Growth Is Good
Growth Is Good
Podcast Description
At Foundation for Economic Development (FED), we believe the evidence clearly shows that economic, GDP-measured growth is critical to improving everyone's standard of living; that it is the single-biggest determinant of human development outcomes such as improved health, education, and employment. Growth is good! It enables everything we cherish - employment, equity and even gender equality! This podcast features insightful conversations with leaders from industry and academia, who share their different perspectives on India's economic growth trajectory, and what we must do to grow further.
Podcast Insights
Content Themes
This podcast focuses on India's economic growth, regulatory environment, and the impact of policy reforms on development. Notable episodes address the burdens of compliance on businesses, the role of bureaucratic reforms in enabling growth, and the relationship between GDP growth and income inequality, with examples such as discussions on 'regulatory cholesterol' and the efficacy of the Goods and Services Tax.
At Foundation for Economic Development (FED), we believe the evidence clearly shows that economic, GDP-measured growth is critical to improving everyone’s standard of living; that it is the single-biggest determinant of human development outcomes such as improved health, education, and employment. Growth is good! It enables everything we cherish – employment, equity and even gender equality! This podcast features insightful conversations with leaders from industry and academia, who share their different perspectives on India’s economic growth trajectory, and what we must do to grow further.
Ajay Shah is back! And this time, he's going granular.In this episode of Growth is Good, Rahul Ahluwalia and Ajay Shah break down why firms — not policies, not savings rates, not grand macroeconomic plans — are the true unit of economic growth. GDP is just the sum of value added by every firm in the country. Ajay lays out 4 pillars that determine whether a society produces great firms or squanders its people's energy, the 3 rooms of R&D in India, why shell companies aren't all hera pheri and why India's tax-to-GDP ratio is less alarming than we think.0:00– The world will keep throwing stuff at you teaser0:55– Welcome back: Ajay Shah's second appearancePart 1 — Why firms are the entire economy2:08– GDP is just the sum of all firm value added3:23– Value added explained: from ball bearings to engines4:39– Every productive unit — even one farmer — is a firm5:59– Think one firm at a time: micro foundations of macro6:28– Incentives: what conditions make firms emerge?Part 2 — Entrepreneurship & what firms are made of7:14– What does an entrepreneur actually need?7:59– The magic of entrepreneurship: energy, not capital8:45– Story: Dhirubhai Ambani, petrol pump to Reliance9:41– Narayan Murthy, Infosys, and the art of doubling11:28– Even standing still is incredibly hard11:57– The 6% profit reality: the math of running a firm13:13– Capitalism: dynamic and constantly contested14:05– Every transaction is a vote14:49– Firms are rated every single day — elections aren'tPart 3 — Productivity, GDP and how to grow both15:59– Productivity dispersion: not all firms are equal17:22– India's casual worker earns ₹1.2 lakh a year17:37– Two ways to grow GDP: reallocation and improvement20:40– New firms vs better firms: both are goodPart 4 — The history and boundaries of the firm21:06– Why did firms even emerge? A brief history21:42– Ships to India, the industrial revolution, and Coase25:16– Shell companies, legal engineering, and piece-rate production27:33– Are shell companies just hera-pheri?28:35– State legibility vs firm productivity: they're incompatiblePart 5 — The state, rules, and what goes wrong29:53– When states change rules mid-game30:43– Growth is discovery, not design32:17– India's tax-GDP ratio: time to be less hysterical33:47– The cost of trying to eliminate all type-2 error34:43– The SEBI insider trading absurdity36:32– Is insider trading actually a serious crime?36:54– Insider trading brings prices closer to the truth37:45– Prediction markets and the value of private informationPart 6 — The 4 pillars that build great firms38:29– What actually creates conditions for great firms?39:59– Leadership must commit to the madness of building lead-in42:36– Pillar 1: Safety from expropriation P147:04– Pillar 2: Globalization — the most powerful engine P247:39– Why competing abroad is the best meritocracy49:05– Why don't Indian firms invest in R&D?49:42– The 3 rooms of R&D in India52:49– India's two-wheeler global success — and its limits55:36– Rooms 1 and 2 don't need large R&D spend56:25– Pillar 3: Creative destruction and the IBC P31:00:18– Firm death is normal, healthy, and necessary1:01:09– Pillar 4: Finance as the brain of the economy P41:03:43– Summary: the 4 pillars — and what India must build1:04:46– ClosingAjay Shah is a researcher, former government advisor, and author of 'In Service of the Republic.' This is his second appearance on Growth is Good — back by popular demand.References & Recommended Reading: The short history of global living conditions and why it matters that we know it (Max Roser) https://ourworldindata.org/a-history-… Economic growth is enough and only economic growth is enough (Lant Pritchett)https://lantpritchett.org/wp-content/…The Case for Economic Growth as the Path to Better Human Wellbeing (Lant Pritchett) https://lantpritchett.org/wp-content/…
Disclaimer
This podcast’s information is provided for general reference and was obtained from publicly accessible sources. The Podcast Collaborative neither produces nor verifies the content, accuracy, or suitability of this podcast. Views and opinions belong solely to the podcast creators and guests.
For a complete disclaimer, please see our Full Disclaimer on the archive page. The Podcast Collaborative bears no responsibility for the podcast’s themes, language, or overall content. Listener discretion is advised. Read our Terms of Use and Privacy Policy for more details.