01 October 2015, New Delhi
I was advised to say yes to every demand: Rajyavardhan Rathore
Col Rajyavardhan Rathore, Minister of State for Information & Broadcasting and Member of Lok Sabha from Jaipur Rural, says that he had been advised to promise everything his constituents asked for. “Voters’ expectations are high and they are angry and I was advised to say yes to everything. But I told panchayats in my constituency that I cannot do everything they want but I promised them that I will start one big project in each panchayat,” he said while addressing National Management Convention organized by All India Management Association (AIMA).
Rathore said that meeting high expectations becomes a problem when one accepts the expectations set by others. “When expectations are set by others, they create pressure but when set by oneself, they create energy,” he said. He was speaking on the theme ‘Leadership in Times of High Expectations’.
India needs PFTP not PPP
Subir Gokarn, Director of Research, Brookings Institution, India says that Public Private Partnership (PPP) has failed to deliver infrastructure and India needs to switch to Public First Then Private (PFTP) partnership to accelerate the growth of infrastructure. “Private sector oriented strategy is not tenable, as the private sector’s capacity to take risks is much lower than required… India needs to combine the risk taking capacity of the public sector and the execution and management capability of the private sector,” he said while speaking on the subject of accelerating economy’s growth and making it sustainable.
Gokarn said that the stalled PPP projects had affected the country’s financial system and banks were unable to support companies with routine capital. He argued that the NPAs needed to be taken off the banks’ books and banks should not lend to infrastructure projects. “Public investment in infrastructure is going to be the trigger for private investment in everything else,” he said.
Industry will invest when there is demand
T V Mohandas Pai, Chairman, Manipal Global Education Service, said that investment is not happening because there is oversupply and lack of demand in the world. “The government has to improve the productivity and efficiency of investment,” he said. He argued that India could have investment driven growth when demand was low and NPAs were up. He advised developing bond market to reduce investment dependence on banks.
Pai said that it was cheaper to import than to produce in India because the supply chain cost in India were much higher – 14% of the total cost compared to 6% in China and 5% in the USA. He said that the IT industry had succeeded because of reasonable policies and to create jobs in the manufacturing sector, the government had to incentivize capital in the labour intensive industries.
Shivinder Mohan Singh, Executive Vice Chairman, Fortis Healthcare argued that risk taking was a function of the environment and if the capital market rewarded investment decisions by companies, everyone will do that. “I can’t produce from my pocket all the time,” he said.
Regulatory capture of the economy
NK Singh, former bureaucrat and now member of BJP, said that the regulators, such as RBI, needed to be made accountable. “The interface between the regulator and the legislature is zilch,” he said, pointing out that in the US, the Federal Reserve’s Chief had to interact with Senate committees.
Both Gokarn and Pai said that half the energy of Indian entrepreneurs was spent in complying with a maze of rules and pleasing bureaucrats. Pai, who invests in startups, said that India’s regulatory and compliance pain was forcing Indian startups to shift headquarters to Singapore.
Singh said that in order to improve the bureaucracy’s efficiency, it was vital to change the reward and penalty culture. “Right now there is high premium on status quo because there was no protection for bureaucrats who take bona fide decisions,” he said.
Shivinder Mohan Singh said that technology could make bureaucracy more accountable and reduce their insistence on personal appearance of the company officials before them to do even the basic paperwork.
AIMA awards presented
The convention included presentation of the AIMA Kewal Nohria Award for Academic Leadership in Management Education to the former Director of IIM, Ahmadabad, Prof Pradip Khandwala. Col Rathore presented the award. He also gave away trophies to the winners of the National Management Games (NMG) and the National Competition for Young Managers (NCYM). The team from NTPC won the NMG 2015 and Team Bosch, Jaipur won the NCYM 2015.
The Minister also presented the Best Local Management Awards to the associations from Madras, Lucknow, Ludhiana, Baroda, Trichur and Ghaziabad.
All India Management Association (AIMA) is the national apex body for management in India. Over the last five decades, AIMA has contributed immensely to the enhancement of management capability in the country.AIMA has a broad base of 62 Local Management Associations including two cooperating LMAs abroad, with a membership crossing 30,000 in number. AIMA is a non-lobbying organisation, working closely with Industry, Government, Academia and students to further the cause of the management profession in India. AIMA is represented on the Boards of India's premier Business Institutions like Indian Institute of Management – IIMs. AIMA is also represented on Boards of Government bodies including the All India Council for Technical Education, National Board of Accreditation, National Productivity Council to name a few. AIMA makes a salutary contribution to management learning and practice in the country by offering various services in the areas of testing, distance education, research, publications and management development programmes.
AIMA brings to the Indian managers, the best management practices and techniques through numerous foreign collaborations with professional bodies and institutions. AIMA is a member of the Asian Association of Management Organisations (AAMO) and works closely with several international management institutions like Robert H Smith School of Business at the University of Maryland, St Gallen Foundation etc. in organising international conferences and management development programmes. To know more, please log on to www.aima.in