MYSORE: TVS Motor Company Chairman and Managing Director Venu Srinivasan said here on Friday that consumption-led growth is changing the face of the economy. "One of India's great advantages, as an investment destination, which is acknowledged by all observers, is the fact that most of our manufacturing is still absorbed by domestic demand. This is in spite of the fact that the country has one of the highest savings rates in the world," he said.

Together, these give stability and durability to the growth dynamic. "Despite some fluctuations in the value of the rupee, in inflation and in the stock market indices, the confidence in the fundamentals of the economy remains stronger than it has ever been," he said.

Addressing the 12th annual convocation of Sri Dharmasthala Manjunatheswara Institute for Management Development (SDM-IMD) here, Mr. Srinivasan said for all these reasons, the spurt in the employment of graduates and professionals is expected to continue, along with the welcome trend of better salaries and working conditions.

However, he sounded a note of caution that the advantage of wage cost alone is always risky and vulnerable since other countries might overtake India, and the gap between Indian and Western wages was narrowing.

Therefore, according to Mr. Srinivasan, the new trend in employment and investment has already started — services that are beyond mere call centres and clerical work to technical expertise, design, software, knowledge process outsourcing and scientific research. Companies such as Microsoft, IBM, Oracle and others have plans to shift knowledge to India, he said.

He said it is, therefore, essential for all managers of the future to appreciate that they can now contribute to the growing presence in India in the world economic order. New entrepreneurial opportunities will arise in small or medium scale start-ups in a number of fields where knowledge work is involved.

"If only we can establish a reputation for quality and reliability, then the world will indeed beat a path to your door," he noted.

According to Mr. Srinivasan, the world markets demand a far higher standard of consistency, reliability and quality. More than 75 per cent of the CMM Level 5 companies in the world are in India. The competitive instinct is so deep rooted and so much encouraged that unless one is focussed on total quality no organisation can survive for long, he said.

Mr. Srinivasan told the students to broad base their interests, take every task as a learning opportunity, keep alive their interest in the general environment, understand life from the point of view of the ordinary person and remember their teachers.

In his address, SDM-IMD Chairman D. Veerendra Heggade said the institute ensures that the ethical and righteous approach is never lost sight of. SDM-IMD Director J. Subramanya read out the annual report.

SDM-IMD Governing Council members Surendra Kumar, Surendranath, A.H. Kalra, R. Guru, Pradeep Rao, Bhaskar Bhat and S. Prabhakar were present.

Dr. Heggade presented degrees of post-graduate diploma in business administra- tion to 117 students while Mr. Srinivasan presented gold medals to seven students.

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