30. Jul 2024

India – Welcome to the Future

Every year, our EMBA students immerse themselves in the Asian market and discover a whole new way to succeed in business. In 2025, their journey takes them to India: a country offering incredible potential.

The Rochester-Bern EMBA is distinguished by its international focus. In addition to four weeks studying in Rochester (USA), the program includes one week-seminar in Asia. This year’s class will travel to Bengaluru, India. Why India? There are many factors that indicate that India will become even more important in the future.

Rapid Growth – Soon to Surpass China

India could become the world’s No. 1 contributor to GDP growth as early as 2028, according to an analysis by Bloomberg Economics. India’s GDP per capita grew by 55% between 2014 and 2023. The country also went from being the world’s ninth-largest economy to the world’s fifth-largest economy during this period, and it also experienced the largest GDP growth compared to other major economies. In 2022, India overtook China as the world’s most populous country, with more than 1.44 billion people. With an average age of 29, India’s population is one of the youngest in the world. This huge young market has not yet been tapped but offers enormous potential. Early indicators show that the economy is growing strongly: India’s stock market is booming, foreign investment is pouring in, aircraft makers like Boeing Inc. are taking record orders, Apple Inc. is ramping up iPhone production, and suppliers long clustered in the manufacturing corridors of southern China are following suit. Of course, the country also still struggles with some problems: shoddy roads, uneven education, red tape, and a shortage of skilled workers. However, if India can meet the challenges of creating a better infrastructure, expanding the skills and participation of its workforce, building better cities to house all those workers, and attracting more factories to give them jobs, it will soon surpass China and become one of Switzerland’s most important trading partners.

Appearing on the International Stage

India has become a major military and strategic player. In 2023, India took over the presidency of the G20. As a founding member of the BRICS bloc of developing nations, it welcomed an expansion to include six new countries: Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates. These are just a few examples of how India is increasingly establishing itself on the international stage, participating in key discussions on global challenges, including the transition to clean energy and AI governance. The country also held elections in 2024. It was the largest election in the history of the world: Nearly 1 billion people were eligible to vote. Narendra Modi was re-elected, but his party lost its outright majority in parliament. This will make it harder for him to govern the country. On the other hand, it is also interpreted as a sign that democracy is working in India, as the votes were spread across several parties and Modi’s power was curtailed. In conclusion: whereas half a century ago India was in many ways a collection of localities with local concerns, held together by a constitutional order guarded by a small post-colonial elite; modern India and modern Indians have emerged as a people, as a nation. They will make their voices heard, and an interconnected world will listen.

Innovation and Technological Progress

India’s fastest growing economy is being driven by digital transformation. Combining a large talent pool and digitally motivated population with supportive government policies, strong academic institutions, lower costs of living and doing business, and world-class research and innovation facilities, India has all the ingredients for success in the digital world. The country is home to a large number of startups and tech giants, particularly in Bengaluru, often referred to as the “Silicon Valley of India”. With approximately two million people, it has the highest number of technology employees in India and is home to approximately 25,000 IT companies. Major international companies in the sector have a presence in Bangalore, including Intel, IBM, Dell, Cisco Systems, SAP, Siemens, Texas Instruments, Research Microsoft India and Huawei, as well as Indian giants Tata, Infosys and Wipro. Since 2000, General Electric has operated the John F. Welch Technology Center in Bangalore, which now employs more than 5,000 people and is the company’s second largest development center after its headquarters in the United States. Many subsidiaries and IT companies are located in purpose-built industrial parks that combine business and scientific activities in one location.

Economic Diversity and Cultural Richness

India is a diverse country with a rich history and culture, and there are several forms of diversity that exist in the country. First, India’s economy is incredibly varied, ranging from traditional industries to cutting-edge technology sectors. The country is home to people from a wide range of economic backgrounds, which translates into wide disparities in income, education, and access to basic amenities such as healthcare and sanitation. The country has a large population living below the poverty line, while a smaller section enjoys high levels of affluence and privilege. The Indian government has launched several initiatives to address these challenges, including poverty alleviation programs, education and healthcare reforms, and rural development programs. However, there is still a long way to go to ensure that all of India’s citizens have access to basic amenities and opportunities to improve their socioeconomic status. India is also a country of great ethnic diversity, with a range of ethnic groups spread across the country. There are over 1,600 languages and dialects, with Hindi being the most widely spoken language. Various religions coexist, including Hindus, Muslims, Sikhs, Christians, Jains, Buddhists. This has resulted in a very diverse culture with different customs, traditions and festivals celebrated throughout the country. It is this combination of traditional and modern lifestyles that is important in understanding the cultural factors that influence management practices in Asia.

Increasing Importance for the Swiss Economy

There are many reasons why India is becoming increasingly important to the Swiss economy. One of them is that the country is developing into a manufacturing base. Under Prime Minister Narendra Modi, India has been pursuing the “Make in India” initiative for the past nine years. The aim of this initiative is to facilitate investment, promote innovation and know-how, and expand the manufacturing industry. This will allow India to overtake its great rival China, especially in industrial production. For Swiss companies looking for an alternative to China, this is particularly exciting. Another reason why the country is becoming increasingly important for Switzerland is that its huge young population offers a large market for Swiss products. As an export nation, Switzerland thrives on access to new markets. India is currently a relatively small trading partner for Switzerland. However, as the world’s most populous country with ambitious growth targets, India is a strategic economic partner for Switzerland with huge potential. At the same time, closer trade relations between the two countries will lead to an increased presence of Swiss companies in India. For example, Swiss technology companies already employ more than 570,000 people abroad. India in particular, with its great potential and huge market, can count on a strong increase in Swiss investments on the ground with a good framework.

A trip to India, and Bengaluru in particular, promises to be a valuable experience for managers in today’s globalized world. Visiting companies and engaging in on-the-ground activities will provide practical insights that textbooks cannot.

Learn more about the Rochester-Bern EMBA and the international stays.