Day 71 – Q 2. The World Economic Forum has announced a new center for the fourth Industrial Revolution in India. What is 4th Industrial revolution? What impact can it have on Indian economy?
2. The World Economic Forum has announced a new center for the fourth Industrial Revolution in India. What is 4th Industrial revolution? What impact can it have on Indian economy?
Introduction
The WEF is setting up a Centre for the Fourth Industrial Revolution in Maharashtra. The other centres are in San Francisco, USA, Japan and China. Artificial intelligence, block chain and drones are the first three projects of the centre in India. WEF will work in collaboration with the NITI Aayog, business leaders, academia and start-ups in these projects.
Body:
What is 4th Industrial Revolution (4th IR)?
4th Industrial revolution is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.
There are three reasons why today’s transformations represent not merely a prolongation of the Third Industrial Revolution but rather the arrival of a Fourth and distinct one: velocity, scope, and systems impact.
Impacts on Indian economy
Positive Impacts:
- Demographic dividend and Employment generation: Further consolidation of global market will help India to utilise its demographic dividend by providing workforce and services.
- Strong Banking sector: Artificial Intelligence, Blok chain technology and such other things will help in reducing the NPA problem and thus strengthening the pivot of economy that is banking sector.
- Global Leader in Industrial revolution: New centre at Mumbai, along with strong service sector and IT sector provides opportunity for India to become leader in 4th IR.
- Investments and exports: 4th IR can bring avenues for FDI in India and Exports from India.
- Agriculture and Health: Innovation and blending of physical and virtual realities will lead to improved health and agriculture in India.
Negative Impacts:
- Loss of jobs: Huge chunk of Indian labour force is either low skilled or unskilled. According to reports automation can kill 70% of the Indian IT jobs.
- Competitiveness: Due to low enrollment in Higher Education and poor quality makes Indian workforce less competitive as compared to other counterparts of Indian economy.
- Dumping: Further consolidation of global market and slow pace of innovation in India may lead to dumping by tech giants such as China in India.
- Loss to MSMEs: Small industries may not be able to sustain against giant MNCs. It may hamper domestic market.
- Economic inequality: Loss of low paying jobs may lead to further widening of the gap between rich and poor.
- Environmental Externalities: Dumping and complex nature of economies may lead to unprecedented exploitation of resources and environmental degradation. As IPCC already warned against rapidly increasing global temperature and consequential climate change.
Steps taken by India to comply with 4th IR:
The New Industrial Policy framed by the Ministry of Commerce in consultation with all stakeholders with intention to align India with the emerging technologies of drones, artificial intelligence and block chain.
NITI Ayog launched National Strategy for Artificial Intelligence with focus on sectors such as Agriculture, Health, and transportation, etc.
Conclusion
As the world’s largest democracy and the country with one of the highest number of scientists and engineers, India is a key political, social and economic player that will shape the course of the Fourth Industrial Revolution.
But India needs to proceed cautiously and swiftly to match the pace with the world without hampering domestic economy.
Best Answer: Mushfique Hussain
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