mental health and well-being. These topics are perceived as two separate worlds the world of women working on farms and the world of office workers, where mental health is a significant concern. When women enter the workforce, we need to understand the nature of their work. Nearly 40% of women in the labour force work in jobs for which they receive no remuneration. They are unpaid helpers.
Young women today aspire to have white-collar jobs. They want to dress well for the office and seek dignity in their work. Tamil Nadu can be proud that over 40% of all factory jobs for women in the country are located there. This number speaks volumes about the dignity women seek from their jobs.
Dr. Sandhya Shekhar: What factors have enabled a high percentage of women labour force participation in Tamil Nadu, and how can these be replicated across the rest of the country?
Dr. Angayar Pavanasam: Mental well-being is often ignored these days. Previously, we had a very closeknit society with many family members around, which took care of our mental well-being. However, now that we have moved towards nuclear families, this aspect is largely neglected.
Tamil Nadu is a leading state in terms of women's labour force participation, both in rural and urban areas. This is largely due to various government schemes. The recent one is a scheme where every girl in higher education receives 1000 rupees per month as a scholarship if they completed their schooling in government schools. Tamil Nadu focuses on various types of training, yet women often hesitate because they are unsure if they possess the required skills.
In Ranipet, at Greaves Electric Mobility, 30% to 40% of the workforce comprises women. Similarly, many leadership positions at Crompton have been held by women since the company's inception. There are many other notable examples.
We must focus on entrepreneurship and skilling. Generally, women tend to be risk-averse. However, in Tamil Nadu, we have schemes that provide opportunities for women-led startups. In 2023 alone, we saw more than a thousand women-led startups. It’s all about innovation, unlike in MSMEs. In informal micro-enterprises, 70 to 80% of the workforce comprises women, but unfortunately, they don't generate much revenue. In MSMEs, the percentage of women participation is very low. Access to finance remains a significant challenge for MSMEs.
But the elephant in the room is something
different. It is the triple care responsibility. Women spend around 30% of their time on triple care: taking care of children, family members, and elderly parents at home all of which fall under unpaid categories.
Dr Sandhya Shekhar: We need to address issues that are often overlooked, such as the employability of both men and women in shop floor work. Interestingly, I found that women on the shop floor were handling high-level tasks like Industry 4.0-related work and automation, possibly due to some of their inherent capabilities. We need to recognize that both men and women possess unique abilities. Therefore, I advocate for equivalence rather than equality. Are there specific types of jobs where you find women performing exceptionally well, and how would you recommend replicating such success?
J Vijayakumar: I started my career with Amara Raja Batteries 33 years ago as a Management Trainee (HR). There, I noticed an unusual policy: if men were
...Many women have self-limiting beliefs. We have only a few Indra Nooyis. NGOs and women's forums should counsel, mentor, and coach women on managing their careers...
shortlisted in the interview, the GM of Operations would ask if they were married. If the answer was yes, the next question would be whether their wives could also take up employment with us. This wonderful policy continues even today. When I left the organisation 23 years ago, out of a total workforce of about 2300, 230 were couples. The founder, being of South Indian origin and having spent the prime part of his career in the US with his wife, understood the importance of nation-building with women employed in a dignified manner.
There is often apprehension about employing family members within the same system, fearing it would lead to disturbances. But that is not true. For
example, 30 years ago, we employed a female civil engineer who is still working and is set to retire in a couple of years. We also tried to recruit a female safety officer, but it was challenging.
Women can handle almost any job except heavy load-bearing physical tasks. They fit into various roles. During my time at a few pharmaceutical companies, including Pfizer, I noticed many women in high positions. My CHRO was a woman, and my R&D global head was a woman. Such women grow quickly in their careers and are often willing to be mobile, even if it means making sacrifices in their family life. They are self-reliant and find ways to manage families and work.
However, post-maternity return to work is low, around 75%. Factors include a lack of family support, medical issues, ignorance of needs, and a lack of counselling or mentoring. Postpartum depression is also a concern. For instance, we had an HR colleague who experienced this syndrome and stopped answering calls for a year. Fortunately, the management supported her, and she returned after a year. Families often lack awareness of the support systems available, which is a significant deficiency.
Both state and central governments provide excellent support systems for women empowerment, but many families are unaware of them. Spouses should be made aware of these resources. Safety is another concern. 75% of families do not consider manufacturing workplaces safe for women. Employers must go beyond statutory obligations to instil trust in families.
Moreover, many women have self-limiting beliefs. We have only a few Indra Nooyis. NGOs and women's forums should counsel, mentor, and coach women on managing their careers post-maternity and balancing opportunities and competition in the workplace and job market.
Dr. Sandhya Shekhar: Vidya, how do you compare and contrast the insights shared by the other panellists with the data you have?
Dr Vidya Mahambare: I'd like to share some stories that highlight common themes. The first story is about my mother and her sisters who lived in a village and studied up to the 10th standard there. They had no way to continue their education in urban areas. However, their brother moved to Mumbai and later brought the entire family, including his sisters, to Mumbai. He told them, "You can study as much as you want. There is no pressure to get married." Eventually, two of them earned doctorates, and two others completed post-graduation. They all worked before and after marriage. This story illustrates that when opportunities are available, and the environment changes, both men and women can thrive.
The second story is about the challenges of raising children and the importance of shared responsibility. When we were young, my father encouraged my mother to study. She pursued her studies while we were young and later secured a job. My father took care of us on weekends so my mother could study. This story emphasizes the importance of
The third story is from my corporate experience and highlights the importance of empathy. In 2007, I was working and expecting my child. My boss at the time was Dr. Subir Gokarn, who later became the Deputy Governor of the RBI. One day, he asked me if I had found a babysitter. When I said no, he suggested that I use the babysitter employed at his house. That babysitter became my son's caregiver for seven years while we were in Mumbai. He also allowed me to work from home for two years, even though there was no official work-from-home policy at the time. I ensured that I did not misuse the facility.
In Tamil Nadu and elsewhere, commuting to the workplace is a major issue for women. Despite many women owning two-wheelers, they often rely on public transport, which increases commuting time and inconvenience. This issue needs to be addressed. An additional challenge for women is finding safe housing, especially for single women. The government and companies have a role in addressing this issue.
The MMA Annual Convention 2025 featured Mr Brajendra Navnit, IAS, Principal Secretary, Tamil Nadu, discussing India’s economic resilience, global trade shifts, surplus management, and strategies for sustainable growth.
Resilience holds different meanings for different individuals. I will confine my remarks to the resilience of the Indian economy. To achieve resilience, we must establish multiple layers of foundations. India has undergone various reforms and gained experiences. Trade plays a vital role in this. It's important to put the numbers in perspective. We are potentially reaching a $4 trillion economy. If we estimate that 60% is driven by consumption, then it translates to roughly $2.25 to $2.5 trillion in domestic consumption.
However, look at the opportunities available for the industry to capitalise on. According to the latest WTO data, global trade is approximately $32 trillion, with $25 trillion in goods and $7 trillion in services. However, I believe the services figure is understated. Many embedded services are categorised as goods. Therefore, a more accurate representation would be $20 trillion in goods trade and about $12 trillion in services, roughly a 60/40 ratio, with services growing at a faster pace.
Consequently, if you are an industry player or an investor, you should consider aiming for a $2.5 trillion domestic market or a portion of the $32 trillion global market. Even 10% of the global market translates to $3.2 trillion. While we hold approximately 75% of domestic consumption as domestic manufacturers or service providers, our global share is significantly smaller, around 2% for goods and perhaps 4% for services.
This presents a significant opportunity to enhance India's economic resilience by tapping into the potential for growth in global trade. It is often easier to increase market share from 2% to 5% than to grow from 75% to 90% domestically. Even a small percentage growth in global trade results in a substantial increase in the overall market size.
However, it's crucial to acknowledge that the established principles of economics and global trade
are undergoing a transformation. Our businesses, colleges, universities, and faculties must first unlearn what we have been taught. We have been conditioned to excel in managing scarcity, demonstrating resilience in challenging situations. However, we struggle to manage surpluses effectively, whether in personal, family, societal, or economic contexts.
India has now emerged as a nation facing surpluses in various sectors. The question is whether we are optimally deploying these surplus resources, be it in demography, agriculture, services, or manufacturing. What I have observed is that we are often unaware of our surpluses and potential. Like the story of Hanuman, we need to be reminded of our strengths.
Their primary concern is that, despite our economic opening, their participation remains limited. While they have reconciled with this, their second concern is that we are displacing them from their established markets.
Fortunately, the world recognises India as a force with the potential for a great leap. In my interactions with diplomats and trade ministers, it's clear they view India as a key player in shaping the global economy. They seek to participate in the global market, and particularly the Indian market, through India.
Their primary concern is that, despite our economic opening, their participation remains limited. While they have reconciled with this, their second concern is that we are displacing them from their established markets. This is a valid concern, as our industries have gained market share, particularly in services, posing a challenge to countries with significant trade surpluses in those areas. They have also come to terms with this, acknowledging their inability to compete on cost and human resources.
However, their most pressing concern is that even in markets where they maintain a presence, India is driving down costs. Our frugality and innovation, exemplified by UPI's impact on the global financial market, are reshaping the landscape. What UPI has achieved in a few years was previously unattainable in decades. Today, India accounts for 45% of global live digital payment transactions, surpassing the combined volume of North America and Europe. This shift has
enabled a transition from asset-based lending to transaction-based lending, benefitting young entrepreneurs and first-generation industrialists who may lack the assets to secure traditional financing.
Returning to the topic of evolving economic theories, the principle of comparative advantage, which has long been the foundation of trade, is being questioned. It is no longer the primary focus in highlevel trade negotiations. The emphasis has shifted to addressing persistent surpluses and deficits between countries, employment considerations, and Forex availability.
To build resilience in this evolving world, the concept of low-cost, just-in-time production is being replaced by a ‘just-in-case’ approach. Investors and industrialists are willing to invest more to ensure supply chain resilience and avoid disruptions by centralising or localising supply. This shift may pose a challenge to industries where the ‘winner takes all’ dynamic has historically prevailed, as companies seek to diversify their supply chains.
The business re-engineering landscape is also being challenged by shifts in two long-standing trends: fuel subsidies and labour subsidies. For the past 50 years, the Western world, and some of the East Asian rising developing economies that transitioned into developed economies, thrived on cheap energy and labour. However, in today's geopolitical scenario, postpandemic and post-geopolitical struggle, both these subsidies are challenged. The consumers of the
Western world are now experiencing inflation and rising prices. Two generations of Europe and America have not known what inflation is.
This willingness to accept higher energy prices and wages to support domestic industries will lead to a sustained period of higher inflation. Forget for a moment the impact of CBAM, where steel will be 20% costlier. Forget the impact of EUDR, the deforestation regulation, where the input cost will further rise. You can imagine the kind of steady inflation scenario the Western world, or the reserve currency world, is looking at. It is no longer 2% or lower it has to be higher because someone has to pay. Either you pay from the government side with subsidies, which is inflationary, or you use monetary stimulus to do that, which again leads to higher inflation. Our industry has to be ready for the cost of capital to build that resilience.
If a 5% risk-free US Treasury investment is available across the globe and you add the inflation differential markup between that country and yours, you need to prepare for higher capital costs. We are also seeing the flight of capital and the strengthening of the dollar, which raises the question of whether our industry is willing to tap external resources at that
I don't think India is ready for traceability. This means industries like leather and footwear in Tamil Nadu will need to push traceability to the level of linking products to specific cattle areas and grazing grounds.
cost for a longer period. Therefore, we need to see how we are going to cope with the end of the low inflation scenario in the Western world.
The implementation of the Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR) also presents challenges. We have understood that our business with Europe is only affected to a marginal extent. But it is not so. Businesses must prepare to be resilient because the EU is a big consumer and importer of products covered under EUDR and CBAM. The EU's decision to restrict certain products will create two classes of goods, and suppliers will not change their supply mechanisms overnight.
For instance, blast furnaces cannot switch to electric arc furnaces overnight. This will likely result in a surplus of products, which were consumed in Europe now available for the global market. This could lead to an influx of these materials into our supply chain. While downstream manufacturers may benefit, primary producers will face significant challenges competing with this influx. Consequently, larger industries will face the threat of having two products with different standards and pricing, undermining competitiveness in the domestic market.
On deforestation regulation, the challenge is traceability. I don't think India is ready for traceability. This means industries like leather and footwear in Tamil Nadu will need to push traceability to the level of linking products to specific cattle areas and grazing grounds. It must be ensured that the source of raw materials is free from deforestation.
In India, many financial experts are familiar with the credit rating scenario. ‘Single-A’ rating is very good, but everyone aspires for a ‘Triple-A’ rating. For a resilient India, we should strive for a 'Triple A' rating that goes beyond the typical credit market rating. This rating should focus on three key factors: Availability, Accessibility, and Affordability. While availability is generally good, we must ensure that resources and opportunities are both accessible and affordable.
Technology, finance, and trade are the building blocks for a country to grow in the next decade or two.
To that end, I exhort the private sector to engage in joint ventures and even free trade agreements. You would have seen that after a significant push, we concluded the Trade and Economic Partnership Agreement (TEPA) with four EFTA countries Switzerland, Iceland, Liechtenstein, and Norway.
For the first time, we got a commitment from EFTA for 100 billion dollars FDI investment in India over the next 15 years. This investment brings in technology partners and allows us to grow by combining technology and finance, which is unique. People were initially sceptical about its success, but
When I talk to industry representatives privately, they fear that whatever little they are doing in that country might be jeopardised if they complain.
fortunately, it has worked. Now, the challenge for the industry is to connect with partners in countries like Switzerland, Norway, and Iceland and bring those partners here to move forward.
Based on my experience in finance and economic ministries at the centre, state, and in Geneva, I would like to highlight the fact that while I have received numerous memorandums from the industry, unfortunately, I am yet to see a single memorandum from our industries outlining what they need in other countries. All the missions and trade diplomats are busy identifying loopholes, lacunae, and barriers in the export market. My plea to the industry is to inform us of the challenges you face in market access. When I talk to industry representatives privately, they fear that whatever little they are doing in that country might be jeopardised if they complain. This concern might have been valid 20 years ago, but today, India is not going to be pushed around in such discussions. Your input will remain anonymous, so please come forward as an association and let us know your needs.
Lastly, I believe unlearning is crucial. I'll share a couple of examples. During the Uruguay Round
negotiations at the WTO in the mid-80s and early 90s, we believed we could not compete. Today, we export 50 billion worth of agricultural products, which is causing concern for countries like Australia, Canada, New Zealand, South America, and the US. The crux of the matter is that we were made to believe we would never have the capacity to subsidise.
The WTO says that India pays a certain amount in subsidies to the agriculture sector. The calculation is based on the 1986-88 average price for rice and wheat. Anything paid above three rupees per kg to Indian farmers is considered a subsidy. Today, we subsidise 90% because we are buying at 30 rupees per kg, while our forefathers committed in the WTO to buy at three rupees, without accounting for inflation or price rise.
Another example is the agreement we made about tariffs and subsidies. We were told we had higher tariffs, so we could keep them, while others kept their subsidies. Today, developed economies still provide substantial subsidies to their manufacturers, particularly in the agriculture sector, while our tariffs have been reduced. This discrepancy needs to be addressed. In the sunrise sectors, the same theory is applied, but we lack the deep pockets to compete. Therefore, we need to build resilience in these sectors despite our limitations.
To build a resilient economy, we need to do a lot of unlearning. New rules must be written, and we should be part of this process. Time is running out for us. We often talk about our demographic advantage, but we must not become old before becoming rich. We need to move faster.
Mr. Vellayan Subbiah
Chairman, Cholamandalam Investment and Finance Co Ltd & Executive Vice Chairman of Tube Investments of India Ltd
Building a resilient India requires us to consider both: What India needs to do and how we need to do it. India accounts for 2% of global goods trade and 4% of global services trade out of a total of 32 trillion. It's important to acknowledge that a significant portion of our focus remains on the domestic economy. If India aims to be truly resilient, a greater emphasis on exports is crucial. Second, what we export matters significantly.
Consider this: On one hand, we have productbased companies like Apple, Nvidia, and Microsoft, and on the other, successful service-based companies from India. A key difference lies in their market capitalisation. Product companies generally command
significantly higher valuations.
Why is this important? India excels at building service companies, accounting for 4% of global services trade. We've become a hub for Global Capability Centres (GCCs). Essentially, we're exporting our people and their services at a certain markup, perhaps 20% or 25%. Now, what about the markup on something like Nvidia's GPUs? They can be as high as 70% or even more! This highlights a critical challenge: we're often selling our services at a 10-25% markup, while buying back products with markups exceeding 70%.
Think about email. Most of us use Gmail or Microsoft at our companies. Where were those products largely developed? Hyderabad and Bangalore! What did India receive in return? Primarily salaries and perhaps some taxes. Yet, when negotiating pricing with Microsoft or Google, we're essentially buying back our own intellectual property at a huge premium. Is this a sustainable model for long-term economic resilience?
The same pattern repeats itself in the semiconductor industry. 60% of the value in that chain lies in design. Every major semiconductor company –NXP, Broadcom, Infineon, Texas Instruments, Qualcomm – has a substantial GCC in India, employing eight to ten thousand engineers designing chips. But again, what do we earn on that design work? A fraction of what we pay when we import those chips back, often at margins of 75% or 80%. To address this, we're attempting to shift the paradigm. We recently acquired the radio frequency division of a Japanese chipmaker, Renesas. Interestingly, 60% of that division's employees are in Bangalore, with another 30% in the US – of whom 80% are of Indian origin! So, we had to buy back our own talent, paying in dollars to an international company. This illustrates the core issue: we must rethink how we leverage and retain our intellectual property.
China's approach to global trade dominance needs a comparison. Their strategy has been much more structured and deliberate. I'm consistently impressed and also concerned at how effectively they’ve marked up their value.
They progressed through three distinct phases:
1. Becoming the World's Factory: Even at this stage, India is still in its early phases. While there has been impressive work in the electronics sector, we still import a significant percentage of components.
2. Climbing the Value Chain: This shift saw a substantial increase in China's share of world output.
3. Developing Indigenous Technology: They are now focused on creating deeply indigenous technology.
BYD is selling high-quality, technologically advanced cars in India, with a 25% duty, and still undercutting domestic prices. What will happen to the Indian auto industry if we remove those barriers? It would be devastating. Protectionism isn't the answer. We need to compete by investing in innovation and developing our own advanced technologies. The profit pool in automobiles has shifted from metals to electronics, and China's dominance stems from their ability to produce these components much more cheaply.
Currently, we're making electric vehicles in India, but importing most of the critical electronics. We must transition from a service-based economy to a productbased economy. Without this shift, achieving true resilience will be impossible. This requires a collective effort. It starts with each of us. What will you do within your companies to drive this change? Continuing with the status quo will not lead to resilience.
If India aims to compete and win globally, we cannot simply replicate the Western model. India possesses a unique "technology" that we haven't fully leveraged. It is our spiritual wisdom. Consider this on
an individual level. What is your objective in life? What benefits are you seeking? Are happiness, joyfulness, and a positive state of mind important? If so, we must realise that there are multiple paths to achieving these. One path involves earning money through our work. However, we might remember the thrill of our first pay check. The subsequent pay checks, most likely brought diminishing returns in terms of happiness. This is because the pursuit of material wealth often follows a curve of diminishing returns. Material pursuit is a typical Western view.
However, the path of evolution, of selfimprovement and spiritual growth, follows an exponential curve. Investing in personal and spiritual growth, alongside professional development, can lead to greater fulfilment and ultimately contribute to a more resilient India. We need to change ourselves first, if we are going to change the organisations we work with or the country we live in. Only in India, we have the mechanisms and tools to change ourselves in a fundamental way.
The Special Session 3, Growth, Focus, and Resilience with a Special Focus on the MSME Sector, featured industry leaders discussing strategies for sustainable growth. It was moderated by Dr Sandhya Shekar
M MSSMMEEs s ccaan n a acchhiieevve e m moorre e ccoolllleeccttiivveelly y tthhaan n iinnddiivviidduuaallllyy. .
Dr Sandhya Shekhar
Advisor, Digital, Business Strategy and innovation
Ibelieve the MSME segment represents the most undervalued asset of our country. It holds immense untapped potential. It's interesting to note the current excitement surrounding the startup ecosystem. Chronologically, MSMEs are the predecessors of startups. However, they lack the energy, enthusiasm, funding options, and attention that startups enjoy. This disparity is something we need to understand. How can we unlock the potential of MSMEs? If we harness this opportunity correctly, it
could lead to significant growth and resilience, pushing our country's development to a different trajectory. There are many differences between startups, MSMEs, and large companies. Today, I want to address two key points in my opening remarks.
First: Innovation. Startups are known for disruptive innovation. In contrast, MSMEs have focussed more on incremental improvements. However, there's no reason why MSMEs cannot become synonymous with innovation, the best driver of growth. At the recent Bharat Mobility Show in Delhi, the CEO of a large OEM mentioned that innovation comes from the supply chain, not just the manufacturers. This is true in the manufacturing sector, highlighting the potential within MSMEs. Why isn't innovation a primary focus for MSMEs? Or is it already happening, just not being publicized enough? These are questions we should explore.
Second: Financial enablers. Innovation requires financial resilience. Financial robustness is crucial for technology investments, infrastructure creation, and
By pooling resources, such as funds, infrastructure, and technology, MSMEs can achieve more collectively than individually.
skill development. While MSMEs' size can be an advantage in terms of agility, it can also be a disadvantage regarding their ability to raise funds and take risks. What can they do to overcome this? I want to share a story to illustrate this point.
Have you heard of ant rafts? Ants can form rafts to survive floods. I saw an interesting visual on National Geographic showing thousands of ants creating a raft to survive a severe flood. Despite their tiny size and limited neurons, ants collectively rise above their individual limitations. Can MSMEs leverage the advantages of an ecosystem by working together? By pooling resources, such as funds, infrastructure, and technology, MSMEs can achieve more collectively than individually. The digital age is about leveraging a networked economy. Do we have the structures to support this collaboration? Can we create and reinvigorate these structures to help MSMEs reach their growth targets and realize their potential on a national level?
Mahesh Balasubramanian
MD of Kotak Mahindra Life Insurance
First, let's understand what MSMEs do for India. Globally and in India, MSMEs are cornerstones of growth and critical aspects of the entire value chain of production and consumption. In India, MSMEs contribute about 30% to the country's GDP, 45% exports, and employ around 23 crore people. While these numbers are impressive, they pale in comparison to other countries. For instance, MSMEs contribute over 60% to Japan's GDP, close to 53% in Turkey, and more than 60% in Indonesia. The US has about 45% of its GDP coming from the MSME segment. This highlights the headroom available for MSMEs in India to contribute more significantly to our country's growth.
MSMEs are vital because they promote inclusive growth. By employing large numbers of people, they contribute to economic inclusivity. Unlike big corporations, MSMEs are small and medium-scale industries, with over 6.8 crore units operating across India.
So, what challenges do MSMEs face in India? The primary issue is access. This includes access to markets, finance, labour, technology, innovation, R&D, and disaster management. Let me focus on access to finance and disaster management, areas closest to what we in the BFSI segment deal with.
Regarding access to finance, of the total 200 lakh crore credit in the Indian banking system, not more than 15% goes to the MSME segment. The penetration of credit into MSMEs is only about 13-14%. The credit gap in the MSME segment is close to 30 lakh crores, as reported by the RBI. This indicates significant headroom for supporting this segment. In terms of growth and resilience, numerous initiatives over the last decade have provided impetus to MSMEs. The RBI and the government have implemented various initiatives, such as Udaan registrations, the Pradhan Mantri Vishwakarma Scheme, and the CGTMSE scheme, which have formalized many MSMEs and provided better access to formal credit. Other initiatives like the Trade Receivables Discounting System (TReDS), account aggregators, open databases, GST registrations, and PLI schemes have also supported MSME growth. However, despite these efforts, we are still at about 50% of their needs, with credit penetration at less than 15%.
Let's examine what the mutual fund and life insurance industries can do. The life insurance industry has an 80 lakh crore AUM, with 60-75% of
Globally, insurance penetration for disasters is around 50%, while in India, it is less than 10%.
investments in government securities (G-Secs) and SDL programs, supporting infrastructure spending. Life insurance companies are key players in long-term investments, crucial for infrastructure funding, such as ports, roads, railways, and airports. We buy G-Secs in the 10 year and 30 year category and sometimes even in the 50 year category. These investments have a multiplier effect on the MSME segment by indirectly supporting infrastructure development, employing millions of contractors and labourers.
Now, let's discuss growth and resilience. Growth capital is vital, but resilience is equally important. Resilience means the strength to endure multiple cycles and build sustainable businesses over time. The insurance industry plays a critical role in providing this resilience, helping MSMEs navigate challenges and remain robust in the long term.
This is where MSMEs require tremendous help. To give you some context, we're talking about risk transfer. The business of insurance is all about risk transfer. For instance, if you buy insurance for a car worth 10 lakh rupees, by paying a 2% premium to the insurance company, you transfer the risk to them. The insurance company assures you that if something happens to your car, they'll cover the damages. This concept of risk transfer is essential, yet largely lacking in the MSME segment and other sectors in India. The
overall penetration of life insurance and general insurance is just 3.7% of GDP, with general insurance at nearly 1%.
Let's discuss the impact of this. Climate change and frequent disasters have resulted in significant losses. In 2020, we faced Cyclone Amphan, and two years ago, Cyclone Yaas. Over the last five years, India has suffered 130 billion dollars in disaster-related losses, but only 10% of these are insured. The remaining 90% is borne by the affected individuals or governments. This highlights the critical role insurance can play in transferring risk away from vulnerable people.
Globally, insurance penetration for disasters is around 50%, while in India, it is less than 10%. The mechanism of risk transfer is the focus of insurance, and it can immensely benefit MSMEs and other industries. There are two primary types of risk: risks to the entity (employees, owners, promoters) and risks to the business.
Business insurance covers in its ambit Fire and Property Insurance which protects physical assets like factory buildings against storms, earthquakes, etc; Marine Insurance which covers goods in transit, addressing supply chain risks; Product Liability Insurance which protects against product failures and associated risks; and Cyber Insurance which covers risks related to cyber threats. Other insurances include professional indemnity insurance and employee insurance such as Workman's
Compensation, personal accident insurance, health insurance, life insurance, key man insurance, and the Married Women's Protection Act insurance, which is a fantastic scheme and the proceeds are free from any lien. This protects the women and children of businessmen.
Credit life insurance is another crucial area. During the COVID-19 pandemic, life insurance companies settled over 30,000 crore claims, saving banks from non-performing assets (NPAs). Credit guarantee insurance and surety bonds also provide umbrella protection to customers.
Despite the availability of these products, MSMEs face challenges due to a lack of 3As: Awareness, Accessibility, and Affordability. To address this, the IRDA has launched the 'Insurance for All by 2047' mission as part of the Viksit Bharat initiative. The industry has introduced the ‘Triple B' approach:
Bima Sugam: A portal to democratise the purchase and servicing of insurance policies, including life and non-life insurers.
Bimavahak: A business correspondent model for the insurance sector, employing women to distribute insurance in villages using mobile interfaces.
Bima Vistaar: A product offering a package of essential insurances for a small premium, including life, health, hospital cash, fire, and personal accident insurance.
The Triple A and Triple B approach aims to
enhance risk mitigation in the industry, which is a prerequisite for building resilience. Growth can only follow once preservation is ensured.
FFiinnaanncciiaal l eennggiinneeeerriinng g iis s ccrruucciiaal l ffoor r
tthhe e ssuurrvviivvaal l o of f SSMMEEs s
A Balasubramanian
MD & CEO, Aditya Birla Sun Life AMC
Many people can take pride in creating a success story for SMEs in the country, thanks to the Prime Minister's vision of making India self-sufficient through initiatives like Make in India. This vision, along with themes like Sabka Saath, Sabka Vikas, Digital India, and Make in India, has set the foundation for the MSME sector. As mentioned, MSMEs contribute about 30% to India's GDP and provide 45% of the employment.
Having spent 30 years in the Indian mutual fund industry, I recall the vision set in 1992 to establish a separate exchange to help companies raise equity capital, resulting in the OTC Exchange, set up by Mr Ravimohan under the guidance of ICICI and financial institutions. Unfortunately, OTC exchange could not
succeed because of lack of vision and other factors.
SMEs and MSMEs, especially in the finance world, face significant challenges. Financial engineering is crucial for the survival of SMEs. The business model and the segment you operate in must be sustainable. The cost of capital should be affordable to ensure a proper return on investment. We have moved away from guaranteed return schemes to a low-cost capital environment in India.
Historically, MSMEs faced high borrowing costs from banks, often exceeding 18% or 20%, making it challenging to sustain their businesses. Post-COVID, India discovered effective policy-making, similar to the US, by providing government guarantees for borrowers. This significant turnaround post-COVID helped small-scale enterprises grow, provide employment, and build the right skill sets.
The introduction of the credit guarantee scheme made MSMEs more credible. Public sector companies like the State Bank of India and BOB funded MSMEs but with limited resources. The guarantee scheme encouraged private sector banks to fund MSMEs, reducing the cost of capital and improving the understanding of MSME businesses. Today, MSMEs' credit scores have improved due to government guarantees. The recent budget extended the guarantee schemes for another 10,000 crores for SMEs. This revolution has allowed SMEs to grow, contribute to India's success story, and account for 46% of exports.
The power sector has also undergone a revolution, with small-scale enterprises providing solutions for niche industry needs.
India's vast geography means SMEs are present across the country. As the CEO of a mutual fund, I undertake CEO Yatra every three years to various markets. My purpose is to understand digital economy evolutions, business success, financial literacy, and UPI payments' usage by the common man.
I started from Trichy, the place where even the Prime Minister began his first canvassing for his initial run for Prime Minister. Trichy holds a special place for me as well. During my visit there, I met a company with a turnover of about 200 crores, producing motors for renewable energy, particularly windmills. They manufacture these motors in Thanjavur and export them to Baroda, Delhi, and other parts of the country. Trichy, known as Tamil Nadu's first industrial belt, houses industries that supply equipment both domestically and internationally.
On a similar tour between Pune and Ahmednagar, I discovered traditional companies in the sugar belt facing challenges due to government intervention and pricing restrictions. The policy shift allowing sugar production to be used in ethanol for petrol has made the industry more viable and profitable, benefiting both businesses and the country by saving import dollars.
The SME exchange, similar to the OTC exchange, has enabled small companies with turnovers of 10-20 crores to raise equity capital and build their business models.
The power sector has also undergone a revolution, with small-scale enterprises providing solutions for niche industry needs. These companies have significantly benefited from government measures in the past three years.
I also visited a 60-year-old company in Pune that tests bikes for road safety, serving clients like TVS Motors. With a turnover of 60 crores and a profitability of 15 crores, this SME maintains a clean balance sheet. In recent years, cheaper capital has allowed such companies to sustain their return on investment and plan for growth.
Lastly, let me highlight the Indian market's evolution. The market cap today is roughly $4.5 trillion, with the Nifty 50 representing large companies. While the Nifty 50 companies used to dominate 65% of the overall market cap, this number has now reduced to 48%, indicating significant growth among smaller companies. The SME exchange, similar to the OTC exchange, has enabled small companies with turnovers of 10-20 crores to raise equity capital and build their business models. Though OTC Exchange did not succeed in a big way, the SME Exchange is doing well.
The Indian market has evolved significantly in the past few years, making money available for companies, primarily through mutual funds, HNIs, and individual investors.
For example, a company with a 10-crore turnover recently raised 2 crores in equity capital. The stock price went up by multiple times and became a point of criticism. One of the SEBI officials whom I met said that the Government of India is committed to ensuring that even the smallest businesses have access to the Indian capital market through the SME exchange, as long as their business model is genuine.
The Indian market has evolved significantly in the past few years, making money available for companies, primarily through mutual funds, HNIs, and individual investors. The Indian mutual fund industry manages 65 lakh crores, with 6 lakh crores invested in small and mid-cap segments. The increased pool of available capital has contributed to the market's growth.
To achieve India's goal of becoming a 10 trilliondollar economy, the entire ecosystem must grow. Changes in regulations, mindsets, and banking practices have made dealing with MSMEs easier. The next five years will likely see these companies grow larger and fulfill their aspirations, with some potentially becoming larger companies.
Dr Sandhya Shekar: Mr. Mahesh, you mentioned that there is a significant gap in terms of the credit available and the credit uptake from MSMEs. If I were to draw a very loose analogy, MSMEs represent a segment that appears to be somewhat risk‐averse. They seem to prioritise stability over drastic innovation, focussing more on bottom lines than top lines and valuations, unlike startups. Their propensity for risk seems limited. Do you think the time has come for them to break out of these shackles, or should they, like balancing a portfolio, recognise that debt funds also have an equal place alongside equity funds? Equity funds may offer greater returns, but for the sake of stability, we need people who take a long‐term view. How would you strike a balance, and what is your message to MSMEs?
Mahesh Balasubramanian: Entrepreneurship inherently involves taking risks and striving for growth. In a young country like India, with an average age lower than the global average, the aspirations and ambitions of every entrepreneur are to grow. At the same time, they want to manage risks well to avoid exposing their families and businesses to excessive risks.
The key is access to information and opportunities. In today's digital age, MSMEs have numerous opportunities through networks like ONDC, and platforms like Amazon and Flipkart. These platforms provide MSMEs with chances to increase their business volume. Government credit guarantee schemes offer comfort by allowing borrowing at favourable rates,
reducing reliance on high‐interest informal sector loans. The formalisation of lending to the MSME sector has been a significant development in recent years.
Small banks and formalised lending have reduced interest rates, and schemes like PLI and CGTSME have provided financial incentives. Bridging the information gap through technology is essential. Support in labour, management, skills, data, technology, and innovation is crucial. Establishing Innovation Hubs across the country will enable MSMEs to experiment and grow. If we create a conducive environment and ecosystem, every entrepreneur will thrive. With the right support and resources, MSMEs can overcome their risk aversion and seize growth opportunities.
Dr Sandhya Shekar: There is obviously no dearth of aspirations. Government policies are in place, and there is a plethora of financial products available to support these entities. Do you think the key inhibitor might be a mindset issue? With your ear to the ground regarding MSMEs, do you see a potential mindset issue holding them back? Are some MSMEs still adhering to old economy thinking? Is this what differentiates the fast‐growing MSMEs from those that aren't growing as quickly?
A Balasubramanian: I observed mixed reactions. For example, one entrepreneur appreciated the GST reform for its simplicity and single tax filing, despite the slight increase in tax. But, another entrepreneur in the power sector considered shutting down their equipment manufacturing for thermal power plants due to ESG factors, despite a post‐COVID business boom. They were uncertain about future investments given the potential impact of ESG regulations.
Another challenge is the next generation. Some successors prefer employment or opportunities abroad rather than running the family business. Promoters worry that their children may not share their vision or commitment. However, many still appreciate the banking industry's support but are hesitant to raise equity capital due to the responsibility of reporting to shareholders quarterly.
I met a listed company in Aurangabad that chose not to manage quarterly results or communicate with investors regularly. Established business models face sustainability challenges as the world changes with automation, technological adaptations, and new business models like EVs. Traditional businesses harbour doubts about their future growth.
Despite these challenges, many companies are committed to skill development. For instance, a company in Trichy proudly recruits transgender individuals to work in their factory, providing employment to those who might otherwise struggle to find work.
Dr Sandhya Shekar: What are the top two inhibitors in your opinion, and the top two facilitators?
A Balasubramanian: One inhibitor is the mindset for technological adaptation. In terms of facilitating growth, creating an ecosystem where the management collaborates to fulfill their vision is crucial. Building a strong team and leveraging talent effectively are also significant facilitators. We need to focus on that.
Mahesh Balasubramanian: The limitations today revolve around access to markets. While many want to grow their business, building a brand and promoting
their business takes time and effort. Although there is significant ground presence, access to capital could be improved, as we still aren't reaching areas where money is most needed.
Regarding enablers, we must create an ecosystem where every SME knows they can access credit or markets quickly. We should reach out to them rather than waiting for them to approach us. Rapid digitization and technology upgrades are also essential. India lags behind in these areas, and improving productivity through technology and digital means is vital for better cost economics, price differentiation, and competitive advantage.
Dr Sandhya Shekar: While the government is doing its best to support MSMEs in financing and ecosystem, do you think the current tax system is user‐friendly, particularly with frequent GST changes? What is your view?
Balasubramanian: I think the GST system has evolved nicely, thanks to our finance minister. As a market participant, I observed that discussions about GST changes used to dominate the headlines and debates. However, in the last three years, since the current finance minister took charge, these discussions have become smoother and less controversial, indicating overall satisfaction.
Mahesh Balasubramanian: From a borrower's perspective, the biggest hindrance to MSME growth is the informal economy. We must formalise this sector. GST registration and other measures help formalize the economy, making it easier for lenders to assess
creditworthiness and provide support. Formalization is crucial for MSME growth. Without proper records and transparency, no lender will touch these businesses. Formalization addresses this constraint effectively.
Dr Sandhya Shekar: If agriculture needs to become entrepreneurial in nature, crop insurance from private sectors would be necessary. Could you please share your views and insights on this?"
Mahesh Balasubramanian: The crop insurance, launched by the Prime Minister about five or six years ago, has significantly helped provide insurance to farmers. It's facilitated through the banking fraternity for those taking crop loans, with crop insurance being insisted upon. The states have been running their own crop insurance schemes, and crop insurance remains a crucial element in the insurance spectrum.
The Agricultural Insurance Corporation of India is dedicated to crop insurance, and all players in the market, including general insurers, have a presence in this segment. Reinsurers like Swiss Re and Munich Reinsurance also support crop insurance. Crop insurance is here to grow and stay, offering vital risk relief to farmers. It will continue to be essential for ensuring farm productivity and farmer resilience, and we can't expect robust farm produce without comprehensive crop insurance at the individual level.
In this session on Technology Resilience, experts demystified AI’s hype, emphasizing resilience, skill‐building, and the enduring importance of human purpose.
W Whho o w wiilll l eemmeerrgge e a as s tthhe e w wiinnnneer r iin n tthhiis s eerraa? ?
Anurag Sharma Associate Partner, McKinsey & Company
Will AI take over the world and all of our jobs? While we may not have a definitive answer, this question certainly grabs attention. We've pondered this ourselves and realised that AI is part of a repeating pattern of technological transformations we've seen over the years. Looking back, we've witnessed multiple revolutions and transformations, each with its own set of winners, who capitalised on clear advantages.
For example, during the late 18th and early 19th centuries, the Industrial Revolution saw the UK as the undisputed leader, followed closely by Germany and the United States. Then came the era of electricity and mass production assembly lines, automobiles, and telecommunication, where the US took the lead with companies like Ford and General Electric and with Germany and Japan also becoming industrial powerhouses.
Moving into the 20th century, the digital era saw the rise of Silicon Valley, where the US stood out with companies like Microsoft, Apple, and Intel, while Japan and South Korea excelled in hardware manufacturing. Following this was the internet and connectivity era, with giants like Amazon, Facebook, and Google emerging in the US, and China stepping up with players like Alibaba, Tencent, and Baidu.
Next came the cloud and big data era, led by the US and China. Now, we're in what I like to call the AI and automation era, characterised by rapid
Given the recent hype around AI, we need to distinguish between what's true and what's not.
advancements in automation technologies. The pressing question now is: who will emerge as the winner in this era? What does it take to succeed, not just at the country level, but also at the institutional and individual levels?
Across all these eras, we've identified a few common themes: adaptability, investment in education and R&D, infrastructure development, inclusive progress, and public-private collaboration. Given the recent hype around AI, we need to distinguish between what's true and what's not. Rather than focussing on one specific example, let's address the broader question: How do we capture the opportunities presented by the AI and automation era? How can we ensure we don't become obsolete? How can we upskill ourselves and move forward?
W We e ccaan n eennhhaanncce e h huummaan n a abbiilliittiiees s tthhrroouuggh h tteecchhnnoollooggiiccaal l a auuggmmeennttaattiioon n
Prof Pankaj Setia
Founding Chairperson, Centre for Digital Transformation, IIM, Ahmedabad
Every technology has driven some people forward. Who advances and who doesn't? I've pondered this question and concluded that technological revolutions are actually revolutions in human purpose. Understanding this purpose is complex for individuals, organisations, and societies.
To move forward, we must clearly identify our purpose. Consider three key aspects: technology itself, the logic of human organisation, and the individual. Digital technology is often discussed as the way forward, but we must focus on its purpose. Technologies are advancing, as seen with innovations like ChatGPT and DeepSeek. India is also developing advanced technologies. These technologies can evoke human experiences, like AI-generated poetry. Automation is transforming processes, and intelligent
technologies are becoming prevalent.
In India, complex technologies like Aadhar and UPI have made great impact, but we must also consider advancements like humanoid robots. Technology transformations are not the phenomena to observe from a distance; they are integral to our progress. As a society, as individuals, as professionals, and as managers, we don't have the luxury to wait and watch. Advanced technology is being built right here in India.
The critical question is: What happens in the next 10 to 15 years? The real excitement lies in projecting where technology will be. Reflect on the past 20 to 30 years your mobile phone now has more computing power than a supercomputer from the 60s and 70s. Imagine what will happen 20 years from now, with computing power doubling every two years it could be a million times more powerful than today. Consider the immense computational capabilities we'll possess, far exceeding our current understanding of intelligence. While this brings great potential for good, we must use these advancements wisely.
The second element to consider is organisation. Organisation distinguishes living beings from nonliving beings. It is fundamental to all life forms birds build nests, and we gather to discuss digital transformation and technology resilience. Right in our homes, we organise our lives. We organise our desks,
AI analyses student performance across courses, revealing hidden deficiencies and helping us educate more effectively.
our work. Everything we do involves organization. Technology plays a significant role in helping us organise, which is essential for our well-being. Advanced computational capabilities can help us organise better.
For instance, Google Flu Trends predicts flu outbreaks by analysing search trends for symptoms, often before public health agencies detect them. People searching for symptoms provide real-time data, enabling early prediction of flu spread. In education, AI detects student deficiencies by mining data across different courses. This is just one example of how technology can solve public health and educational problems, demonstrating its potential to enhance our organisation.
If a student struggles in physics and math, it's challenging for teachers to identify the underlying reason. AI can detect specific issues, like a student's difficulty with quadratic equations, which may not be apparent to individual teachers. AI analyses student performance across courses, revealing hidden deficiencies and helping us educate more effectively. At Columbia University, robots assist in setting up experiments, demonstrating AI's role in scientific discovery and organisation.
We're also looking at future technologies like autonomous cars. Consider the incident in India where
miners were trapped why send humans into dangerous tasks when AI and robotics can take over? While job displacement is a concern, certain jobs are too hazardous for humans. We must rethink our approach to organisation in society. Technology helps us organise better, whether it's through AI predicting flu outbreaks or improving education. We face real challenges, but advanced computational capabilities can address many of them.
Prof. Erik Brynjolfsson, a professor at MIT, analyzed a large amount of data and found a decoupling between jobs and productivity. The idea is that we can now create a variety of things by employing fewer people, so organisations don't need as many employees. This is a significant technological factor. For instance, companies like Ford, which once had the largest market share, employed many more people compared to today's dominant companies. In Silicon Valley, small teams of about 10 people are creating million-dollar companies with high valuations, thanks to their productivity with fewer workers. This raises a concern: How do we organise ourselves if this is a challenge for our organizations? When we think about organisation, we must also consider issues like cybercrime.
Garry Kasparov, after losing to Deep Blue, started a freestyle chess tournament where both humans and robots could participate. He found that the best teams were a combination of humans and robots. This highlights the importance of augmenting human capabilities with technology. We can achieve more with technology, and technology performs better with human input. This synergy is the current paradigm,
though its duration remains uncertain. The key idea is that we can enhance human abilities through technological augmentation.
The third aspect to consider is the individual. The fear of AI is widely discussed. Many believe that there will be hardly any tasks that robots won't perform better than humans. This raises the question: What will humans do?
There are concerns about the negative effects of technology. For example, Verizon highlights issues like mental health problems, poor sleep, declining grades, loneliness, and family issues. The stress from AI replacing humans is significant, impacting individual health and well-being. We must consider these downsides while also acknowledging the positives. India's fintech revolution, with UPI adoption by 300 million people, is a prime example of positive technology impact. While there are challenges, technology has the potential to drive significant progress. The UPI system has provided access to credit and respect to many who previously lacked it. This financial inclusion has positively impacted 300 million people, more than the population of most countries. Some bankers initially missed this opportunity, but the transformation it has brought is undeniable.
Successful digital transformation is driven by a purpose that intertwines technology, individuals, and organisations. This latent human force propels societies forward by understanding these interactions
better. The key is not to view technology, individuals, or organisations in isolation, but to see how they collectively drive progress. How do we unravel this? I propose a scientific approach, focusing on three questions: what, how, and why. What do we need to do for digital transformation? How should organisations organize themselves differently? To address this, I outline the Davao Gomu model, which explains how organisations can harness this purpose to achieve better outcomes. Finally, the eternal question societies must ponder is: Why do we digitally transform? While some restrict children's exposure to technology to avoid negative impacts, we need to consider why digital transformation is beneficial. There is an answer to when it is good and when it is not.
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Somnath Chatterjee Founder & CEO, Prismforce
We are entering an era of ubiquitous AI. Just as Google democratised access to information, AI has the potential to make intelligence far more accessible. The impact of AI is unprecedented,
with advancements occurring at a rate of 10 times year after year. The cost of AI tokens has decreased significantly, and the efficacy of AI models has improved drastically.
This compounding effect means AI will be everywhere, narrowing the gap between science fiction and reality. AI interactions will become more humane, acting as extensions of ourselves. This can break down barriers like information access and language, aiding innovation and productivity. As entrepreneurs, we must be optimists and explore the possibilities AI offers. For a country like ours, AI presents opportunities for leapfrogging. However, this also brings risks of disruption. Businesses relying on complex AI systems must prioritise resilience to protect revenues, reputation, and market share.
In my own experience, resilience was crucial when building my startup. We won a mandate from a top global IT services player, which emphasised the importance of business continuity planning and disaster recovery. This experience taught us that resilience should be integral to our architecture and strategy. The IT services industry, which has played a significant role in India's emergence, faces potential impacts from AI. The cost and labour arbitrage that fuelled outsourcing is now challenged by AI-driven efficiency. Chennai, as a major exporter of software services, must adapt to the AI-led services model. The sector has shown resilience through past disruptions, such as the dotcom bust and the global financial crisis.
India's tech services industry has the potential to create new jobs by leveraging its young, AI-trained
population. The value is shifting from hardware to foundational models and applications, where India has an inherent advantage. Though disruptions are inevitable, I am very sure that entrepreneurs and leaders in India will seize these opportunities and create new jobs, driving the country's progress.
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Manikandan Thangarathnam
Senior Director, Mobility and Platforms, Uber
The tech landscape has undergone massive shifts. I remember building large-scale distributed systems at Amazon, a complex undertaking requiring top-tier engineers. Then cloud computing emerged, offering APIs that commoditised these capabilities. Tasks that once demanded huge teams like storing petabytes of data became easily achievable with services like Elastic, or cloud compute.
This ease of development led to an explosion of data, driving the focus towards data analytics and
intelligence. Now, AI is the buzz, but I believe it too will become a commodity. Building AI-powered solutions is already faster and easier, requiring fewer specialised engineers because algorithms are readily available.
So, what should organisations prioritise?
* Speed: With readily available tools, how quickly can you build? The answer should be: very fast.
* Efficiency: You don't need massive engineering teams anymore. Focus on building end-to-end systems with smaller, highly skilled teams.
* Reliability & Scalability: How well does your system perform in production? Reliability and scalability are crucial.
* Cost: What are you spending on these commoditized APIs? Cost optimization is key.
Customer expectations evolve rapidly. Consider Uber: Users once patiently waited minutes for a ride, now they expect instant service. Reliability is extremely important. At Uber, we handle millions of trips daily across thousands of cities. Imagine a small config change breaking functionality in a single city. Identifying and addressing such anomalies quickly is vital.
Focus on solving real problems, not just chasing the latest technology. Don't ask, "How can I use AI?"
Instead, ask, "What problem am I trying to solve, and what technology – including AI – is best suited for it?" Choose problem statements that will remain relevant. For example, the need for affordable, reliable, and safe transportation will always exist. This led us to explore high-capacity vehicles, which presented complex challenges in routing, stop placement, and driver optimisation. We then leveraged AI to optimise routing and maximise bus utilization. It took years of experimentation to build a profitable business.
What about academia? While curricula evolve, the focus should remain on foundational knowledge. Vertical expertise comes from practical application. The real issue isn't a lack of jobs; it's a lack of qualified candidates. Companies like Uber are actively hiring, but we need individuals who can write the best code, not just any code. The same applies to AI. It's not enough to say you ‘know’ AI; you must be able to build, tune, and measure the accuracy of models. Don't wait for curricula to change. Take responsibility for building your own expertise. The resources are available; it's up to you to leverage them.
India’s resilience demands bridging rural‐urban divides via technology, finance, and education Panelists highlight inclusive growth, community empowerment, strong foundational learning, and accelerated digital transformations post‐COVID.
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Varun Prakash Partner, McKinsey & Company
Two-thirds of our population lives in rural areas, making social resilience and transforming the rural economy critical topics. Half of our population is engaged in agriculture. Our penetration of MSMEs (Micro, Small, and Medium Enterprises) is 10 to 20 percentage points lower than that of other large developed nations. 20 to 25% of our population is likely below the multidimensional poverty line as
We have built foundations that we can continue to build upon. We are the fastest-growing large economy in the world
defined by NITI Aayog. All this indicates that we are a work-in-progress when it comes to social resilience.
However, there are also green shoots and momentum. We have built foundations that we can continue to build upon. We are the fastest-growing large economy in the world, growing by a couple of percentage points. Our agricultural productivity has tripled over the last two decades in terms of per capita GDP contribution. Similarly, we are starting to create more MSMEs, with about 650 million people having access to the internet, a significant number of them via smartphones. There are many foundations to build upon as we consider social resilience and transforming the rural economy.
Dr E M Sudarsana Natchiappan
Senior Advocate, Supreme Court of India and Former Union Minister
After COVID-19, it feels like we have gone back centuries, reminding us of the potential in our villages and rural areas. The topic of social divisions is important, but in the digital world, these divisions have largely disappeared, except for politicians. People are more interested in showcasing their intelligence, capabilities, and skills, which are also present in rural areas.
Following the COVID-19 disaster, many urban residents moved to rural areas, bringing their knowledge and skills with them. This has led to a resurgence of interest in rural areas, where people have discovered the fertile opportunities they had previously overlooked while seeking urban jobs. Villagers are now well-equipped with digital tools and skills, contrary to the stereotype that they lack expertise. They are ready to meet the exacting standards of the digital world.
In the past, factories were located near ports, airports, railway stations, and highways. Now, with digital connectivity, factories can be located in
villages. Many merchants order fresh vegetables, milk, and other products directly from villages. The digital world has shrunk distances, and we need to plan accordingly.
Social divisions are narrowing in the digital world, and knowledge is at our fingertips. Villagers no longer need to seek knowledge elsewhere; everything is available digitally. We must modernize and harness the digital exactness available in rural areas to create a resilient society.
Due to COVID-19, many urban residents have returned to their villages, especially IT professionals who can work from home. They enjoy the nature, social structure, celebrations, and group activities in rural areas. This has led to a shift in urban thinking, with people seeking smaller, eco-friendly living spaces and working remotely.
We are moving away from relying on political systems for basic services. Instead, we are creating self-sufficient communities. Villages are being transplanted into urban areas, and urban areas into villages. This new situation requires us to recognise and utilise the talent in rural areas. Youngsters and other human resources in villages have ample time and access to digital tools, allowing them to connect with the world and gain knowledge easily.
The world is shrinking, and we must plan accordingly. Factories can now be located in villages, and merchants can order fresh products directly from rural areas. Youngsters have ample time to work efficiently and contribute meaningfully, even while traveling.
The digital world has narrowed social divisions and made knowledge readily available. We no longer need to waste time searching for information in libraries or traveling for discussions. The digital audience is much larger now, and people can gain knowledge from their mobile phones.
Before COVID-19, people living in cities rarely returned to their villages for festivals like Diwali or Pongal. Now, millions of people leave the cities for a few days or a week to reconnect with their roots. This shift in thinking has been influenced by global leaders like Trump, who encourage people to stay in their home countries and use their knowledge locally.
People now seek eco-friendly environments, whether indoors or outdoors. This resilience and love for the environment were present centuries ago and are being rediscovered today.
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Dr Rukmini Banerji CEO, Pratham Education Foundation
Iwork for a group called Pratham, which primarily focusses on young children pre-primary, primary, and to some extent, youth. As Pratham, we engage
The future of India in 2047 depends on the children in early grades today.
in a variety of initiatives, with three major areas of work:
Direct Community Engagement: We work directly with communities, both urban and predominantly rural, supporting young children and youth.
Research and Education Status Reporting: We publish the Annual Status of Education Report (ASER) each year. This report provides insights into the state of education in the country.
Bridging Evidence and Experience: We integrate findings from ASER and our field experiences to contribute meaningful insights to broader discussions on education.
The 2024 ASER report was released about two weeks ago. It is a simple yet extensive survey conducted in every rural district of India. This year, we covered approximately 605 rural districts, surveying households and assessing children aged 3 to 16. The scale of the survey makes it one of the largest household-based education studies in India, outside of government efforts. In 2024, around 650,000 children participated, ensuring robust sample sizes for each age group.
The COVID-19 pandemic had a significant impact on the education system. India was among the countries where schools remained closed for the longest period nearly two years. The last ASER report, in 2022, reflected the situation immediately after schools reopened. In contrast, the 2024 report provides a post-pandemic perspective, showing continuous school attendance for two and a half years.
One major concern during COVID was whether children would return to school. The data, however, shows the opposite enrollment levels are higher than ever. For over a decade, India has maintained above 95% enrollment in elementary schools, even in rural areas. Post-COVID, this number has risen further, demonstrating that Indian families value education deeply.
There were also concerns about older children particularly girls dropping out. However, the data indicates that more older children have returned to school than ever before. In short, school enrollment levels in India are at an all-time high.
ASER goes beyond enrollment numbers to assess whether children are actually learning foundational skills. Foundational learning means ensuring that after a few years in school, children can:
• Read simple text in their native language.
• Perform basic arithmetic operations.
Looking at long-term ASER trends since 2005, we observed that in the early years, nearly 50% of children in rural India, even by Standard 5, struggled with basic reading and arithmetic. While there have been improvements over the years, progress was slow typically a 1-2 percentage point increase per year. However, the good news from the 2024 ASER report is that this number has now jumped well into the 30s a significant improvement.
During COVID, learning levels had dropped to the low 20s due to prolonged school closures. But now, we see a sharp rebound. This suggests that large improvements in learning outcomes are possible within short periods, giving confidence to policymakers, educators, and families. If such progress can be achieved in two years, even greater improvements can follow.
During the pandemic, while schools remained closed, India introduced a new National Education Policy (NEP). This policy has far-reaching implications across all education levels. Specifically, for primary and pre-primary education, key changes include: Recognizing ages 3-6 as part of formal education. Previously, early childhood education existed, but it is now formally included as the ‘Foundational Stage’ (ages 3-8); Viewing early education as a continuum, ensuring a seamless transition from preschool to primary school.
This shift means that young children now have a longer, structured runway into formal education. The
significant learning improvements seen in Standard 3 today may be attributed to: consistent schooling postCOVID; implementation of NEP reforms; and parental involvement. During COVID, families across all income levels played an active role in their children’s learning. This engagement has continued post-pandemic, positively impacting early learning outcomes.
Why should businesses, policymakers, and global organisations care about third-grade students in rural India? India has 25 million children in each grade level. 125 million children are currently in the foundational learning stage. A child who is 8 years old today will be in their late 20s by 2047 India’s 100th year of independence. The capabilities we nurture in today’s young children will shape India's future workforce, economy, and global competitiveness.
A particularly interesting demographic is the mothers of children aged 3 to 8. This group represents the first generation of mothers who have benefited from India’s elementary education expansion over the last 15 years. Comparing 2010 to 2024, today’s young mothers have significantly higher education levels. Across most states, over 50% of mothers have at least completed Standard 5, with a few states like Rajasthan, Uttar Pradesh, and Bihar slightly below but catching up. These mothers have three key characteristics: high aspirations for their children; basic education that can support children’s learning; and low labour force participation – particularly in
rural areas, where opportunities remain limited. While India has developed strong youth skilling programs, there is still a huge opportunity to engage educated young mothers both to support their children’s education and to contribute productively to the economy.
Ensuring strong foundational learning is not just the government’s job, nor only the responsibility of parents. It is a collective responsibility. The future of India in 2047 depends on the children in early grades today. If we aim for a globally competitive, resilient economy, investing in foundational education must be a national priority.
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P N Vasudevan MD & CEO, Equitas Small Finance Bank
India is on the path to becoming the third-largest economy, set to surpass Germany and Japan within a few years. While this is a remarkable achievement, the key question remains: is this economic growth benefiting all Indians, or just a select few? The government once proposed renaming India as
Since independence, multiple efforts have been made to drive financial inclusion.
‘Bharat’ a move that could have symbolized the inclusion of the vast rural and underprivileged population. Today, the divide between ‘India’ the urban elite and ‘Bharat’ the rural and marginalised remains stark. The challenge is ensuring that the benefits of our rapid growth reach all 140 crore citizens, not just a privileged segment.
Since independence, multiple efforts have been made to drive financial inclusion. In 1969, nationalisation of private banks happened to extend banking services to the masses. 1970s saw the introduction of Priority Sector Lending (PSL) mandates to ensure credit reaches underserved sectors. Regional Rural Banks (RRBs) were established to focus on rural banking needs but they were largely phased out. One of the most successful financial inclusion models initiated under Dr. Rangarajan’s leadership was the Self-Help Groups (SHGs). Then came the Small Finance Banks (SFBs) which are aimed at expanding financial access. However, their long-term impact remains to be seen. Despite decades of initiatives, financial exclusion remains a pressing issue.
Less than 15% of Indians have access to bank
loans. Credit card penetration is below 12-13%. Only 5% of micro and small enterprises receive bank credit. The unmet credit demand of the lower-income segment is around 50 lakh crore, while total banking credit in India is approximately 250 lakh crore indicating a 20% gap.
While policies and regulations have evolved, the core issue remains, which is insufficient banking infrastructure to serve the underserved. The RBI has taken steps by introducing on-tap banking licenses, allowing entities to apply for a bank license anytime instead of waiting for limited application windows.
But policy alone isn’t enough. We need 100-200 more banks, not just a handful, to bridge this gap. The good news? Starting a bank today is not as daunting as it once seemed. With the right vision and determination, capital will follow. The success of recent IPOs shows there is no dearth of investment; what’s needed is intent and action.
As was said in an earlier session, a resilient India starts with you and me. Similarly, an inclusive India must start with us. Financial inclusion is not just a government responsibility; it is a collective mission. Let’s work towards a future where economic growth uplifts all, ensuring that when India becomes the world’s third-largest economy, Bharat is not left behind. The path is clear. The opportunity is here. Now, it’s up to us to take the lead.
Varun Prakash: From your conversations with the customers in rural areas that you work with, what would it take for them to transform their lives? What are the facets of change that they would like to see to make this happen?
P N Vasudevan: The problem of inclusion is very high even in urban areas, but in rural areas, it becomes even more difficult because access becomes a big issue. At least in urban areas, access is not an issue; affordability may be. So, why are people moving and migrating out of villages? They migrate because they don't have access to finance, livelihood, quality education, or quality healthcare. To lead a decent life, they believe they have to go to urban areas to earn money.
Addressing this is a big issue, and it's not a small one at all. In fact, we have taken one village near Kanchipuram as a role model to see if we can completely enable reverse migration by empowering that village or that cluster of villages on all fronts. We have been at it for almost a year now, and I can tell you, we are still at the surface. We haven't been able to penetrate deeper. We have come to the conclusion that we need a large amount of governmental intervention. Ideally, it should be a government‐led project with the private sector, like us, providing support. That's the challenge of rural areas especially access.
Varun Prakash: Dr. Banerjee, you mentioned that in education, access may no longer be the challenge.
Enrollment and basic literacy levels are sufficient, and children aged three to eight are getting better educated. However, earlier speakers emphasised the need to become a product economy, which requires capabilities and expertise. Considering the journey from learning basic arithmetic to building a product company in a rural area, what would it take?
Dr Rukmini Banerji: That's a long leap, but I'd like to highlight a couple of points. Beyond the basics, there's a significant gap until reaching excellence. In middle schools ﴾grades 6, 7, and 8﴿, many children lack foundational skills, hindering their progress. By the time they face the pressures of 10th and 12th exams, there’s little room for innovation unless we reform the examination system.
For ages 14 to 18, a crucial group, many children have high, traditional aspirations for white‐collar jobs but lack interest in vocational training. Despite the potential of vocational skills, the academic focus on white‐collar jobs persists, making it difficult for young people to embrace alternative career paths. Entrepreneurial skills can't develop suddenly at 30; they need to be cultivated from a young age through family influence or experiences. Our education system focuses on individual excellence, but the real world needs collaborative problem‐solving skills Many parents prioritise academic success over diverse experiences that could benefit their children.
We need to provide young people with practical work experiences before they enter the labour market, freeing them from the sole focus on exams and white‐collar jobs. This approach can prevent disappointments linked to unrealistic expectations about traditional
career paths. For instance, in rural Chhattisgarh, middle school students worked on understanding water supply issues in their village. This hands‐on, locally‐based project yielded solutions that even children could discuss with their panchayats. Encouraging such practical projects can connect students to real‐life situations and foster problem‐solving skills. We should look at examples where community‐driven solutions are effective and build on them. Connecting students to real‐life situations at different ages is essential for holistic development.
Varun Prakash: How can we strengthen community‐based organisations to help them perform better and govern better?
Dr E M Sudarsana Natchiappan: I can list about 15 parliamentary enactments. For example, the Food Security Act, Right to Education Act, Right to Health, and the Panchayat Act.
The Panchayat Amendment and Constitutional Amendment Act empower the Gram Sabha, the lowest assembly at the village level, to plan and implement projects using local resources like water channels, tanks, and other community properties. Funds are allotted by both central and state governments. Scheduled tribes have been given land rights for the first time. The Mahatma Gandhi Rural Employment Scheme ensures the right to work, aligning with the Directive Principles of State Policy. The Right to Information Act creates awareness among villagers about the utilisation of public funds for community projects. The Women's Property Act and village planning initiatives also play a crucial role.
Village courts and mediation centers have been established to reduce litigation costs. Disaster management centers connect villagers with real‐time climatic information. Rural health centers and cooperative societies for finance, milk, traditional handicrafts, and food exports provide livelihoods. For example, in my area, Chettinad, village housewives make beautiful baskets that are exported to foreign countries. Community‐level thinking has moved beyond caste divisions, although some clashes are created by social engineering. Politicians may exploit divisions for votes, but in the digital world, there is no difference. After COVID‐19, many graduates, engineers, PhD holders, and IT specialists have returned to their villages to manage their areas with their knowledge. This is a significant development.
P N Vasudevan: Extend financial inclusion efforts to your neighbourhood and sphere of influence, helping those in need.
Dr Rukmini Banerji: Focus on the value added by each year of schooling. As institutions, prioritise human development over infrastructure in CSR initiatives. Encourage young people to explore real‐world learning experiences outside of traditional academics.
Dr E M Sudarsana Natchiappan: Urge youngsters to bring people out of their ‘comfort zones’ and encourage their participation in society and national development. India has significant potential, and its knowledge should be harnessed for progress.
Panelists address global shifts, emphasizing India’s resilience through foreign policy continuity, autonomy, tech‐readiness, and domestic strength while navigating evolving security challenges in a multipolar world IItt' 'ss n noot t eennoouuggh h tto o eexxcceel l eeccoonnoommiiccaallllyy… …
Amb
Former Ambassador / Permanent Representative of India to the UN and Former Secretary, MEA
We have now entered an era of conflicts marked by violations of international law, not only with impunity but also without accountability. We face global challenges like climate change and energy concerns. Therefore, this is the right time to discuss geopolitical resilience.
However, geopolitical resilience is not as easy to
quantify as economic, financial, or infrastructural resilience. I plan to outline five attributes that India possesses, which can enhance our geopolitical resilience, primarily focusing on the foreign policy aspect.
Continuity in Foreign Policy: Our governments have built upon the foreign policy successes of their predecessors, creating a thread of continuity. This is a key attribute of India's resilience. Unlike the significant foreign policy swings seen in other countries, such as the United States when power transitions between Democrats and Republicans, India maintains a consistent approach. A prime example is how we have preserved the nuclear option and refused to sign the NPT. This stance has enjoyed parliamentary consensus. Prime Minister Indira Gandhi initiated Pokhran-I in 1974, followed by Prime Minister Vajpayee with Pokhran-II in 1998. Notably, in 1996, Prime Minister Deve Gowda decided against signing the CTBT. This demonstrates the resilience built into our system.
I advocate for a larger role in conflicts, even those not directly impacting us, as our growing influence means they will eventually affect us.
Domestic Policy as a Driver: Domestic policies drive our foreign policy. Thanks to our unique freedom struggle, India had a strong moral voice in international affairs, particularly within the NonAligned Movement, where we took an independent stance. With India's economic, technological, and defence advancements, our voice in international affairs has grown stronger. Domestic resilience has thus promoted geopolitical resilience. As we rise as a country, we seek a greater voice in global matters, such as UN reforms, advocating for a permanent seat in the Security Council, given our contributions to the UN. It's not enough to excel economically; we must also engage politically in world conflicts. I advocate for a larger role in conflicts, even those not directly impacting us, as our growing influence means they will eventually affect us.
Independence of Action and Decision-Making (Strategic Autonomy): We are fortunate to have independence in our foreign policy decisions, or strategic autonomy. Many developing countries lack this due to their size, geographical vulnerabilities, or other factors. India's rich tradition of statecraft, from the Arthashastra to the Tirukural, has enabled us to maintain this independence. During the Cold War, we formed the Non-Aligned Movement, a powerful political force. Today, facing a world with the United
We have also provided leadership to developing countries, particularly the Global South, demonstrated by our efforts during our G20 presidency to ensure African representation.
States/European Union on one side and China/Russia on the other, we again refuse to align with either bloc. We call this multi-alignment, engaging with all parties without joining a specific bloc. Our abstention vote on Ukraine reflects this stance. As Prime Minister Indira Gandhi said, "We stand upright," when she was asked, "Do you lean left or right?"
Leadership: We have been fortunate to have Prime Ministers who focussed on foreign policy, regardless of political affiliations. Even those with short tenures like Lal Bahadur Shastri displayed resolve in this area. We have also provided leadership to developing countries, particularly the Global South, demonstrated by our efforts during our G20 presidency to ensure African representation. Our development partnerships, including assistance, grants, lines of credit, and human resource development, amount to over $35 billion.
Civilizational Context: We are increasingly conscious of our civilizational context. Initiatives like the International Day of Yoga, the International Year of Millets, the International Solar Alliance, the Vaccine Maitri during COVID, and public digital infrastructure all reflect this. We frame these efforts under the concept of "Vasudhaiva Kutumbakam." While it may sometimes seem like a slogan, we are actively trying to integrate it into our foreign policy.
It's very early days since President Trump took office on January 20th, and even in these few days, he has caused a huge amount of disruption in international politics, not to mention domestically. Trump has always been known for his transactionalism, but one might have thought that after his first term, he would have learned that transactionalism would not carry the United States too far and would face resistance. However, this time, we are faced with what I might call unadulterated transactionalism.
International relations are not built on transactionalism. If they were, instead of the UN Charter, we could have had a business model on how nations should deal with each other. But we have the UN Charter, international law, principles governing international relations, history, national sentiment, and the complexity of relations between countries. There are cross-cutting issues internationally, which, if
countries don't cooperate and sacrifice some degree of their national interest, will not be resolved and could put humanity at peril. One of the most important issues is climate change. Religion also plays a significant role in governing international relations.
We find that Trump is discarding established norms almost with impunity. Look at his territorial claims. In his inaugural address, he slipped in a few words about the expansion of the United States. The media didn't focus on it. He has laid claim to Greenland, which is puzzling in terms of international relations. This is 19th-century politics, not the politics of today.
He had a difficult conversation with the Prime Minister of Denmark, stating that he needs Greenland for the protection of the free world. It's unclear how India, part of the free world, would benefit from the United States claiming Greenland or occupying it by force. The Prime Minister of Denmark offered more bases and investment opportunities in Greenland, but Trump is determined to acquire the territory by force if necessary. The idea is that the Arctic route will open up due to climate change, and the United States wants a significant role in managing it, competing with Russia and China.
Similarly, Trump laid claim to the Panama Canal. The fact that the United States built the Panama Canal in 1908 is irrelevant. The British and French built the Suez Canal in 1956 and launched military aggression against Egypt when it nationalised the canal, which the
The United States has weaponised the financial system, and now Trump is weaponising tariffs.
United States opposed. Now, Trump is claiming the Panama Canal because China manages part of the port in Panama. This creates problems in international relations and American policy, reminiscent of the Monroe Doctrine in Latin America.
He is also laying claim to Canada, wanting to incorporate it into the United States, showing little concern for how the rest of the world views these territorial claims. This unilateralism of the United States has been revived under Trump. One might have thought that after the unilateral phase of US foreign policy under President Bush Jr., the lessons learned would have made the United States more cautious in playing the role of a world policeman. But Trump is determined to impose his will on others.
The United States has weaponised the financial system, and now Trump is weaponising tariffs. He has unilaterally announced tariffs: 25% on Canada, 25% on Mexico, 10% on China, and threatened 25% tariffs on aluminium and steel exports to the United States. He has threatened BRICS with 100% tariffs and said the United States will impose as many tariffs on other
countries as they impose on US products. This will break down the only system governing international trade, the WTO.
To my mind, the "Make America Great Again" (MAGA) agenda is a reassertion of US primacy. It reflects Trump's belief, or that of his base, that the US has lost ground in recent years, especially with China's rise, and must recover this lost ground. Making America great again is not just a domestic goal but also an international one, aiming to impose its will on others using America's inherent strengths.
Disregards for Trump has stated that any move by any country to de-dollarise will result in 100% tariffs on that country. He is breaking down the already declining multilateralism in international affairs. He has walked out of the WHO, the Paris Climate Change Agreement, and the UN Human Rights Commission. He shows disregard for the Global South, undermining the leadership role we have managed to take during our presidency of the G20 when we expanded it to G21 by including the African Union as a permanent member.
Now, trends indicate that he will combat the Global South's increasing importance in international affairs, affecting India's role as a leader of the Global South. The US Secretary of State has announced that he will not attend the G20 foreign ministers' meeting in South Africa due to dissatisfaction with South Africa's domestic land acquisition policies. The G20 is the only body that includes both the G7 and rising
economies, playing an influential role. If the G20 is weakened by non-participation, there will be no global forum to manage and harmonize the divergent interests of developed and developing countries.
Trump's politics towards Russia are unclear. He has claimed he wants to find a solution, initially saying he would do so in 24 hours, then giving himself 100 days. He has announced contact with President Putin, and there has been a change in President Zelenskyy's language, indicating that Ukraine cannot rely solely on the European Union in its conflict with Russia.
However, finding a solution is difficult because Russia's demands are clear: Ukraine must be neutral, cannot join NATO, and the territories acquired by Russia must be recognized as Russian. There must also be security guarantees for both Ukraine and Russia. It is challenging for the United States or Trump to make concessions on these points without facing condemnation from Europe, domestic Democrats, and US lobbies. This would be seen as a strategic defeat for the United States, undermining NATO's basic charter, which allows any country to join.
Denying Ukraine's right to join NATO would create serious divisions between Europe and the United States. Trump has previously questioned NATO's relevance, suggesting that Europe cannot ensure its security without the United States. The Baltic States and Poland depend on the US for security,
and Germany hosts several US bases, including nuclear weapons. Europe is unlikely to accept France's dominance, relying instead on the US nuclear umbrella for security against Russia.
A couple of positive actions by Trump include his strong pushback against wokeism, which has had a significant effect on other countries, including India, where this social issue had begun to complicate society. On immigration, Trump has taken robust steps to deal with illegal immigrants, sending 104 Indian illegal immigrants back to India in a military plane. This has caused political reactions in India and embarrassed the government. Trump wants to convey that he will be tough on this issue with allies and everyone, including India. There are two sides to this issue, and I won't delve into whether he is right or wrong.
On Modi's visit to the United States, Trump has already made his expectations known in the White House readout of his telephonic conversation with Prime Minister Modi. Apart from some positive remarks about the relationship going forward, Trump emphasised the need for more market access to India, reduced tariffs, and increased purchases of security equipment, including defence material from the United States. They want to sell the Stryker armoured vehicle, the Javelin anti-tank missile, and aircraft like the F-35, which was showcased at the Bangalore show. There will be pressure on us, and we need to see how this fits into our Atmanirbhar Bharat (self-reliant India) initiative in defence manufacturing.
We need to find ways to satisfy Trump on tariffs. Some budget decisions theoretically open up possibilities for US products in India, but this is not serious. We want to engage in trade negotiations with the United States, aiming for a bilateral trade agreement where both sides give something. It can't be done unilaterally. For that, Trump needs permission from Congress to enter into trade negotiations.
Regarding technology, we had the ICET (Initiative for Critical and Emerging Technologies), a major plank of our expanding technological cooperation with the United States. It was making progress, though slowly, and was handled by the national security advisors on both sides. This will continue, but Trump will rebrand it. There's also the issue of H-1B visas, which is of great interest to our business community. Trump has made contradictory statements on this, wanting highly talented people but also limiting legal migration. Let's see what the final decision will be.
There is a personal rapport between Modi and Trump, and there is hope that we can attenuate some of the unreasonable demands made on us and engage him at the highest level. Some of Trump's key appointees, including the Secretary of State, the National Security Adviser, and the Director of National Intelligence, Tulsi Gabbard, have a positive attitude towards India. This is nothing new, and we can count on them including the US Vice President Vance to help address some of Trump's aggressive demands.
People surrounding Trump are extremely hawkish on China, making India a valuable partner in that larger context.
The issue of Islamic terrorism is another area where we could strengthen our cooperation. Trump used strong language in his inaugural speech, and this could be a point of collaboration. There is also the nuclear issue, specifically modular nuclear reactors. This will be discussed during Modi's visit, though we are cautious about developing our own technology and not becoming dependent on others.
When our foreign minister visited the United States for the inauguration, it was remarkable that they had the Quad meeting, and the first foreign visitor the new US Secretary of State met was the Indian Foreign Minister, even before the Japanese Foreign Minister. In diplomacy, these gestures have meaning. People surrounding Trump are extremely hawkish on China, making India a valuable partner in that larger context. Although Trump himself makes conflicting statements on China, he publicly invited President Xi Jinping to his inauguration and stated that the US and China working together could solve the world's problems. US policy will remain targeted at China as a competitor, but they also want to manage that vital relationship and maintain stability. In this context, India has value, and Trump is expected to attend the Quad summit in India this autumn.
Lt Gen S L Narasimhan, PVSM AVSM VSM
Former Member, NSAB & DG, Centre for Contemporary China Studies
To frame our discussion, consider that national security today is no longer confined to conventional threats. We must address both traditional and non-traditional security issues.
Traditional security encompasses military aggression from ground conflicts to space warfare as well as espionage, economic warfare, and resource conflicts. Non-traditional security covers challenges such as climate change, health crises (like the COVID19 pandemic), food security, energy and technology disruptions, and issues related to illegal, unreported, and unregulated fishing and water security.
For effective national security and resilience, we must view these threats together. National security is not limited solely to territorial integrity and sovereignty such as defending against border attacks from countries like China or Pakistan but also includes threats that affect our daily lives. For example, the COVID-19 pandemic paralyzed entire
The war in Ukraine, for instance, affected global grain, fertilizer, and oil supplies undermining food and energy security worldwide.
nations, reshaping our understanding of security.
Security concerns often shift between traditional and non-traditional priorities. Before COVID, health issues were rarely considered a security threat; the pandemic sharply refocused our attention on public health. Similarly, incidents like the Galwan clash redirected focus toward territorial security. Moreover, traditional threats can extend beyond borders and evolve into global challenges. The war in Ukraine, for instance, affected global grain, fertilizer, and oil supplies undermining food and energy security worldwide. Likewise, piracy in regions like the Gulf of Aden increases shipping risks and drives up insurance costs, illustrating the interconnected nature of these threats.
Border Security: India faces challenges along its active borders both western and northern as well as through trans-regional movements along porous areas like the Myanmar border.
Internal Insurgencies: We contend with insurgencies in the Northeast, in Jammu and Kashmir, and from Maoist elements operating within the
Non-traditional security threats, such as climate change, water scarcity, and energy challenges, also pose significant risks.
country. Although most areas are largely under control (with a few exceptions, such as in Manipur), insurgency remains a persistent challenge.
Cyber Security: As evidenced during the Galwan incident, cyber attacks can disrupt critical infrastructure like the Western electrical grid and have a profound impact on daily life.
Our vulnerability to external events became evident in January and February 2020, when China's lockdown due to COVID-19 caused significant manufacturing disruptions in India. This highlighted our extreme dependency on intermediates and machinery from China, posing a severe national security risk. Active pharmaceutical ingredients (APIs) are another critical vulnerability, as our reliance on external supply chains affects our manufacturing and sustainability.
Economic warfare, such as China's trade deficit with India and the numerous non-tariff barriers hindering our exports, affects this vulnerability. Similarly, the ongoing US-China tariff war impacts our security. Ambassador Sibal mentioned Trump's threats to impose tariffs on India, which further underscores the economic warfare we face.
Non-traditional security threats, such as climate change, water scarcity, and energy challenges, also
China aims to deny India opportunities multilaterally, gain regional dominance, and apply bilateral pressure on boundary and economic issues.
pose significant risks. For instance, China's plan to build a dam on the Brahmaputra River threatens downstream water security in India. As a waterstressed country, our future water requirements are becoming increasingly problematic. Climate change affects us all, as does energy security.
In the Indo-Pacific region, groups of countries are increasingly influential. From the Pacific Island countries to ASEAN, South Asia, Central Asia, and Africa, regional dynamics are shifting. The interplay between China's Maritime Silk Road and the Europeproposed India-Middle East-Europe Economic Corridor (IMEC) will shape the future. The West Asian countries will have a major role in this dynamic, with military bases and strategic interests coming into play. China's aspirations to build military bases in the Indian Ocean add complexity to Indo-Pacific relations.
China aims to deny India opportunities multilaterally, gain regional dominance, and apply bilateral pressure on boundary and economic issues. India's response involves cautious external balancing, maintaining relations with key global players like the
US, Russia, the EU, and West Asia, and participating in various multilateral groupings. Building deterrence against China is crucial, and initiatives like Atmanirbhar Bharat (self-reliant India) are essential for resilience.
China's advancements in cyber capabilities and artificial intelligence pose significant threats. The Chinese PLA's order for one million drones by 2026 highlights their technological ambitions. India must scale up efforts in areas like AI, quantum technology and space surveillance to keep pace with China's developments.
The MMA Annual Convention 2025, on the theme, ‘Foundations for Building a Resilient India,’ was held on 12 February 2025 at Hotel Taj Coromandel, Chennai. A session on 'Mental Resilience: Leadership in Times of Volatility' was moderated by Dorte Landwehr, Director of Operations, McKinsey South India
The panel discussion featured distinguished experts: Dr. Amit Bhattacharjee, Mentor and Sports Psychologist; Commando Praveen Kumar Teotia, Shaurya Chakra awardee; and Gautami Tadimalla, Film Artist and Social Worker.
Dorte Landwehr
Director of Operations, South India, McKinsey & Company
The world's increasing complexity and volatility demand constant adaptation from leaders and employees, impacting both professional and personal lives. Recent research highlights that only 31% of leaders in advanced industries feel prepared to face upcoming challenges. Around 60% of employees globally experience at least one mental health challenge in their lifetime, and one in four workers experiences burnout. This session aims to offer personal insights into resilience, stress management, and mental well-being from our expert guests, benefitting individuals, teams, organisations, and families alike.
Your conscious mind commands, and your subconscious mind believes and acts accordingly.
Dr Amit Bhattacharjee
Mentor ﴾Olympic Gold Medalist﴿, Sports Psychologist, PGIMER, Chandigarh
Iwill share the journey to winning a gold medal. From there, I will build the story of how stress management can foster a resilient India, good human beings, and successful entrepreneurs. It's crucial to understand that stress is a major killer today, and we must address it, especially in sports.
Our journey began in 2000 when Abhinav Bindra scored 590 out of 600. The final required 591, so we missed it by one point, requiring us to work for the next four years, leading to the 2004 Athens Olympics. We tried to understand what we were missing, delving into technology. I've been to six Olympics and 48 countries to understand this, blending meditation with the latest scientific techniques. Each year, several of my students compete in the Olympics or become IAS officers, excelling in golf and cricket. Many people are thriving.
While I am a doctor at PGIMER, sports psychology is a great passion for me. We began studying the Chinese, who were leaders in the field, examining their meditation practices and biomechanics. I pursued two
or three PhDs, which were not very popular then, and became an Ericsson-certified coach. Abhinav was a true fighter who never gave up, and we started working on every aspect of his performance. In 2004, we reached the final. Imagine 47 people competing in the preliminaries, with only eight advancing to the final. We entered the final in third position. However, we dropped to seventh, missing a medal.
This is where the story of stress management and anxiety begins. Abhinav put his gun down and asked, “Sir, I've worked four years for this day. Is my destiny decided in two hours? I had been doing yoga, shooting, swimming, and all sorts of exercises.”
Luck does exist, but nothing is easy in the Olympics. We missed by one point in 2000, reached the final in 2004, and then used therapy. With that therapy, we became world champions in Zagreb in 2006. Then, in the 2008 Olympics, we won our first gold medal, beating the defending Chinese champion.
If you meditate, you can foster a resilient India. I believe you are all sportspeople, and I believe in the science we are working on.
If you meditate, you can foster a resilient India. I believe you are all sportspeople, and I believe in the science we are working on. We can start enjoying life from ages 70 to 85. Look at the energy of Donald Trump. You too can make it. If someone has diabetes, high blood pressure, thyroid issues, or even cancer, they can try to reverse or at least, slow it down and enjoy life with a simple meditation pattern called Dead Man Therapy, which I still use for sportspeople. It combines ancient theory with modern scientific techniques, including biomechanics and breathing patterns.
Most of us don't know the true meaning of meditation. Remember that the 'Paramashakthikhan’ (supreme power) is a part of our brain that controls our conscious and subconscious minds. It is a divine energy, a treasure within you. What you tell your conscious mind, your subconscious mind passes to the paramashakthikhan, which works on it, and it's 12 times stronger than the conscious mind. The conscious mind is only 6-8%. It is focussed on daily routines. People who reach the Olympics develop their subconscious mind, connecting it with their paramashakthikhan. That connection releases dopamine, the happy hormone. Once you are happy from the inside, in both body and soul, you can lead a
resilient India. The 8-10% conscious mind is connected to the 88% subconscious mind.
Don't say 'I may,' but say 'I can' and 'I will.' If you tell yourself at night that you need to wake up at 6:30 am to catch a train at 9:00 am, you will automatically wake up at 6:30 without an alarm. Your conscious mind commands, and your subconscious mind believes and acts accordingly. Therefore, you must control your conscious mind so that your subconscious mind can communicate with the paramashakthikhan, which will provide the energy to make you happy and successful from 70 to 85.
We're often kinder to others than ourselves, expecting perfection.
Ms Gautami Tadimalla Indian Actress and Social Worker
As an actress, it's a privilege to be known by many of you, and I don't take that for granted. From childhood exams to building careers and families, we're constantly judged by others and ourselves. There's no escaping it. I want to share my observations on navigating stress and challenges.
We're often kinder to others than ourselves, expecting perfection. But the most liberating lesson
I've learned is that you are perfect as you are – with your dreams, skills, strengths, and weaknesses. It's a hard lesson, and I'm still learning it. Internalise this for stressful times. Each of you is already a winner and a success. You've overcome so much –expectations, finances, a crazy world – to be here. Recognise how amazing you are. You've made it this far brilliantly. The rest of your journey will be empowering. Embed this as fact: as you think, you will be. Understand who you are, how much you've fought, survived, and conquered to be here. The effort to achieve your goals from this point will be a fraction of what it took to get here.
If you want resilience, you have to find solutions.
Commando Praveen Kumar Teotia, Shaurya Chakra
Ex‐Marine Commando
Iwas in Chennai in 2005 after the tsunami. I was on a ship involved in rescue operations in Sri Lanka, surveying Galle and Colombo Harbour. Afterwards, our team conducted surveys in Chennai, Nagapattinam, Machilipatnam, and Visakhapatnam. After landing in Chennai, I called my mom. My Marine Commando course was about to start on January 7th,
I knew I might not survive, but we had to make a decision for the nation. Dying while saving lives was the better option. I decided to die fighting terrorists rather than allow them to create a hostage situation.
but I was involved in the rescue operation. My ship wouldn't allow me to leave for the course because the rescue was an emergency. My mom told me, 'Someone can snatch anything from your hand, but no one can snatch your hard work.' You can create anything at any time; just believe in yourself.
In June 2005, I went for the MARCOS course and completed it in January 2006. I became one of the deadliest commandos in India, having completed one of the toughest courses in the world. The ratio of successful graduates is very low. We started with 120, and only 13 passed. I participated in many operations, including the 26/11 attacks. That night, my team and I led rescue operations at the Taj Hotel, Mumbai. We were informed by our commanders and went to the Taj.
When we arrived, I saw a man roaming around, trying to make a call but failing to connect. He tried to cross from the new tower to the old heritage wing. I stopped him, saying, 'Sir, you can't cross; terrorists could be anywhere.' He told me his wife and two sons were stuck on the sixth floor and weren't answering the phone. He was the General Manager of the Taj, Mr. Karambir Kang. He tragically lost his wife and two sons, who were in the sixth floor on that night. I
admire his courage to this day; he stood like a pillar to save the lives of the guests.
We learned that four terrorists were in the old heritage wing, intending to take guests hostage. We reached the second floor, near the Chamber Hall ballroom, where 185 people were stuck, including businessman Gautam Adani. There was a door, half glass and half wood. I saw some figures approaching from the other side. I knocked, showed my ID card, and said, 'Sir, open the door. We're here to save you.' But they couldn't open it as it was locked by Taj staff.
My team commander told me there was another door and that there might be more people in that room. We went back into the alley, and I entered a room. All four terrorists were there. After taking about ten steps inside, I heard two AK-47 bursts. I crouched down and waited. Suddenly, I saw a flashlight coming from the terrorists' direction. I opened fire, maybe four or five rounds.
I don't know what happened after that; I lost consciousness as hot blood crossed my neck. It was a burning sensation that can't describe. I opened my eyes and I was alone with the four terrorists. I thanked God I'd survived and started firing again. The fight continued. I decided that I would fight till my last breath for my nation. We continued firing, and I began firing single bullets while they fired bursts at me. After about 25-30 minutes, I realised I couldn't kill them this way, so I had to choose a different option. I had a grenade, so I pulled the pin and threw it towards
them, about 8-10 meters away. I knew I might not survive, but we had to make a decision for the nation. Dying while saving lives was the better option. I decided to die fighting terrorists rather than allow them to create a hostage situation. I counted to ten, but unfortunately, the grenade didn't explode. If it had, the operation could have ended sooner, and we might have saved more lives, including Major Sandeep Unnikrishnan. But God decided something else.
My team thought I was already martyred, so they threw a tear gas grenade into the room. It landed near me and exploded. I was suffocated. I stood up and swept the area, firing from the hip. I was hit by four more bullets. One bullet crossed my right chest and damaged my lungs. I reached the door, and my team pulled me out and took me to the hospital. I survived.
My doctor told me I was a miracle for medical science because I was the only person on the planet to survive lung damage like that. They advised me not to run, swim, or do any strenuous exercise that would affect my lungs. Imagine going from that hospital bed to the red carpet of the Iron Man triathlon. The Iron Man involves a 3.86-kilometer open sea swim, a 180kilometer cycle, and a 42.2-kilometer run, back-toback. I did that in 17 hours, with one lung.
I couldn't walk three or four steps when I was discharged from the hospital. I couldn't climb stairs. For two years, I couldn't lift any weight with my right hand. Now, I do 28-30 pull-ups daily. I started yoga in 2009. The doctors had given up, saying there was no
medicine or help for me in medical science. I did yoga for three to four hours daily. In 2012, I decided to run because a thought came to my mind. Birth and death are not in our hands. We can control only the days we live. I said, ‘If I'm going to die tomorrow, let me die running. I won't live with limitations. I can do this. I will do it.’ The story started there. I started with running 500 meters and ramped up to 150 kilometers, covering Delhi to Mumbai in 15 days.
In 2015, I started my marathon journey. The Defence Forces didn't allow me to participate because of my medical category. I used jugaad – a workaround – and participated in a half-marathon in 2015 and completed it in 1 hour and 53 minutes with one lung. In 2016, I participated in a full marathon with more jugaad. I ran 42.195 kilometers and completed it. Naval Headquarters learned about a disabled war veteran running with one lung. They realised that if I could run a marathon, others could too. The Western Naval Headquarters started a marathon in November 2016, and since then, marathons have started everywhere in the defence forces. One person can change anything; you just have to believe in yourself.
Another incident: the Khardung La Challenge. It's a 72-kilometer run, 39 uphill and 33 downhill from Khardung La top, with very little oxygen, and I had just one lung. I told my wife everything about my accounts and finances because I did not know whether I would return from the challenge. In 2017, after retirement, I finished the challenge in 12 hours and 30 minutes. In April 2018, I went to South Africa for the
Iron Man. After completing 110 kilometers of cycling, my cycle broke down when the derailleur failed. I got it repaired but could use only one gear.
I rode the bike with a single gear for 70 kilometers, including four uphill sections. I completed the Iron Man challenge in 14 hours and 19 minutes. I became the first defence personnel in the nation to complete it; it was history. If you want resilience, you have to find solutions. Don't be rigid; adapt and accept, and you can do anything in life. I became the first disabled Iron Man and the first defence personnel to complete it.
I've now completed four Iron Mans in four continents and am the only person from the defence forces to do so. This year, I'm going for the Comrades Run, which is 90 kilometres in South Africa. Life goes on. I wrote a book, 26/11: Braveheart. I also completed my law degree and I now practice in the Delhi High Court and district courts, still serving my nation. I will continue to do so till my last breath. Jai Hind!
Gautami, You're in the creative field – the performing arts – and I read that you were shooting several films in parallel at some point. That must have been immensely stressful, switching from one thing to another. How did you handle the stress?
Gautami Tadimalla: Acting is very demanding, not just mentally but physically. It draws on all your skills –people skills and environment management skills. Every day, you have to be functioning at 360 degrees all the time. But having said that, I would like to say that life today is pretty much the same for everybody.
My greatest strength is that I don't know how to give up. I don't know how to say "This is too much; I can't do this." Once I've accepted a job, that's a commitment I've made, and I will give it my 100%. It is easier said than done, as it will drain you physically, mentally, and emotionally. I wear many hats in the film industry, both in front of the camera and behind the camera. I've been a single parent for the last 25 years, since my daughter was born. My personal battles with life are common to many of us: health, losing parents, ups and downs.
I have been running from one crisis to another. At one point, I took a deep breath and put a pause on everything around me. You must take a look at the playing field in front of you. Take a piece of paper and a
pen. Write it down. Make flow charts. Draw little boxes. Do a mind map, whatever it takes. Write it down according to the intensity of your responsibility or your challenge. Make the boxes bigger or smaller. Then look at the challenges you are facing – external and internal. What are you feeling insecure about? What are you feeling nervous about? Then think about all the things that you have accomplished. Take a good, hard look at yourself in the mirror and recognize all your strengths and all the qualities that helped you to overcome each one of those challenges. You will have a clear idea of all the weapons you have in your arsenal to fight anything that life throws at you.
Physical fitness is very important. You do not have to be an athlete. I hate running. Find something that works for you: stretch, do yoga, or Bollywood dancing. James Bond Aerobics has helped me a lot. Another major part that can make or break all of your efforts is what you eat. Don't eat something that doesn't agree with you. Go back to our roots. Our traditions have taught us how and what to eat, and that really works. I eat a lot less processed fast food and a lot more Sambar rice, idli, and chutney.
Do journaling every day. If you can find a good counsellor to talk to, just let it out. Talk to someone who is qualified to listen and give you the right answers or guide you on your way to wellness.
How does meditation help in improving our focus and reducing our stress?
Amit Bhattacharjee: The most important thing in achieving anything is your belief system. It's what
helped Abhinav Bindra and Usain Bolt win gold medals in the Olympics. Through meditation, you can strengthen your belief system by easily connecting with your subconscious mind. ﴾Dr. Amit Bhattacharjee demonstrated the first stage of ‘Dead Man Therapy’ using three different types of breathing patterns and sending affirmative messages to the subconscious mind.﴿ The mind is very powerful. Through this technique, you can feel mentally strong. If you improve your mind, you improve your soul, and you will feel happy. Once you are happy, dopamine is released in your body.
