An article by Shailesh Dobhal and Bhanu Pande in The Economic Times today refers to a growing inequality of income in India. (“India Rising, Bharat awaits for the trickle to turn flood”)
The change for all of urban India is reported to be 15%, which is quite visible, especially in the larger cities where the change is possibly greater. What is worrying is that even in rural India the change is 13%.
And these figures are for 2004-05, from a report authored by NCAER’s Dr. Rajesh Shukla. My guess is that the difference would be even higher now, 3 years later.
Obviously at a personal level this should concern all. Each person is part of the ecosystem – there is only so long one can hide in ivory towers behind tall walls and locked gates. We are most secure and content when our neighbour is secure and content. Stark disparities that grow even more stark are not a way to develop security.
However, one might ask, why should business managers in consumer goods and retail sectors concern themselves with this phenomenon from a business perspective?
The answer should be self-evident – as shared in a presentation at the Confederation of Indian Industry (CII) National Retail Summit in 2006 – a retailer can grow its market by encouraging the development of smaller enterprises, especially those in lower income areas. As these enterprises grow, so does prosperity and available income.
“Grow your wealth by growing someone else’s.” That may seem like an odd notion. But think – is it so odd?
In May 2007 Arun Maira, Chairman of the Boston Consulting Group’s business in India, presented scenarios that were developed in an exercise a few years ago, about the possible developmental trajectories of India. These include:
“Atakta Bharat (India Stuck)” described as ‘Buffalos Wallowing’,
“Bollyworld” (the crazy mix of glamour and tragedy) described in two parts as ‘Peacocks Strutting, Birds Scrambling’ and ‘Tigers Growling, Wolves Prowling’ and
“Pahale India” (India First), subtitled Fireflies Arising.
Here’s his very thought-provoking article (India: Many Million Fireflies Now) that is well worth a read.