India, China to overtake UK, Japan to join USA, says HLL CEO

Ahmedabad, Nov 24 (UNI) If India and China maintain the current growth in Gross Domestic Product (GDP) rates, they will overtake UK and Japan and join USA to become the world's largest economic powers by 2035, said Douglas Baillie, CEO of Hindustan Lever at a business school meet at the IIM-A here.

Commending the achievements of the Asian giants on the economy front, Mr Baillie said the change is very much evident as there has been an explosion in income levels and a definite change in consumer patterns. ''India will become the fourth largest economy in another 20 years,'' he said.

The CEO said 50 million people have moved out of poverty in the past ten years and another 40 million will do so in next five years.

In 2013, he said out of 231 million households, 11 million of them will be rich, 124 will be aspirers and 96 strivers, as against three million rich in 2003 (out of 181 million households), 46 aspirers in and 131 strivers. ''The shape of India will change from a pyramid to a diamond,'' he said.

He said top ten million households in the country will have income four times the turnover size of Unilever and P&G in another 30 years.

He stressed that the strength of India is its democracy, but said it must work on the infrastructure front. ''The government must develop infrastructure very rapidly,'' he suggested.

Mr Baillie, who is the first expat CEO of HLL in 34 years, was speaking on the ''India Opportunity and the Role of Social Innovations'' at the Confluence, an international summit of business schools held annually at the IIM-A.

About his company's social innovation initiatives, he said the HLL has been supported Lifebuoy Swasthya Chetna and Shakti projects that have targetted rural areas.

He, however, said these projects were not about charity but an integral part of business strategy and practice. ''It is about health and prosperity of our business, as it is directly linked to health and prosperity of the community we serve,'' he emphasised.

It means looking at the consumer as whole, where they live, how they live, their dreams, needs and income, he added.

Mr Baillie said the Swasthya project, began in 2002, aimed to educate 200 million people through schools and community visits. By 2005, 70 million had been contacted and this year HLL planned to extend it to ten thousand more villages across eight states.

On the other hand, the Shakti project was all about empowerment of people at the grassroots level. ''It is meant to help them to be on their own, by selling our products, door-to-door in villages,'' he added.

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