Narayan Murthy: India Must Study What China Did in the last 3 Decades as Master Innovator

Summary

In this video, Dinesh Kivra discusses Narayan Murthy's lecture on why India has lagged behind China in economic and industrial growth despite both countries being similar in the 1980s. Murthy highlights China's investment in innovation and research, its blue-collar work culture, and respect for manufacturing as key factors behind its success. In contrast, India’s reluctance to engage in manufacturing, lack of innovation, and low respect for research careers have hindered its progress. Kivra urges India to learn from China's approach to foster its own economic development and manufacturing capabilities.

Takeaways

• 😀 Narayan Murthy explains why India failed to match China's manufacturing growth despite both being economically similar in the 1980s.
• 😀 India and China had similar per capita income and economic standing in the late 1980s, but China rapidly progressed while India lagged behind.
• 😀 One major reason for China's success is its heavy investment in research and innovation, with a budget of $550 billion compared to India's $2 billion.
• 😀 India's cultural attitude towards manufacturing work is a key barrier. People in India are unwilling to take up factory jobs or dirty their hands with manual labor.
• 😀 In contrast, China embraced blue-collar jobs, which allowed its manufacturing sector to flourish, making it the 'factory to the world.'
• 😀 India’s economic DNA is geared towards white-collar jobs like IT, with less emphasis on industrial and manufacturing roles.
• 😀 There is a lack of respect and recognition for researchers and manufacturing workers in India, while professions like IPS and IAS are highly valued.
• 😀 Narayan Murthy suggests India should study China’s industrial and innovation strategies to understand what led to their success.
• 😀 Despite historical intellectual achievements, India has failed to capitalize on its manufacturing potential and innovation.
• 😀 The current Indian leadership has not made significant strides in fostering innovation and industrial growth, leading to stagnation.

Q & A

What is Narayan Murthy's view on the economic difference between India and China?

Narayan Murthy suggests that both India and China were nearly equal in terms of economic status in the late 1980s. However, over the past 35 years, China has significantly outpaced India. This growth can be attributed to China's emphasis on innovation, research, and development.

What specific factors does Narayan Murthy believe contributed to China's rise as a manufacturing giant?

Murthy attributes China's rise to their massive investment in research and development, with a budget of $550 billion annually, compared to India's $2 billion. He also highlights China's focus on building a strong manufacturing sector and their willingness to invest in technological innovation.

Why does Narayan Murthy believe India failed to become a manufacturing powerhouse like China?

Murthy argues that India’s failure to become a manufacturing giant is rooted in cultural and institutional factors. He points out that in India, people are not willing to work in factories or engage in hands-on manual labor, which is essential for building a strong manufacturing base.

What does Narayan Murthy think about the respect given to research and development in India?

Murthy believes that in India, there is a lack of respect for research and development. While bureaucrats and administrators like IAS and IPS officers are highly respected, researchers and teachers involved in innovation do not receive the same recognition or importance.

How does the Indian workforce's attitude towards manual labor affect the country's manufacturing sector?

Murthy points out that India’s workforce is generally not willing to engage in manual labor, such as working in factories and getting their hands dirty. This lack of willingness to work in manufacturing sectors is a major barrier to the growth of India’s manufacturing industry.

What does Narayan Murthy suggest India should learn from China’s approach to innovation?

Murthy suggests that India should study China’s approach to innovation, particularly the investments China has made in R&D and manufacturing, and how it has led to the country becoming a global leader in producing a wide range of products from pins to airplanes.

How does Narayan Murthy compare the 'Blue Collar Economy' in China to India’s economic situation?

Murthy explains that China has successfully developed a 'Blue Collar Economy,' where workers are willing to engage in manual labor and contribute to manufacturing. In contrast, India has a more 'White Collar Economy,' with people preferring desk jobs in offices, which limits the growth of manufacturing.

What does the speaker say about India’s manufacturing presence in global markets?

The speaker laments that India has failed to produce a significant global brand or product, unlike China, whose products are found in every corner of the world. He emphasizes that India struggles to create even a single 'Made in India' product that is recognized globally.

What criticism does the speaker offer regarding India's political leadership?

The speaker criticizes the political leadership in India, particularly the current government, for failing to invest in innovation and manufacturing. He claims that the system established by previous leaders, like Jawaharlal Nehru, was somewhat productive, but it was later disrupted by current policies.

How does the speaker view India’s historical achievements in science and technology?

The speaker dismisses the relevance of India’s historical scientific achievements, such as those made 2,000 years ago. He argues that the focus should be on what India is doing in the present, particularly in terms of innovation, manufacturing, and technological advancement.