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Sep 05, 2024
Growth through Boardroom Leadership and Governance
As India approaches its centennial year of independence in 2047, the nation sets its sights on a monumental goal—a $19 trillion economy. This vision offers unparalleled opportunities for companies across sectors to design their own blueprints for growth and outperformance.
The Institute of Directors (IOD) has been a key supporter of value creation across industries, a commitment showcased at the Annual Directors' Conclave 2024, held in New Delhi on August 09. The event, which also marked th IOD's 34 Annual Day, centered on the theme: “Emerging Trends in Corporate Governance and Building Inclusive Boards.” The Conclave brought together thought leaders and industry veterans to explore India's economic growth potential through the lens of maximizing board effectiveness and strengthening corporate governance. Discussions focused on strategies for future growth, the importance of NextGen leadership, and the need for diverse, inclusive boards capable of steering a resilient, sustainable, and inclusive economy. The event also emphasized the proactive role of regulators in ensuring value creation for all stakeholders, underscoring the crucial link between governance and economic prosperity.
India's centennial ambition extends beyond a $19 trillion GDP; it envisions a developed economy that creates 600 million jobs, raises per capita income sixfold to over $12,000, and fosters inclusive growth. The private sector is pivotal to realizing this vision, as demonstrated by a decade-long survey of over 800 publicly traded companies. Between 2012 and 2022, these companies paralleled national economic growth, with the top quintile (one in every five companies) achieving remarkable revenue growth of 15% or more, compounded annually. This growth, more than double the GDP growth rate during the same period, highlights the private sector's potential to be a catalyst for national economic expansion.
Companies across all sectors have the opportunity to forge their own paths to growth while contributing to India's Net Zero goal, potentially achieving it well before the 2070 target. Various studies have identified key growth levers that can create superior shareholder value and drive broader economic prosperity. These levers offer a roadmap for rapid growth, leaving it to boards to determine the best course of action. Companies that have outperformed have not only pursued sustained growth but also recognized the need to fortify their core operations. Embracing digital technologies and data, agile resource allocation, and leadership development are critical to achieving higher growth. Furthermore, companies must look beyond their core businesses to explore new growth competencies, seize opportunities, create breakout businesses, expand into new export markets, and pursue strategic mergers and acquisitions.
The challenges ahead are immense, but so are the opportunities. By investing in both systems and people, companies can enhance their potential and contribute to India's centennial ambition. The IOD is fully prepared to play a professional role in guiding companies achieve these national targets.
Looking ahead, the 2024 Annual London Global Convention on Corporate Governance & Sustainability, scheduled from November 13 to 16 in London, UK, will serve as a crucial platform for business leaders to discuss strategies for ensuring a future defined by sustainability and resilience. Themed “Board's Strategy for a Secure Future & Turning Disruptions into Opportunities,” this global convention comes at a pivotal time as the British Government seeks to restructure its economy and position London as a business hub for the European economy. IOD will engage business leaders in identifying pathways for ethical, compliant, and inclusive global corporate growth. All partners and stakeholders of IOD are invited to participate and benefit from this significant event.
Vice President - Institute of Directors
He is former Advisor FAO & former Chairman, Institution of Engineers, Delhi. He is a Mechanical Engineer & has been involved with Environment & Energy Policy (planning & implementation) of energy projects under the UN Agencies for over three decades in India & other Asian and Pacific countries. He is Vice-President, World Environment Foundation & Institute of Directors, India.
Owned by: Institute of Directors, India
Disclaimer: The opinions expressed in the articles/ stories are the personal opinions of the author. IOD/ Editor is not responsible for the accuracy, completeness, suitability, or validity of any information in those articles. The information, facts or opinions expressed in the articles/ speeches do not reflect the views of IOD/ Editor and IOD/ Editor does not assume any responsibility or liability for the same.
About Author
Vice President - Institute of Directors
He is former Advisor FAO & former Chairman, Institution of Engineers, Delhi. He is a Mechanical Engineer & has been involved with Environment & Energy Policy (planning & implementation) of energy projects under the UN Agencies for over three decades in India & other Asian and Pacific countries. He is Vice-President, World Environment Foundation & Institute of Directors, India.
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