P&G Succession: Praise the success of the Indian diaspora but also look inside

Copyright © HT Digital Streams Limit all rights reserved. Although we celebrate success in the Indian diaspora, we should also note that it comes at a time when many successful Indian India leaves for the benefit. Summary Shailesh Jejurikar, an executive officer of Indian origin, will reach the top of P&G. This is good news, not ‘brainstorming’, but comes in the midst of a trend of migration that provokes some difficult questions about India’s economic dynamics. The decision of the US based Procter & Gamble (P&G) to appoint his Mumbai-born and India-trained chief operating officer Shailesh Jejurikar as the next CEO, with effect of 2026, is another victory for Indian talent abroad. Although we celebrate success in the Indian Diaspora, we should also note that it comes at a time when many successful Indian India leaves, a trend that is the subject of a recent book, SECESSESSION of the Succutcle, by Sanjaya Baru. Although we should not return to the hands of our ‘brain thrust’ that once drew a long sigh of dismay, nor does it have a scarcity of business leaders to create and manage businesses that can generate value and help the rise of the economy, we still need to confront a lack of dynamic at home that tends to come over. Although high domestic taxes are frequently cited as a reason for a tilt in favor of abroad among those who have the luxury of choice, shouldn’t it promise a faster growing economy like ours greater prospects? Also read: Manu Joseph: Why no one talks about India’s ‘brain thrust’, more gross fixed capital formation has struggled to come more than 30% of India GDP, credit growth is so lukewarm that the central bank can open its liquidity, and our economic expansion has dropped under the ‘miracle’ of 7%. All this, even as concerns arise about staff who reduce in our once dynamic technical sector, who are trapped on the wrong foot by the onslaught of AI on the growth model of income that rises approximately in accordance with recruitment. The Government cannot be guilty of investing public funds to compensate for private sector’s slackness. The extensive layout of the Center on Infrastructure could not “private investment” in “crowd” to tackle the supplementary demand created by spending, but it clearly had GDP growth in a good place. Since about a quarter of the manufacturing capacity of India remains unused, the private sector may again pay attention to infra projects. Except for renewable energy, however, there is no effective policy in place for public-private partnerships in this area. These are all real obstacles in the way of faster growth. Still, something more basically is at work that acts as a limitation. Also read: Rama Bijapurkar on the flight of non-returns Indians (NRIs): Cause for celebration or concern? As the Nobel Award of 2024 underlines, it is whether economies thrive or weaken, depend on the quality of their institutions. This can hold clues to the demand for the Indian economy’s search for acceleration. We may think that economic progress in general has little to do with the poor maintenance of contracts, as seen in the real estate sector despite regulatory legislation, or with the court ruling by higher courts for thin evidence, as recently seen in the Mumbai train explosion case. We would be wrong. Also read: Mint Quick Edit | Why leave so many wealthy Indians? How good our institutional framework functions are crucial in the long run for the success of the economy. It can critically determine whether India can go from low-middle income to high-income status, a transition that has reached very few countries. From now on, India spends only 0.64% of GDP on R&D, an amount under the budget of a single US large technical company such as Amazon. Even the R&D expenditure of P&G, which mostly markets products that address domestic demand in well-set segments, is about 2.5% of its income. Innovations from India remain far below our potential. It is a debtfulness that must be dealt with, and not swept aside by inspirational narratives. A country underway cannot expect to get very far without asking itself difficult questions. Catch all the business news, market news, news reports and latest news updates on Live Mint. Download the Mint News app to get daily market updates. More Topics #procter & Gamble Health #nris #indian Economy Read Next Story