Ladies and gentlemen,

Nation building is neither easy nor can be taken for granted.  In most developing countries there has been a tendency for either the country to break up like in Yugoslavia or for the nation to crumble, as we have seen in Afghanistan, and may be witnessing in some of our neighbouring countries.  In our own country when we experience the conflict on Assam-Meghalaya border or Naxalism or the sharp decline in legitimacy of politicians due to scams, it is a sign of our inadequacy in nation building.

The nation state is very important in terms of both social and economic aspects.  Great things can only be done when energies of many people go into them.  We would not have gained independence had it not been a national movement. If even large and powerful countries like Germany, France & UK feel the need to come together as Europe, then it is obvious and important that the Indian nation should be held together and strengthened.

This begs the question, what is nation building?  To put it simply, it is a combination of ideas, institutions and the economy.

The idea of India is very old.  The four dhams have existed for over a 1,000 years.  The idea of India was resurrected by our founding fathers of the independence movement.  Many of those ideas, of peaceful co-existence for example, are civilisational.  So are role models from our epics.

The idea of India is unfortunately under attack.  However, I believe it lives and will grow stronger.  Narrower ideas of religion, caste, class, region are neither viable nor inspiring and only lead to dead ends.  But all of us who are committed to the idea of India, have to work hard for it.

The executive, which includes the bureaucracy, the legislatures, the judiciary, the media and the amorphous civil society, which is what most of us present here today represent, are institutions required for nation building.

The media in our country has played an important role in furthering public accountability.  The Right to Information Act has also injected a measure of transparency in the system.  In the end only a vigilant citizenry can ensure that freedom survives and accountability is enforced.

Our society and all wealth creators in our society are the muscle and energy that build the nation.  This is the key element of any nation.  Governments do not create wealth.  They at best facilitate it.

The main role of the Corporate Sector is to satisfactorily meet the needs of its customers and to keep improving its competitiveness.  From this flows wealth creation, employment & taxes, its key contribution to nation building.  However, the Corporate sector in our country also has an important responsibility for being a role model of better governance.  Be it being ethical, being fair to all stakeholders and being sensitive to the inequalities of access to basic needs in our country.

Like every plant harnesses the sun’s energies and provides life supporting oxygen and removes carbon dioxide, business by its very existence adds value to the nation.

Unfortunately, our colonial past and the centralisation of power in the hands of the government that it entailed, blurred our vision and distorted our perspective.  Even we thought till the 1980’s that it is the government which is the “sarve sarva”.  This thought still persists, especially in rural India and the less developed parts of  our country.  Sarkar – Mai Bap!

Since  1991, when companies were provided the essential freedom of taking their own key decisions, things have changed significantly.  Indian companies have grown, nationally & internationally.  Many new companies have come into being and some have grown very large, like RIL.  More importantly, older companies have re-engineered themselves and have grown both quantitatively and qualitatively.  The Tata group is a fine example of this process, as is I believe Bajaj Auto.

If our nation has to progress then it most be economically strong.  This means that it most produce goods and services which India and the world wants.  This is possible only when industry has the technology, productivity and scale.  These generate employment.  All this happens largely in the private sector.  Business also generates taxes which enable governments to provide “public goods” including health, education, infrastructure like power & roads, and law & order etc.

As an eg., Bajaj Auto alone would account for about Rs.2,500 cr.  in taxes to the government during 2010-11.

Our corporate sector is the strongest votary of a strong nation and I believe it reinforces the idea every day in its operations.  Each company has associates including dealers and distributors who distribute its products. They are in the far corners of the country.  Bajaj Auto has over 600 vehicle dealers and 2,000 service dealers.  They are all bound together in a common mission.  They interact and make the idea of one nation real.  Multiply this by the 7,000 large companies and innumerable small companies.  They weave strong economic and personal relationships.

In the corporate sector, doing a quality job and meeting commitments is a necessary way of life.  Or the enterprise will not survive.  Achieving this requires certain habits of thought and behavior.  Some of these are a commitment to the idea of merit and creating an atmosphere conducive for it to flower, a focus on constant improvement and a desire to learn continuously.  The corporate sector spreads these habits to those it associates with.  This itself, in our’chalta hai’ attitude country, is a very important contribution to nation building.  It is our IT sector which reshaped the world’s and our own view of ourselves, from being second raters to first raters.

Usually, the role of Corporates in nation building, refers to their CSR activities.  As I have just mentioned, their role in nation building is much bigger & more integral to their operations.

But in a poor country like ours it is also important that the Corporate sector fulfill its social responsibilities.  Some of these are integral to being a good corporate citizen like being a good employer and being environmentally responsible.  Others require a broader idea of their role.  I believe it is very important that every citizen has a sense of stake in the system and a sense of hope.  Companies have a role in this.  Be it in encouraging development or making sure essential social services like education and health are available to larger sections of the society.  We have a long tradition of philanthropy in our country.  In Gurudev Tagore’s view we survived as a civilization for so long because some core needs of the citizens were met by the society without dependence on the government.

But it distresses me when the government does not do its job properly and then expects the Corporate sector to pitch in.  What are taxes for?  For salaries of some non-performing, corrupt bureaucrats and politicians and throwing away public money to buy votes?

As I said at the outset, there are clear roles for various constituents of the country.  It is not a case  of this versus that.  It is simply a question of putting the horse of enterprise & citizen interests before the cart of government and not the other way around.

But there are serious obstacles to our nation building efforts.

Key amongst these relate to the quality of our governance.  Telecom/2G, Adarsh Society and CWG are but symptoms.   We most, of course, remember that in corruption the taker and the giver are equally guilty.

In my view, central to this is the use of black money in elections.  Hence state funding of elections is a critical initiative we need to have in place.  I also believe that simultaneous elections to the Lok Sabha and State assemblies, every five years, would not only reduce expenses of the government and political parties but also reduce the pressure on parties to be populist.  Also, parties should not give tickets to criminals.

As we survey the world and our own experience, we are forced to conclude that it is in the nature of power to corrupt.  This is as true of autocracies as democracies.  Theoretically, it should be lower in democracies but practically there does not seem to be much difference in levels of corruption between the two systems.  Therefore, those outside the government have a responsibility to resist.  It is their resistance which brings accountability and change.  Tunisia is a recent example & something similar is happening in Egypt.

We won our freedom and defeated the Emergency in 1975-77 by resisting an unfair government.  Businesses are both strong enough to resist, as well as dependent on government patronage and hence vulnerable to government arm twisting.  Because of the License-permit raj, Indian business has by and large been timid.  Maybe, time has come to shed this timidity.  The recent letter of 14 persons to the PM, most of whom were from business, augurs well.  But business would have to work very hard to build a reputation for probity and contributing to the common good, before other sections of society accept its leadership.

Quality of leadership is crucial in determining outcomes.  Leadership is not just a matter of charisma or showmanship or public relations.  It is of understanding today, it is of envisioning a better tomorrow and having the confidence in oneself, and of one’s team, to make our future happen.  Leaders are those that deliver better outcomes.  Occupying a chair does not make one a leader.

We should recognize the importance of India being strong, based on two pillars.  Economic strength and military strength.  This strength is crucial for global respect and credibility.  A weak India is not good either for India or the world.  But a strong India, a balanced, mature India, a non-threatening India, is critical.

Hence, my dream for India, say twenty years from now, is a country where poverty has been banished. Where parental income is not a barrier to good health and education, where talent is encouraged, achievement celebrated and even the less strong can live with dignity.  A country retaining its age-old tolerance of differences and a world view that is a cross between that of a yogi and an entrepreneur.

Over a century ago, Swami Vivekanand said something that still resonates remarkably.  He said, “Let us all work hard, my brethren.  On our work depends the coming of India of the future.  She is there ready waiting.  Arise and awake and see her rejuvenated, more glorious than she ever was – this motherland of ours.”

If there can be a thought that drives us in India it is this.  If such a thought drives a country, no one can stop it from realizing its dreams.

Jai Hind