Human capital Development in India

Inclusive Innovation: India’s New Growth Mindset  February 4, 2013 – 10:06 am

 Inclusive innovation is more than innovation for the poor; it can be a blueprint for effective governance and a model for inclusive growth and sustainable development. Declaring 2010-2020 as the ‘Decade of Innovation, ’ India’s President Pranab Mukherjee, recognises the need for a new growth model – one that capitalises on India’s human and technological capital to meet its development challenges and sustain its long-term growth.

Image courtesy of indianhillbilly, © 2010, some rights reserved.

Image courtesy of indianhillbilly, © 2010, some rights reserved.

Jugaad in the first “turnabout”  

India owes its thriving low-cost communications sector, a fundamental element of high growth rates since 1991, to its spirit of “jugaad”: a form of innovation that champions resourcefulness and entrepreneurial creativity. India’s bias towards technical education allows the structural reformations of the Narasimha Rao government to catalyse the software and services movement in the 1990s. India’s economic turnabout demonstrates that government support is essential for technological breakthrough and growth creation – and that subsidy provision is insufficient on its own. Rao’s stringent infrastructural changes enables an existing base of jugaad innovators in the IT-based sector to realise their potential in a freer and dynamic market. It is no secret that jugaad thrives in a competitive environment, where agents fail cheap and fast for survival only. If the government had not liberalised the telecom industry, India would not have been able to mobilise its available human capital to prompt its wholesale technological upgrading to global standards.  A competitive services industry naturally became a generator of growth, as India liberalised its services market to foreign agents. A competitive advantage over US software brought in a surge of FDI, which contributed to India’s all time high growth rates in the 2000s.

Source: St Andrews Foreign Affairs Review

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