Subrahmanyam underscores that India’s progression toward a $10-$30 trillion economy relies on the expansion of skill development, with a particular focus on ongoing education and the integration of technology in the banking sector.
BVR Subrahmanyam, CEO of NITI Aayog, highlights the imperative for India to significantly enhance its skilling initiatives, stressing that this is crucial for the nation to evolve into a developed country with a multi-trillion-dollar GDP. Speaking at the India Banking Conclave 2024, a collaborative event by NITI Aayog and the Council for International Economic Understanding (CIEU) in Delhi, Subrahmanyam simplifies the challenge of India becoming a $10 trillion, $20 trillion, or $30 trillion economy to one key area — education and skilling.
Unleashing India’s Potential through Education and Skilling
Subrahmanyam emphasized the necessity for India’s workforce to be globally competitive, stating that it is the sole means for the country to seize future opportunities. He observed that the variations in performance across different parts of India were primarily due to differences in education and skilling. “The greater the investment in our people through education and skilling, the more fundamental the payoff. Our new education policy incorporates numerous features to serve this purpose,” he remarked . Subrahmanyam emphasized the misconception that education and skilling are only necessary for new entrants (individuals aged 15-19) is incorrect.
He explained, “Someone currently operating a lathe machine may encounter a CNC machine or robot tomorrow, and they should possess the skills for that transition. The country requires not only skilling but also reskilling and upskilling. Government skilling programs must accommodate this need and undergo significant expansion,” Subrahmanyam stated.
Banking’s Future: Tech Integration and Global Prominence
Regarding banks, Subrahmanyam emphasized the necessity for a banking sector of varying size and scale for India to aim at a $10 trillion or $30 trillion economy. He questioned the current status of Indian banks on the global stage, suggesting that there should be at least 10-15 Indian banks among the top hundred globally. He raised the question of whether such ambitions are being considered or planned for.
He envisioned a future where the CEO of a bank would be a technical expert rather than a traditional banker. “While you can engage someone for the financial part, the tech aspect cannot be borrowed from elsewhere. The talent profile must evolve, and technology needs to be seamlessly integrated with banking,” he remarked. Subrahmanyam emphasized the need for incumbents in the banking sector to adapt and transform to collaborate with FinTech’s. He pointed out that matching them in innovation would be challenging as they operate in a different environment, suggesting the need to bring them into the existing banking system.
