Source: Hindu Business Line

Public policy think tank Carnegie India, instituted in April 2016, is the sixth international centre of the Carnegie Endowment for International Peace, Washington DC.

The centre’s research and programmatic focus includes the political and economic reforms in India, public policy, foreign and security policy, and the role of innovation and technology in India’s internal transformation and international relations.

Carnegie has been working towards creating policies and regulations, which will bridge the gap between the current applicable policies and the need for the start-ups across sectors in India. In a conversation with BusinessLine, Carnegie India Managing Director Shivnath Thukral says that the Government’s demonetistion move is a a step in the right direction. Excerpts:-

How effective is the 'Start-up India’ initiative? What more should be done to strengthen public intervention in favour of a vibrant private innovation ecosystem?

In our view, the biggest success of this initiative has been a behavioural one. It has made being an innovator and an entrepreneur acceptable and perhaps even cool, a big step for a country often accused of plunging its youth into a comfort zone early on in life. But for this initiative to deliver long-term results such as more employment generation and placing India higher on the global map of innovation, many more steps need to be taken.

On Carnegie India’s take on SEBI easing start-up funding norms?

It is certainly a step in the right direction. Start-ups require more agile forms of access to capital, and we see this as a good first step to facilitate this. Moreover, it enhances the expertise pool available for startups to bank on to build their network base and market reach. This area will evolve further which we would like to study more.

The 4th industrial revolution is a much-touted term today, can the government and industry conjure a co-ordinated strategy towards employment generation?

Yes, it is possible, and indeed imperative that they develop a co-ordinated strategy which looks into the extent of automation, the possibility of re-skilling workers, and the shift in the conversation on working conditions brought on by this revolution. There is a greater need for a joint and co-ordinated effort if India has to reap the digital dividend.

Is the demonetisation initiative a step in the right direction?

There is no doubt it is a step in the right direction. It is a part of many steps that have been taken and hopefully will be taken in the future to achieve the ultimate objective of transitioning into a society that values efficiency, transparency and financial accountability. You can question the execution, could it be better? Of course, but then when was the last time a plan for a billion people executed anywhere in the world without glitches. Surely, there is need to smoothen the transition in order to reduce the pain points for citizens. However, in the larger picture there is no doubt it has given the right direction to our financial eco-system.

How do you see the role of innovation and technology in India’s internal transformation and international relations?

We perceive technology’s role to be massive in India’s transformation, both domestically and in the context of her international relations. Most traditional domains, ranging from finance to education, healthcare to mobility, have been impacted by the digital revolution. Similarly, India’s start-up boom has attracted considerable global attention and foreign funding, and so have her partnerships with countries like Israel and Japan to modernise existing systems in varied fields.

In view of the unprecedented technology revolution that is happening in India, what is the role government can play from a policy perspective to promote national interest?

Regulation and innovation need to be in sync if India is to take advantage of the digital revolution and policy research is a critical input towards harmonising the two. In addition to doing such research from within, Governments – both at the central and state levels - also have to be in conversation with a broad spectrum of stakeholders and independent research organisations so as to meaningfully develop policy responses to technology-enabled innovations.

This interview was originally published in the Hindu Business Line.