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Jul022015

India 2.0: Can the Country Make the Move to the Next Level?

Thursday, July 2, 2015 at 3:47AM

With the global economic crisis threatening to cause turmoil in the emerging markets of the global South, it is becoming clear that what worked for the past two decades may not work for the next two.

For India, the legacy issues of poverty still need to be addressed, and the country’s impressive information technology (IT) industry – which has driven so much of India’s growth – will face stiff competition from other countries in the global South. Some argue that if the IT industry hopes to keep growing and contributing to India’s wealth, things will need to change.

Unlike China, where heavy investment in infrastructure and a strong link between government and the private sector has driven the impressive manufacturing boom in the country, in India the government has de-regulated and taken a back seat, leaving the private sector and entrepreneurs to drive the change and do the innovation.

Many believe various areas need urgent attention if India is to continue to enjoy good growth rates in the coming years. Areas in need of attention include infrastructure, healthcare and education (thesmartceo.in), in particular the knowledge to work in the information technology industry of the 21st century.

One of the founders of Indian outsourcing success Infosys (infosys.com), executive co-chairman Senapathy Gopalakrishnan, told Britain’s Telegraph newspaper, “So many people’s lives have been changed by IT in India.

“People from the middle class and lower middle class have become global employees and have the opportunity to work with some of the best companies in the world. But the challenge for India is that this industry can only create so many jobs. IT is not going to solve the unemployment problem in India.”

But the coming next wave of change in information technology is an opportunity to be seized to reduce unemployment if enough people are educated to handle it.

According to Gopalakrishnan: “I strongly believe, and it’s backed up by data, that there is a shortage of computer professionals everywhere in the world, including India. The application of computers is growing dramatically and will continue to grow dramatically over the next 20 to 30 years. We have to train and create the workforce necessary to grow this industry.”

Various media stories have called this next phase India 2.0. If India 1.0 was the highly successful information technology outsourcing industry developed in the late 1980s, through the 1990s and 2000s, then India 2.0 is the next wave of IT innovation being driven by Big Data, automation, robotics, smart technologies and the so-called “Internet of things.”

Big Data is defined as the large amounts of digital data continually generated by the global population. The speed and frequency with which data is produced and collected – by an increasing number of sources – is responsible for today’s data deluge (UN Global Pulse). It is estimated that available digital data will increase by 40 per cent every year. Just think of all those mobile phones people have, constantly gathering data.

Processing this data and finding innovative ways to use it will create many of the new IT jobs of the future.

“We are living in a world which is boundary-less when it comes to information, and where there is nowhere to hide,” continues Gopalakrishnan, “If you have a cellphone, somebody can find out exactly where you are. Through social networks you’re sharing everything about yourself. You are leaving trails every single moment of your life. Theoretically, in the future you’ll only have to walk through the door at Infosys and we’ll know who you are and everything about you.”

Unlike in the late 1980s, when India was the pioneer in IT outsourcing for large multinational companies and governments, competition is fierce across the global South. The mobile-phone revolution and the spread of the Internet have exponentially increased the number of well-educated people in the global South who could potentially work in IT. China, the Philippines, Kenya, Nigeria and Ghana are just some of the countries heavily involved in this area.

If India fails to meet the India 2.0 challenge, it risks seeing its successful companies and entrepreneurs leaving to work their magic elsewhere in Asia and the new frontiers of Africa, just as many of its best and brightest of the recent past became pioneers and innovators in California’s Silicon Valley.

India’s IT sector contributed 1.2 per cent to the country’s gross domestic product (GDP) in 1998; by 2012, this was 7.5 per cent (Telegraph). The IT industry employs 2.5 million people in India, and a further 6.5 million people indirectly. IT makes up 20 per cent of India’s exports and, according to the National Association of Software and Services Companies (nasscom.in), the industry has revenue of US $100 billion.

India is now the IT and outsourcing hub for more than 120 of the Fortune 500 companies in the United States.

Out of India’s 3.5 million graduates every year, 500,000 are in engineering – a large pool of educated potential IT workers. India produces the world’s third largest group of engineers and scientists, and the second largest group of doctors.

IT has become a route that catapults bright Indian youth into 21st-century businesses and science parks and to the corporations of the world.

One visible example of the prosperity brought by IT services in India is the booming technology sector based in the city of Bangalore (also called Bengaluru) (http://en.wikipedia.org/wiki/Bangalore).

Reflective of the contradictions of India, Bangalore has 10 per cent of its workforce now working in IT, but also 20 per cent of its population living in urban slums.

The nearby Electronics City (elcia.in) is considered “India’s own silicon valley and home to some of the best known global companies.”

To date, aspects of India 2.0 are already taking shape.

One company is called Crayon Data (crayondata.com). It uses Big Data and analytics to help companies better understand their customers and increase sales and deliver more personal choices.
Edubridge (http://acumen.org/investment/edubridge/) is helping to bridge the gap for rural youth with varied education backgrounds and long-term jobs. Edubridge trains youth for the real needs of employers to increase the chances they will get a job. This includes jobs in the IT business process outsourcing sector and banking and financial services.

Infosys is working on innovations for the so-called “Internet of things,” in which smart technologies connect everyday items to the grid and allow for intelligent management of resources and energy use. Infosys is developing sophisticated software using something called semantic analytics – which analyses web content (http://en.wikipedia.org/wiki/Semantic_analytics) – to sort through social media and the Internet to track customer responses to products.

Elsewhere, former Infosys Chief Executive Nanden Nilekani is involved in a Big Data innovation to address the problem of social and economic exclusion of India’s poor. Called Aadhaar (http://uidai.gov.in/), the government-run scheme is gathering biometric data on every Indian to build the world’s largest biometric database. After being enrolled and having fingerprints and iris scans taken, each individual is given a 12-digit identification number. So far 340 million people have been registered with the scheme, and it is hoped 600 million will be registered by the end of 2014.

The idea is to use a combination of access to mobile phones and these unique ID numbers to widen access to all sorts of products and services to poor Indians, including bank accounts for the millions who do not have one. Many people, lacking any identity or official acknowledgment they exist, were prevented from engaging with the formal economy and formal institutions. Being able to save money is a crucial first step for getting out of poverty and it is hoped information technology will play an important role in achieving this.

By David South, Development Challenges, South-South Solutions

Published: March 2014

Development Challenges, South-South Solutions was launched as an e-newsletter in 2006 by UNDP's South-South Cooperation Unit (now the United Nations Office for South-South Cooperation) based in New York, USA. It led on profiling the rise of the global South as an economic powerhouse and was one of the first regular publications to champion the global South's innovators, entrepreneurs, and pioneers. It tracked the key trends that are now so profoundly reshaping how development is seen and done. This includes the rapid take-up of mobile phones and information technology in the global South (as profiled in the first issue of magazine Southern Innovator), the move to becoming a majority urban world, a growing global innovator culture, and the plethora of solutions being developed in the global South to tackle its problems and improve living conditions and boost human development. The success of the e-newsletter led to the launch of the magazine Southern Innovator.

Follow @SouthSouth1

Google Books: https://books.google.co.uk/books?id=xIzkBgAAQBAJ&dq=development+challenges+Cheap+Farming+Kit+Hopes+to+Help+More+Become+Farmers&source=gbs_navlinks_s

Slideshare: https://www.slideshare.net/DavidSouth1/development-challenges-march-2014-published-44135069

Southern Innovator Issue 1: https://books.google.co.uk/books?id=Q1O54YSE2BgC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 2: https://books.google.co.uk/books?id=Ty0N969dcssC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 3: https://books.google.co.uk/books?id=AQNt4YmhZagC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 4: https://books.google.co.uk/books?id=9T_n2tA7l4EC&dq=southern+innovator&source=gbs_navlinks_s

Southern Innovator Issue 5: https://books.google.co.uk/books?id=6ILdAgAAQBAJ&dq=southern+innovator&source=gbs_navlinks_s

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David South |

Indian ID Project is Foundation for Future Economic Progress

Wednesday, June 24, 2015 at 12:14PM

India is in the midst of the biggest national identification project in the country’s history. The aim is for every Indian to receive a voluntary electronic identification card containing his or her details and a unique number. Called an Aadhaar, it is a 12-digit unique number registered with the Unique Identification Authority of India (http://uidai.gov.in) (UIDAI). The project joins a growing trend across the global South to map populations in order to better achieve development goals.

About one-third of the world’s urban dwellers live in slums, and the United Nations estimates that number will double by 2030 as a result of rapid urbanization in developing countries. How to improve slum-dwellers’ living conditions and raise their standard of living is the big challenge of the 21st century.

With just four years to go until the 2015 deadline to meet the Millennium Development Goals (http://www.undp.org/mdg), and the current economic downturn reversing some gains, any tool that can make development decisions more precise has to be a benefit.

Innovators are turning to the opportunities afforded by digital technologies to reach slums and poor areas. The approaches vary, from India’s national identification system to new ways of using mobile phones and Internet mapping technologies. With mobile phones now available across much of the global South, and plans underway to expand access to broadband internet even in poorly served Africa, it is becoming possible to develop a digital picture of a slum and poor areas and map population needs.

Put to the right use, this powerful development tool can fast-track the delivery of aid and better connect people to markets and government services. In a country of severe regional disparities and caste (http://en.wikipedia.org/wiki/Caste) divisions, the national identification number has the advantage of not documenting people in a way that would bring prejudice.

India’s Aadhaar is intended to serve a number of goals, from increasing national security to managing citizen identities, facilitating e-governance initiatives and tackling illegal immigration. While critics of ID schemes complain about the civil liberties implications of national identity card projects (www.bigbrotherwatch.org.uk), it is a fact that countries that want to increase the social benefits available to their citizens need to understand who those citizens are, where they live and what their social needs are. India’s problem to date has been a lack of knowledge of its citizens: many millions exist in a limbo world of not being known to local authorities.

The unique number is stored in a database and contains details on the person’s demographics (name, age, etc.) and biometrics (http://en.wikipedia.org/wiki/Biometrics) – a photograph, 10 fingerprints and an iris scan. Residents in an area find out about the Aadhaar through various sources, from local media to local government agencies. An ‘Enrolment Camp’ is established in the area where people go to register, bringing anything they have that can prove their identity. The biometric scanning takes place here. ID cards are issued between 20 and 30 days later.

On January 13, 2011 the project declared it had registered its millionth person, a 15-year-old named Sukrity from North Tripura. The goal is to register 600 million people in the next four years.

One of the immediate advantages to many poor people is gaining access to banking services for the first time, because an Aadhaar number is accepted as sufficient ID to open a bank account. The identification authority says the scheme will be “pivotal in bringing financial services to the millions of unbanked people in the country, who have been excluded so far because of their lack of identification.”

The Times of India reported in 2010 that Khaiver Hussain, a homeless man in an addiction treatment programme, was able to get a bank account after receiving the identification number. He was able to open an account with the Corporation Bank along with 27 other homeless people. Having a bank account has removed the fear he had of being robbed of his meagre savings while he slept.

Another homeless day labourer, Tufail Ahmed from Uttar Pradesh, said “This passbook and the UID card have given people like me a new identity. It has empowered us.” He has been able to use the saved money to rent a room with four other day labourers.

In countries where no national ID card schemes exist, people are turning to other methods to register and map populations in order to improve their living conditions.

In Kenya and Brazil, digital mapping projects are underway using mobile phones to paint a picture of the population living in slum areas and shanty towns. An NGO called Map Kibera (www.mapkibera.org) began work on an ambitious project to digitally map Africa’s largest slum, Kibera in Nairobi, Kenya. The Map Kibera project uses an open-source software programme, OpenStreetMap (www.openstreetmap.org), to allow users to edit and add information as it is gathered.

An NGO called Rede Jovem (www.redejovem.org.br) is deploying youths armed with GPS (global positioning system)-equipped (http://en.wikipedia.org/wiki/Global_Positioning_System) mobile phones to map the favelas of Rio de Janerio.

Powerful tools now exist to aid digital mapping. Google Maps (www.maps.google.com) is one example.

While the project is impressively ambitious – and it remains to be seen if it is completed as planned – the economic and development implications of this vast data collection and national identification are enormous. It will enable very accurate identification of markets and needs and also of development challenges and needs. This should lead to many business innovations in the country in coming years and also draw in more business from outside the country.