BHARAT……..”The Development Dilemma”

( India Challenge Series - 5 )

Low-Level Technology: Growth Obstacle

https://youtu.be/mWYvrqb5WY4
https://youtu.be/2-w3PFEMR1w

Author :  CA  A. K. Jain

India's economic ascent is hampered by its reliance on low-level technology, which stifles productivity and global competitiveness in key sectors like agriculture and manufacturing. This technological lag is a systemic issue, despite a legacy of scientific institutions established during the British era and post-independence. To address this, the government has launched multiple initiatives, though their full potential is yet to be realized due to persistent implementation challenges.

Historical Context and Institutional Framework

The foundation for India's scientific landscape was laid by British-era institutions like the Geological Survey of India and the Indian Agricultural Research Institute (IARI). While these bodies, including the Botanical Survey of India and Survey of India, primarily served colonial interests by mapping resources and managing land, they created a scientific groundwork that proved invaluable post-independence.

Following 1947, the newly independent nation established its own set of premier institutions to foster self-reliance and technological growth. Key among these are the:

• Council of Scientific and Industrial Research (CSIR): Established in 1942, it has been instrumental in developing indigenous technologies, such as the Swaraj tractor and the "Flosolver" supercomputer. Despite these achievements, it faces challenges with limited industry collaboration and slow commercialization of its research.

• Indian Space Research Organisation (ISRO): Founded in 1969, ISRO has propelled India into the global space arena with missions like Mangalyaan and Chandrayaan. It has also contributed to sectors like telecommunications. However, it grapples with global competition and budget constraints.

• Indian Council of Agricultural Research (ICAR): Renamed in 1947, ICAR played a crucial role in the Green and White Revolutions, developing high-yielding crops and boosting milk production. Its main hurdles are the limited adoption of modern technology by farmers and inadequate funding for climate change research.

• Defence Research and Development Organisation (DRDO): Established in 1958, DRDO has focused on indigenous defence technologies, including the Agni and Prithvi missile systems. Its projects often face delays and cost overruns, and it struggles with dependence on foreign technology.

• Indian Institutes of Technology (IITs): The first IIT was established in 1951. These institutions have become a global hub for producing skilled professionals and entrepreneurs, particularly in the IT sector. They face issues like brain drain, high student-to-faculty ratios, and limited collaboration with small and medium-sized enterprises (SMEs).

Government Initiatives to Tackle the Technology Gap

To address the low-technology challenge, the Indian government has launched several ambitious policies and schemes, each with its own objectives and associated challenges.

1. National Policy on Electronics (NPE)
The NPE aims to make India a global hub for Electronics System Design and Manufacturing (ESDM). It promotes domestic production through incentives like the Production Linked Incentive (PLI) scheme. While it has attracted significant investment, the policy faces challenges such as inadequate infrastructure, a gap in the skilled workforce, and low R & D investment compared to global standards. To improve, the article suggests streamlining regulatory processes, enhancing industry-academia collaboration, and offering higher tax incentives for R & D.

2. Make in India
Launched in 2014, the "Make in India" initiative seeks to increase manufacturing's contribution to GDP to 25% and create 100 million jobs. It has improved India's Ease of Doing Business ranking and attracted substantial Foreign Direct Investment (FDI). However, the program has not met its job creation targets, and manufacturing's contribution to GDP has grown only marginally. The policy is also hindered by bureaucratic hurdles, skill gaps, and continued dependence on imports for high-tech goods. Recommended improvements include stronger industry-academia partnerships, accelerating infrastructure projects, and offering R&D incentives.

3. Technology Upgradation Fund Scheme (TUFS)
The TUFS, launched in 1999, was designed to modernize India's textile and jute industries by providing financial assistance for technology upgrades. The scheme has been successful in boosting exports and attracting private investment. However, its implementation has been plagued by delays in subsidy disbursement, complex application processes, and a primary focus on larger companies, leaving SMEs at a disadvantage. To improve, the article suggests simplifying the application process, offering higher subsidies for smaller firms, and expanding the scheme to include emerging technologies like AI and IoT.

4. Atal Innovation Mission (AIM)
The Atal Innovation Mission (AIM), started in 2016, aims to create a nationwide culture of innovation and entrepreneurship. It operates through various initiatives, including Atal Tinkering Labs (ATLs) in schools and Atal Incubation Centres (AICs) for start-ups. While AIM has successfully supported thousands of start-ups and generated employment, a significant portion of its activities are concentrated in urban areas, leading to a rural-urban divide. The article suggests greater emphasis on supporting start-ups that focus on practical, low-cost solutions and improving infrastructure in rural areas to foster inclusive innovation.

5. National Skill Development Mission (NSDM)
The NSDM seeks to skill India’s youth to meet industry demands. The scheme has made strides in providing vocational training, but it faces issues with the quality of training, a mismatch between skills taught and industry needs, and a lack of support for trainers. The article recommends closer collaboration between training providers and industries, establishing a robust quality assurance framework, and investing in continuous professional development for trainers.

The Road Ahead

India’s journey toward becoming a global economic powerhouse is inextricably linked to its ability to leverage technology. While historical foundations and post-independence initiatives have laid the groundwork, persistent challenges in funding, implementation, and regulatory environments continue to impede progress. Overcoming these requires a multi-faceted approach, including:

• Policy Reforms: Providing incentives for technology adoption and streamlining regulatory processes.
• Investment in R&D: Increasing both public and private sector spending on research and innovation.
• Skill Development: Creating a workforce equipped with digital and technical skills to meet future demands.
• Public-Private Partnerships: Fostering collaboration between the government, private sector, and academia to accelerate technological adoption.
• Promoting Entrepreneurship: Nurturing a vibrant ecosystem of tech-driven start-ups.
• Infrastructure Development: Building robust digital and physical infrastructure to support technological integration.

By strategically addressing these systemic issues, India can transform its low-level technology challenge into a catalyst for sustainable economic growth and global leadership.
 

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About The Article

This article is the extract of one of the chapter of the best-selling book on Indian Macro-Economics, titled.... Bharat........” The Development Dilemma" authored by CA Anil Kumar Jain.

“This book is a must-read for every aware and enlightened citizen. It presents an in-depth analysis of the challenges faced by an emerging India and offers innovative suggestions and practical solutions to overcome them, paving the way for our nation to attain the esteemed position of Vishwaguru in the near future.”

The book is available at Amazon, Flipkart, Google Play Books and Ahimsa Foundation (WhatsApp Your Request - 9810046108).

 

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