Bruce Kogut: You are definitely for the conversion of the informal to the more formal –
Manish Sabharwal: Oh, absolutely. I mean, India, we’re done, we’ve picked the low-hanging fruit now, now we need to do the difficult stuff.
So all this is connected, I know people will sort of think that it’s hard for India to have a plan, but we finally do have a plan. GSD, demonetization, RERA, ease of doing business, bankruptcy laws, which we put 40 companies in bankruptcy. I mean, there’s one stupid steel company which has more loans than India’s allocation to primary education. I mean, who is Bhushan Steel – take away his company, you know what I mean? So for the first time we’re doing that.
So there are sort of 10 different things we’re doing in India over the last three years, which is basically more formalization, more financialization, more industrialization, more human capital and skills, and more organization. So there is a plan here finally. To say that, look, China has $8,000 per capital income, we’re $1,500. It’s time for us to sort of get rid of the regulatory cholesterol, build the infrastructure, and get the human capital lined up.
About the researcher
Bruce Kogut is the Sanford C. Bernstein & Co. Professor of Leadership and Ethics at Columbia Business School. He teaches courses on Governance and...Read more.