The gene of entrepreneurship is deeply embedded in every Indian. Bharat had embarked on an industrious journey even in ancient times when societies were primarily agrarian.
Long before the East India Company and its like made their imprint on history and geography, sea-faring Indian merchants had set shop in several so-called unknown lands. Just in the South, the Pallavas and Cholas established vibrant trading ties with South East Asia and even China. Such zeal was matched by thriving local industry and agriculture that revelled in innovation and skill. Indeed, India was among the top global economies in the 18th century. Sadly colonial exploitation put back the economic calendar by many hundred years. It also put paid to our entrepreneurial surge.
But that’s what conquerors do. What of the ‘home rule’ that we so vigorously fought for and won? Nehru’s socialist model bombed. MSingh launched reforms only to sabotage it a decade later. The ominous year ‘13, his last as it turned out, marked a new nadir for the economy with business mood in the dumps, inflation inflating, rupee in tatters, investment climate bleak and the country charred by corruption and coalition chaos. Modi’s arrival with an absolute majority is India’s third, probably last, chance. These are still early days, but he has begun the mental battle well. People’s psyche is in dire need of a morale booster. His latest ‘Make in India’ pitch, therefore, rekindles the nation’s latent spirit of enterprise.
But while the right message has been delivered, it is directed at the wrong audience. Those present at the venue of this stirring invocation were all the usual suspects: The (in)famous Bombay Club and the elite of India. This small closed group has enjoyed the maximum protection and patronage, be it socialism or reforms, shine or rain. Many of them have multi-thousand-rupees scams to their credit and are under investigations for several economic offences. No doubt, these moneybags are the potential investors, or names that can elicit investment, but that is precisely the point. Are these perennial profiteers the only faces of India’s manufacturing?
‘Make in India’ call makes no sense if it is not heard by the real India. And the real India is made of the millions of micro and medium businesses and small timers and not a fattened few. The latter enjoy an unfair headstart to ride the promised high tide too. But the small businessman is not even on the shore, let alone taking the plunge into the turbulent seas of the economy. This despite the SME sector, organised and unorganised, forming the bulk of economic activity both in terms of GDP, employment and sheer human numbers. If India is to emerge as a major manufacturing hub and achieve inclusive growth, it is the small and micro business that has to be invited, incentivised and instilled with confidence. But this initiative is sadly missing.
The biggies crib about procedural delays and bureaucratic hurdles. But it is the small timer who gets the worst of Permit Raj and Inspector Raj. With a frugal cash flow, he is the biggest victim of cancerous grassroot corruption. He is less equipped to handle the strangling rules and sundry demands of officialdom. His dependence on public facilities make things tougher. For instance, in times of high power cuts, buying or hiring a generator can breach his fragile bottom line. His business faces maximum competition, not just from peers but also from sharks now. Despite all this, to him his business is a personal commitment and passion, rooted to this soil, not transferable portfolio with shifting loyalties!
But his greatest tragedy is the lack of capital, for machinery and operations. His humble credentials no longer impress paranoid ‘system-driven’ banks. If credit does flow, it rarely does on time. And even the slightest upheaval changes that debt into death in a world of Shylocks. Those under CBI scrutiny have abundant access to funds. But those with unwitting CIBIL scores get choked instead. The former have a voice and hold powerful ears in ritzy forums. But the latter sink without a noise and trace!
‘Make in India’ and ‘First Develop India’ will remain just slogans unless those real ‘makers’ tangled in ground zero are extricated and encouraged. It is they who render stability and salvation to the economy. Continuing to pamper high-flyers is akin to a cosmetic skin-deep make-up on India’s face, that will come off at the first wind, as it did during recession.
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