Tarun Khanna, Jorge Paulo Lemann Professor at the Harvard Business School, recently launched his book Winning in Emerging Markets. While his book focuses on corporate strategies for various emerging markets, he spoke to Hindustan Times about, India’s advantages, challenges and opportunities. Excerpts:
How do you see an emerging market?
I look beyond the conventional definition based on money market situation, demography of a country, as they don’t help you understand what a manager would need to do in a situation. I am trying to create a structural understanding of an emerging market so that people can understand the reaction to what they do in a a situation.
How do you think one emerging market differs from other?
At one level all emerging markets share a broad characterisation. There is a situation where the market economy is coming into being and it is emerging but the market and processes are different. It could differ on labour, capital issues, market conditions. So the emergingness of an emerging market varies.
How do you see India’s positioning and its advantages?
I think that urban India has a very robust set up for new formal enterprise creation. The risk appetite that entrepreneurs are showing is not there in many other emerging markets.
What are the bottlenecks that need to be removed?
The main bottleneck is on the front of infrastructure and the other major bottleneck is in bringing the unskilled into the mainstream. One of the reasons for not having large-scale manufacturing is unqualified workers who have gone through the basic education and vocational training. They have not had the opportunity to get into the mainstream economy.