The North-South IT divide

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It took a two year study titled rather smartly as ‘Waiting to Connect’ to unearth the fact that similar to what is prevalent across the world, IT will have positive impact on India’s huge, but under-utilised manufacturing sector. Authored by Dr. Subhashis Gangopadhyay, Dr Manisha Singh and Dr Nirvikar Singh this study has come out with its bouquet of surprises.

Commissioned by India Development Foundation, a non-profit research organisation that has industry stalwarts like N R Narayanmurthy, Vijay Kelkar and Nobel laureate Amartya Sen on the board of trustees ‘Waiting to Connect’ attempts to break many myths associated with involvement of IT in manufacturing sector through hard facts and industry statistics.

Released by Mr Montek Singh Ahluwalia in New Delhi, ‘Waiting to Connect’ has found out that increased IT consumption in the manufacturing industry can propel profits by 30%. But more importantly, instead of taking away jobs it will increase employment opportunities by 30%.

And this is not only for ‘skilled labour’, the study shows that by incorporating IT in the manufacturing sector ‘demand for less skilled and skilled workers increases by 30% and 35% respectively’. On being quizzed as to how will it be facilitated, Subhashis Gangopadhyay said, “I can’t tell the industry how to do it. This revelation is based on hard facts and now it is up to the industry as to how it utilises its workforce.”

The Annual Survey of Industries (ASI) data, on which most of the findings are based, has given the authors their insights into the industry but it has also articulated the helplessness of industry in actually utilising IT on the ground level.

The first and foremost problem is the ‘cost factor’. Good and useful technology doesn’t come cheap and with 85% of factories in India qualifying as ‘small units’ the affordability factor is something that is just impossible to overlook. Next hurdle for the industry comes in the form of lack of skilled labour. This problem can be solved if the government joins hand with the industry to set up basic infrastructure for training and educating the youth. Someone needs to take initiative for this but sadly not many have come to the fore to don this hat.