Former Finance Secretary Subhash Chandra Garg has said that the upcoming decades could be a turning point for India, provided the country leverages its rich talent pool to lead in services such as travel, entertainment, and personal services.
India, rich in talent, has immense potential to lead in services like travel, entertainment, and personal services, making the upcoming decades truly ours.” Garg said delivering a special address on ‘Powering India Inc’s Decade’ at the ETCFO Turning Point conference.
The former bureaucrat emphasised the transformative potential of India’s economy, underscoring the shift towards renewable energy and a service-driven economic model as critical to the nation’s future growth.
“The real growth for the future lies in the transformation of energy into renewables and the shift towards a service-driven economy,” he said.
Garg pointed out the increasing digitalization of corporate wealth and predicted that real estate wealth would follow suit, opening new avenues for investment. He stressed the importance of organisations capitalising on these opportunities by adhering to financial regulations, carefully allocating capital, and focusing on building resilient businesses.
Services boom
Despite the boom in services exports, Garg noted that growth in goods exports has been less robust, urging a reduced reliance on government intervention and advocating for more open markets to drive economic expansion.
“While services exports are booming, growth in good exports are seen lesser, we need to rely less on the government and push for more open markets, he said.
He identified the travel and entertainment sectors as significant opportunities for growth, highlighting the rising trend of Indian travellers going abroad. However, he expressed concern over the underutilization of India’s domestic travel potential, given the country’s rich heritage. Garg stressed the need for investment in infrastructure and services to tap into this potential.
Furthermore, he highlighted the increasing demand for personal services, driven by demographic changes and the growing number of retirees. He argued that personal services, alongside sports, travel, and entertainment, could become the main drivers of future economic growth in India.
Growing financialisation
In his address, Garg also discussed the broader implications of financialisation, noting that as both corporate and real estate wealth become increasingly digitalized, managing these assets will require specialized financial skills. He underscored the significant opportunities this presents for professionals in wealth management, taxation, and investment.
“Corporate wealth is increasingly digitalised, and real estate wealth will follow suit, creating new investment opportunities,” he said
Garg asserted that the next few decades could truly belong to India if the country successfully transitions to a service-oriented economy while capitalising on its financialisation trends.
“Organisations should aim to seize these opportunities, which means we help build a resilient business by ensuring adherence to financial rules. It also requires careful capital allocation, and we must be very cautious about that,” he said.
