00:00My view is, we should prepare for paranoia before the event, and we must hope that tough
00:09times do not come or remain, but we must prepare for the worst.
00:15Therefore, it is about preparation, be ready for tough times, rather than waiting for the
00:23shock to hit us.
00:24And in many ways the Prime Minister has…
00:25What would that look like?
00:28I think you will begin to see it
00:30I mean we have not seen the impact in the last two months of the Middle East war
00:36in terms of energy price transmission
00:40it's coming
00:42and it's coming big
00:43and the consumers have not felt the pressure at all
00:47and think about a consumer with limited income
00:50having to spend more directly on fuel
00:53and indirectly on other items for fuel
00:55or dependent on fuel
00:57the shock is coming
00:59we had old inventory
01:01we had the ability for oil companies to be the shock absorber
01:08and it's a large amount of money
01:10therefore I don't think you are very far away from the shock
01:13unless
01:14and this is where I don't have an answer
01:17and I suppose none of us have an answer
01:19or probably if there is anybody else in the world who has an answer
01:22unless Iran war stops tomorrow morning
01:26and we have been hoping for it from February 28th
01:33I just want to come back to that point that I mentioned
01:36about the role of the private
01:38because both of you spoke about the role of the private sector since morning
01:41and role of the private sector in really today we in a way we've talked about the widening income gaps
01:48you just now referred to the people to the purchasing power of people down the line
01:54so how do we address that what was the role of the private sector
01:57I want to hear again talk about a big positive which India has
02:01India is probably the only country in the world
02:05which has 2% CSR by every corporate above 5 crore's profits
02:10and I would like to believe most companies use it positively
02:15there may always be exceptions
02:17but that is a direct effective tax
02:20of 2% which the allocation is left to each corporate
02:24nowhere else in the world do corporates do direct CSR
02:30out of the profits of the company
02:32I think it's a very very big plus
02:34and therefore
02:36we must be clear
02:37we paid 27% tax
02:41out of which
02:422% we allocate directly to society
02:47ok
02:48that is a big plus
02:49and I think it is being reasonably well used by most large companies
02:54and therefore in addition to that
02:59do we see a world
03:01and I am again being a little provocative
03:03do we see a world
03:05where at some point of time
03:07a form of universal basic income
03:10becomes more and more
03:12a reality
03:13and somebody has to pay the cost for that
03:19yeah no I think it's a
03:20it's absolutely right
03:22and I mentioned this in the morning
03:24but it was very interesting
03:25when we went to China
03:27we met about 12-14 companies
03:30most of them in manufacturing
03:32and then they made their presentations
03:35and the first slide on the presentation was sales growth
03:38over the last 10 years
03:41global geographic footprint in the last 10 years
03:44R&D spends in the last 5 years, 10 years
03:47depending on how old the company is
03:49where does the R&D talent come from
03:52US universities, Chinese universities, Singapore universities
03:56what are the number of patents that the company holds
03:59and what's the longer term vision of the company
04:02what do they want to change
04:03so if I am a BYD
04:05I want to ensure
04:05that the world temperature comes down by 1%
04:10because of lower emission
04:12their ROE's
04:13most of them were not making too much of profits
04:16their ROE's were negligible
04:17ROC's were low
04:18so it's a
04:20you know we are living in very different context
04:23and you have talked about the financialization of India
04:26and everything else
04:28and I think
04:29for achieving long term growth
04:31I think they have chosen a path
04:33that you know spending on R&D
04:35is probably the only way to look at long term strategic dominance
04:39and growth
04:40and I think that's where they're
04:41they're
04:42that's what they're they're going after
04:43and
04:44so without
04:46not
04:48Vinayak
04:48not a debate
04:49but a question
04:52this is our debate master
04:56you have exhorted private sector to gear up
04:59point well taken
05:01in a 100 meter dash
05:02the private sector with the best of its effort
05:04can do the first 50 meters on its own
05:06but
05:07we have to understand that in the context that it operates
05:10the next 50 meters
05:11to reach them
05:12is outside the battery walls of your factories and your businesses
05:16you are surrounded by inefficiencies
05:18whether it is power or transmission or logistics or bureaucracy
05:21or corruption or judiciary
05:23now that also defines the garden in which you are expecting the flowers to grow
05:28if that soil is not proper
05:31we may not achieve the kind of utopia you are suggesting
05:34that we all gear up and take care of the balance sheet of the country and the P&L
05:38so what do you have to say about the area outside my factory gate
05:42how does it have to and what can we do to enable that to make us more competitive
05:47Vinayak very good question
05:49and again I will give the China example
05:51most of China's progress
05:54has come from state-owned enterprises
05:58I was there about a month ago
06:01we went to the largest car factory
06:03including their R&D and everything else we saw
06:07a company
06:08domestic car company called Shanghai Auto
06:11okay
06:14it's a Shanghai state-owned company
06:18there are 80 car companies in China competing with each other
06:23not duopolis
06:2580
06:27and they compete fiercely in the marketplace as state-owned companies
06:31what can we do
06:34as government and business together
06:38not only what private sector can do
06:40but what how can we improve the state-owned sector to efficiency levels which society needs
06:45this is the mountain and a hill which China has climbed
06:49its entire growth is state-owned enterprises
06:53look at Singapore
06:54we may say it's a city
06:56all the major companies are state-owned
06:59what does it take for us?
07:03I don't think you and I can answer that
07:06but the country has to have a debate on this
07:09state-owned enterprises is not necessarily the wrong thing
07:14for example if you look at the success of Aadhaar
07:17it's a public good
07:18it's not a Google or an Apple or a Meta
07:21it's a public good for society
07:24so there is ways in which we have to figure out
07:26that areas which should be with the state
07:29and build an efficiency model for the state
07:33and where private sector cannot reach
07:37and since CB this is the last question
07:39I want to end on a very optimistic note
07:43in this entire world
07:45if you look at all the geopolitics around the world
07:49one very good news
07:51which I have come across
07:53is God is Indian
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