Indian Business Environment

Dr Rajib Sarkar
June 30, July 1 & 2 2021 (Section A)
July 1 & 2, 2021 (Section B)
Bennett University

Dr. Rajib Sarkar 1

Bennett University
The New Economy : The Big Picture

Dr. Rajib Sarkar 2

Bennett University
The First Industrial Revolution ( 1750-1870)

Dr. Rajib Sarkar 3

Bennett University
The Industrial Age ( 1870-1945)

Dr. Rajib Sarkar 4

Bennett University
The Information Age (1945-1999)

Dr. Rajib Sarkar 5

Bennett University
The New Industrial Revolution ( 2000 –Present)

Dr. Rajib Sarkar 6

Bennett University
 The New Industrial Revolution (contd.)

• Since the global recession in 2008, we’ve seen the global

economy search for a new economic narrative.
• Economic revolutions in history occur when new energy
systems are combined with new communication technologies.
• In the nineteenth century it was steam power and print
technology. In the twentieth century it was electricity, the
telephone, radio, and TV.
• Today, it’s the Internet, 3D printing, and renewable energy
sources setting the stage for what we and many others
consider a new industrial revolution based on collaboration.

Dr. Rajib Sarkar 7

Bennett University
 The New Industrial Revolution (contd.)

• The New Industrial Revolution is organized around distributed renewable

energies found everywhere and for the most part, free—sun, wind, hydro,
geothermal heat, biomass and ocean waves and tides.”

• Imagine the possibilities. All this dispersed energy collected at millions of

local sites and then bundled and shared with others through “ The Green
Internet.”

• Over the coming years the centralized model powered by fossil fuels will
give way to what many call distributed capitalism. In this model we’ll
leverage peer networks to allow everyone to become a potential
entrepreneur, by creating information, knowledge, and power in the open,
Creative Commons landscape.

Dr. Rajib Sarkar 8

Bennett University
 Dr. Rajib Sarkar 9
Bennett University
 The Six Forces of Change (contd.)
 No. 1: An anywhere liquid workforce. You probably know this from
personal experience. Where and how we work is changing.

 No. 2: A new work order – connected, collaborative, creative. We’ll no

longer work for the same company for 25 years. Instead, people will be
looking for companies that fit them best at different moments.

 No. 3: The connected and engaged customer. Between Yelp, Facebook,

and Google, people are more than happy to tell us what they think.
Startups that understand this interest, this desire to bond, will flourish
with customers who are invested equally in their success.

Dr. Rajib Sarkar 10

Bennett University
 The Six Forces of Change (contd.)
 No. 4: The era of the maker. Who needs a factory when you’ve got a 3-D
printer? Prototypes, even actual products, may be readily available in
small batches. A process that used to take weeks, or even months, can
now happen in a matter of days because your startup has access to tools
that make “making” easier.

 No. 5: The sharing economy. You still love a really nice hotel, but it’s clear
that businesses like AirBNB are here to stay. Why own if you can borrow
what you need for the moment.

 No. 6: The new creative economy. Outlets for creative entrepreneurs will
continue to open and expand in the coming years.

Dr. Rajib Sarkar 11

Bennett University
IIT-M Startup Builds India’s First 3D Printed
House, Cuts Construction Cost by 30%

Dr. Rajib Sarkar 12

Bennett University
Demographic Shifts

Dr. Rajib Sarkar 13

Bennett University
The Big Picture

Dr. Rajib Sarkar 14

Bennett University
 How to Thrive in the New Economy : Naval Ravikant

 You will get rich by giving society what it wants but does not yet know how
to get. At scale.

 Play iterated games. All the returns in life, whether in wealth,

relationships, or knowledge, come from compound interest.

 Specific knowledge is the knowledge that you cannot be trained for. If

society can train you, it can train someone else, and replace you.

 Specific knowledge is found by pursuing your genuine curiosity and

passion rather than whatever is hot right now.

Dr. Rajib Sarkar 15

Bennett University
 How to Thrive in the New Economy : Naval Ravikant (contd.)

 Building specific knowledge will feel like play to you but will look like work to
others.

 When specific knowledge is taught, it’s through apprenticeships, not schools.

 Specific knowledge is often highly technical or creative. It cannot be outsourced or

automated.

 Capital means money. To raise money, apply your specific knowledge, with
accountability, and show good judgment

Dr. Rajib Sarkar 16

Bennett University
The Power of Compounding

Dr. Rajib Sarkar 17

Bennett University