Inclusive growth A challenging opportunity

September 2011 www.deloitte.com/in

Contents

Introduction The imperative now The opportunity Governance Education Energy and Resources Telecom and Technology Infrastructure Healthcare Financial inclusion Business model innovation Conclusion References Acknowledgements

3 4 5 10 11 13 15 16 18 21 23 24 25 26

Introduction

Reforms undertaken in the early 1990s made India one of the worlds fastest growing economies. The boom of the IT industry and improved agricultural production created an atmosphere of optimism, which led to the coining of phrases, such as Incredible India, India Shining, and India 2020 around the end of the millennium. The Indian growth story has been one of high Gross Domestic Product (GDP) growth but primarily driven by the growth in services sector. Not all sectors of the economy have grown at the same pace as is reflected in the relatively low agricultural growth rate, low-quality employment, poor education, inadequate healthcare services, rural-urban divide, social inequalities, and regional disparities. Growth that is not inclusive affects the society, the economy, and the polity. A lack of inclusive growth can result in real or perceived inequities, which has its own social ramifications. Inclusive growth promotes economic growth partly by broadening the base for domestic demand and partly by increasing the number of people with a stake in reforms and in a stable government. Inclusive growth thus seeks to broaden the flow of benefits of globalization towards the currently excluded sections. However, for achieving inclusive growth, it is essential that the diffusion of opportunities be supported with good governance and accountability. In order to reduce disparity and promote inclusive growth, the Indian government has set state-specific targets for parameters, such as GDP growth rate, agricultural growth rate, new work opportunities, poverty ratio, dropout rate in elementary schools, literacy rate, gender gap in literacy rate, infant mortality rate and maternal mortality ratio.

In the last few years, inclusive growth has been at the forefront of studies sponsored by multilateral aid agencies, such as the United Nations, the World Bank, Asian Development Bank, and several nongovernmental organizations (NGOs). Successive governments have initiated several projects, such as Jawahar Rozgar Yojna, Integrated Rural Development Program, Rural Housing Scheme, and Swarnjayanti Gram Swarozgar Yojana to promote inclusive growth. However, for inclusive growth to happen in a country with the scale and size of India, private sector involvement is equally important. The private sector has started contributing with initiatives, such as the ICICI Foundation having been set up with the sole purpose of promoting inclusive growth. The government and private sector can play complementary roles in driving inclusive growth. There is a need for the public and the private sector in India to have a unified approach towards how they can extend, innovate, and collaborate in new ways to drive inclusive growth. This paper elaborates the need to build Inclusive India and emphasizes why it is imperative to focus on inclusive growth now. It presents the opportunities available for building an inclusive India by identifying key levers in governance, education, energy and resources, telecom and technology, infrastructure, healthcare, financial inclusion, and business model innovation. It gives examples of initiatives undertaken by other countries to build inclusiveness, such as those by Thailand, Malaysia, Kenya, and The Gambia in the education sector. It also highlights some of the reasons why efforts to build an Inclusive India in the past have had only limited success and what can be done better in the future so that inclusive growth is realized. The paper further stresses upon the need for the public and the private sector to work in tandem and leverage each others strengths to drive inclusive growth.

Inclusive growth A challenging opportunity | 3

The imperative now

The focus of the government in recent years has shifted from promoting Incredible India to building Inclusive India. Inclusive growth needs to be achieved in order to reduce poverty and other social and economic disparities, and also to sustain economic growth. In recognition of this, the Planning Commission had made inclusive growth an explicit goal in the Eleventh Five Year Plan (2007-2012). The draft of the Twelfth Five Year Plan (2012-2017) lists twelve strategy challenges which continue the focus on inclusive growth. These include enhancing the capacity for growth, generation of employment, development of infrastructure, improved access to quality education, better healthcare, rural transformation, and sustained agricultural growth. Despite the presence of over 300,000 NGOs, which are working in sectors spanning the gamut from agriculture to microfinance, and from minority rights to scientific and industrial research1, Indias growth has primarily benefited its urban elite and middle class population who are engaged largely in the fast-growing services sector. The Indian middle class, defined as those consuming between 2 and 20 US dollars per day, has grown by about 205 million between 1990 and 2008.2 However, around 70% of the poor are from rural areas3 where there is a lack of basic social and infrastructure services, such as healthcare, roads, education, and drinking water. Stunted agricultural growth, relatively high food prices, low rural wages, insufficient government spending on rural development and obsolete infrastructure are key determinants of rural poverty. Significant interstate as well as intrastate regional disparities continue to exist in India. Low growth rates and poor public services in the poorer states further widens the disparity in development. For example, poverty concentration can be seen in the adjoining states of Bihar, Jharkhand, Chhattisgarh, UP, MP, Orissa, and Rajasthan. These states collectively account for 44% of the total population and 60% of the poor.4 Most of the low-income states have rich natural resources but poor infrastructure and human development. Neighbourhood effect is seen when one such backward

Figure 1: Population and GDP contribution by State (2010)

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 6% 6% 5% 3% 3% Population (%) Maharashtra Rajasthan Jharkhand 7% 4% 2% 9% 9% 3% 7% 4% 14% 8% 16%

GDP Contribution (%) Bihar Gujarat

Uttar Pradesh Tamil Nadu Kerala

Source: Census 2011 (population); VMW Analytics Service data (state-wise GDP)

region drags down its neighbouring regions. Because of mutually reinforcing consequences of geographical clustering and neighbourhood effect, there is a danger that these adjoining states will be caught in a poverty trap. Women, labourers (including agricultural labourers), tribal population, some scheduled caste groups, and religious minorities in particular are lagging behind in job opportunities, earnings, and human development. Around 58% of the workers in India are involved in the agricultural sector. Despite this, the contribution of agricultural and allied sectors in the GDP is only around 14%.5 Hence, for the removal of poverty it is imperative that the rural farm and nonfarm sectors be promoted. Agriculture continues to suffer from fragmented land holdings and water availability problems. Further, it is vulnerable to crop procurement prices and weather conditions. Poor monsoons lead to crop failures and subsequently in debt repayment distress for farmers.

Figure 2: Workforce and GDP contribution by sector

100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%

25% 17% 55%

58%

30% 15%

Workforce (%) Services Industries Agriculture

GDP (%)

a major role in the transition of several economies from developing to developed. For example, in the 1960s, birth rate in the Republic of Korea fell which resulted in elementary school enrolments declining. Funds previously allocated for elementary education were freed up and used to improve the quality of education at higher levels in Korea, which resulted in faster growth in the later periods.7 A new report by the Rand Corporation has pointed out that demographic dividends are estimated to have contributed one-fourth to two-fifths of East Asian per capita GDP growth in the late 20th century and India currently has the opportunity to reap this dividend. However, demographic dividend only provides a short window of opportunity and does not guarantee automatic growth and development unless efforts are made to take advantage of it. For example, Pakistan began experiencing a demographic dividend in 1990 and is expected to have its window of opportunity open till 2045. However, it has been unable to capitalize on this opportunity over the past two decades.8 Hence, it is important to use the period in which a demographic dividend exists to make investments in education, healthcare, and job creation. As per the 2011 Census, the decadal growth rate of the Indian population has seen a decline for the first time since Indian independence, having dropped sharply from 21.15% in 2001 to 17.64% in 2011. Although the percentage of the 15-34 age group reaches its peak (35.4%) in 2010 and tapers off from then onwards, the percentage of the 15-59 age group reaches its peak (64.6%) only in 2035, and tapers off gradually over the next 15 years to 61.6% in 2050. A failure to take advantage of this opportunity by India could have a damaging effect on its future prospects and lead to a spiralling rise in poverty, unemployment, and social inequalities in the country. On the other hand, the same demographic dividend provides India an opportunity which could see it turn into a developed nation if backed by favourable policies, good planning, and efficient implementation. Inclusive growth is also a key component if India is to fulfil its Millennium Development Goals, which 193 United Nations member states aim to achieve

Source: Census 2011 (population); VMW Analytics Service data (state-wise GDP)

An estimated 86% of the Indian workforce is engaged in the informal or unorganized sector,6 however, the quality of employment remains a problem. Workers in this sector have virtually no social security. A report by World Bank suggests that, inclusive growth approach takes a longer term perspective as the focus is on generating productive employment rather than on direct redistribution of income as a means of improving financial well-being of the excluded groups. With the worlds second largest population and widespread urban and rural poverty, India faces the challenge of bridging the growing gap between the haves and the have-nots. It is imperative to focus on inclusive growth now as it is interrelated with several key challenges facing the government, such as poverty reduction, increase in quantity and quality of employment, agricultural development, social sector development, reduction in regional disparities, and environmental protection. Demographic dividend occurs when proportion of the working class population is larger than the depended non-working class population. As a result, fewer resources go into meeting the needs of the dependent groups and more resources are released for investment in economic growth and human development. There is evidence that demographic dividend has played

Inclusive growth A challenging opportunity | 5

The government need not do any of the things that are better done by a competitive market. In agriculture, for example, a competitive market is important but the role of the state is also very important in providing infrastructure, rural connectivity, rural electrification, investment in irrigation, watershed management and so on. All these areas require a lot of participatory work by the community. In infrastructure, too, the role of the state is crucial. Historically, even in the U.S., infrastructure has been developed by the public sector. We are trying to do it through public-private partnerships.
Montek Singh Ahluwalia, Deputy Chairman of the Planning Commission of India, Nov 2007 by 2015. These goals comprise eradicating extreme poverty; achieving universal primary education; promoting gender equality; reducing child mortality rates; improving maternal health; combating AIDS, malaria, and other diseases; ensuring environmental sustainability; and developing global partnerships for development. Environmental concerns, such as land degradation, water pollution, and air pollution need to be addressed while striving for rapid development. Higher economic growth at the cost of indiscriminate damage and deterioration of the environment cannot be sustainable. Attempts of the government to provide rapid and inclusive growth in the past have often been made difficult due to lack of infrastructure. The role of publicprivate partnership in development of the infrastructure required for promoting inclusiveness in India has been recognized to be crucial. Inclusiveness can be realized by high growth rates only when the sources of growth are expanding and thereby including an increasing share of the population in the growth process.

The opportunity

The objectives of an inclusive growth agenda is to reduce poverty, improve quality of life, and ensure to the extent possible, that all segments of society benefit from the economic growth of the country. A number of macro and micro level interventions have shown to be conducive to promoting inclusive growth. At the macro level, recommendations such as improving fiscal discipline, trade liberalization, openness to Foreign Direct Investment, privatization, deregulation, tax reforms, labour market flexibility, providing social safety nets, reorientation of public expenditure, and legal and political reforms can be useful in guiding policy discussions for promoting rapid and inclusive growth in developing countries.9 At the micro level, reducing income and non-income related inequality, improving public infrastructure, healthcare, education, access to markets, accountability, womens empowerment, role played by civil society organizations, and good governance can help accelerate poverty reduction. An India with a sustainable 9% or higher growth rate will be possible only if urban and rural India integrate in economic opportunities and quality of life. This implies that the key levers to achieving inclusive growth are increasing the availability, accessibility, quality,

and affordability of various products and services so that all segments of population have equitable social and economic opportunities. To achieve this, the government and the private sector need to work jointly, while abiding by the fundamental principles of a democratic society. Within this context, the responsibility of the government is to create a favourable and stable macroeconomic environment that fosters private sector participation without leading to market distortions such as monopolies or windfall profits to a few select firms. To create such an environment, the government needs to create and implement laws that are equitable, facilitate the procurement of natural and/or scarce resources, and provide economic incentives that encourage the private sector to promote inclusive growth by serving unserved or underserved market segments. Additionally, in sectors of national importance (such as defence) or those that promote social welfare (such as social protection and pro-poor employment), the government can supplement private sector participation through effectively managed public sector undertakings or welfare projects.

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On its part, to promote inclusive growth, the private sector must utilize its expertise and access to technology, capital, and human resources in building innovative business models that help increase a companys top line and profitability while ensuring that benefits accrue to a larger population base. Contrary to popular belief, the profit motive of private companies and social good that is envisaged by inclusive growth is not necessarily at odds with each other. There are numerous instances, both in India and abroad, where companies have developed business models that profitably serve customers at the bottom of the pyramid. The Indian middle class will continue to expand significantly in the coming years provided the current level of economic growth is sustained. In recognition of this, a number of products and services, such as the Tata Nano and flights operated by low-cost carriers have been introduced in recent years. As the income growth across India has continued, the character of consumption has also changed. A lesser proportion of the total spending is being used by the middle class on basic necessities, such as food and clothing and

there is increased expenditure on items, such as mobile phones, consumer electronics, and entertainment. Widespread adoption of mobile phones and television sets, and increasing penetration of the Internet, opens up new markets for advertisements and promotions. For corporations around the world, the Indian middle class thus presents a huge and rapidly growing business opportunity. However, the rapid growth resulting from the economic liberalization initiated in 1992 has also widened the gap between the haves and the have-nots. In order to reduce this gap and bring those currently in the periphery into the growth story, the government and private sector need to implement initiatives across eight broad dimensions governance, education, energy and resources, telecom and technology, infrastructure, healthcare, financial inclusion, and business model innovation.

Governance

Good governance is at the core of improving the delivery of essential publicly provided services. It provides the mechanism for linking inclusion, decision making, and accountability. Problems in infrastructure, critical for building an inclusive India, can often be traced back to poor governance. Red tape, lack of accountability, and corruption has plagued India since independence. The government has launched a large number of initiatives over the years in order to achieve the objective of rapid growth coupled with poverty alleviation and inclusiveness. Many of these initiatives have failed to achieve their goals because of poor design, insufficient accountability, and corruption at various levels. Without effective implementation, even substantial government expenditure results in limited success. As of October 2010, out of the 559 projects undertaken by the government for infrastructure development, 14 were ahead of schedule, 117 were on schedule, 293 are delayed and for the balance 135 projects, no dates had been fixed for commissioning.10 Realizing that accountability and transparency are critical elements of good governance, the Right to Information Act (RTI) was enacted in 2005. RTI empowers people to get information from the government and thus constitutes a big step towards transparency and accountability. However, the RTI itself suffers from poor monitoring of its implementation. The government officials are often reluctant to share information while common people have a low level of awareness regarding provisions of the RTI. It has been found that there is often unnecessary delay in the execution of RTI applications due to lack of motivation on the part of government officials. Unsurprisingly, it has been observed that in India, in order to fix the processes, appropriate changes first need to be effected at institutional levels to fix the institutions that design the processes.11 Good governance depends on processes and incentives to not only design good policies, but more importantly

on institutions to implement these policies efficiently and with efficient utilization of resources. Transparency and accountability in the delivery of public services can be implemented through involvement of local selfgovernments, community, and civil society groups. Although governance is largely the mandate of a democratically elected government, private sector expertise can be leveraged as has been done in the case of the Unique Identification Number (UID) project, wherein the central government is implementing the project under the leadership of Nandan Nilekani, whose career was largely in the private sector. Utilizing the knowledge and expertise of private sector leaders in other governance mechanisms, such as the Planning Commission, public distribution system, and rural employment can help deliver better governance at both, the central and the state levels. Private sector can play a bigger role in implementing these initiatives in the e-governance space. For instance, Mindtree, a Bangalore-based IT company, is working on developing and maintaining applications for rollout of the UID program. Another example of good governance is provided by the North American Electric Reliability Corporation (NERC), which began as a private, voluntary organization established by the companies that supply electric power to the electrical grid of the United States and Canada. In an effort to guard against the causes and effects of regional blackouts and other major service disruptions that are harmful to their business, the suppliers agreed on an enforceable set of standards related to their operations with NERC having the legal authority to enforce compliance with NERC reliability standards. Effective governance will help in generating improved service delivery with better outreach to the poor. This will enhance the chances of the poor moving out of poverty and also reduce discrimination in access to basic public services, such as education and healthcare and thereby promote inclusive growth.

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Corruption manifests itself in many forms. In some instances, funds meant for schemes for the welfare of the common man end up in the pocket of government officials. In some other instances, government discretion is used to favour a selected few. There are also cases where government contracts are wrongfully awarded to the wrong people. We cannot let such activities continue unchecked. I believe that there is no single big step which we can take to eradicate corruption. In fact, we will have to act simultaneously on many fronts. We will have to improve our justice delivery system.
Dr. Manmohan Singh, on Indias 65th Independence Day, 15th Aug 2011

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Education

Better education is often an important means to better jobs, increased income, and a better quality of life. To illustrate, Japanese investments in education after the Second World War helped it transform from a defeated nation to an industrial nation that created innovative products, increased employment, and provided inclusive growth to its citizens. Over the past few decades, the global economy has shifted from being manufacturing-centric to a knowledge driven one. The services sector contribution of world production has grown from around 52% in 1970 to 68% in 2005.12 Indias increasing integration with the global economy and the growth of sectors such as IT, BPO, and financial services have led to an increased demand for knowledge workers. Although India currently has around 480 universities and 22,000 colleges13, in the next 10 years, India will need 700 new universities and 35,000 new colleges. The population of India, cutting across regions, languages, and socioeconomic status, has begun to appreciate the value of education in a global economy and demonstrated an increased willingness to pay for quality education. Anecdotal evidences abound of domestic helpers using their earnings to send their children to English medium schools in the hope of a better future. India needs to widen its education base radically,14 said Prof. Amartya Sen after receiving an honorary degree of Doctor of Literature from the National University of Educational Planning and Administration at New Delhi in July 2011. However, as mentioned by Prof. Sen, there is a lot that remains to be done. The primary education sector in India is marked by variations the Seventh All India

Education Survey published by the National Council of Educational Research and Training in 2006 found that although 80% of children in the 5-14 age range were enrolled into schools, the rate dropped to less than 50% for secondary schools. Nearly 15% of government schools are single-teacher schools. In some states such as Bihar and Rajasthan, girls were only half as likely to be enrolled in secondary schools as boys. However, in states such as Kerala and Tamil Nadu, the secondary education enrolment rates are pro-female. The government has passed the Right to Education Act, which makes education a fundamental right for all children in the age group of 6-14, but for the goal of

The government can provide the physical infrastructure in terms of classrooms, equipment, etc. (for example, existing infrastructure at the various industrial training institutes can be upgraded and used) and the private sector can create training material, train teachers, determine certification criteria, and recruit certified students.
Inclusive growth A challenging opportunity | 11

complete literacy to be achieved, greater investment is needed in the physical and intellectual infrastructure. The midday meal scheme enacted by many state governments, with support from various NGOs and the private sector companies, addresses a fundamental problem that has plagued the education sector increasing student attendance and decreasing dropout rates. However, other problems continue to persist. Reports of teacher absenteeism, gender inequality in enrolment, and inadequate infrastructure, such as crowded classrooms are not uncommon. For example, the Right to Education Act mandates a maximum pupil-to-teacher ratio of 30:1, but according to the National University of Education Planning and Administration, over 12% of the nations schools had a pupil-to-teacher ratio of 60 or more in 2010. Correcting this imbalance requires investing in teacher training institutes, increasing the number of full-time teachers through better incentives, and in the interim bridging the gap through innovative models, such as para-teachers or contract teachers for short durations. India can leverage the experience and success that other countries have had in addressing such challenges through innovative solutions. To illustrate, The Gambia started an initiative in 2001 to make schools more girl friendly. This initiative included the provision of girls toilets and water so that girls could manage their personal hygiene better. In addition, the government had set up the Scholarship Fund Trust for Girls so that all costs required for educating a girl child are met. Finally, in areas where girls enrolment was low, a campaign was conducted to educate society, and address cultural factors that result in girls being denied education. Also, to fully utilize existing classroom capacity while new classrooms were being built, schools operated in shifts on six days of the week.15 Majority of Indian private education revenues accrue from formal education institutions. The private sector has a presence across the formal education spectrum ranging from preschools to higher education institutions. While private education is considered superior to public education in terms of its quality, it is also more expensive and largely restricted to urban and semi-urban areas and is predominantly in the kindergarten through 12th standard.16 At the tertiary level, of the ~600 universities in India, less than one-fifth are in the private sector.17 However, it is estimated that over 800 new universities will be added in India in the coming decade.18 The private sector can play a significant role in
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establishing new universities given its access to capital and physical infrastructure, provided that the regulatory regime for setting up and operating universities is reformed to enable faster approvals and accreditations. Infosys, for example, has set up a facility in Mysore, which is capable of training 13,500 employees at a time in a residential program which lasts around four months. As one of its co-founders Nandan Nilekani noted, it is probably the worlds largest corporate university.19 Shiv Nadar, the chairman of HCL Technologies Ltd., has set up a university, which aims to provide multidisciplinary and world class higher education. It will begin operations this year and can accommodate 4000 students upon completion of the first phase of campus development itself. In the United States, which has a number of the top universities in the world, every state has a body which is designed to promote collaboration between higher education institutions. Some of the top institutes, such as Harvard, MIT, and Stanford are all private institutes. In addition to increased private sector participation in formal education, there exists significant potential at the tertiary level in the form of setting up additional vocational training courses and institutes. India faces a shortage of skilled labour in sunrise sectors, such as retail, construction, and hospitality. The government can provide the physical infrastructure in terms of classrooms, equipment, etc. (for example, existing infrastructure at the various industrial training institutes can be upgraded and used) and the private sector can create training material, train teachers, determine certification criteria, and recruit certified students. Such an arrangement can reduce industry training costs and provide industries with a larger pool of skilled, productive, and employable resources. Thailand, for example, has a Dual Vocational Training program modelled after the German model in which the students work as temporary employees even during the course of the program and are compensated for their contributions towards the companys top line and bottom line. This enables students to get hands-on, relevant work experience during their course as against internships in which students may get assigned to irrelevant jobs. In Thailands DVT program, companies also offer permanent employment to students upon graduation.20 Thus, meeting the challenges of universal education in pursuit of inclusive growth will require a concerted effort from both, government and industry.

Energy and Resources

Economic growth and higher incomes have led to an accelerating demand for energy and natural resources in India but Indias generation capacity and effective utilization is currently inadequate. The energy sector suffers due to very high distribution losses and theft. Lack of competition in many critical segments of the industry, especially distribution, results in inefficiencies as the existing monopolies of stateowned distribution continue to underperform. This results in unreliable power supply, which hampers agriculture and industry and also penalizes households while causing large welfare losses. Rural electrification is an important tool to bring about inclusive growth by making electricity available to farmers and in rural areas. Electricity supply is thus one of the crucial inputs in the context of inclusion. Reforms such as strengthening of regulations, improving distribution, opening bulk supply to competition, and revision of tariffs to more economic levels are essential for realizing inclusive growth. Providing incentives to private sector companies to set up new plants or factories in backward regions can catalyse the development there. However, it is essential

for the government to ensure that the rights of any tribal inhabitants, forest dwellers, and locals are safeguarded when these projects are implemented. The government can include clauses to guarantee reservation of jobs for locals in the contract that it signs with the private companies. It can also include conditions in the contract for promotion of ancillary and downstream industries, which would lead to further creation of jobs and development of public infrastructure in the region thereby promoting inclusive growth. Resource endowments are not a constraint for most of the poor Indian states as they are richly endowed with mineral and forest resources. The states of MP, Bihar, and Orissa have substantial coal and iron ore deposits, while Rajasthan has substantial zinc, phosphorite, and copper deposits. In the North-East, Assam has petroleum and natural gas. Jharkhand alone has 33% of the countrys mineral reserves.21 It might seem paradoxical that a high level of mineral presence is often correlated with weaker economic performance, lower growth rates, and inferior development outcomes. This resource curse can often be seen in regions that are dependent on resources extracted from a narrow geographic base and these regions often perform poorly across a range of development indicators.

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Reforms such as strengthening of regulations, improving distribution, opening bulk supply to competition, and revision of tariffs to more economic levels are essential for realizing inclusive growth.
Lessons from successful mining regions in countries such as Australia and Norway have shown that in order to avoid this resource curse, India needs to implement reforms, which pursue a broad-based growth strategy backed by strong institutions while also focusing on sequencing of the reforms and developments.22 Mining in isolation is unlikely to generate broad-based growth and development. The mining success stories are in economies where mineral extraction has spurred or complemented development in other sectors of the economy. But this can only occur if there is an investment friendly climate that promotes linkages with upstream or downstream industries or creates investment opportunities in other sectors. These in turn aid in generating jobs and fuelling growth that spread the benefits of mining. Strong institutions are needed to prevent the capturing of benefits by a select few and promote investment. Institutions are also necessary to address the many and varied environmental and social costs of mineral extraction that can impede growth. Also, the sequencing of these reforms is crucial as similar developments can produce positive or negative outcomes depending on whether strong governing institutions are present. With institutional strengthening and proper sequencing, these reforms provide an opportunity for increasing inclusion in the lagging states using a mineral intensive growth strategy. Finally, the private sector can significantly contribute in initiatives that address the issues of green and sustainable energy. For example, the Berkeley-India Joint Leadership on Energy and the Environment is a partnership between the government, private sector, and educational institutions of U.S. and India to assist both countries adopt pathways and approaches for reducing the emissions of greenhouse gases while pursuing sustainable economic development. NERCs power supply in the U.S. and GEs Ecomagination campaign which promised to double the companys investments in clean energy23 are additional examples of roles that can be played by the private sector. Similar initiatives are needed to harness Indias potential, such as solar power, given the geographic location of the country. A well-planned energy development and utilization road map backed by effective execution and program management can enable India to bridge the energy gap and enable inclusive growth without compromising on the environment.

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Telecom and Technology

Undoubtedly, the technology and telecom sectors in India have experienced tremendous success. The past decade has seen an explosion in the growth of communications connectivity and the technology industry in India. As of March 2011, India has a teledensity of 70% (urban tele-density exceeds 150%, whereas rural tele-density is ~33%)24 and the IT industry contributes to ~6% of the GDP. The outsourcing industry is expected to grow to USD225 billion over the next decade.25 With over 25 lakh people employed directly and indirectly by the IT industry, it is one of the largest job creators in the Indian economy. A large untapped domestic market, a critical mass of technology-savvy professionals, and a robust ecosystem with proven innovations tailored for the Indian market are all unique assets that can be leveraged to drive inclusive growth in the country. There are over 800 million wireless subscribers in India today26 and the country has one of the lowest tariffs in the world. Rural communities can now access up-to-date information at affordable prices facilitated through initiatives such as ITCs E-Choupal. E-Choupal improves the earning capability of and minimizes risk for small farmers by providing them with relevant and timely information related to weather, crop prices, best practices, etc., through a mobile phone. Similar models can help workers in other industries that dominate the rural economy, such as fisheries, handicrafts, and textiles. The ubiquitous mobile phone can also serve as an Internet access device and be used to deliver other basic services, such as land administration records, mobile coupons for accessing public distribution systems, etc. Such initiatives would help social benefits reach the intended beneficiaries and reduce systemic corruption. Further, a mobile phone can also provide access to information and expertise and minimize the impact of geographical distance or location. For example, the South African Dokoza system uses cost-effective SMS for information management, transactional exchange, and personal communication for use in rolling out treatments related to AIDS and tuberculosis across the whole country.27 Thus, the mobile ecosystem can be used to improve quality of life by helping improve services such as primary healthcare. With the roll out of 3G and the declining prices of handsets with increasing features, ever larger number of

people will have the ability to access and consume richer information. Capabilities of 3G such as online video streaming, video calling, and faster downloads can be utilized to provide value-added services such as remote education. In an effort to provide telecom services at affordable prices, multiple measures, such as Mobile Number Portability, bringing more number of mobile operators to infuse competitiveness, setting up of Telecom Centres of Excellence and the Coordination Centre in PPP models have been taken over the last few years. To further give impetus to the telecom infrastructure in India, the PPP initiatives need to jointly address capability building for creating market-ready talent pool, continuous technology adaptation to meet India-specific economic and social development needs, faster deployment of services, and effectively bridging the rural-urban digital divide. On the technology front, the Indian technology sector has provided jobs, increased incomes, and improved the livelihoods for thousands of people. Although the country was initially attractive due to its low-cost, high-quality talent, this cost arbitrage has since been diminishing due to wage pressures and the sector witnessing high employee turnover. The Indian technology sector is now increasingly competing with other outsourcing/offshoring destination countries such as Vietnam and Philippines, especially in relatively low-skill services, such as voice-based call centres and data entry operations.28 Some of the lost advantages can be regained by leveraging high-speed wireless Internet accessibility to setup rural or semi-urban BPOs. In addition to lowering costs, providing jobs, and increasing incomes in the tier 2 and 3 cities, such a move will also help stem the migration from rural areas to urban India, which is causing significant pressure on urban infrastructure and living standards.29 Further, the setting up of industries in tier 2 and 3 cities coupled with increased disposable income of the local population will have cascading effects and help the setting up and growth of secondary services, such as food catering and language tutorials in those cities. Hence, providing every citizen with access to information and harnessing technology to innovatively deliver services within the Indian context will be the key to driving inclusive growth in an increasingly digital world.
Inclusive growth A challenging opportunity | 15

Infrastructure

Investment in infrastructure drives the growth of a countrys economy. In 1980, India had a greater investment and infrastructure base than China, but today, China is ahead in physical infrastructure availability, quality, and quantity.30 Indias population, availability of natural resources, and low cost base make it attractive as a manufacturing destination and the manufacturing sector can subsequently drive growth in jobs and incomes. However, for manufacturing to be competitive and sustainable requires an efficient supply chain and physical infrastructure for procurement of raw materials, storage of work-in-process and finished goods, and speedy transportation to customers based on demand. As pointed out by the Planning Commission Good quality infrastructure is the most critical physical requirement for attaining faster growth in a competitive world and also for ensuring investment in backward regions.31 The Prime Minister of India, Dr. Manmohan Singh has said that India needs to invest over USD 1 trillion in infrastructure by 2017 if the country is to achieve 10% annual growth rates.32 The Eleventh Five Year Plan envisages improving ~26,000 kilometres of arterial routes, the development of the golden quadrilateral, the North-South-East-West corridor, two dedicated freight corridors, and the upgradation and expansion of over 70 airports. However, funding new infrastructure projects will address only a part of the issue. In order to promote inclusive growth, systemic reforms are needed to fix the institutions and the processes used to create infrastructure. Currently, the land acquisition process for public projects is bureaucratic and does not adequately address the rehabilitation and compensation mechanisms for the dispossessed thereby leading to ill-will and public protests. Equitable policies that allow

for timely acquisition coupled with the ability to resolve issues amicably and within defined timelines are needed. The key components to physical infrastructure are transportation connectivity and warehousing storage. 2% of Indias roads (the National Highways) carry over 40% of the road transport. The poor condition of Indias roads reduces the average speed of trucks to 40 kmph as compared to 80 kmph in developed economies. The railway route network expansion has been slow at an annual growth rate of 0.3% and many wagons employ obsolete technology and have not been upgraded in decades. International airports in developed countries handle ~75 take-offs and landings per hour, whereas the Mumbai international airport can handle ~35 take-offs and landings per hour.33 Over 90% of the warehousing capacity is in the unorganized sector. Most warehouses are merely covered storage spaces with low capacities, outdated technologies, and lack facilities, such as cold storage, vertical space utilization, and advanced warehouse management systems.34 Improving transportation connectivity requires investments in both, urban as well as rural infrastructure. While ports and airports connect India to the rest of the world, the roads and railways are the backbone for connecting various parts of India, specifically rural India to urban India. Funding can be obtained through a number of means government investment, publicprivate partnerships, and private investments. India has still not fully exploited the potential of insurance and pension funds in the infrastructure sector.35 In addition to funding, a proper monitoring mechanism is needed to monitor projects so that they do not overrun budgets and schedules, leakages are minimized, and that the assets created are of international standards. Innovative models such as the use of the National Rural Employment Guarantee Act (NREGA) to create

Funding new infrastructure projects will address only a part of the issue. In order to promote inclusive growth, systemic reforms are needed to fix the institutions and the processes used to create infrastructure.
16

road networks and expand railway networks while simultaneously creating jobs can be used to speed up the pace of infrastructure asset creation. Globally, countries such as Malaysia have formulated policies that encourage private sector investment in infrastructure and in recent years, the private sector investment in infrastructure has exceeded that of the public sector. Many of the highways, expressways, and urban roads have been built by the private sector as toll roads. The successful completion of the Delhi Metro on budget and almost three years ahead of schedule is proof that if institutional delays are minimized and power is devolved appropriately, India has the capability to execute large infrastructure projects efficiently.36 Investing in warehousing facilities will benefit not only manufacturing industries but will also serve in furthering social welfare goals. In 2010, the government of India estimated that over Rs. 50,000 crore worth of food items is wasted every year due to the unavailability or inadequacy of storage facilities.37 Creating cold storage capacity for perishables by leveraging technology can help reduce wastage and thereby decrease food prices

while increasing the nations food security. The private sectors access to capital, technology, and process expertise can be harnessed using the PPP model in building and operating of warehouses. Like in many other countries, urbanization the movement of people from rural areas to semi-urban and from semi-urban to urban in search of jobs and a better quality of life is a growing phenomenon in India. By 2030, India is expected to have 41% of its population living in cities and towns.38 Therefore, underinvestment in infrastructure creation, cost overruns of projects, and poor quality of physical infrastructure are risks to the Indian economic growth story and to ensuring inclusive growth. While both the public and the private sectors are aware of the key shortcomings present in Indias infrastructure, the approach towards addressing these shortcomings need to be more formalized. Articulating systematized reforms across the infrastructure development life cycle from conceptualizing to planning stage to creating processes for infrastructure development and final execution, can help achieve the much anticipated results in Indias infrastructure development story.

Inclusive growth A challenging opportunity | 17

Healthcare

The healthcare industry in India promises to be one of the fast growing ones and is expected to be a USD 280 billion industry by 2020.39 The country has worldclass hospitals, highly qualified medical personnel, and is gradually emerging as a preferred destination for medical tourism for citizens of the developed world. However, the actual delivery of healthcare services is inadequate for a large section of the local population. India compares poorly to other developing countries on parameters, such as hospital bed density, physician density, number of doctors graduating every year from Indian universities, and public expenditure on healthcare.40 Also, the low penetration of health insurance (only ~15% of the population has any form of health insurance41) implies that a serious illness or hospitalization causes significant economic hardship to many sections of society, especially the urban poor and the rural population. In the context of healthcare, inclusive growth implies that healthcare resources are allocated equitably such that the benefits are shared by all segments of the society. Today, healthcare is not easily available to all sections of the Indian society. A rural person seeking healthcare has to travel ~10kms which takes an entire day (and consequently a days earnings) due to poor physical connectivity. Such situations can have dire consequences during medical emergencies. The lack of infrastructure, poor monetary compensation, and social prejudices result in doctors being reluctant to practice in rural areas and thereby further reducing healthcare availability. While it is mandated for all medical students to spend one year in rural areas as part of their internship, making healthcare universally available requires more efforts. Some private hospitals have begun by setting up healthcare facilities in tier 2 and 3 cities using business models which lower cost and consequently, allow them to operate at lower price points than those in metros. Private players are experimenting in striking a balance between project assets, location, investment amount, and pricing to deliver quality healthcare in nonurban areas. In the absence of insurance, almost three-fourths of all healthcare expenditure is borne by the consumer. Healthcare costs are rising given the demand-supply mismatch in availability of services. To make healthcare more affordable, all stakeholders are required to collectively work towards reducing the costs of healthcare and ensuring that individuals have the
18

Private players are experimenting in striking a balance between project assets, location, investment amount, and pricing to deliver quality healthcare in nonurban areas.
Figure 3: Number of hospital beds (per 1000 population) 9.7

4.1 2.4 0.9 Russia China Brazil India

Source: WHO Health Statistics 2011, Deloitte Analysis

purchasing ability through increased health insurance coverage. Certain government health insurance schemes such as the Yeshaswini scheme (Karnataka) have seen success in increasing coverage and providing affordable healthcare to nonurban populations.42 However, there remains significant untapped potential in aspects, such as the setting up of no-frills hospitals, frugal innovation in medical technologies, drug development, and leveraging economies of scale to reduce costs. The disparity in quality of healthcare services provided at private hospitals vis--vis government hospitals is large. The underlying factors for such disparity are the lack of competition, poor infrastructure, and lack of accountability and monitoring mechanisms. In an effort to address this effectively, the private and public sector need to partner in initiatives towards promoting

A multi-pronged strategy involving various stakeholders is necessary. Both public and private sectors need to work in tandem to make healthcare available, accessible, and affordable to all.
Sheila Dikshit, Chief Minister of Delhi

Inclusive growth A challenging opportunity | 19

The private sector can also play a larger role in enabling the weaker sections to afford and access healthcare by developing micro health insurance products and rolling out cashless admission to hospitals in rural India.

awareness and use of healthcare facilities, upgrading skills for healthcare delivery professionals, and increasing the use of technology (such as telemedicine) in delivering healthcare services. Some states such as Gujarat and Tamil Nadu have started accrediting their public healthcare facilities, such as hospitals, labs, and blood banks. This model should be implemented nationwide and the government, in association with reputed medical research institutions should develop consistent, reliable, and easily understood accreditation norms. The private sector can also play a larger role in enabling the weaker sections to afford and access healthcare by developing micro health insurance products and rolling out cashless admission to hospitals in rural India. A similar initiative already exists in Kenya through the Cooperative Insurance Company of Kenya, which markets its insurance products through microfinance institutions. These institutions, in turn, enable the low-income citizens to make annual premium payments through loans which are to be repaid monthly. Given Indias population and regional variations, isolated or sporadic innovations will not ensure inclusive healthcare. For driving sustainable healthcare development, it is important to effectively use technology across all areas of the healthcare value chain from information capture to diagnosis to recovery monitoring. It is also necessary to complement technology innovations with investments in the medical academic infrastructure in terms of quantity and quality of medical education available. Moreover, the need for the public and private sector to work together cannot be undermined. While the government brings in the right level of planning and investments required for broad-based access to healthcare, the private sector participation in complementing efforts towards setting up of the physical infrastructure, creating awareness, and ensuring access to quality healthcare facilities is equally important.

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Financial inclusion

The mobile phone can act as a smart wallet as well as a transactional medium. This can be useful in remote areas where setting up physical banking infrastructure would not be feasible.
A society can be considered financially inclusive when all segments and strata of society have access to financial services and timely and adequate sources of formal credit. Similar to access to education and healthcare, the access to finance is an important one for all segments of society, and especially to the poor and marginalized sections, as it can facilitate them to eke out a sustainable living and alleviate them from poverty. For example, the law on exclusion (1998) in France underscores the individuals right to a bank account. Similarly, the Community Reinvestment Act of 1997 in the USA mandates banks to offer credit to all population segments within its area of operation and prevents specific targeting of the rich. Today, the bulk of Indias population lacks access to financial products and services, such as savings accounts, loans, insurance, pension schemes, payments, etc. Banking penetration is estimated to be only about 5% among the lower income classes, and even among the middle- and high-income classes the penetration is about 45%.43 Most of the population belonging to the lower income groups does not have access to formal banking and credit. This leads to a vicious cycle in which the vulnerable are forced to resort to borrowing from informal sources (such as moneylenders) at usurious rates of interest. This not only hampers their ability to pay back and get drawn into further debt, but also takes away a substantial portion of their already meagre earnings. This debt trap worsens poverty levels and cases where the debtor has committed suicide fearing an inability to pay debts are not unheard of. Realizing the importance of financial inclusion, the Reserve Bank of India has pushed for the same through policy measures. Recognizing that private banks can have an important role to play in increasing banking penetration, in early July 2011, the RBI issued a circular mandating all scheduled banks to open at least 25% of their new branches in rural areas. Further, the RBI has identified over 70,000 villages with populations greater than 2,000 that are currently unserved by banks. However, in addition to opening new branches in currently underserved areas, it is also imperative to address other factors that impair access to financial services. The ability to access small amounts of capital through formal microfinance loans has enabled many people below the poverty line to start successful small enterprises and work their way out of poverty. Grameen Bank in Bangladesh pioneered not only microfinance loans but also played a part in inclusive growth through initiatives, such as financial literacy sessions, womens empowerment through group loans, and by setting goals to eliminate poverty in areas of branch operation (measured by benchmarks relating to access to food, water, and sanitary facilities). The microfinance industry has private sector participation in India but has had controversies recently relating to consumer protection and corporate governance issues. The Microfinance Bill which is expected to be introduced in Parliament shortly aims to be a legislation that addresses the challenges of the microfinance industry in terms of a regulatory authority, client protection measures, and ensuring that microfinance investors do not make excessive profits at the expense of the borrowers. Like in many other sectors, technology can be a leveller. For example, the mobile phone can act as a smart wallet as well as a transactional medium. This can be useful in remote areas where setting up physical banking infrastructure would not be feasible. Similarly, payments from social welfare schemes such as NREGA can be
Inclusive growth A challenging opportunity | 21

made directly to smart cards with biometric information so as to facilitate more people to have access to and use banking facilities. The private sector can play its part in reducing the barriers to adoption and addressing some of interacting factors that affect financial inclusion. Most importantly, products and services need to be tailored considering the socioeconomic fabric of nonurban India. This would imply designing new products and services. Given the lack of a social security net, innovations such as microinsurance and microsystematic investment plans for retirement can be successful if designed and marketed properly. Other monetary aspects such as minimum balance and service charges on savings accounts will need to be tweaked appropriately so that services are affordable to the target customer segment and yet allow the financial intermediary to be profitable. Removing other barriers to adoption will also pose a challenge that needs to be addressed jointly by the private and public sector banks. Given their lack of familiarity with banks and financial intermediaries, a large majority of the currently unbanked population might be hesitant to use such services. Campaigns to educate the population about the benefits of financial inclusion can help bring the unbanked into the formal banking system. To be effective, the private sector can pool resources and conduct campaigns jointly so that larger areas can be covered thereby driving greater

penetration. Equally important will be to design simple procedures that reduce transactional costs for the customer not everybody in rural areas will have the documentation (such as identity proof or address proof) required to open an account. Other behavioural factors such as the lack of literacy or comfort with only a single regional language must be factored in while developing methods that make it easy for such people to access their accounts or formal banking channels. Recognizing the importance of a financially inclusive society, the RBI has formulated policies such as the mandate for banks to offer no-frills account, simpler Know Your Customer norms, and easier credit facilities (such as the General Credit Cards scheme) which are tailored towards serving the unbanked population and increasing banking penetration. Both, public and private sector financial institutions need to give a further impetus to drive financial inclusion over the coming years.

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Business model innovation

In 2010, less than one-fifth of the Indian population had an average daily per capita income greater than USD 4. However, by 2030, it is estimated that over half of the Indian population will have an average daily per capita income greater than USD 4.44 Growth in disposable income coupled with technology innovations that make it easier for companies to reach consumers implies a large and potentially profitable market. However, simply transplanting products, services, or strategies from the developed world or even from urban India may not always work in a large, developing, and diverse market such as India. Inclusive growth requires companies to innovate their business model to profitably serve the bottom of the pyramid. This entails understanding the specific needs of the various target customer segments, their preferences, purchasing power, and designing suitable customer value propositions. Several examples of innovation can already be found in the Indian context. In 2008, Godrej launched the ChotuKool a smaller, cheaper, portable refrigerator that used significantly fewer parts than a regular refrigerator. Instead of using the conventional cooling tubes and refrigerant, the ChotuKool was designed to use a fan that ran efficiently on even erratic power supply, and was targeted at the lower income classes who typically have less food for storage than do the middle and upper classes. Similarly, the advent of dual-SIM mobile phones was based on understanding that many mobile phone subscribers have two phones one for incoming calls, and another one to make outgoing calls and thereby take advantage of the cost differential in prepaid plans offered by different mobile operators. The Nano, a car designed to be sold at the price point of USD 2,500 was the result of Ratan Tatas insight into the customer psyche and needs. Seeing a family of four travelling on a scooter, he believed that a car that offered better safety, comfort, and was affordable would be a compelling value proposition.45 During his visit to India in 2010, the US President, Mr. Barack Obama appreciated the Kisaan Sanchar Service (roughly translated as Farmers News Service) provided through a joint venture between Bharti Airtel, IFFCO, and Star Global. The Kisaan Sanchar Service leverages technology to empower farmers with relevant and timely information to make better decisions.46

However, there is sufficient scope for additional innovative business models in every sector. For example, vaccines and surgeries that are low cost while complying with international quality requirements are needed in the healthcare sector. The convergence of telecommunications, media, and technology presents a number of opportunities to drive inclusive growth through new products and services such as remote education and mobile banking. A key takeaway from all the above examples is that both the public and the private enterprises need a refreshed approach towards creating a genuine and inclusive value proposition one that focuses on getting-thejob-done as against simply introducing a scaled down or cheaper version of an existing product or service. A cookie-cutter one size fits all approach is unlikely to be successful in creating inclusive growth. To succeed, companies need to develop a compelling customer value proposition provide a clear solution to a customer need while creating value for the customer and the company. Leveraging existing resources (technology and personnel) and processes can help design new products and services at affordable price points. Further, public private partnerships can take the form wherein private sector brings access to products, services, and capital and the public sector, given its better reach in the hinterlands, provides sales and distribution support, with the joint objective of effectively serving a broader customer base with innovative products that help meet customers specific needs. Innovation, by definition, is risky. There have been and will continue to be innovations that will not succeed as envisaged. However, the probability of success can be increased if companies reinvent their business models to consider inclusivity as a key factor at the design stage itself. Innovative business models that are inclusive in nature not only benefit society as a whole, but also serve as a new and profitable revenue stream for enterprises.

Inclusive growth A challenging opportunity | 23

Conclusion

In order to achieve inclusive growth, holistic and integrated solutions are needed to facilitate rapid and sustainable growth. The task of building an Inclusive India for its 1.2 billion people is so large and complex that it cannot be accomplished by either the government or by the private sector working in isolation. Achieving inclusive growth is not only to be seen as a priority in the Planning Commissions Five Year Plans, but also as an equally significant opportunity for every enterprise in the public and the private sector. Today, Inclusion for India isnt a mere buzzword that individuals and enterprises talk about, but an imperative that calls for concerted action towards bringing inclusion in every aspect of how individuals, public and private enterprises as well as the government operate and envisage to grow. Focus of the government on better and more efficient delivery mechanisms to improve access to currently backward regions is crucial. It has already been observed that majority of the low-income states have rich geographic resources. However, due to poor infrastructure, these regions are often caught in a vicious poverty circle from which they find difficult to breakout. However, if these regions can take a leaf out of experiences in countries such as Australia and tailor it for local needs, they present a greater opportunity for its people. It has been argued that the demographic dividend played a role in the economic miracles of the four East Asian Tigers Hong Kong, Singapore, Korea, and Taiwan.47 India has a strategic opportunity as a result of its demographics dividend, its entrepreneurs, its technology prowess, its democracy, and the large English-speaking population. However, this window of

opportunity could be short and hence it is imperative for the government to try and achieve rapid, sustainable, and inclusive growth. Private sector participation can bring access to talent, capital, processes, and technology innovation needed to drive inclusive growth. The challenge for the private sector is to incorporate inclusiveness in its corporate philosophy and to facilitate its leaders and business managers to actively participate and play their role in fostering new products, services, and business models that enable a more widespread and equitable growth in the years to come. Additionally, the private sector must take on a larger role by consistently providing its skills, such as structured and goal-oriented processes, effective program management, efficient execution and monitoring mechanisms, to the government and the public sector towards the unified goal of achieving the much desired inclusion in India. As Nandan Nilekani notes in his book Imagining India (2008): India now stands evenly balanced, between our reluctance to change in the face of immense challenges and the possibilities we do have if we do tackle these issues head-on. The consequences of these two choices are in extremes in the long term we will either become a country that greatly disappoints when compared to our potential or one that beats all expectations. India has a huge potential to be a role model for this century if the efforts at the inclusive growth by the government and private sector succeed. The opportunity to act is now.

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References

1. NGO Partnership System, Planning Commission, Govt. of India (Sep 2011) 2. Key Indicators for Asia and the Pacific 2010, Asian Development Bank (2010) 3. World Development Indicators, World Bank (2008) 4. Accelerating Growth and Development in Lagging Regions of India, World Bank (Feb 2008) 5. Economic Survey of India (2011) 6. The Challenge of Employment in India An Informal Economy Perspective, NCEUS (Apr 2009) 7. The Demographic Dividend: A New Perspective on the Economic Consequences of Population Change, Bloom, D., D. Canning, and J. Sevilla (2003) 8. Pakistan: The Next Generation, British Council report, (November 2009) 9. After Neoliberalism, What? (Augmented Washington Consensus), Rodrik(2002) 10. Economic Survey of India (2011) 11. Asian Development Bank, Water and Sanitation Program (2004) 12. Structural Change in the World Economy, United Nations Industrial Development Organization (2010) 13. Kapil Sibal India's minister for human resource development (Jun 2010) 14. The Hindu (July 5, 2011) 15. Education and The Gambia: A success story, by C Grey-Johnson (Permanent representative of The Gambia to UN) 16. Indian Education Industry Demand and Opportunities, Mindpower Solutions (Jan 2011) 17. University Grants Commission (Aug 2011) 18. Education sector in India, Monthly Update, Netscribes Research (June 2011) 19. Thomas Friedman in conversation with Nandan Nilekani, New York Public Library (March 2009) 20. Website Skills and Employability Dept., ILO 21. India Inclusive Growth and Service delivery: Building on Indias Success, World Bank Development Policy Review (2006) 22. Eleventh Five Year Plan (2008) 23. The Economic Times (March 17, 2008) 24. TRAI Performance Reports (March 2011) 25. NASSCOM; Press Reports

26. How Telecom can empower rural India by Naresh Wadhwa (President and Country Manager, Cisco India and SAARC) 27. Mobile Based Primary healthcare system for Rural India, M V Ramana Murthy, CDAC 28. Philippines, India compete for outsourcing dollars, Asia Sentinel (November 2010) 29. Migration Widens the Gap: Interview with Union Minister of Urban Development, BusinessWorld (August 2011) 30. World Bank estimates 31. Inclusive Growth Vision and Strategy, Planning Commission (2008) 32. Press reports 33. Indian Logistics Industry, Cygnus Research (2010) 34. Warehousing Industry in India, NetScribes Research (2010) 35. News report in Livemint (March 2010) 36. The Miracle Worker of Delhi Metro, Businessweek (March 2007) 37. Health Insurance in India by Sujatha Rao (Secy., National Commission on Macroeconomics and Health, Govt. of India) 38. India Urban Poverty Report: 2009, Government of India 39. Hospital and Healthcare- Impact of Union Budget 2011-12 Credit Ratings and Analysis Ltd. 40. Indian Ministry of Health 41. "Providing Healthcare Through Appropriate Patent System In India", Manthan Janodia, Manipal University (2009) 42. News report in DNA India (May 2010) 43. RBI Statistics (2010) 44. Asian Development Bank (August 2010) 45. Reinventing your business model, HBR (December 2008) 46. Press reports; IFFCO Kisaan Sanchar Limited 47. Contraception and the Celtic Tiger", Economic and Social Review (2003)

Inclusive growth A challenging opportunity | 25

Acknowledgements

Joydeep Datta Gupta Chief Operating Officer Deloitte and Touche Consulting India Pvt.Ltd E-mail: jdattagupta@deloitte.com Jeffrey L. Schwartz Managing Director Human Capital, Deloitte Consulting India (P) Ltd E-mail: jeffschwartz@deloitte.com Vikram Latawa Senior Manager Strategy and Operations Consulting E-mail: vilatawa@deloitte.com Pradyot Anand Manager Strategy and Operations Consulting E-mail: pradanand@deloitte.com

Suman Dubey Manager Strategy and Operations Consulting E-mail: skdubey@deloitte.com Abhishek Singh Senior Consultant Strategy and Operations Consulting E-mail: sabhishek@deloitte.com Anupriya Nayyar Senior Consultant Strategy and Operations Consulting E-mail: anayyar@deloitte.com

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Inclusive growth A challenging opportunity | 27

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