In an interaction with Industry Outlook, Deepak Sood, Secretary General, ASSOCHAM shared his views on how can industry and government entities ensure a better alignment of their respective goals and objectives to foster a more cohesive and synergistic partnership for sustainable economic growth in India and more.
How can industry and government entities ensure a better alignment of their respective goals and objectives to foster a more cohesive and synergistic partnership for sustainable economic growth in India? Also, in what ways can industry players actively engage with government bodies to contribute to the formulation of effective policies and regulatory frameworks that foster innovation, competitiveness, and investment in key sectors?
Businesses work within the overall policy framework as devised by the government, which is guided by the broad national objectives of ensuring inclusive and sustainable economic development. The industry always works in partnership with the government through different channels like ASSOCHAM to deliberate, share inputs and feedback on different policy frameworks. Besides, in a fast-moving world of economic opportunities and challenges, industry organisations like ASSOCHAM always stay nimble through a constant dialogue with the government. For instance, industry and the government work in partnership in setting up and working towards goals with regard to energy efficiency and transition, technology adaptation and adoption, making India a competitive global sourcing hub for manufacturing in services.
Active participation in meetings convened by different departments of the government helps reach the industry inputs on policy matters; likewise, government participation in industry meetings at senior and ministerial levels helps exchange of ideas, opportunities and issues facing different sectors of the economy.
How do you see the success of collaborative models, such as public-private partnerships (PPPs) in enhancing industry-government cooperation in India, and how can these models be further optimized for mutual benefit?
Public-Private Partnership has worked very well in a few sectors like airports, ports and highways. Some of the best airports in the country have been built and operate in PPP mode. Some of the busiest ports also operate in the PPP modes. However, there is a lot more scope for PPP in other areas like health, education, and railways. Different PPP models need to be devised for different sectors keeping in view the interest of consumers and investors with independent regulators.
Given the evolving nature of industries, how can industry and government collaborate to design and implement effective skill development programs that empower the workforce with the requisite skills for emerging sectors and technologies?
Skill development is critical for leveraging India's demographic dividend. Government-industry interface and smart PPP models are required. The role of the state governments is crucial in this area. Policy and legislative support both by the Centre and the states would help; so also would be active interest from the industry. The educational syllabus has to be remodelled to meet emerging skill requirements. Collaboration with top global R&D-driven institutions and universities should be encouraged at the apex level.
How can industry-government partnerships facilitate the seamless transfer of technology and the establishment of innovation hubs, fostering a culture of research and development that positions India as a global innovation hub?
Technology development and innovation have to be done both at the government institution level as well as the private sector. We are already having a public-private partnership (PPP) in various critical sectors like space, defence, agriculture, etc. ISRO has been following pragmatic policies promoting entrepreneurship; similarly, the government has been following industry-friendly procurement policies for defence development and sourcing. India's defence sector has emerged as one of the most significant area of interest among the investor community. Research and educational institutions like IITs, IIMs, IIS, ICAR, ICMR, and AIIMS are already engaging with private sector participation for innovative product development and use in sectors like space, agriculture, medicine, etc. We are already an economy with a matured start-up culture having some of the world’s best-in-class unicorns.
What specific strategies and support programs can be implemented to strengthen the collaboration between government initiatives and small to medium-sized enterprises (SMEs) and micro, small, and medium enterprises (MSMEs) for inclusive economic development?
With greater formalisation of the economy thanks to widespread digitisation and fiscal measures like GST, we are witnessing a new level of partnership between small and large businesses. Fintechs and NBFCs are carrying out outreach to the SMEs which was not even possible in the past. We need to continue on this path with the active involvement of regulators like RBI, states and R&D institutions.
