Road safety: Tech helps, but miles to go

 How does India fare compared to the world? According to FICCI-EY’s ‘Road Safety in India’ report, the country is ranked first and accounts for 11 per cent of the total fatalities in road accidents globally.

G Krishna Kumar Last Updated 20 November 2023, 03:51 IST

The Ministry of Road Transport and Highways’ latest report, Road accidents in 2022, shows there were 4,61,312 accidents resulting in 1,68,491 deaths. The report reveals a 9.6 per cent increase in fatal accidents compared to 2021, with 19 deaths every hour. It is shocking to note that the working age group of 18-60 accounted for 83.4 per cent of the total road accident deaths.

Almost 56 per cent of the accidents happened on highways and resulted in 60 per cent of the deaths in 2022. The road user category ‘Cars and Light Motor Vehicles (LMV)’ recorded 21,040 deaths. In addition, this category accounted for 24.5 per cent of the 32,825 pedestrians killed and 22.7 per cent of the 74,897 victims on two-wheelers.

How does India fare compared to the world? According to FICCI-EY’s ‘Road Safety in India’ report, the country is ranked first and accounts for 11 per cent of the total fatalities in road accidents globally.

Technology innovation aimed at reducing accidents in the automotive world has gained attention over the past few years. For example, ADAS (Advanced Driver Assistance Systems) applications are being added to cars to reduce accidents. Features like driver drowsiness detection, gaze detection, surround view system, pedestrian detection, automatic emergency braking and lane keep assist are gaining popularity.

An upcoming technology called V2V (vehicle to vehicle) would allow vehicles to communicate with each other on the roads and is expected to revolutionise the automotive industry as this can greatly help in reducing accidents. Not just communication with other vehicles, the technology can be used to communicate with infrastructure, too. For instance, V2I (vehicle to infrastructure, like traffic signals), V2P (vehicle to pedestrian) and V2N (vehicle to cellular network). These technologies are generically called as V2X (vehicle to anything). The data exchanged would include critical information for avoiding accidents — speed of the vehicle, location and direction among others.  

There are several cases where the V2X, once implemented, can help curb accidents. For example, a driver on a highway can receive warnings/alerts about severe waterlogging or an accident that has occurred a few kilometres ahead. While the present ADAS features like emergency braking assist depend on sensors, the V2X system would alert drivers about impending situations several kilometres ahead. In fact, a recent report states that introducing V2X could prevent at least 6 lakh crashes a year in the USA.

A recent Reuters report states that the Indian government has plans to release a blueprint for V2X implementation in the country. This is a step in the right direction. However, in a heavily price-sensitive market, manufacturers will have the challenge of convincing customers to purchase cars equipped with advanced technologies. Here, some joint effort from the government and the automotive industry to increase awareness will be vital.

The report also indicates that the government plans to include V2X as part of NCAP (new car assessment programme) for safety ratings.

Europe, the USA and China have already recognised V2X as a key feature for crash avoidance and improving safety. In fact, the EU, the USA and China have created their own technology solution for V2X. The Indian government, too, should push for a ‘Make in India’ solution. This would mean creating a strong ecosystem with industry and academia for driving India’s own V2X systems. In fact, India could lead V2X by using satellite communication in addition to mobile networks, as satellites provide much network coverage to hard-to-reach locations.  

Implementing V2X involves multiple challenges including investment in infrastructure as well as addressing security concerns.  The benefits of V2X are too good to ignore but it will take a few years to become a reality. In the meantime, can we take a holistic and stringent driver’s licence and behaviour monitoring and enforcement system?

The Global Zutobi Index 2023 indicates the difficulty level to learn and drive globally. It considers driving age, theory and practical test requirements, and eye and medical tests, among others to compute the ‘Learn to Drive’ score. Obtaining a driving licence is the hardest in Croatia which has a score of 1.96/10. Brazil stands at number two (3.21/10). Australia mandates 125 hours of lessons before appearing for a test. Not surprisingly, India is among the easiest to get a licence.

The government must consider mandatory and periodic training for students in schools and colleges.

In addition, technology can be used to analyse driver behaviour and insurance premiums can be linked to the same. While insurance regulator IRDAI has suggested the ‘pay how you drive’ model, it has not gained popularity.

While we await V2X technology, can we take a holistic approach to improve driver behaviour and create responsible drivers in the country?

(The writer is an ICT professional)

Corruption in IT sector: Time to strengthen corporate governance

 Corruption in IT sector: Time to strengthen corporate governance

Fewer organisations are pursuing criminal prosecution, but more are taking civil action against the perpetrator.

G Krishna Kumar, JUL 09 2023, 22:32 ISTUPDATED: JUL 10 2023, 02:50 IST

Recently, the news about a whistle-blower in a leading IT company helping uncover a potential Rs 100-crore ‘bribe-for-job’ scam made headlines. The management team of the IT company has taken disciplinary action against the employees involved in the bribery case while a detailed investigation is underway.

Is this a one-off incident? Certainly not. There have been several incidents in the past and almost all the cases have not become public.
For example, back in 2005, based on a tip-off, an IT company found that hundreds of software testers had been hired through illegal means. The company not only fired the perpetrator but also retrenched the hired engineers.
In another incident about 12 years ago, an investigation done by an IT company found their senior executive of outsourcing had used his family members for bribes. In a more recent incident, a senior executive was caught taking favours in ‘kind’ —
the executive received expensive gifts
and an all-expenses-paid vacation abroad for his family.    
The IT industry is perceived to be shielded from corruption/bribery when compared to other private sectors or PSUs, but the reality is different. People working in the private sector would know several such instances.

Reasons for unethical behaviour
However, the moot question remains: what is the motivation for people to be involved in bribery, especially in the private sector, when the salaries are high? 
As per the United Nations Office on Drugs and Crime report, such unethical behaviour can be attributed to rationalisation strategies employed by individuals to justify their actions. According to behavioural science, some people will cheat to gain an advantage if they are able to rationalise their behaviour and still feel good about themselves.  
The report states that several key factors like national context, company size, the nature of the company (domestic or foreign), workplace diversity, individuals’ gender identity, age, and length of tenure influence rationalisations of individuals in the private sector. There are three common rationalisations.
First, ‘everyone else is doing it’. According to this, individuals perceive that their competitors are engaging in corrupt practices and justify their actions with the rationale of securing the company’s well-being as well as their personal well-being while still feeling they are ‘good’. This rationalisation is popularly known as the “collective action problem”.
Secondly, ‘it’s not my responsibility’. Individuals rationalise corruption as being beyond their control. Typically, cited reasons for employees trying to deny responsibility are: “I didn’t know that was corruption”; “I didn’t do it for me; “I did it for my organisation”.
Third, ‘the end justifies the means’. Corruption can be perceived as generating positive collective effects because, however incorrect, it appears to be in the company’s best interests. Corruption can also be rationalised because it has positive effects for individuals, such as enabling them to keep their jobs.
Bribery/corruption cases have taken several years to be unearthed. For example, one of the cases involving a European technology company spanned over 17 years and across multiple countries. However, a recent global report, “Occupational Fraud 2022”, by the Association of Certified Fraud Examiners shows that frauds are being caught faster. The median duration has dropped by 33%, from 18 months in 2012 to 12 months in 2022.
Fewer organisations are pursuing criminal prosecution, but more are taking civil action against the perpetrator. The report also shows that 62% of the perpetrators are in roles with a higher level of authority. The percentage of cases involving corruption is on the rise over the past decade and fraudsters are collaborating more. For example, 58% of the cases in 2022 had more than one person involved, as against 42% in 2012.
This is despite a significant increase in training provided by companies to its staff about anti-fraud policies, focused training imparted to senior executives and formal fraud risk assessment. 
Early fraud detection is critical as this would serve as a deterrent for future incidences. The report shows that tips account for 42% of the fraud cases followed by internal audits 16% and management review 12%. When we will look at the sources, 55% of all tips came from employees, while over 30% of tips came from outside parties (customers, vendors and competitors).
The above data clearly shows the need to strengthen anti-corruption education and the communication mechanism to both employees as well as external parties.  In addition, a well-written code of ethics should also give guidance to employees on how to deal with certain ethical situations.
There is an overall need to improve transparency in organisations. Maybe companies should identify divisions within their organisation with a high possibility of bribery and conduct regular forensic audits to rule out wrongdoing. Although such audits would involve cost, they
are needed for maintaining transparency and discipline.  
Considering the overall digital awareness in society, it is not surprising to see crypto currencies being used in fraud cases. This means companies need to be up-to-date on policies and procedures while conducting diligence in the value chain (employees and third parties).
People found guilty must be blacklisted. How about creating a forum for sharing incidents, learnings and best practices for detecting frauds? Technologies like Artificial Intelligence and machine learning can be an ‘assistant’ in fraud prevention, as the algorithms would be able to flag potentially fraudulent or corrupt activities.
The current ‘bribe-for-job’ scam should serve as a wake-up call for the entire private sector. Companies should strengthen training, governance, transparency and disclosures. 
(The writer is an ICT professional and a columnist based in Bengaluru

Time for India to focus on becoming global electronics manufacturing powerhouse

Time for India to focus on becoming global electronics manufacturing powerhouse

Several global electronics companies (from consumer electronics to aerospace) have embarked on a China+1 and even a China replacement strategy for manufacturing.

Published: 30th March 2023 08:41 PM  |   Last Updated: 30th March 2023 08:41 PM

By G Krishna Kumar

Commerce minister Piyush Goyal recently said that Apple has a target of moving 25% of their phone manufacturing to India. Several global electronics companies (from consumer electronics to aerospace) have embarked on a China+1 and even a China replacement strategy for manufacturing. Hence, India has witnessed significant interest from global companies in electronics manufacturing. In addition, India’s domestic demand for consumer electronics/appliances is seeing significant growth and is expected to touch USD 21.18 billion by 2025 (from USD 9.8 billion in 2021).

Can we capitalise on this demand? India needs to implement a multi-pronged strategy to emerge as a global powerhouse in electronics manufacturing. Before we delve into this, a quick look at the global electronics manufacturing services (EMS) scenario. 

The industry has evolved over the past 30 years as global brands found it beneficial to outsource the manufacturing of their products to EMS companies.

A recent report indicates that the global EMS market is projected to reach USD 1145 billion by 2026, at a CAGR of 5.4% during the forecast period 2021-2026. Although there are over 1000 EMS companies globally, over 53% of the market is held by ten companies based in China, Taiwan and the USA.

China leads the EMS market with 47% market share, while India stands at 2%. Southeast Asia accounts for about 7%, with Vietnam, Cambodia, Malaysia, Thailand and Indonesia aggressively growing their market share. India is estimated to grow fourfold to USD 80 billion by 2026. China has witnessed rising labour costs and labour shortages due to increasing aspirations amongst workers to pursue high-tech jobs.

India should capitalise on the challenges faced by China and emerge as a credible alternative. The government’s “Make In India” and Atmanirbhar Bharat initiatives have certainly given the much-needed impetus for electronics manufacturing. The Production Linked Incentive scheme, Scheme for Promotion of Manufacturing of Electronic Components and Semiconductors, Merchandise Exports from India Scheme, Modified Electronics Manufacturing Clusters Scheme, among others, are important steps.

A recent study conducted to assess the feasibility of manufacturing an existing consumer electronics product (that is made in China) indicates that over 75% of the components are available within India. The supply-chain ecosystem of component suppliers has to be strengthened for cost efficiency, quality and scale to meet global standards. However, it is encouraging that India has achieved much localisation. We still don’t have the semiconductor chip fabrication capability for producing high-end electronic chips that perform critical functionalities. Chip manufacturing is a crucial parameter for determining the strength of a country’s manufacturing ecosystem.

The government has established several initiatives to encourage chip manufacturing. Three companies have announced plans to establish a large chip manufacturing set-up in Karnataka, Tamil Nadu and Gujarat. It will take a few years to see “Make in India” chips. Till then, we will depend on Taiwan, China or the USA.

A recent research report comparing the total cost of production (including manufacturing and logistics) in India and China shows that India is about 7-8% costlier than China. Of this, 4% is due to the financial incentives provided by China to manufacturers. Perhaps the Indian government, too, could consider additional tax benefits to encourage indigenous manufacturing. The government would do well to extend the SPECS scheme beyond March 2023.

For electronics manufacturing to thrive, India needs a solid infrastructure for smooth logistics handling. India’s road infrastructure has significantly improved over the past decade and is comparable to China’s. India may reach 1.8 lakh km of highways by 2025. Regarding ports, China has seven of the top 10 container ports in the world. India stands 36th. India’s current capacity of 1534 million tonnes annually is a fifth of China’s port capacity. Port expansion needs considerable improvement.

India’s demographic dividend should be used for creating a high-quality, trained workforce. The government must accelerate plans to implement the National Skills Qualifications Framework (NSQF) aligned to the skill requirements in electronics manufacturing. With the current turmoil in the IT sector, we must reduce dependency on it for employment. Through a strong industry-academia collaboration, students can be attracted to pursue jobs in the electronics manufacturing industry. We must have focused courses enabling industry-ready students for technology, operations and logistics.

While electronics manufacturing is labour-intensive, there is a clear trend towards automation of repetitive jobs using robots. Even complex tasks can be managed through collaborative robots (co-bots), which coexist with humans.

A recent World Robotics 2022 report shows that the annual installation of robots in manufacturing has seen a 31% increase in 2021 compared to the previous year and is expected to touch 6.9 lakh new installations by 2025. The electronics industry had the highest annual robot installations, with 26% of all robots in 2021.

India is at the cusp of a technology revolution with 5G deployment. Artificial intelligence, extended reality and robotics would help improve productivity and overall manufacturing competitiveness. Collaborative R&D efforts between the industry and premier technology institutes could help disrupt electronics manufacturing through advanced robotics and optimise the supply chain in the country through hyper-automation. India should aim to be a leader in Next-Generation Manufacturing (NGIM) through human-cyber-physical systems (HCPSs) by using artificial intelligence, machine learning (ML), big data and IoT for the co-existence of humans and machines and to achieve high productivity.

As we aim to become a leading electronics manufacturing hub, the entire manufacturing supply chain must be encouraged to adopt sustainable manufacturing practices like zero waste reuse, recycling, refurbishing and repurposing.

How about using solar power to meet 80% of factory energy requirements? Reports suggest that Samsung has already achieved 100% renewable energy in their US and China manufacturing sites.

India should research and implement the use of low-toxic components and even biodegradable materials in electronics manufacturing. Government-led efforts around green manufacturing would propel India to become a global leader in the industry.

(G Krishna Kumar is an ICT professional and columnist. Views are personal.)