Can you name a single Indian product brand which has gone global? Anant Goenka, FICCI President
In times of geopolitical uncertainties and global super power skirmishes, the young president of the Federation of Indian Chambers of Commerce and Industry (FICCI) Anant Goenka is a firm defender of India’s strategic autonomy and newly-found faith in ‘Atmanirbharta (self-reliance)’. In one of his first interviews, the Vice-Chairman of the $5.2-billion conglomerate, the RPG Group and scion of one of India’s oldest business dynasties speaks about necessity for the industry to rise to the global challenges and not constantly look for sops from the government. He vehemently defends the new labour codes and believes that the rise in consumption after GST rate cuts and income tax exemptions will push private capex.
How much do you think that GDP and income-tax rate cuts have helped boost private consumption? Is it driving private capex?
Between the Budget announcement and the GST rate cuts, about ₹2.5 lakh crore has gone to the consumer as benefits. Consequently, we have seen a consumption growth. We have seen a substantial shift in October, which is sustaining in November. We have seen double-digit growth, the auto sector is doing very well. I am hopeful that it would continue. And once that happens, you have private capex coming in, utilisation levels going up. Therefore, job growth should happen. On the job side, we are seeing some headwinds — whether it is AI affecting IT sector, productivity improvements in the factories etc. That is the reality.
Our main priority this year is how we increase manufacturing as percentage of GDP from 15 per cent to 25 per cent. Can we become the next large manufacturing hub in the world? For that, we in FICCI have four priorities – R&D and innovation, more industry-academia partnership, activating government schemes. Second is how do we work with the government to ensure ease of doing business. Third is trade and supply chain improvement. How do we leverage our FTAs better? We have two lakh plus members in FICCI — how do we share with the government to eliminate non-tariff barriers? Fourth is our manufacturing excellence. We need to do this better in terms of sustainability, women-led development and quality. These are priority for FICCI with the larger mission of making in India. We have to do a lot as entrepreneurs – thinking globally, creating quality products.
But the industry is a slacker. The government is still doing the heavy lifting in terms of capex. Also, our industry has not been able to utilise FTAs effectively.
The demand side has been corrected. But some amount of blame the industry has to share. We have to be more innovative, we have to think globally, think of entering global markets. We can’t always think of asking for sops, protection, be happy with our Indian market. We have to get out of our comfort zone and choose to invest in our brand. Can you name a single Indian product brand which has gone global? I can’t. And that’s because we don’t think globally.
In our company CEAT, we were happy about a decade ago in just making for India. We would sell some in Africa and West Asia, but it would largely be a pittance. But for the last 10 years, we have completely changed our focus. Now, we ask ourselves – what is it that the Italian customer wants? What is it that the Spanish, US, European customer wants? We are now making an entire range of tyres – Summer tyres, Winter tyres, all-season tyres, entire range of tyres. We make investments in R&D, are branding differently. We are tying up with football teams, rodeo games in the US. You have to be ready to invest and look at research and innovation. Okay, you don’t make money immediately, but eventually it would happen.
The government says it is helping ease of business; a fundamental transformation has happened in the labour jurisprudence through the labour laws. How do you look at the opposition to the laws?
I think the labour laws were absolutely necessary. It is a big benefit to the working class. I see absolutely no reason why there should be any agitation. From 29 laws, we have now four laws. People can move from one State to another, women can work in night shifts, there is uniformity across the country, you have retirement benefits, you have benefits to gig workers, you have safety benefits. I cannot see any negatives. Overall, it is very positive. It is business-friendly and it is worker-friendly. I see no reason for any agitation. Our labour costs are competitive in the world. It is logical. I am a big supporter of these laws.
From an industry perspective, how do you view the Indian response to the geopolitical headwinds?
This has been a year of uncertainty. We have seen the US constantly changing its stance. Forecasting has become extremely tenuous. But from what we understand from the government, we are at the final stages of signing a deal with the US. India has had a very long and trusted relationship with Russia and there is the US, which is our biggest trading partner although that relationship has become much more transactional recently. But the fact is that we have always had a policy of strategic autonomy. I am a firm believer in the principle of ‘nation first’ — we will forge partnership which serve our national interest. We will partner with who we like rather than being told who to partner with. Russia has been our defence partner, although the imports have come down steadily. We are also trade partners, especially in terms of oil imports which have been impacted after the sanctions on Russian entities. But we will continue to partner with Russia in defence and maintain our historical cultural and political ties.
With the US, my guess is that once the trade deal is signed, we will hopefully resume a warmer relationship. A few industries have been affected especially gems and jewellery and marine products. But the diversification of markets has helped. Gems and jewellery and even marine exports have grown recently. The new FTAs are performing better than the past trade agreements. The utilisation levels with Australia and the UAE have been better.
The uncertainties continue and the Budget is approaching. What would be your big asks from the government?
We have a few recommendations. To begin with, there is the export promotion mission. These benefits should flow towards affected sectors and MSMEs. We have proposed to the government to look at increasing the outlay for the RoDTEP. There is about ₹18,000 crore in this scheme, which we believe should be enhanced. The rest of the focus is on Atmnirbharta. Some of our Budgetary recommendations are on defence, setting up electronic manufacturing parks, extracting critical minerals from tailings, fly ash and dust. We need to focus more on investing and R&D. On defence, we should be setting up a higher capex outlay of about 30 per cent and about ₹10,000 crore on DRDO.
