Labour abundant, but skill short. This phrase captures the Indian labour market scenario. The sentiment was echoed in a recent report by McKinsey Global Institute on the future global labour market. The report by the business and economy research division of the global management consultancy firm offered bright prospects for Indians. India, along with other young developing economies of Asia, is poised to replace China as the leading supplier of workforce in the global labour market. At the same time, the report tendered a caveat. India's ability to lead the segment depends on its ability to provide its labour force with the skills required in an increasingly globalised and technology-driven world. According to a Princeton University Industrial Research paper, computers were the main contributor to the 30 to 35 per cent growth of skilled workers between 1970 and 1995 in various industries in the US. And the internet has had a similar - if not bigger - impact on the global labour market in the 21st century.
Over the past two decades, there have been fundamental shifts in the global and local labour markets. These shifts have been largely dictated by the emergence of technology - not just as a sector creating innumerable job opportunities, but also having a major impact on other areas of work through improved productivity and greater competitiveness. No wonder, then, that the demand for high-skilled labourers has shot up and that for low skilled is spiralling downwards. There is a definite move from farm-based jobs to those in industry and services. Interestingly, even agriculture is witnessing a higher degree of technology use than a couple of decades ago, more so in emerging economies like India. Agriculture in India employs almost 60 per cent of the total labour force and contributes 25 per cent to India's gross domestic product (GDP). If we look at the services space, which engages 25 per cent of the labour force, it contributes 50 to 55 per cent of the country's GDP.
Against this backdrop, when one looks at the contours of technology access and skills across India's population, the issue of a digital divide emerges rather strongly. There is an opportunity in front of us but, unfortunately, the majority of our population is either unequipped or ill-equipped to leverage it, let alone maximise gains. In the Digital Inclusion Index by UK-based risk analysis firm, MapleCroft, India stood in the "extreme risk" category, which implies that most of the nation's population has been left untouched by the digital revolution. Also, India lags significantly behind Brazil, Russia and China, the other BRIC nations, which fall under the "medium risk" category from a lack of "digital inclusion" standpoint.
Clearly, there is an urgent need to bridge this divide and ensure an equitable India of the future. This issue needs to be amplified time and again, unless concerted action is not taken, for it has far-reaching repercussions on the livelihood of the citizens and the overall socio-economic growth of the country. If we wish to build a truly inclusive society, then connectivity and access have to be provided fast and, more importantly, at affordable rates. According to a World Bank report, a 10 percentage point increase in broadband penetration in low- and middle-income countries increased economic growth by 1.38 percentage points. Another report by consultancy firm Booz & Company found out that a 10 per cent increase in broadband penetration in a particular year is correlated to 1.5 per cent higher labour productivity growth over the following five years.
As we work towards the objective of increasing information technology adoption in the country, we must guard against pursuing a "one-size-fits-all" approach to achieve it. This applies not just to devices but to the entire ecosystem - access, connectivity, education and content. Technology can be a great leveller and enable inclusive growth, if used the right way. Otherwise, optimisation of investments from the state and benefits to the people cannot be achieved. If the access remains weak and if the right tools are not provided, then a larger section of the population will miss the opportunity.
If we look at devices, the objective should be to provide low-cost computing devices; however, device adoption must also be viewed from the prism of duration and type of usage. If we provide computing devices that have a shorter battery life in areas that are power deficient, they will not serve the purpose. To determine what is best suited for a particular stratum, all these factors must be considered, or else we risk missing our target. Similarly, internet connectivity should not come at a premium to consumers. Affordability on this parameter holds the key to digital inclusion.
So whose responsibility is it to create the highway and provide people with the devices and knowledge to use these devices intelligently? Prima facie it might appear that it is incumbent on the state to make the necessary investments as it treads on the path of inclusive growth. But this is not necessarily the case. Yes, the government has to define the objective, create a comprehensive policy framework, and incentivise investments in areas where it might not be profitable to put money in. But it is equally the responsibility of private enterprises that will benefit from a workforce geared to the realities of the 21st century.
Public-private partnership to achieve the goal of digitally inclusive society is the way forward. The stakeholders will have to work in a coordinated manner on connectivity, access, education and content. Again, usage models will have to be developed that help achieve the desired result. To leverage technology, a concerted effort must be made to integrate personal computer/laptop usage in the lives of target group. This is especially true for students who must be empowered. A digitally inclusive society is critical for building an equitable nation. All stakeholders will have to collaborate to achieve this goal, and it is pertinent that we put all our might behind it now. Otherwise, the opportunities of future will not only be lost, but create a complex set of challenges for the country.
The writer is Managing Director-Sales and Marketing Group, Intel South Asia
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper
