The other side

When one thinks of business in India, looking at the headlines that dominate the media, one might be forgiven for thinking that the business landscape is dominated by e-commerce firms, startups, multinationals, large Indian corporates getting more FDI and how the stock market is moving. What R Vaidyanathan does brilliantly in India Uninc is to showcase the ‘other’ India when it comes to business- the so called ‘unincorporated India’ comprising small entrepreneurs, the neighbourhood kirana store, housewives- people who are often lumped together into the ‘unorganized sector’. Through robust data and analysis, Vaidyanathan shows that this sector may not dominate the headlines for either business results or scandals of tycoons, but that this silent majority is in many ways the engine that makes the economy tick. India Uninc, according to the book, contributes a huge chunk of national income (up to 45%) and savings, and represents in many ways, the true entrepreneurial spirit of India.

The book also brings out that in stark contrast to the government regulations, support and aid for the organized sector, this sector keeps chugging along in the face of opaque regulations, bureaucracy, corruption at local government levels and lack of easy access to the financial advice and assistance that the organized sector and large corporates take for granted. As someone who has spent two decades in the FMCG sector, I resonated with a lot of it, because across most FMCG categories— while e-commerce and large supermarkets may dominate the media headlines, the humble kirana stores still make up the bulk of most categories and determine the fortunes of FMCG marketers.

What I also loved about India Uninc is that Prof. Vaidyanathan goes beyond the business numbers and observations to look at how these sectors tap into their social roots as a support system and in turn, give back to society, even in the absence of any CSR guidelines or norms for them. There is a fascinating discourse on how the traditional caste system has played a role in supporting and sustaining the growth of this sector, which makes one realize just how enmeshed this sector is with the broader societal context in which it thrives. At one level, this book is an eye-opener for anyone who may otherwise have a superficial understanding of big corporates and foreign investment being the drivers of the Indian business landscape; at another level, it is a heartfelt plea for how corporates and the government can give this sector its due and help it develop further.

With over three decades of experience in industry and academia, Vaidyanathan’s work is a tour de force that reflects not just his depth and breadth of experience, but also the real insights and passion he feels for the subject, which come alive in his lucid commentary and observations.

The one cautionary note is that India Uninc is pretty ‘heavy’ on data, and while the data tables and statistics help build the case and bring to life the points the author is making in a compelling way, it can be pretty intimidating for a casual reader who is not in academia or business and is not used to digesting and making sense of so much data.  On the whole, a book that I enjoyed a lot and one which I think has a lot to offer. India Uninc is highly recommended for our decision makers in government, corporate leaders and anyone looking to invest in India, as it provides great insights into where the pulse of the Indian economy and business landscape really lies, and how one can support it, and harness it to grow their businesses.