Source: Economic Times

Global consultancy firm KPMG India’s CEO Richard Rekhy today said that economic slowdown in many countries have provided a great opportunity for India to be at centre stage of world.

Addressing management students at ‘Confluence-2014’, held at Indian Institute of Management, Ahmedabad (IIM-A) here, Rekhy also listed several challenges which India needs to overcome to become the superpower.

“Chinese economy is slowing down, while US economy is fluctuating. This is the best opportunity for India to get the centre stage. The new government (Centre) came into power at the time when we are having USD 300 billion in foreign reserves. There can’t be a better time than this,” he said.

Rekhy also pointed out several challenges, which he called as ‘global mega-trends’ that India needs to face in the coming years.

“By 2030, 60 per cent of world’s population will be middle class. Thus we need to build new cities and create infrastructure for this population. We also need a plan to address issues like education, health-care and water crisis,” he emphasised.

He said that rising dependence of automation in manufacturing sector will affect new job creation.

“Indian economy cannot grow without manufacturing base. Though we are now focusing on ‘Make In India’ mission, we should understand that jobs will not be created by manufacturing sector but by service sector,” he added.

Instead of becoming economic superpower, he stressed on how India can rise as ‘Responsible Superpower’ by helping other nations.

He cited an example that how due to climate change, most of the coastline of Bangladesh will be submerged in next 20 years and that instead of stopping them (from migrating to India), India should act like a responsible superpower.

“Recently, India ranked 142nd in ‘Ease of Doing Business’ criteria in the world. India needs to bring changes in regulatory framework. Government also needs to cut Income Tax rates. Instead of earning revenues from taxes, government should generate revenue by providing services to people” said Reggy.