Speech By Her Excellency The President Of India, Shrimati Pratibha Devisingh Patil To The Students Of The Indian School Of Business

Ladies and Gentlemen,

Let me say that it is a great pleasure to be speaking to all of you present here at this prestigious educational institution, established just a decade ago. Indian School of Business (ISB) is an example of how collective effort and the "spirit of giving" on the part of leading academicians, individuals and corporations, has created an educational institution to provide quality training to our future business leaders. It has earned a reputation of being a renowned business school. My congratulations to its management, faculty and students, as well as to all associated with it.

Many amongst you present here, will become business leaders and thinkers of tomorrow. While making personal achievements, you will also be participants in the shaping of society and in the future of the country. Therefore, I would like to talk to you on the "Role of young business leaders in achieving inclusive growth and nation building". Fast growth that also embraces all is the centerpiece of our development agenda. Imagine for a moment how painful it would be if you were in the zone of exclusion. This thought alone can make you realize the significance of inclusive growth, in the process of nation building. In the early 1990s, we embarked on a model, which few countries have adopted in modern history - an attempt at rapid economic growth within a democratic system, where the people are partners of the government in the development process. In fact, this year marks two decades of the start of that economic process in India. We now have the advantage of experience, as we seek to make India a developed nation in the 21st Century, in which all citizens have access to basic needs and are on the pathway of greater prosperity, while at the same time upholding the values of our age-old culture, which has given our nation a unique identity. This will also help reduce disparities and social tensions.

In recent years, India has grown at an average rate of 8 to 9 percent per annum. Today, it is one of the fastest growing economies of the world, and is expected to emerge as one of the four major economies of the world by the year 2020. For this growth to be long lasting and to change the lives of our people, inclusive growth is crucial. Clearly, we need to draw people who are living in poverty, within the growth cycle, by expanding the cycle of growth across the country to every level. Only by addressing the needs of those at the bottom of the pyramid, would we have fulfilled the vision of securing economic justice for all, a goal which our founding fathers had outlined. Mahatma Gandhi once said that true economics stands for social justice, and it promotes the good of all including the weakest.

How can those associated with the corporate and the professional management world contribute? I would strongly emphasize to the young audience present here, that successful business models can go hand in hand with growth that is beneficial to society. It would be important to align your goals with the priorities of the nation. The world's most successful organizations, as also the most admired ones are those which have a commitment not only towards the shareholders of their company, but indeed to society at large. Following this path requires finding a balance between economic and social goals. In your companies and organizations, you should help usher in high standards of governance and ethics, socially and environment responsible standards.

There are many factors that can work in India's favour. Primary among these is the high proportion of a young population. The United Nations has estimated that in the next 40 years, India's population will grow by 300 million working age persons. Their energy and enthusiasm must be guided into productive work. Their ideas and innovations tapped for the betterment of society. A focus on human development carries with it the responsibility and possibility of making India a human resource rich country. Work in this direction is fundamental if our demographics are to give a dividend and not become a disadvantage. In this education and training institutions will have to fulfill their enabling roles.

The purpose of education is to generate knowledge, skills, values and ethics, so that India is counted amongst the front ranking nations of the world. Today, it is estimated that our economy faces a shortfall of 2 lakh engineers, 4 lakh graduates in other fields and 1.5 lakh vocationally trained workers. This points to the need for expanding our education infrastructure - from setting up enough schools so that every child in the country can receive education; to establishing colleges, universities and other higher educational institutions from where doctors, engineers, teachers and professors would emerge; and, most importantly, ensuring that quality education is imparted. The objective of an educational institution is to prepare its students to meet the competitive environment of a knowledge based and technology driven world, which is driving change at a rate that necessitates rapid adaptability and the ability to invent and to re-invent. As a society transforms, its education system must respond to change. It is only then, that will it be relevant. Educational institutions must create the human resource capacities required for the times. It is a worrying sign that even though the third largest number of graduates in the world every year is produced in India, only 15 percent of our boys and girls passing out of college have the skills required to become employable! This brings in concerns that students are getting degrees, but not getting employable hands-on skills. Government has set-up the National Skills Development Corporation - a Public Private Partnership to skill 500 million people by 2022. This is a very important initiative. Institutions like the ISB should not only participate in it, but through interaction with the business world, help in developing the required skills.

I am glad that the ISB also encourages a spirit of entrepreneurship. This is necessary if we are to create a new India. Entrepreneurship education can be a societal change agent. Many Indian businesses have made remarkable impact in many sectors, including in new and emerging areas, through their hard work and enterprising spirit. Their success brings growth to the nation. They can contribute significantly in the process of social inclusion and democratization of education, by participating in innovative methods to improve the quality of education.

I am also looking forward to more intense engagement of Indian industry in rural areas. I believe that there is much work that needs to be done in rural areas and in the agricultural sector, whose importance is going up both in the context of inclusive agenda and ensuring food security. This is an important sector. There are many examples of successes that have been achieved by institutions and companies who have worked in rural India, as there are many areas of joint collaborations. By training and educating farmers for proper use of fertilizers and pesticides, not only has productivity gone up, but companies have gained experience about their use, including about those which have a higher success rate, and are good for the soil. By making farmers aware of better utilization of water, drip irrigation companies can increase their sales also. Similarly, in cases where production of small and marginal farmers has been marketed from the farm gate, it has brought benefits both to farmers, as well as to the marketing entity. There can be many other such win-win opportunities which need to be explored. I have been calling for the development of some basic "models" to bring farmers into partnership arrangements with the corporate world, much like a joint venture. I have always been advocating them. Voluntary formation, autonomous functioning, democratic control and above all, an assurance to farmers that their interest on their land will not be alienated, should be the essential principles of such "models". It should be a transparent process, where farmers see such arrangements as a measure to empower them and are confident about retaining the ownership of their land. Farmers are also private entrepreneurs. It is the biggest private industry in our country. The largest number of business persons are, infact farmers who take risks, work hard and feed the nation. So business is not confined to the four walls of industrial units. Agriculture, done in a scientific and businesslike manner, will generate manifold employment which is much needed. Furthermore, growth in agriculture is on an average, two to three times more effective in raising incomes of the poor. It has the capacity to empower people. Hence, agriculture does not bring rural prosperity alone, but it is a factor for the progress of the whole nation. As young business leaders you should look at ways of working in rural areas by making farmers stakeholders in your enterprises. I wish that you become harbingers of change in this endeavour.

In conclusion, I would call on young business leaders to be generous in spirit, as business is not all about profits. Philanthropy is remarkable, not only because it shows a willingness to share time and resources, but also reflects a desire to serve humankind. In India, some corporate leaders have shown the way in coming forward to support social causes, and I am sure it will influence others and young business leaders in this direction. I wish you all the very best for a future full of achievements, success and satisfaction. I also wish the Governing Board of the ISB, its faculty and its students the very best.

Thank you.

JAI HIND!