A generation of freedom

It is the morning of 15th August, and I am writing this article. Today is Independence Day of India, and it feels good to be back home. I have just finished reading a book, ‘India Unbound’ by Gurcharan Das, published two decades ago. Gurcharan is a Harvard graduate who went on to become the CEO of P&G in India. Born in the same year as India’s independence, in his book Gurcharan Das weaves his own life with the journey of post-Independence India.

Why am I writing this article? Few reasons. Still fresh with everything Gurcharan has to say; it’s all over my mind. The concept of independence now has a different meaning—we talk about it. It’s interesting to look at my country from 20 years ago. Most importantly, it’s my favorite story, India’s coming of age.

This is not a book review. Importantly, I steer clear of politics; those views belong to Mr. Das. Instead, I share some intriguing thoughts that have stuck with me.

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When India was just about trying to dust off the centuries of oppression, the Asian Tigers—Hong Kong, Singapore (where I live), South Korea, and Taiwan—took a magical leap out of poverty to become world beaters. As we shackled India with excessive regulation and put a heavy-handed state at its helm that was suspicious of profits, the Asian Tigers opened their economies to free enterprise.

But India is no tiger; she is an elephant. Of all animals, the mighty elephant is the wisest. It remembers the past, takes everyone along, moves slowly yet goes far! Today the benevolent elephant has embarked on its journey. The world is watching.

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If India was once rich, why is it poor now? India over epochs has been the land of riches. Raided for its riches by invaders over centuries, the straw that broke our back was the European rule plunging us into the era of despondency. Why didn’t then India emerge shining bright when the Europeans left our shores? Thanks to the age-old socialist values, India has traditionally never accorded a high place to the idea of making money. Business has always been looked at through a lens of skepticism. Only one of the four in the caste hierarchy is wired to create wealth, but that has now changed. People from all walks of life now aspire to move up the socio-economic ladder. Wealth creation is now no longer looked down upon. Times have changed, and entrepreneurs are the new-age role models.?

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If Indians are so smart, why doesn’t India innovate? A tinkerer combines knowledge with working with hands, and thus you get innovation. Look at the USA, a country built on the foundation of meritocracy and a vanguard in innovations—working with hands is celebrated unlike in India. Even basic menial chores like fixing a leaking water pipeline or changing a flat tire don’t come naturally—most Indians look for help. This possibly has its roots in the age-old caste hierarchy, where working with the mind has been celebrated, working with the hand not so much. No wonder India has been a laggard in innovation. This explains why Indians are good in mathematics and theoretical physicals—but not in experimental physics and tinkering, which is the cornerstone of innovation. That is changing, though not fast enough.

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While a few good things happened immediately after independence, like the green (agriculture) and white (dairy) revolution that led to much-needed food security, Mr. Das speaks of the days when India was held back by the red tape of license raj. The controlled sectors like telecom and electricity with no competition had tardy service. Getting a phone connection could mean waiting for years. Like a well-meaning parent, its intention was to protect India and its enterprise from free competition, assuming that we are less capable. In the process, we set hurdles to compete at a global stage—doing more harm than good. Despite the barriers, a few brilliant companies won on the global stage, like in rayon, steel, diamonds, petrochemicals, and information technology. They succeeded not because of the system but despite the system. Miffed by the officials, the Birla patriarch chose foreign shores to expand while the astute Dhirubhai reached out to the common man to crowdfund the largest refinery in the world. To draw a metaphor, Mr. Das sets foot in the bazaar; it was efficient like an oiled machine. Service was prompt and top-notch. Competition is at the core of efficiency. I loved the way Gurcharan says the bazaar is always efficient and kept the promise of a resurgent India alive. India was always open for business, even when it was not.

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When we look at how nations have transitioned from poverty to prosperity, it is often one sector that becomes the engine of the economy and ushers in the change. In Britain it was textiles; in the USA it was the industrial revolution led by the railways; in China it was the booming manufacturing and exports. Over the last half century, India has unsuccessfully struggled to find its lead sector.

What is the core competency of India that will put India on the growth trajectory? India’s core competency is invisible! Confused?

The information economy is transforming the world. We may not be tinkerers, but we are conceptual people. The world descends here to discover spiritualism. Just as the spiritual space is invisible, so is the cyberspace. The concept of zero was invented in India, and it is at the core of computing. We have wrestled with the intangible concepts of the Upanishads (old Indian scriptures) for over 3000 years. The knowledge age is playing to our advantage, and our success in software is first emerging evidence. We may actually skip the industrial revolution and leap right into the information revolution. India may have finally found the engine that will take off its economy.

Dismayed by the situation at home, the bright minds set off to foreign shores, creating the largest and wealthiest diaspora in the world. What started off as a brain drain is today one of the nation’s biggest assets.

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A confused India stagnated and struggled for almost half a century. Growing at the sluggish Hindu rate of growth, we had a lost generation (my father’s generation). Then it happened!

On a golden summer day in 1991 (that didn’t look so golden then), India had its back to the wall. With barely a few weeks of foreign reserves, India was at the crossroads. With a dwindling oil reserve that could bring the nation to its knees, a few courageous men decided to change it all.

License Raj was scrapped. In true Deng Xiaoping style, India was now open for business. India had won independence from the old bureaucracy! India was finally free!

Now that I read the book 20 years after it was published, I smile ear to ear. I wonder how much further we have come!

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The most fun part was to read about the faceoff between P&G, Nirma vs. HLL (then called), that unfolded when I was young. The contest was to win shares in the detergent space; it drew long, and most will agree HLL won. As the giants battled it out with an impactful proposition—a better product at an affordable price to woo the consumer. The place on the podium went to the consumer! Referring to HLL, Gurcharan says the best way to know a company’s character is to compete against it.

Money for the company is made outside. Outside, with the customers and consumers. Yet most leaders spend more time Inside fighting over turf. Most employees rarely ever meet the consumer they serve, and that’s a pity. Gurcharan says no matter how big you are, the customer is always more important than you. As the CEO, he mandated every employee must meet # consumers and customers to qualify for a raise. This I have always believed in so deeply, Gurcharan, you said it!

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In conclusion, the 21st century will bring back the golden age of India. 30 years is a generation—the growth story of India is only a generation old. Never in recorded history have we seen a billion people's democracy rise so quickly. On the cusp of breaking free of all that holds us back, we dream of becoming rich before we grow old. The future is brighter than we can imagine!

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India is now free. Let’s unfurl the Tricolor today. Jai Hind!

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