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Technology and Innovation as motivators of Economic and Social Changes An evaluation of the Indian Model


Technology and Innovation as motivators of Economic and Social Changes An evaluation of the Indian Model Presented By: Mr. Saurabh Mehta Managing Director, Avani ... – PowerPoint PPT presentation

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Title: Technology and Innovation as motivators of Economic and Social Changes An evaluation of the Indian Model

Technology and Innovation as motivators
ofEconomic and Social ChangesAn evaluation of
the Indian Model
Presented By Mr. Saurabh Mehta Managing
Director, Avani Cimcon Technologies Ltd.
Faces of India

  • India is slowly becoming one big wired village
  • Society is becoming more aware, more demanding
    and making informed decisions.
  • Technology is moving into every aspect of the
    social fabric
  • Business, Governments and people are adapting and
    optimizing technology for growth
  • The Paradox Big differences and a long way to go
    but things are moving in the right direction

Modern City skylines
Grass Roots technology penetration
The Wired Indian
Technology parks
Electronic city Bangalore Largest Technology
Park in Asia employing more than 100,000 people
There were no models that India could readily
borrow, because the economic development in the
context of its diversity and democratic set-up is
unique. It had to learn and develop its own
model . This meant creating and
multidisciplinary collaborations from the
conceptual level. Effective public-private,
private-private, public-public collaboration is a
major success factor for absorption of
technology Indians are innovative, flexible and
adaptable. Given a more or less free environment
they have been able to create an platform
conducive to growth and prosperity
Historical Perspective
  • India has strong science and mathematical
  • Arya Bhata to Information Technology
  • Traditional and modern education systems
    encourage scientific temper
  • Indian scientists and engineers have been
    academically very successful, quantitatively and
  • Average Indian family spends much of its
    resources on childrens education

Current Technology and Industry scenario
  • Maturing IT industry climbing the ladder of new
  • Bio and chemical sectors thriving medical
    tourism, KPO businesses taking off
  • Outsourcing taking off in all verticals, IT,
    Telecom, Automobile, Pharma RD
  • Internationalization of Indian business
  • Multitude of Govt. departments, institutes,
    universities engaged in a mind boggling variety
    of projects

Catalysts in India's Technology revolution
  • Government Initiatives
  • Education

Science and Technology Policy Benefits to all
Funds, human capital, knowledge resources
Deals with everything Policy, Strategy and
Common man
Govt, institutes, Universities
Technologies , products and services
Benefits , goods, services, security
Business, craftsmen, NGOs, other local
Political Speak
  • Dr. Abdul Kalam (Past President and an eminent
    rocket scientist)
  • In a world where the powers are determined by
    their share of knowledgeit is important for
    India to put her acts together to become a
    continuous innovator and creator of ST products
  • Dr.Manmohan Singh (Prime Minister of India,
    eminent economist)
  • science must grapple with key challenges
    ..increasing population, greater health risks,
    degraded natural resources and dwindling
    farmlands we need new science and technology,
    new paradigms to address fundamental challenges
  • Mr.Kapil Sibal Minister for Science and
  • India is in a position to engage in the global
    knowledge economy rather than remaining on the

The Vision and the Dream
India 2020-2050 Focus - Global leadership through
knowledge revolution
India 2010-2020 Focus Delivery to all
India 2006-2010 Focus Growth and build
Short and medium term strategiesFocus-disseminati
on and delivery
  • Acquire necessary Science and Technology in most
    efficient manner. Indigenous or otherwise.
  • Make better use of the leapfrog technologies.
  • International quality benchmarks and best
    practices in local market
  • Provide qualitative and quantitative advantages
    to the Technology and Innovative companies
  • Provide Tax breaks for RD expenses.
  • Introduce technology entrepreneurship at school

Long term strategiesFocus-global leadership
  • Separate RD, technology and delivery processes
  • Decentralize Science and Technology
  • Put industrial RD, in private hands,
  • Provide incentives for setting knowledge base
    institutions for learning.
  • Make sustainability a mandatory criteria
  • International agreements for sharing leadership
  • Validate every major international agreement for
    technology implications (e.g. WTO, Kyoto
    protocol, FTAs)

Role of Education
  • Huge pool of literate people, even with 40
    literacy India has 400 million people, Bigger
    then the population of most countries
  • Just 10 educated workforce would make it 100
    million people available for work.
  • Every year India adds more then half a million
    technology graduates
  • Largest pool of English speaking educated people,
    legacy of a colonial past
  • Growth of technology has allowed audio video
    education to penetrate to rural areas and this is
    going to incrementally increase educated

  • Wireless
  • Internet
  • Visual Media / Television

Telecommunication and Wireless in India
  • Wireless moving at a blistering pace Cell phones
    at 250 million
  • Lowest cell tariff (voice calls) in the world,
    2 cents a minute
  • SMS Very popular in India gt Used widely for
    business even more then email
  • India overtakes U.S to become 2nd Largest
    Wireless Network in the world
  • July 2008 has set an all time record with
    addition of 9.22 million wireless subscribers.
  • Revolution has left no one untouched, from the
    farm to the cities

Communications Digital Media
  • Wide spread use of technology, unfettered media
  • Involvement of the common man in issues of
  • Increasing expectations and demands
  • Bridging the divide in terms of exposure and
  • Awareness that there is a big different world out
  • Allows for more informed decisions
  • Satellite channels has brought about a complete

Communications Internet
  • Extremely cost effective Broadband provided at
    6 a month in urban areas and cheaper still in
    rural areas
  • The number of broadband subscribers in India
    stands at 8 mn. growth is mainly coming from
    Wired DSL Broadband
  • DOT has a target of 20mn for 2010
  • This increase in subscriber numbers will see the
    momentum spread to other Web / Internet sectors.
  • Literally every town in India is provided
    broadband coverage either wired or wireless 

  • Inflow of monies into the country
  • Inflow of existing technology
  • RD outsourcing brings in knowledge
  • Outsourcing leads to increase in Salaries of
  • Manpower intensive outsourcing allows for
    distribution of income
  • Increases the spending power, adds more jobs,
    grows other businesses
  • Money, international exposure, knowledge,
    processes, technology etc.

Technology in governance
Gujarat State Wide Area Network (GSWAN)
  • Establish a reliable horizontal and vertical
    communication corridor in the state
  • Enable the state administration and the
    government to be more productive
  • Enables electronic record keeping
  • Allows for electronic transactions
  • Achieve e-governance commitment
  • Brings governance closer to the people
  • Strengthens the disaster management capacity

E-Mitra (Friend), A project by Rajasthan
  • E-Mitra - an integrated e-governance project that
    aims to provide all government information and
    services to rural and urban masses through
    e-enabled centers and kiosks
  • Project being implemented on PPP model
  • Aims
  • Improving service delivery to all stakeholders
  • Back end Computerization
  • IT Infrastructure Creation
  • Human Resource Development

Internet Kiosks
  • A village kiosk consists of
  • Local Entrepreneur
  • Equipment
  • Computer
  • Printer
  • Battery backup
  • Web-cam
  • Speakers, Microphone
  • Connectivity
  • Antenna assembly
  • Cost of setting up a village Kiosk - 1,000

Services provided
  • education
  • Emails
  • Information
  • International VOIP calls
  • Entertainment
  • Connectivity to the village

Low Cost Rural Banking
Features of the Innovation
  • Developed by the TecNet group of IIT-Madras
  • Deployed in rural kiosks in collaboration with
    ICICI bank
  • Deposits, withdrawal, and loans Cost 800/
  • Conventional ATM costs 15,000/
  • Uses extremely low cost finger print
    authentication system (1/)
  • Use of plastic ID cards smart or otherwise not
    viable in rural areas

Private initiative ITC E-Chaupal
The Model in Action
  • e-Choupal leverages Information Technology to
    virtually cluster all the value chain
    participants, delivering the same benefits as
    vertical integration does in mature agricultural
    economies like the USA.
  • e-Choupal makes use of the physical
    transmission capabilities of current
    intermediaries aggregation, logistics,
    counter-party risk and bridge financing while
    disintermediating them from the chain of
    information flow and market signals
  • With a judicious blend of click mortar
    capabilities, village internet kiosks managed by
    farmers themselves, enable the agricultural
    community access ready information in their local
    language on the weather market prices
  • Allows for dissemination of knowledge on
    scientific farm practices risk management,
    facilitate the sale of farm inputs and sales

  • Real-time information and customized knowledge
    enhance the ability of decision making and their
    farm output with market demand
  • Gives farmers access to high quality inputs from
    established and reputed manufacturers at fair
  • As a direct marketing channel, virtually linked
    to the mandi system for price discovery,
    e-Choupal eliminates wasteful intermediation
    and multiple handling. Thereby it significantly
    reduces transaction costs
  • e-Choupal ensures world-class quality in
    delivering all these goods services through
    several product / service specific partnerships
    with the leaders in the respective fields, in
    addition to ITCs own expertise
  • Farmers benefit through enhanced farm
    productivity and higher farm gate prices, ITC
    benefits from the lower net cost of procurement

Technology and Innovation Examples
  • Technology of E-ticket enabled Air Deccan to
    start its services Today we have fleet or low
    cost carriers. Big impact on the full fare
    carriers who had to lower their costsAllowed for
    E-Ticket reduces the costs and middleman
  • Innovation and providing a One Rupee sachet for
    shampoo Changed industry way of doing
    businessVolumes have gone through the roofFocus
    was to get to the people who have very little
    money on hand
  • Micro Finance which a mix of technology and
    innovation Brought about a major revolution in
    the social fabricEnabled millions of people to
    get a loan and start something of their ownLoans
    for poor starting from USD 100 to start home
    business like buying a goat, buy vegetables to
    sell them etc. Less than 5 delinquency and
    always profitable.

More Cases
  • Technology has enabled online booking of Indian
    RailwaysThe largest rail network in the
    worldCarries the maximum passengers in the
    worldFor most it is the only mode of long
    distance transportationBooking has moved to the
    internetFuelled growth of credit cards
  • Technology has brought IT outsourcingLed to
    larger disposable incomesIncreased spending
    habits Increased movement o money through
    economyIncreased job opportunitiesInflow of
    foreign money into the countryPercolation of
    monies into the economy

Urban/Rural Growth
  • Growth of Urban centers like Bangalore, Mumbai,
    Pune, Hyderabad
  • Inflow of residents in all al walks of life not
    only technology
  • India a family oriented system, Urban money has
    started percolating into rural economy
  • Growth of secondary cities taking place as first
    tier cities become too expensive and crowded
  • Stated themselves become competitive in
    attracting business
  • As technology becomes available in rural areas
    low tech business moves rural, ultimately
    benefits percolate to all

  • There is a lot happening but there is a lot to be
  • India is in the phase of high growth but control
    mechanisms are still evolving
  • Social and Economic benefits are being seen in
    all strata of society
  • We are a very large country and have a very large
  • We still have a long way to go for all our people
    to benefit
  • We are moving exponentially and there is no
    turning back

  • Thank You
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