From time to time, we hear divergent opinions on the key issue of the role of hi-tech enterprises in shaping the destiny of India. Given the pluralistic society that we live in, the vast disparity in education levels and the long-term nature of the impact that hi-tech initiatives have on the condition of the common people, it is natural that there are opposing views on this topic. I would first like to address the need for embracing technology in creating a better India.
a. The purpose of science is to unravel nature and that of technology is to make the life of humans more productive and more comfortable. If a product has to succeed in the market, it has to do one of the following: reduce cost, improve productivity, save time or improve comfort. It is unarguable that information technology products have met these requirements remarkably well. Who needs these more than the poor Indian with his or her low disposable income and the resultant difficulty in fulfilling basic human needs?
Let me give you a few examples to illustrate the power of IT for the common man. Fishermen in Pondicherry use wave pattern data on the high seas broadcast by the US navy to improve their yield by as much as 40 per cent. NASSCOM used IP-based videoconferencing to connect a taxi driver in Bombay with his family in a remote village in Uttar Pradesh.
Further, technology is a great leveller. It does not distinguish between the rich and the poor. For example, one of my younger colleagues, who is a janitor at Infosys, is extremely happy to use an ATM because it does not discriminate against him -- unlike the clerk at the manned bank counter.
Further, technology makes services cheaper. A balance inquiry at a manned counter costs Rs 40. The same transaction costs Rs 8 at an ATM while the Internet brings down the cost to just Rs 2! Who needs these more than the poor?
The use of the e-governance paradigm for deployment of inexpensive, efficient, quick and corruption-free community and public services is another case in point. Information technology can enhance transparency in decision making and, thus, improve the confidence of the people in the government.
I can go on and on. The need of the day is for our leaders to stand up and become evangelists for the cause of using technology to help the common man. I am amused to see some of our politicians propounding the irrelevance of science and technology for the poor Indian while holding remote interviews with journalists by way of mobile phones! This hypocrisy has to stop.
b. Now, let me come to another important reason as to why we should embrace IT wholeheartedly. Today, we live in a global village. No country can afford to isolate itself from the global market. Even countries that did so for a few decades have realised the futility of their policies and have come back to the global bazaar, enhancing the share of exports in their GDP. We have to embrace an export orientation due to the following reasons:
b.1. Every country leverages its competitive advantages to create products and services for the global marketplace. In India, given that the purchasing power is very low, this is the most effective way to create high-quality jobs for our people and thereby raise the overall standard of living. In fact, I define self-sufficiency as being able to earn enough global currency from your competitive advantages to import the best products and services at the best prices from the global market.
This definition is obviously at conflict with the traditional Indian mindset that emphasised vertical integration and import substitution. Unfortunately, this mindset prevailed amongst the politicians and bureaucrats for well over 40 years after Independence. While we have to concentrate on exports in every area where India has a strong comparative advantage, I would like to limit myself to software exports, an area in which I have a little bit of knowledge.
b.2. You have to maintain a certain healthy proportion of exports and domestic consumption in order to ensure balanced and de-risked growth in the economy. The contribution of exports to the GDP of India is around 9 per cent, which is low compared to countries like China (25 per cent) and Brazil (20 per cent). Given the unpredictability in the prices of essential commodities like oil, the need to import technology and the requirement that we maintain adequate foreign exchange reserves, it is essential that we enhance the contribution of exports to our GDP. In particular, software exports are a key to achieving this objective.
b.3. An export orientation helps Indian enterprises benchmark their products and services on a global scale. If you succeed in the highly competitive global market, you are likely to provide high-quality products at the best prices even for the domestic market. The tragedy of the Indian consumer is that he has been forced to put up with shoddy quality. An export orientation will help us remedy this.
Product exports or services exports?
The market opportunity
What should we do to become a successful nation in IT?
Conclusion
Introduction
The Rediff Specials
Do tell us what you think of this speech
