Building capability and

accelerating growth

INTRODUCTION

Indian Economy today is one of the strongest in the world and in spite
of severe global recession in the year 2008 / 09, Indian Industries have
been able to survive and compete at the global level. Gross Domestic
Product of India is 4th in the world and it is amongst the top two
growing economies. 55% of foreign doctors in USA are Indians, 65%
of foreign computer programmers are Indians, 12% scientists in USA
are Indians. The Country has the world's second largest pool of
scientists and engineers, economists & doctors.

Orissa also has kept pace with this development and according to
World Bank and other reports, the state is today amongst the top three
favored investment destinations in the country and among the top two
States in terms of value of total projects under implementation. Orissa
has 34% of Iron reserves in the country, 63% of Bauxite reserves, 95%
of Nickel reserves, 98% of Chrome reserves, 24% of Iron Ore reserves
and the focus of the State Government is Value Addition inside the
state as well as ancillarisation at all levels. This has resulted in vibrant
Industrial growth as well as economic development.

But there are also areas which needs substantial development. Here
capability building can act as a catalyst to stimulate the growth
acceleration

CAPABILITY BUILDING

Capacity building is a process of building capabilities in individuals,

groups, institutions, organizations and societies at the local, national
and international level to more effectively prepare for and respond to
public health threats of a crisis in a sustainable manner. This process is
designed to reinforce or create strengths upon which communities can
mitigate vulnerabilities a result of emergencies and disasters.

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 Building capability and
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CAPABILITY BUILDING PROCESS

3 types of capability building behavior represent three stages within the

capability building process.

 In Participative Stage (stage 1) firms build capabilities with

intention to merely participate in the market.
 In Competitive Stage (stage 2) firms build capabilities sufficient
enough to compete in the market.
 In Leadership Stage (stage 3), firms develop capabilities which
give them a benchmark or iconic status for a specific capability or
a portfolio of capabilities.

In each stage, the firm’s efforts to build capabilities either receive

support or encounter resistance from internal firm dynamics (F1, F2 &
F3) as well as external environmental factors (E1, E2 & E3). The
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interactions (P1, P2 & P3) between internal firm dynamics and

environmental factors decide the pace and the extent of movement
along the path of capability building. A salient feature of our model is
the existence of barriers at the end of each stage. To surmount these
barriers and to jump on to next stage, firms require major support at
these points. This support can come either from external environment
or from internal firm factors, some of which might be dynamic
capabilities built over time or acquired externally.

CAPABILITY CYCLE

CONCEPTUALIZATION
INTERPRETATION
Interpreting
stakeholder’s interest

COMMUNICATION INTEGRATION
Communicating with Translating plans into
stakeholder’s products and processes

MONITORING
Evaluating and reporting
activities
IMPLEMENTATION

GROWTH DRIVERS
 Innovation
 Investment

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 Building capability and
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 Talent

GROWTH AND INNOVATION ACCELERATOR

ALIGNING CAPABILITY WITH GROWTH

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 Building capability and
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AREAS WHERE CAPABILITY BUILDING CAN BE

IMPLEMENTED:

 Literacy level:- Is only 63% in Orissa which is much below the

World average (77%) and National average is 66%.
 Education system:- It is estimated that nearly Rs 50,000 cr of
funds flow out of India every year, directly and indirectly, for the
Indian students studying abroad, enough to build 30 IIT’s or 50
IIM’s per year.
 Awareness in conflict zones:- Proper awareness and
communication should be conveyed to the peoples residing in
areas affected with social unrest by properly trained personnel’s.
 Training and development:- Proper training and development
needs to imparted to facilitate more employment generation
through development of skill and training centre’s.

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