JANUARY 19, 2003
 Letter From The Editor-In Chief
 Overview
 Features
 Trends
 Sectoral Snapshots
 The CEO Listing
 Code-Jock Factory
 The Lever Legacy
 Letter From The Editor
 Columns
 Brain Distillation
 20 For The World

Two Slab
Income Tax

The Kelkar panel, constituted to reform India's direct taxes, has reopened the tax debate-and at the individual level as well. Should we simplify the thicket of codifications that pass as tax laws? And why should tax calculations be so complicated as to necessitate tax lawyers? Should we move to a two-slab system? A report.


Dying Differentiation
This festive season has seen discount upon discount. Prices that seemed too low to go any lower have fallen further. Brands that prided themselves in price consistency (among the consistent values that constitute a brand) have abandoned their resistance. Whatever happened to good old brand differentiation?

More Net Specials
Business Today,  January 5, 2003
 
 
Preparing The Indian Mind For The New World
To succeed in the knowledge era, India must make a creative break from the debilitating colonial hangovers of the past.
The Indian mind must refuse to accept things as given. The social ethos must give up trekking beaten paths

The concept of the universe as one family (Vasudaiva Kutumbakam) is not something new to the Indian mind. It has been expounded in the Vedas and Upanishads by our sages and seers. It is this breadth of vision that enabled India to realise its vast creative potential in an entire range of areas: astronomy, architecture, botany, medicine, metallurgy, meteorology, philosophy, and political science in addition to industry and trade. India began to decline only when we began to look inwards. India's resurgence during the last century owes itself to the reassertion of those universal impulses.

Mahatma Gandhi visualised independent India as a home with its windows wide open, letting in the refreshing breath of stimulating ideas from all directions. Gurudev Rabindranath Tagore dreamt of an India where everyone could hold his and her head high without a shadow of fear. This is the mindset that flows from quiet self-confidence and a high sense of self-esteem. Why, then, are some of us afraid of competition and why this apprehension that others will swamp us?

I believe that we must deal with this issue courageously if India has to win in the age of globalisation and competition that is unfolding before us.

We are in a world where the prerequisite of progress is changing. In fact, even the parameters of survival have become fundamentally different. The pervasive impact of technology and a movement towards a barrier-free global market are giving a new meaning to the rules of the game. The concept of survival now transcends from the biological to the intellectual. The aphorism- survival of the fittest-applies not just to citizens but also to companies, communities and countries.

This is not only an era of globalisation and competition. We have entered the age of knowledge. These two elements-globalisation and competition-give to knowledge a new and sharp focus. Citizens have to relate to an explosion of new knowledge that incessantly challenges their ability. Metaphysically, they must run faster in order to remain where they are. They must continuously improve individually and organisationally to add economic value to enterprises. This demands constant efforts to enthusiastically embrace a process of perpetual renewal and creativity.

We must discard the tendency to think in a linear manner. We cannot afford to remain prisoners of conventional thinking any more

Companies have to factor market dynamics founded on a new paradigm of constant change. This calls for an ability to deal with continuous uncertainty by maintaining a ceaseless state of transformation driven by market dictates.

Communities have to provide room to new forms of social organisations based on knowledge networks. This necessitates placing knowledge and technology at the core of social values as well as an accommodation of borderless virtual societies bonded by shared professional, recreational, ethnic, religious, political, environmental and moral values.

And countries have to wake up to new challenges brought about by full and ubiquitous connectivity. This requires an acceptance of new norms of citizenship, cross border employment and trade and inclusive political models. All of them demand a creative break from the now-outmoded political and economic concepts.

Adapting to an explosion in knowledge, living with continuous uncertainty, relating to knowledge networks and dealing with talent requires nurturing one resource: the human brain. In an age where knowledge is the fundamental source of wealth, power and progress, success will come to those who have the capacity to conceptualise, the competence to implement and the competitiveness to stay ahead.

This is the war that the Indian mind must win. And for us Indians, the importance of tuning our mind to the new challenges should not be difficult to comprehend. For ancient Indian wisdom reminds us that the 'mind is the key to freedom as well as progress' (Man EVA manushyanam karan bandha mokshoyo). To be able to win the battle for freedom and progress in the knowledge age, we must rid the Indian mind of the enfeebling hangover of the colonial past. We must go back to the roots of wisdom that lie deep in our culture and world outlook.

Our capacity to conceptualise on a large 'beat the world' format must not be limited by incremental thinking. We must discard the tendency to think in a linear manner. We must regain the intellectual power to look beyond the constellation of stars and galaxies and discover new vistas to lead humanity in the domain of knowledge. We can no longer be content with year-on-year improvement in growth and development matrix, banking on conventional reference points and taking refuge in precedents. We cannot afford to remain prisoners of conventional thinking.

In the knowledge age, individuals, communities and the society have the opportunity to leapfrog and create entirely new and large vistas for advancement. The Indian intellect must break free from an evolutionary mindset and conceptualise initiatives in all spheres in a revolutionary manner.

In the knowledge age, competence to implement is constrained only by self-imposed limits to creativity. The Indian mind must refuse to accept things as given. The social ethos must give up trekking beaten paths. As individuals, we must be ready to venture out. Like the Indians of the past who carried both the message and materials from this country to the West and the East, we must gather the courage to sail in uncharted seas with courage and confidence.

The new world will unrelentingly question the conventional in virtually every discipline. Indian polity and society must move beyond the sanctuary of these comfort zones to support a new intellectual edifice built around quest, experimentation, creativity, adventure and research.

Our ability to stay ahead by competing is impaired by the lack of a sense of common purpose. We must inculcate the ability to convert individual creativity into collective brilliance.

Enterprising Indians must assimilate a spirit of a common sense of purpose to succeed in such an environment. Not doing so would be untenable in an age where new knowledge is created at the interface of disciplines and new initiatives are governed by a framework of technological and market risk-sharing.

The Indian psyche must be recast to working in a collaborative framework. A common disposition among Indians to overvalue oneself comes in the way of productive partnerships. Such partnerships are an essential prerequisite of a networked society. From outsourcing and strategic alliances in business to fighting communicable diseases and terrorism across borders, partnerships will be a way of life in a globally networked society. Individuals and organisations in India have to downsize self-opinionated behaviour to succeed in an environment of sharing resources and mutually reinforcing skills.

India will win, no doubt. But winning should not be seen as a fortuitous event. It is a product of motivation, discipline, rigorous training and killer instinct. What matters is not just how you played the game, but also whether you won or lost. Indians must ingrain the winner-takes-all mindset and recognise that the new world is unforgiving to losers.

Translating this frame of mind in the real world of polity, economy, industry and society boils down to an agenda made up of several path-breaking initiatives. At the top of this agenda is the goal of global leadership in every sphere of economic and competitive activity. Then comes a radical overhaul of systems in governance, education, health, population control and social welfare. Following this, is a concerted effort in managing critical resources such as food, energy and water. Finally, there is the unfinished task of fully unshackling economic activity from the chains of excessive regulation.

Universal outlook and creative destruction are at the core of this mental outlook. We must not lament if inappropriate initiatives and inefficient enterprises are destroyed in order to allow for new ones that are contemporary and globally competitive.

These concepts are not alien to the Indian society. The spirit of creative destruction is imbibed in our epics. The trinity of Brahma, the creator, Vishnu, the preserver and Shiva, the destroyer, epitomise this. We see the process of universal creation and destruction in a complementary cyclical relationship, as day and night or inhalation and exhalation.

In the final analysis, the character and contours of progress in the new era will be shaped by the way our mindset, as citizens, as corporates, as communities, and as the country itself, is trained to break free from the debilitating hangover of the colonial past, and encouraged to innovate, create and collaborate. The pursuit of success in a rapidly evolving digital economy will depend on stretching sights and extending enterprise to attain global leadership in all spheres of life.

 

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