India is today the third largest economy in the world on Purchasing Power Parity basis. It is also the second fastest growing economy, with its growth rate second only to China. The continuing growth of India and China is considered vital for global economic growth and stability.
In six out of the last nine years, the growth rate of the India economy exceeded 8 per cent. However, in the recent years, the growth rate has declined, from 8.4 per cent in 2010-11 to 6.5 per cent in 2011-12, and further lowest at 4.7 per cent in 2013-14. While recently it has shown some confidence and growth rate pegged in the range of 5.4-5.9 for the year 2014-15.
The slow-down of the economic growth is largely explained by the diminishing competitiveness of the Indian economy as well as the industry. The traditional sources of competitive advantage for industries in India, e.g. labor arbitrage, trained skilled workforce, large middleclass are now no longer unique and may give adverse outcomes if the macro and micro-environment is not managed consistently. India cannot take the national prosperity for granted and will have to ensure competitiveness in all markets as an “ecosystem”– output as well as input markets. To renew the faith on demographic dividend as a source of continuing competitive advantage, Indian business must focus on fundamental value creation by being competitive at a global scale.
Focus must come back on productivity, innovation and long term value creation as Indian Companies seek to grow organically and inorganically. At the same time, growing consumer demand and new consumer preferences are leading to new products and new markets globally. Technology and innovation in several industries have created disruptions in the existing value chain. The CoC aims to build educational courses and platforms for managers to build capacity for business practices which are compliant with competitive regulation and more importantly how Indian businesses can adopt new business models to enhance competitiveness of their products.