Students need a complete revamp of economic understanding to cope with the stagnation of the economy, said S. Gurumurthy, chartered accountant and corporate advisor.
Speaking at a two-day conference, ‘Management beyond repertoire-innovate and lead’, organised by Stella Maris College, Madras Management Association and The HinduBusiness Line on Thursday he said the youth should know the sensex does not represent India.
“Over 40 per cent of GDP in India comes from the non-corporate sector,” said Mr. Gurumurthy. Family-based society, values and the system in India was the real driver of domestic savings; but a cultural catastrophe in the United States had transformed into an economic catastrophe, he said.
“Indian economy grew because of domestic savings between 1991 and 2011. By 2016, Indian families will contribute to 40 per cent of savings. But 51 per cent of first marriages in the U.S. end in divorce. American family crisis in 2008 turned into a global economic crisis,” said Mr. Gurumurthy.
He stressed the need for sustaining economic discipline with innovation by “emptying thoughts and thinking afresh” so that the nation’s potential for recovery would be improved.
Executive director of KCP Ltd., Kavitha Chitturi, said innovation would help discover the existing opportunities as well as those that are likely to emerge in the future.
“There are several reasons why the generation of new ideas can be critical. Although every organisation will have its own priorities and sector-specific issues to balance, businesses that fail to innovate run the risk of losing ground to competitors, losing key staff, or simply operating inefficiently” she said.
“Today, the need for innovative, strong leaders is more acute than ever, given the changing nature of brand loyalty and shorter product life cycles,” added Ms. Chitturi.
