As is well-established now, India is the fastest-growing trillion-dollar economy in the world and endeavors to boost economic growth through strengthening the Gross Domestic Product (GDP). However, the current situation obtaining out of COVID-19 pandemic is raising concerns about the economic growth scenario shortly.
This blog attempts to explain economic growth and the role of education at the Asian Business School (ABS), Noida in fortifying managerial skills to successfully charter outgrowth curves despite the turbulence.
Defined simply, ‘Economic Growth’ refers to an increase in aggregate production in an economy. This is measured by the change in the Gross Domestic Product (GDP) of a country, which is basically a representation of the total output of goods and services for an economy. For example, if a country has a GDP rate of 5.5 percent for the year, it means that the country’s economic growth rose by 5.5 percent from a year earlier. This indicates an increase in incomes, thus, inspiring consumers to open up their wallets and buy more, which means a higher standard of living.
There are several ways and means to generate economic growth. In economics, growth is commonly exhibited as a function of natural resources, physical capital/infrastructure, human capital, labour force, and technology.
An increase in the number of physical capital goods in the economy tends to increase labour productivity. While the profits of the firm will increase, the value of the marginal product of labour will also increase. New, better, and more tools mean that employees/labour can produce more output per period. Similarly, equally improved technology/ digitalization allows the workforce to produce more output with the same stock of capital goods by combining them in novel ways that are more productive.
Post Graduate Diploma in Management (PGDM) course at Asian Business School (ABS), Noida ensures a good blend of technology and practical utility in its teaching/learning pedagogy to ensure PGDM course students are industry-ready and geared up to contribute accordingly to the economic growth. Post this current disrupted scenario, digital technology is going to be a major enabler. ABS PGDM course content, creation delivery, and assessment are all interwoven across technology platforms and ensure that our students get maximum hands-on in the use of digital tools, a platform for learning, analysis and presentation. Specialization specific trends and concepts are familiarized using a case study, industry professional experience, international summits, and overseas education tours.
The most important technique to generate economic growth is through developing Human Capital. In fact, human capital and economic growth have a strong correlation. Broadly, human capital refers to the knowledge, skill sets, that workforce/employees have in an economy. These skills bestow economic value since a knowledgeable workforce can lead to increased productivity.
When we look at today’s economic conditions, we find that there are some inherent challenges. To quote, “nowadays, the biggest of all the factors that have badly affected the careers of millions of individuals or human capital is economic downsizing.” Jobs are being cut down from the establishments, and the fittest of all employees survive. However, if employees continuously learn new and better skills, the chances are that economic conditions won’t hurt them that badly as compared to other individuals. Learning the skills and upgrading oneself continuously is what is required today.
In this initiative, the PGDM course at Asian Business School (ABS)-Noida, is intended with varied competencies to build upon the innovativeness in the human capital fostering cutting-edge thinking and nurturing the dynamic agents to contribute for economic growth. Thus, the ABS PGDM course emphasizes on developing agile business leaders of tomorrow.
According to the Austrian political economist, Joseph Alois Schumpeter, the cyclical process in the business/establishment is almost exclusively the result of innovation fostered through the human capital. In simple terms, Schumpeter termed it as “creative destruction,” Thus, the risk-taking human capital is the driving force of economic progress. They are the dynamic agents of change nurturing economic growth.
The Indian economy, we believe, is strongly poised for manifold growth, and a talented pool of manpower will be the same driving force for this growth.
Broadly, the development of a mindset to cope up with the changing environment is the key to success. PGDM course at Asian Business School (ABS)-Noida provides a clear edge for the same and prepares the students for the current competitive and challenging environment.
To know more about our AICTE approved PGDM program, please visit https://abs.edu.in/admissions/how-to-apply/