Education, innovation key to competitiveness
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Intel chief wants India to build on existing strengths in software and analytical skills
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While the cost of computers will continue to fall, preoccupation with computing costs is a waste of time.
BUILING ON CORE STRENGTHS: Chairman of the Board of Intel Corporation, Craig Barrett, centre, reaches out to shake hands with Rajendra Pawar, Chairman, NIIT, in New Delhi on December 5. The two were part of a panel discussion on the topic of "Driving India's competitiveness through Information Technology." — Photo AP
"DRIVING INDIA'S competitiveness through IT". That was the theme of a panel discussion held in New Delhi last week. But the emphasis of the star of the evening, Craig Barrett, Chairman of Intel Corporation, as also the other panelists was not on IT but on education.
That was indeed heartening, considering the illusions that had been spread in recent years about India having become a "super-power" on the basis of the increasing employment in export of low-end IT-enabled services, ignoring the grim realities of the country's none-too-happy human resource development record, the widespread illiteracy, high rate of school dropouts and the generally low standard of living of the masses. Education and innovation were the two `mantras' that Mr Barrett held out as basic desiderata of any nation aspiring for progress.
Heading the company that commands more than eighty per cent of the market for microprocessors, the hardware that represents the basic building block of computers, Mr Barrett made his priorities clear more than once.
"It is more important to have good teachers than to have computers for every child. Good teachers are particularly important for the child because a good teacher alone can create excitement about education," he said, in the course of the panel discussion, in which other eminent participants included Rajendra S. Pawar (Chairman, NIIT), S. Sadagopan (Director, International Institute of Information Technology, Bangalore), Sangita Reddy (Executive Director, Apollo Hospitals Group), and Vinay L. Deshpande (Chairman and CEO, Encore Software), besides Govindraj Ethiraj.
Inclusive growth
While the panelists expressed happiness over the present atmosphere of political emphasis on "inclusion" [as distinct, presumably, from an India shining for the privileged few], some also expressed concern that the digital divide (between the town and the countryside and between the rich and the poor) posed a new challenge to the difficult task of inclusive growth. Mr. Barrett said the digital divide was "not a good excuse" for not investing in education.
The Intel chairman felt that the competitiveness of an economy would be aided by free flow of information "and, presumably, jobs".
He listed three simple foundations for achieving competitiveness: (1) the average education of the workforce, which had a "straightline relevance" to competitiveness, would enable development of IT and help the general population understand concepts; (2) generation of ideas, creation of new ideas and products/businesses/services and investment in research and development (R and D), aided by fiscal support and infrastructure including IT and communication; and (3) an environment conducive to transfer of technology. "[All this is] difficult to implement, especially education," he observed.
Describing himself as a believer in "building on existing strengths", he said India should build on its present strengths in software and analytical skills, in contrast to China which had developed manufacturing capability and infrastructure to support it. However, in the long term, he saw "inter-mixing" happening, with both countries focusing on improving their weaker sectors.
The Intel chairman did not seem to be particularly appreciative of concerns about lowering the cost of computers or building a "Simputer".
He pointed out that the cost of computers had steadily come down over decades, from a couple of thousands of dollars to a few hundreds, aided by technology and volumes, and this trend would continue. Preoccupation with computing costs, he felt, a waste of time.
Sangita Reddy (of Apollo) said there was a dramatic change in India's mindset in recent times, whereby its huge population was no more considered a burden but its biggest strength.
While Mr Barrett felt that the "medical industry" everywhere lagged behind in adopting advanced technologies and IT, and that health data of citizens even in the US was in analogue form only, Ms Reddy said "solutions" needed by the healthcare industry had not been forthcoming.
Concern over the taxation of intellectual property sales in India, which went against the need to encourage innovation, and the role of public-private partnership (PPP) in education were highlighted during the discussions.
Mr. Pawar (NIIT) felt that high-end education and research would not be feasible under the "business model" adopted by the NIIT for its GNIIT programmes. The universities and governments should play a major role in promotion of research and producing Ph.Ds needed by industry.
At the press conference which followed the panel discussion, Mr. Barret announced allocations of $ 1 billion by Intel to India in the next few years.
Intel's India plans
The allocations reflected the priorities he had earlier outlined, namely, promotion of R and D and innovation (by way of $800 million over the next five years for expansion of business operations and venture capital support to start-ups) and funding of teacher training and community welfare programmes.
Intel operates 11 chip fabrication plants and six assembly and test facilities in different parts of the world. According to Mr. Barret, Intel is still holding discussions with the Union government on the possible esta blishment of the highly capital intensive manufacturing operations in India.
If Intel does set a chip plant, it will be "wholly owned and wholly funded" by the company.
R. Gopalakrishnan
recently in Delhi
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