Indian economy to become the 3rd largest globally by 2030- In Conversation with Prof. Sanjay Shanbhag


In the interview, Prof. Shanbhag discusses his ideas and opinions on various issues related to business and finance, the future challenges and what it takes to be a great student. Here is the text:



Given the opportunities, threats and how global scenario has changed, a strong challenge for future leaders is in exploiting newer technologies, trends and human capital to sustain competitive advantage


Q.1 How do you see the future of business/economy in India? In the world?

Based on IMF forecasts, the Indian economy will expand annually at an average rate of 7.4% to $6.84 trillion by 2030 to become the 3rd largest economy in the world. In my opinion, while there are strong tailwinds to support the realization of the forecasts such as a fast growing young population, rising aspiration of a growing and increasingly affluent middle class and a vibrant start-up culture; there are risks as well. Although it is impossible to insulate growth from global risks, it is possible to manage the impacts of disruptive technologies and business models on the jobs of tomorrow by investing in human capital to produce a more appropriate workforce. The need for investment in crumbling infrastructure to support growth is more than ever before. Central bank’s role to contain inflation and government policies to sustain and make growth inclusive are of prime importance.

Q.2 Please tell us about the book/books that have been inspiring and you will recommend as a must read.

Some of the books I have read and recommend reading

  • Against the Gods. The Remarkable Story of Risk by Peter L. Bernstein
  • You Can Negotiate Anything By Herb Cohen
  • Good to Great by Jim Collins
  • Fault Lines: How Hidden Fractures Still Threaten the World Economy by Raghu Rajan
  • Thinking Strategically: The Competitive Edge in Business, Politics, and Everyday Life. Avinash K. Dixit

I am recently reading these two books, The Gene: An Intimate History by Siddhartha Mukherjee and Change Agent by Daniel Suarez

Q.3 Do you think that the world of Finance has changed significantly in the past decade?

A decade after the global financial crisis, compliance with stricter banking and finance regulations has been a major driving factor for business model changes. Emergence of crypto currencies has provided an alternative payment and settlement system. Traditional deposit based lending business is seeing a substitute in peer-to-peer lending. Investment banks and private equity firms are experiencing competition from crowd funding platforms.

Leveraging the emerging digital opportunity, digital payment firms are diversifying into wealth management and banks are setting up fintech teams to expand their wealth management business. Artificial Intelligence based investment advisors for selecting and monitoring portfolios at a fraction of the cost of a human advisor is also an emerging trend. In India, financial reforms such as digital payments, bank accounts for all citizens, roll-out of biometric identification system are seen as drivers of growth. SEBI has allowed investors to buy mutual funds via ecommerce platforms and pay via digital wallets.

Q.4 What all challenges do you see for the future managers and business leaders?

Given the opportunities, threats and how global scenario has changed, a strong challenge for future leaders is in exploiting newer technologies, trends and human capital to sustain competitive advantage.

Q.5 Tell us what you love about being a faculty in IMT-Nagpur.

I like being able to do my research and teach how to solve complex business problems using the case methodology

 Q.6 How will you describe the difference between a good and a great student?

A good student is regular in attendance, does assignments on time, participates in class room discussions, and shows eagerness to learn. A great student does all a good student does, and in addition, digs deeper and brings cutting edge insights and new perspectives.

About the Faculty: Prof. Sanjay Shanbhag teaches in the area of Finance. He holds Bachelor Degree in Mechanical Engineering from I.I.T Mumbai and an M.B.A from University of Chicago Booth School of Business. Professor Shanbhag was Associate Director of Finance with Humana, consulting for pharmaceuticals, medical devices and financial services industries before he moved to IMT-Nagpur. He plays Violin, loves Reading and enjoys running and swimming.


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