India not thinking big enough: Ratan Tata

NEW DELHI: The jury may be out on whether India can achieve the all-important 10% gross domestic product (GDP) growth target anytime soon, but India Inc’s most prominent face - Ratan Tata - is clear that “we, as a country, are not doing enough to reach this landmark”.

Speaking at the concluding session of the CII National Conference and Annual Session, Tata was categoric. “India is not thinking big enough, not taking bold steps,” he said when asked about the possibility of touching the 10% mark.

And, as if this was not indication enough of where our policy makers are lagging, Tata said that compared to the targets India has been setting for itself, China seems to be leaping ahead due to its risk-taking ability.  

“Take the example of tourism. Why don’t we, as a country, set our sights on a target of 10 million tourists by 2010? We think 4-5 million is good enough but if we push ahead we can certainly achieve the 10 million mark…We shouldn’t worry too much about infrastructure, airports etc, these will come up as business increases. Similarly, we need to be bold in other areas for growth to accelerate,” Tata added.

Tata’s comments came in the wake of Planning Commission deputy chairman Montek Singh Ahluwalia sounding a positive note, with his assertion that India was “very close” to achieving the 10% GDP growth number.

But Tata was not merely talking big. Take the example of the ambitious Rs 1-lakh car project, which attracted many naysayers when the idea was first mooted. But a bold approach by the chairman of the largest Indian business house pushed Tata’s men into creating something that was almost unimaginable some years back.

And his dream appears pretty close to realisation, with the launch of this car slated for early next year.

Not only did Tata exhort the industry as well as the government to take a bold approach to decision making, he also surprised many by revealing that the various companies under the Tata Group spent a whopping Rs 600 crore last year on Corporate Social Responsibility (CSR) initiatives, up from Rs 450 crore spent the year before. And this was done even when there has been no specific charter, no mandate within the group for engaging in CSR activities.

Asserting that he himself has made “very little personal gain from the growth and prosperity of the Tata Group,” Ratan Tata said. “It is important for some of us (the industry leaders) to become role models, be moderate in the way we live and conduct ourselves”. This would help dispel the notion that big business is selfish, bad, he added for good measure.

Tata’s comments assume significance in wake of Prime Minister Manmohan Singh warning companies against forming cartels in the conference.

Singh stressed that price stability is necessary to spread the benefits of economic growth.                                              

“The operation of cartels by groups of companies to keep prices high must end, he said.