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Intellectual and entrepreneurship ability driving success: Kamal Nath Print E-mail
Written by Chandra   
Friday, 25 January 2008
Davos: At a special breakfast session organized by CII and The Boston Consulting Group in Davos this morning, Mr Kamal Nath, Minister of Commerce and Industry said that the appearance of companies from emerging  markets as new global challengers was a new phenomenon and had surprised all. Mr Kamal Nath stated that cost arbitrage alone did not propel these companies on the global market place. He was of the view that it was a combination of entrepreneurship ability and technology which enabled these companies to get centrestage.

The minister also added that for about a decade such companies in India, china, Indonesia, Philippines, Thailand begun getting their act together and several of them have now become global. The Minister mentioned that even in India, many were newcomers, taking advantage of technology and the demographic advantage. The new drivers of the future had shown the power of this combination in India.


Mr Nath said  that the large domestic market  had helped the Indian companies to be competitive and catapult themselves globally. Indian companies had taken advantage of globalization and were globally competitive and added that east asia was most competitive region. The fact that there was there was a spate of regional trade agreements that India was entering into underscored that India and the rest of asia was reaching out to each other.

Earlier, Mr Hans-Paul Buerkner, President and Chief Executive Officer, The Boston Consulting Group, which had drawn up the 2008 BCG 100 New Global  Challengers comprising 100 companies from Rapidly  Developing Economies, mentioned that many of these  100 companies came from nowhere, but though they were challenging the status quo, these companies  also represented a great opportunity for those who  understood this phenomenon and act quickly. Mr  Buerkner said that these top 100 companies were growing 3 times as fast as Fortune 500 companies. Also their profitably was higher.

Mr Rahul Bajaj, Chairman Bajaj Auto ltd, which was in the list of the 100 in the BCG list, said that  the opening up of the Indian economy in 1991 taught  Indian companies to be competitive. He said that the greatest guru for business was competition. Mr Bajaj  said low cost was not always the advantage as India  had high transaction costs. It was a cooperative  competition of cost arbitrage and technology imports

Mr Wim Elfrink, Chief Globalization Officer, CISCO  Systems said that a combination of GROWTH in  asia/east, INNOVATION connecting the huge and  growing markets and the availability of TALENT drove  his company to invest heavily in India and in asia.  He said that they were aiming at 20% of the top  talent coming from India

In the discussion that followed and in response to  questions from participants, Mr Kamal Nath mentioned that human skills development and education would  determine success for developing countries and  referred to the huge investments in India on skill  development and education. Mr buerkner, in  conclusion  mentioned that competitiveness, higher productivity and raising levels of education and  skills would be key drivers for companies and  countries to succeed.
 
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