India’s rural population accounts for over 65 per cent, but generates significantly lower proportion of the country’s GDP. This has to change dramatically. All of us, whether in government or in business, have a role of play in bringing about this dramatic transformation. Poverty is a multi-faceted construct, with social, cultural, economic, and political factors at play. The solution to poverty has to be equally multi-faceted, involving governments, NGOs and businesses.

Most of industry’s current engagement with rural India is in terms of corporate social responsibility. The poor have been looked upon as objects of philanthropy and charity. But the interaction with the poor must not be seen as a secondary activity — rather, it should be seen as core to a company’s business operations. Commercial opportunity must be blended with social commitment; the two need to work in tandem.

India’s business corporations need to design and develop innovative products and services. And also help the rural population prosper by partnering and engaging with them. We need to try new models of economic distribution and wealth generation.

Urban centres are the focus of most industries, except the ones that directly deal with agricultural inputs. Purchasing power currently resides in India’s cities. But addressing the needs of the rural areas would create a new market. It will then trigger its own growth impulses. It would help expand the pie. It will also empower the rural population, create more capabilities and help in reducing poverty. Thus, we can evolve business and market-based approaches as a major catalyst of change.

We must engineer the change from a society of disparity to a society of shared prosperity. Conceptually, serving the poor is a viable business proposition in India and the numbers support it. We have a young India with 1.1 billion people, of which 35 per cent are under age 15, and 54 per cent between 18 and 35. In the next decade, some 80-100 million people would be looking for their first jobs.

Empowering this generation with skills and purchasing power will act as the primary engine for GDP growth.
Finally, we need resurgence in agriculture. It holds the key to rural prosperity. There is a huge opportunity of investing in the millions of farmers spread across the country. Marketing their produce across the nation could be the key to a great business. It would also lead to employment generation on a vast scale. It would open up potential creativity and productivity. Surpluses could flow back as consumption, thus boosting growth. It would also be a barometer of social equity.

Self-help groups, microfinance and public-private partnerships could be new tools of letting the poor into decision making.
There is also a huge consumer potential in rural India. Addressing this segment is a win-win partnership for the companies and the common people. The companies would benefit by widening their consumer base and selling more products. The people would benefit by getting better goods and services at cheaper prices.

The goal of removing poverty should force us to re-think the whole concept of business. We have to re-think our identities as ‘limited liability’ corporations. This should be our goal as our country enters the sixtieth anniversary of Independence.