Thread by @AnilKSood5

#Leadership in a Growth-constrained, Information-Age #Economy
Reflecting on conversations 2018 Conclave where business & academic leaders had shared their insights on the constraints that global & the #Indian economy faces & possible solutions.
ideassansideology.org/engagements/le…

2. Demand was identified as the constraint on growth and wage/earnings growth was considered to be the solution. Pandemic has made it worse. But solution is still in growth in earnings - now more than ever.

3. At the end of the day, government is not spending, industry is not spending, and the individuals are not able to spend, and therefore growth is constrained.

4. In the medium term, the global economy faces a larger challenge – a sharp decline in potential growth across the world – particularly in the US, where labour force participation as well as labour force productivity have both come down secularly and structurally.

5. The basic problem that we must address is the lack of demand. Demand comes from consumption, investment, government spending and exports. Consumption is not growing fast enough, as the annual growth in salaries is low and not many new jobs are being created.

6. Consumption and investment can grow only if earnings grow. A credit-led growth has its limits as seen during the global financial crisis and currently in leading emerging markets.

7. A declining savings rate compromises a household’s ability to invest in its future and thereby the economy’s ability to invest and grow in the long run.

8. We need much more equity than we have today, which implies that the Indian financial investor would need to take more risk, if growth has to be financed wisely.

9. Digital technology can help deliver ‘value by design’ rather than ‘value by serendipity’.

A platform approach (portfolio of businesses, products, services, solutions and experiences), built around the core consumer purpose, can help build a sustainable growth organisation.

10. Investing, organic or acquisition, across cycles essential for creating sustainable growth. Investment in digital technology, at this stage, is a leap of faith.
Not any more, though. It is now an absolute must.

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