Lessons from India’s successes

Indian Prime Minister Narendra Modi (left) talks with Minister for Information Technology Ashwini Vaishnaw during SemiconIndia 2023, at Mahatma Mandir in Gandhinagar on July 28, 2023. PHOTO | SAM PANTHAKY | AFP

My recent business trip to India, the world’s most populous democracy and home to 1.4 billion people is a reminder of the important economic, cultural, and social lessons we can learn from this iconic nation.

Arriving at the recently renovated Chhatrapati Shivaji Maharaj Airport in Mumbai, one immediately encounters the sharp contrasts in this vast sub-continent.

The outwardly unimpressive environment—with crowded streets, heavy traffic and many of the typical administrative challenges that come with a large and growing population—camouflages a strong and vibrant economy that has been on a steady rise for the past three decades.

Ranked as the fifth largest economy globally after the US, China, Japan, and Germany, it is difficult to imagine that India survived near bankruptcy in 1991 when their exchequer was unable to service its obligations.

Like the proverbial phoenix that rose from the ashes, India has been able to remarkably reverse its economic fortunes in the past 32 years, creating jobs and improving the livelihoods of millions of its people.

Today, total investor wealth on Indian stock markets is approximately $3.3 trillion, placing it in the top ranks globally ahead of stalwarts such as the UK and Germany.

What is the secret sauce behind India’s incredible success story? It boils down to three things: a singular focus on productivity, an entrenched savings culture, and an impeccable work ethic.

These ingredients have helped bring about India’s economic renaissance. The country has also benefitted from its population boom, with 2023 being a noteworthy year as it overtook China to become the world’s most populous country.

An introspective view into India’s success story led me to the conclusion that Kenya has what it takes to replicate India’s successful outcomes.

Like India, we have a vibrant and promising SME sector. What is key for Kenya is creating an enabling business environment for SMEs to grow.

In my engagements with captains of industry in India, I learned that about 35 percent of SMEs in India grow to scale, with many listed on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

To replicate this, we need to kick-start serious conversations about helping successful SMEs, family-owned enterprises, and State-owned enterprises to list on the Nairobi Securities Exchange (NSE).

Another similarity Kenya has with India is that the Asian nation has accelerated the digitisation of the economy.

I was pleased to learn that there is a zero-cost transfer fintech platform developed by the Reserve Bank of India. This has helped to improve liquidity in the market.

I also observed that Indians are inclined to develop and grow homegrown solutions to local problems. The service industry is light years ahead of other jurisdictions, with hospitals leveraging biometric technology to fully process admissions within an unbelievable 30 seconds after the arrival of patients. It is noteworthy that the quality of talent and skills coming from India is world-class.

Many of the notable Silicon Valley companies, including Google and Microsoft, are headed by Indian nationals. India has nurtured over 150 Unicorns (firms with valuations exceeding $1 billion) and the country ranks third after China and the United States in terms of the building of Unicorns.

The Indian workforce has an incredible worth ethic and is composed of professionals of admirable character, including a deeply ingrained humility that is worth emulating.

Despite having British rule, the Indian nation has impressively retained its cultural values and stands out in this respect.

Mr Kittony is the Chairman of the Nairobi Securities Exchange, [email protected]