Emerging markets are slated to record much higher economic growth than the developed and less developed economies. 60 per cent of the growth is slated to come from emerging economies. China and India would be leading this.
This gratifying takeaway was provided at a serene celebration of the silver jubilee of McKinsey & Company in India on 6 February. The closed door meet was attended by the top business brass of Chennai.
In an interesting participative presentation, several of the leading lights of McKinsey – Kevin Sneader, Chairman, Asia Pacific, McKinsey & Co, Gautam Kumra, Managing Partner, McKinsey & Co and Anu Madgavkar, Partner, McKinsey Global Institute (MGI) – discussed building global greats from emerging markets.
It was an extensive research work on global markets covering over 12,000 companies with detailed analysis of 2000 big companies across geographies. In lucid terms Madgavkar, pointed to long jumpers and outliers. There is understandable satisfaction over the optimistic projection of India. Madgavkar described the qualities that attributed to the jumpers – innovation, disruptions, especially digital disruption, growth appetite supported by increase in capex and geo-political expansion. The growth mostly comes from large companies. The businesses in India, traditionally family-owned, are getting professionalised.
Ramesh Mangaleswaran, heading the Chennai operations, who presented an overview, has special reasons to feel happy. The McKinsey Capability Centre (MCC), to be located in Chennai, was launched on that occasion. This is expected to help build world-class leadership capability in south India. Chennai already accounts for the largest employment of McKinsey India and with MCC this would record further expansion. The MCC will focus on digitalisation, advanced analytics, B 2 B commerce, product development, manufacturing, procurement, supply chain and leadership development.
The 90 year old consultancy firm has been constantly expanding its core focus on people, industry, functional expertise and global presence. It has over 25,000 experts across the world, spends over $ 600 million annually in knowledge development and capacity building in 180 areas of expertise. The global network covers over 120 cities in 60 plus countries.
The several reports from the McKinsey Global Institute and McKinsey & Co including a recent one on automation, employment and productivity point to half of world economy could be affected by automation including robotics and artificial intelligence. And 1.2 billion employees would be affected by disruptions in the world of work. Such concerns extend to gender equality. Look at this nugget: $ 28 trillion could be added to global GDP by 2025 if women participated in the economy identically to men! – SV