<p>The private sector’s role in encouraging a country’s growth and economic development cannot be overstated. Private enterprises are the chief agents in creating employment, providing funds, building competitiveness and driving innovation – all essential instruments for growth.</p>
<p>The private sector, in particular, takes entrepreneurial risks, which is central to how it translates investments into wealth creation and income generation. This role takes on further significance in the current context, as rising uncertainties in a rapidly changing global landscape cause economic growth concerns, particularly for emerging nations.</p>
<p>In the past, India has shown strong resilience in the face of global volatility and has continued to grow steadily, placing it among the world’s fastest-growing economies. The Indian economy grew at a rate of 6.8% during 2018 and is projected to grow at a rate of 7% and 7.2% during 2019 and 2020, respectively. The private sector has played a huge role in India’s development and is largely responsible for the phenomenal growth registered by the country since the economy was opened up in 1991.<br />
The Confederation of Indian Industry (CII) is positioned as a partner in national development and is committed to catalyzing, nurturing, and driving enterprise competencies for fostering growth. We do this by strengthening the competitiveness of the economic ecosystem, as well as aligning individual enterprises with the needs of society.</p>
<p><strong>• Creating livelihoods:</strong> The private sector has strong links to higher investments in education and vocational training to bridge skill gaps in the economy, facilitating skills and training programmes, creating partnerships with educational institutes and experts and, most importantly, creating a future-ready and talented workforce. India has more than 900 universities and 39,000 colleges of which 78% are privately managed. In addition, most large, private enterprises have created in-house training and skills programmes to help build the capacities of young workers in line with industry needs.</p>
<p><strong>• Driving investments is vital:</strong> Private investments by the corporate sector are critical to higher growth rates and economic development. More investment creates a multiplier effect in the economy by generating both direct and indirect employment, boosting consumption and fostering further development. Public-private partnerships need to channel private sector funds into crucial areas of development. The Indian government has introduced various formats in order to attract private investments, especially in roads and highways, airports, industrial parks, and higher education and skill development sectors.</p>
<p><strong>• Making use of technology:</strong> With the advent of the Fourth Industrial Revolution, India is at the cusp of a technology revolution that could transform manufacturing and industrial production in the country. An important objective for the private sector must be to facilitate the transfer or spread of new technology through industry-led initiatives or by building new business models that employ technology in new ways, which in turn will increase productivity and lead to sustainable economic growth.</p>
<p><strong>• Fostering entrepreneurship and innovation:</strong> Corporates are integral to fostering innovation and entrepreneurship and ensuring the future progress of an economy. Private sector investments provide the necessary infrastructure that is sustainable, reliable, and can use modern technology to create new products and services. In most countries, the private sector plays the lead role in research and development spending, working with universities and institutions to translate new research into markets and crafting innovative business models and strategies.<br />
</p>