Showing posts with label Opinion. Show all posts
Showing posts with label Opinion. Show all posts

Monday, July 22, 2024

AI-led job loss is real, govt must intervene

 A recent survey states that AI could impact eight million UK jobs. The survey covering 22,000 job types has revealed that 11% of the tasks in these job types are already exposed to AI.

G Krishna Kumar Last Updated : 22 July 2024, 03:19 IST


The newly formed National Democratic Alliance (NDA) government must prioritise youth unemployment. Sample this: The latest Periodic Labour Force Survey for January–March 2024 shows the unemployment rate in the 15–29 age group at 17%. The situation gets alarming with the potential job losses over the coming years due to the increased usage of artificial intelligence. Data shows that AI-led productivity improvements can increase the global GDP by 7%. However, there is a high possibility of job losses.
In fact, Kristalina Georgieva, managing director of the International Monetary Fund, recently said that AI is like a tsunami hitting the labour market and would impact 60% of jobs in advanced economies and 40% of jobs around the world in the next two years.
A report from Goldman Sachs indicates that AI could replace 300 million jobs globally. AI could impact two-thirds of jobs in the US and Europe, and one-fourth of the jobs could be performed completely by AI. OpenAI and Mckinsey Global Institute estimate that AI would impact half of the job tasks for 20% of the workers.
A recent survey states that AI could impact eight million UK jobs. The survey covering 22,000 job types has revealed that 11% of the tasks in these job types are already exposed to AI. 
The impact on white-collar jobs could be severe. For example, a report from the University of Pennsylvania shows that white collar workers with earnings of $80,000 (about Rs 64 
lakh) would be affected by artificial intelligence and automation.
McKinsey Global Institute’s report states that 14% of all employees would need to change careers by 2023 due to advancements in AI. People working in customer service, accountants, sales, research and analysis, administrative, and retail roles would 
be impacted.
In India, the IT industry has been the largest employer, providing over 54 lakh jobs and crores of secondary and tertiary jobs. The industry has also been the highest job creator for fresh engineering graduates. With the advent of AI, this is likely to be impacted. 
While IT companies are trying to be “AI-ready” by reskilling their employees, well-known technologist Ray Wang, who tracks the Indian IT sector closely, has indicated that AI and automation could lead to a white-collar recession in India by 2027. 
Not just white-collar jobs; AI and automation would impact blue-collar jobs as well, although at a lower scale. India has 300 million blue-collar employees in manufacturing, construction, logistics, healthcare, and other domains. Some of the labour-intensive tasks can be automated through advanced robotics and AI, but mass job loss is unlikely as AI would co-exist to aid productivity improvement. 
We need a multi-pronged strategy to harness the benefits of AI while addressing the potential AI-led job loss. Mass unemployment can create a furor with potential social and financial instability. The “guarantee” schemes 
implemented in some of the states for unemployed youth are not sustainable.
The policymakers at the Centre must lead initiatives by collaborating with industry and industry bodies such as the Confederation of Indian Industries (CII), the National Association of Software and Service Companies (NASSCOM), and academia, thereby creating economic benefit for the overall workforce. The job market is a function of the demand and supply of a workforce. A strong focus group under the Prime Minister’s Office (PMO) should aim at understanding the demand-supply dynamics and getting the workforce “battle-ready” for AI impact.
Firstly, conduct a detailed study of the industries and workforce job types that have a potential risk of job displacement due to AI and automation. The exercise must consider the overall ecosystem as well as the workforce demographics and create a short-, medium-, and long-term possibility of AI-led job losses.
Secondly, a strong reskilling and an “alternate job assistance” programme must be created by providing training to the impacted employees. The government would do well by incentivising companies to cross-skill or upskill the workforce and providing alternate job opportunities. 
Thirdly, get the next generation AI-ready. While National Education Policy 2020 suggests greater use of technologies such as AI, it must be aligned with the findings from the study mentioned above. Considering the risk of job loss across industries, the government must embark on a life-long learning platform. Initiatives such as “FutureSkills PRIME” cover emerging technologies, including AI, which must be strengthened. YUVAi (Youth for Unnati and Vikas with AI), an initiative for familiarising school students from classes 8–12 
with AI technologies, should 
be expanded.
The government needs to collaborate with businesses and academia to create a framework that will create a future-ready and resilient workforce in India.
(The writer is an ICT professional and columnist based in Bengaluru)

Tuesday, November 21, 2023

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)


Monday, July 10, 2023

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


Tuesday, October 25, 2022

Can metaverse lead the way in bringing back Ayurveda’s glory?

Wearable technologies would mean patients can experience a personalised digital assistant (or an avatar) that would help in the initial diagnosis and support the patient follow treatment plan 

G Krishna Kumar Dr Lakshmi N PrasadUpdated: Sunday, October 23, 2022, 12:26 PM IST

The formation of the All India Institute of Ayurveda (AIIA) five years ago has provided the right impetus for undertaking interdisciplinary research on the validation of the ancient wisdom of Ayurveda using modern tools and technologies. How can advanced technologies and more specifically metaverse be used in delivering high-quality Ayurvedic care? Before we delve into this, a quick look at how Ayurveda has been accepted over the years. 

Ayurveda is based on the concept that a disease is caused due to an imbalance in the Tridoshas (Life forces) – Vata, Pitta and Kapha. The idea of universal interconnectedness, the body's constitution (prakriti), Tridoshas, and the concept of ‘agni’ (fire) form the basis of Ayurvedic treatment. Ayurveda’s approach is holistic by promoting lifestyle interventions and natural therapies. 

Ayurvedic medication has worked well in cases involving chronic respiratory infection, arthritis, and headache. Instead of just treating the symptoms, Ayurveda tries to address the root cause. Ayurveda leads in the treatment of jaundice, rheumatoid arthritis, osteoarthritis and even auto-immune disorders. 

A new trend is emerging where people are turning towards Ayurveda for gestational health issues and neonatal care. This can be attributed to Ayurveda’s approach towards both the physical and psychological development of the newborn. 

Ayurvedic immunity boosters have helped in reducing mortality during the Covid pandemic. A recent AIIA report shows how Ayurvedic treatment can be an effective and safe solution in the case of drug addiction. The report states that the Clinical Opiate Withdrawal Scale (COWS) score decreased from 22 to three after three weeks of treatment.

Over the past 20-25 years, the awareness and acceptance of Ayurveda, as a mainstream form of medical intervention, have improved significantly in India. It is not surprising that the number of colleges offering graduate degrees - Bachelor of Ayurvedic Medicine and Surgery (BAMS) has increased from 240 in 2011 to over 450 now. 

Technology adoption in Ayurveda 

With the availability of affordable phones, tablets and low-cost internet, digital awareness has been on the rise. With technologies like Artificial Intelligence (AI), Virtual reality(VR), Alternate Reality (AR) and metaverse, a highly dependable healthcare system can be created with Ayurveda.

Ayurveda has lost out on the latest technological advancements witnessed in the allopathic medical field. But even now, by adopting the newest technologies, Ayurveda-based diagnosis and treatment can be improved. 

The good news is that several competing products are either in advanced research or in pilot usage. For example, the automatic classification of plants/herbs using computer vision and Machine learning (ML) algorithms can help in improving productivity. Geo-tagging (for identifying accurate location) can be used for the conservation of medicinal plants. 

Ayurveda offers a personalised treatment. Each person is different with unique physiological attributes. The ‘nadi parikshap (or pulse examination) using sensors and AI can help in identifying the patient’s Prakriti and thereby also understand the ailments. This can reduce human errors in diagnosis to a large extent. Companies are offering Ayurvedic assessment and treatment using mobile apps. The government should update the flagship Aarogya Setu app with Ayurvedic aspects. 

Importantly, the government’s initiatives to digitise Ayurvedic text are a huge contribution to supporting research on Ayurveda. For example, an easy-to-use digital version of Charaka Samhita has been created by The National Institute of Indian Medical Heritage (NIIMH).

Metaverse

Technologies like AI, ML, and VR would become the core components of Metaverse. Today, we live a distinct physical and digital life and the metaverse will blur the two lives. Metaverse is a simulated digital environment where people can interact/collaborate in real-time and the whole experience would be natural and intuitive. In the future, the availability of wearable technologies and sensors would mean patients can experience a personalised digital assistant (or an Avatar) that would help in the initial diagnosis and support the patient follow Ayurvedic medication, diet and exercise routine suggested by the doctor. The doctor can monitor the patients remotely and suggest changes.

Student education can be transformed with an immersive learning experience with rich visual aspects and achieve precision learning. Medical schools in the US are experimenting with AR to provide students with hands-on learning opportunities. 

Reports suggest gamification to be a key differentiator in the metaverse and would provide a new way of connecting the healthcare ecosystem.

Government should embark on a long-term technology strategy for Ayurveda to create a research focussed ecosystem with AIIA, leading Ayurvedic institutions and premiere technology institutions like IISc, and IITs. 

Incentivising the start-up ecosystem to bring advanced technologies for Ayurveda can spur collaboration and innovation in precision diagnosis and treatment. How about a five-year target for a functional metaverse for Ayurvedic healthcare workers? Technology alone can lead the way in bringing back the glory of Ayurveda. 

(G Krishna Kumar is a Bengaluru-based ICT Professional and columnist, and Dr Lakshmi N Prasad is an Ayurveda practitioner based in Sringeri, Karnataka) 

Wednesday, September 28, 2022

Quiet quitting and moonlighting are real - workplaces need to adapt

Quiet quitting and moonlighting are real - workplaces need to adaptFor enabling a smooth transition, all stakeholders need to accept and demonstrate maturity, build a transparent, robust policy that works to everybody’s advantage 

G Krishna Kumar, SEP 27 2022, 22:57 ISTUPDATED: SEP 27 2022, 23:17 IST

IT major Wipro sacking 300 employees for moonlighting is making headlines in India. Globally, social media is abuzz with two trends in workplace: ‘Quiet quitting’ and moonlighting. ‘Quiet quitting’ is about keeping one’s job, just doing bare minimum work to be employed and meeting performance expectations. The idea is to use the after-work hours to earn money by moonlighting. Moonlighting is defined as having a second job, typically secretly, while keeping the primary job. The name moonlighting was coined in the US to depict work after regular office hours.

While the terms have gained popularity now, both moonlighting and quiet quitting have been followed as ‘side hustle’ and ‘checked out’ respectively in the past. For example, professionals like doctors, lawyers, and teachers holding primary jobs along with a personal practice has been long accepted. Corporate employees involved in multi-level marketing is also well known.
Is moonlighting or dual employment, a problem? Yes, especially if the second job is related to the primary job. Dual employment is an offence due to confidentiality breach. For example, A Bengaluru-based IT company has found that an employee was illegally employed in more than two of its competitors. Several such cases were found over the past 30 months and almost all the employees have been terminated.

Reports suggest that only one-third of employees consider themselves ‘highly engaged’ at work. Lack of engagement among the rest may be because of job insecurity, lack of job satisfaction, lack of respect/recognition or rewards/remuneration or poor work-life balance.

Since the pandemic, both quiet quitting and moonlighting have become easy as people find themselves productive working from anywhere and saving 2-3 hours of commute time every day.
A recent news report states that a survey of 400 IT professionals in India revealed that 65% engaged in moonlighting while working from home. Another report states that 70% of those surveyed said that side-hustles are the real shot to fame and 69% shared that they would want to earn from their hobbies.

Moonlighting clauses are added to employment agreements; violation of these clauses amounts to confidentiality breach and conflict of interest. They could use the IP, tools, and processes from their primary job in the second job, which is legally, and ethically, wrong. The other ethical question is does moonlighting deny opportunity for the unemployed or underemployed?
A recent report states that 34% of the working population in the US have a ‘side hustle’. Though dual employment is not banned in the US, Australia and other countries, many workers hide their second job from the primary employer. A recent Mckinsey report in the US shows a rise in independent workers from 27% in 2016 to 36% in 2022. The key reason citied is the autonomy and flexibility of freelancing.

European Union has adopted a directive in 2019 that requires EU member states to ensure that an employer can no longer prohibit an employee from working for another employer or for themselves outside of agreed working hours. The goal is to lower the threshold for workers to engage in other work, on a payroll or as self-employed persons, in addition to their existing work. The Directive allows the member states to set conditions under which an employer can continue to place restrictions on an employee having multiple jobs.

The Netherlands has recently implemented rules that would stop employers from banning their employees from taking up a second employment or doing voluntary work, with the aim of making it easier to combine different jobs.
While Indian companies are in a dilemma over moonlighting, IT major Infosys has warned its employees that moonlighting could lead to termination. On the other hand, online food delivery company Swiggy announced a moonlighting policy allowing its employees to take up projects outside of their regular work. In general, are organisations ready to accept and respond to the shift towards side-hustling?

Firstly, companies should address quiet quitting through a positive work culture that enables right job fitment and work-life balance. Providing a career roadmap and helping individuals cross-skill or upskill will help motivate workers and improve productivity.

Conventionally, moonlighting is considered a breach of trust. Going forward, there is a need for a framework for ethical moonlighting with representation from all stakeholders including labour department, industry bodies, companies and employee representatives. Companies should consider categorising employees who will be allowed/disallowed to moonlight depending on their role and type of work. Differentiated perquisites between the two category could be used. Moonlighting policies and awareness campaigns should be created. The policy framework must allow flexibility for employees and set clear performance goals, while clarifying on the confidentiality aspects. This would foster a healthy environment and a win-win for all concerned.

The present labour laws need a relook. For example, Shops and Establishment Act (S&E) in India does not allow dual employment. It is also unclear how PF, gratuity and employee insurance would be handled in cases of dual employment. How will a ‘background check’ be conducted in case of multiple employment?

Sooner or later, moonlighting needs to be accepted as a reality. For enabling a smooth transition, all stakeholders need to accept and demonstrate maturity, build a transparent, robust policy that works to everybody’s advantage.

(The writer is an ICT Professional and columnist based in Bengaluru)


Friday, August 19, 2022

India@100: World’s innovation capital

 We need to create research mindset among students in schools & colleges. We need to create an environment that can aid in producing subject matter experts who are equipped with multidisciplinary skill

Published: 19th August 2022 07:33 AM  |   Last Updated: 19th August 2022 07:33 AM

In his Independence Day address, Prime Minister Narendra Modi called for India to become a leader in Innovation. His “Jai Anusandhan” (Hail Innovation) slogan is timely. 

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India significantly lags behind the world’s top economies in Innovation/Inventions and Intellectual Property Rights (IPRs)—including patents, trademarks, trade secrets and copyrights. While India’s ranking in the Global Innovation Index has improved significantly from 81 in 2015–16 to 46 in 2021, it is a long road ahead for India to dominate in innovation.

A recent report analysing data from the International Monetary Fund (IMF) suggests that India pays a huge amount of money to foreign entities (for using the latter’s IPRs), compared to what India earns for IPRs held in India. For example: In 2021, India paid $8.6 billion and earned just $800 million. Back in 1981, the out-go was $15.1 million and earning was $0.11 million.

As India aims to be one of the top three economies in the world, we must have a multi-pronged approach to strengthen our position in Innovation and IPRs. Let us look at how India can improve its innovation and invention capabilities through patents. 

For the uninitiated, a patent is defined by WIPO (World Intellectual Property Organisation) as an exclusive right granted for an invention, which is a product or a process that provides, in general, a new way of doing something or offers a new technical solution to a problem. Patents are territorial rights—this means that the patents are to be filed in each country where the inventor seeks patent protection. World bodies (like the Paris Convention and Patent Cooperation Treaty, etc.) assist inventors in filing patents in other countries. 

The Indian patent system dates way back to the 1856 Act on the protection of inventions. It has undergone several modifications and enhancements post-independence and more so since 1999.

Over the past decade, the government’s ‘Make in India’, ‘Start-up India’, ‘Digital India’, ‘Atal Innovation Mission’, ‘Skill India’ and the ‘NIPAM’ (National IP Awareness Mission) have certainly helped in spurring innovation in the country. To encourage startups to file more patents, the government provides incentives—startups recognised under the Startup India programme get up to 80% rebate on patent filings.

There are several examples of Indians driving innovation. For example, a Maharashtra-based company has a patented tamper-proof painting technology that can be applied on uneven and rough surfaces. This technology would have global demand. 

Patent filing has significantly increased over the past decade. For example, 58,502 patents were filed in 2020–21, compared to 39,400 patents filed in 2010–11. Nearly 28,391 patents were granted in India in 2020–21 compared to 7,509 in 2010–11. 

However, when we look at the global scenario, 5.3 lakh patents were granted in China, while 3.52 lakh were granted in the USA, 1.7 lakh were granted in Japan, and South Korea granted 1.35 lakh patents. We are significantly lagging behind these leading economies. The main issue is India’s low Research and Development spending of 0.7% of GDP. In comparison, the USA spends 3%, Israel spends 4.5% and even China spends 2.6% of GDP. 

It is heartening to see the share of Indian residents in total applications has increased to 40% in 2020–21 from 20% in 2010–11. It is encouraging to see academic institutions filing over 2,500 patents during the last year, spread across Information Technology, Biotechnology, Ayurveda and Basic Sciences. 

India fares poorly on time taken for patent granting. The time taken in India is about 42 months. This has dropped significantly from 64 months in 2017. However, this is way below the global benchmark. USA, China, South Korea and Japan take about 15–20 months to grant patents. 

The delays can be attributed to the number of patent examiners in India. India has 615 examiners compared to 8,132 in the USA and 13,704 in China. The whole process of patenting involves three critical aspects—the inventors, the patent agents and the examiners granting the patents. 

Firstly, we need to create a research mindset among the students in schools and colleges. We need to create an environment that can aid in producing subject matter experts who are equipped with multidisciplinary skills. 

The NEP 2020’s vision for encouraging entrepreneurship and innovation can help if implemented effectively through strong feedback and a continuous improvement mechanism. Much more awareness must be created among the students and the youth in the country. The NEP’s focus on building multidisciplinary skills can encourage students to think about research and innovation instead of just focusing on standard jobs. 

The inventors approach patent agents for filing. The patent agents need to pass the patent agent examination conducted by the Indian government to qualify for patent filing. 

Reports suggest that India has about 4,000 registered patent agents. In contrast, the USA has about 50,000 agents. The number of patent filings per agent is about 14 in India compared to about 7 in the USA. We need to increase the number of patent agents significantly. This can be done by increasing awareness about the role of patent agents. These patent agents must hold a degree in Science and Technology to appear for the patent agent exam. Here again, multi skilled personnel will have a great opportunity to excel. 

Finally, India is lagging significantly behind its global peers with regard to the ratio of patent examiners to the patents filed. Government initiatives to increase the intake will certainly help in reducing the gap. Regular awareness campaigns and celebration of success stories will motivate professionals to become patent agents or patent examiners. India should learn from the European Patent Office’s (EPO) strategy to attract talent as patent examiners. 

Overall, we have an excellent opportunity for the innovation-led ecosystem to work together and enable an efficient patent management system in the country. Such actions would ensure India can produce some of the best-patented inventions in the world before we celebrate India@100. 

Bengaluru-based ICT professional and columnist

Tuesday, June 7, 2022

Great expectations as govt looks to reshape e-commerce landscape with ONDC

ONDC is a not-for-profit, open e-commerce platform that aims to provide a level playing field for all types of sellers

G Krishna Kumar, JUN 05 2022, 22:16 ISTUPDATED: JUN 06 2022, 07:33 IST

Buoyed by the success of several digital initiatives in the country from Aadhaar to Co-Win and UPI transactions, the Union government has embarked on an ambitious project “Open Network for Digital Commerce” (ONDC).

ONDC is a not-for-profit, open e-commerce platform that aims to provide a level playing field for all types of sellers, from kirana stores to retail chains and even larger e-commerce players.

The pilot phase of ONDC was kicked off recently in five cities (Bengaluru, Bhopal, Coimbatore, Delhi-NCR, Shillong) with 150 sellers, and over the next 6 months the footprint is expected to increase to 100 cities across the country with over 3 crore sellers. Reports suggest that there are 1.2 crore kirana stores in the country and just 15,000 of them are e-commerce enabled.

Online retail Gross Merchandise Value (GMV) has tripled over the past 5 years and yet it represents just 4.3% of the total sales in the retail segment. In comparison, e-retail as a percentage of overall retail sales in South Korea, China and the UK are at 26%, 25% and 23%, respectively.

A recent report indicates that the e-commerce market is predicted to increase from an estimated $75 billion by 2022 to $350 billion by 2030. It must also be noted that Amazon and Flipkart account for about 60% of the e-commerce market in India. Can ONDC seize the moment in the retail space?

As of now, large players like Amazon, Paytm etc have created apps/portals where buyers, sellers, logistics and payment are integrated onto their platform. Thus, a customer who is connected to one app or portal (say Paytm) can buy goods from that portal alone. If the buyer wants to buy from any other app (say Amazon), he/she has to log into the app and buy goods. Presently, all the e-commerce players have a centralised approach. ONDC on the other hand has a decentralised network approach. Here, the same Paytm platform can be used by the buyer to search for a product. Instead of seeing just what is offered by Paytm sellers, the buyer can choose from a variety of sellers: it could be from a nearby kirana store or from other established e-commerce players. This gives freedom of choice for the buyers and sellers as well. Most importantly, the buyer can buy goods or services without logging into different e-commerce portals or apps.

The buyers and sellers can transact irrespective of the platform or application they use to be digitally visible. Such a public digital infrastructure enabled by ONDC can potentially disrupt hospitality, travel, food delivery and mobility segments in addition to the retail segment.

The ONDC is based on an open protocol called Beckn, which allows interoperability of a wide variety of buyers and sellers. This effort to standardise all aspects in the entire chain involving various entities for exchange of goods and services is much needed as it would enable seamless experience for all the participants within the ONDC network. The platform is expected to perform the role of an enabler for e-commerce expansion and to be a market- and community-led initiative instead of being a regulator. Most importantly, such an open and decentralised network would certainly spur innovation.

It aims to work on three key aspects: dynamic pricing, inventory management and optimisation of delivery cost, and thereby bring down the cost of doing business for all players, including retailers.

Several technology startup companies have already started working on ONDC. To provide long-term vision and support for the initiative, private sector banks (HDFC, Kotak, ICICI), public sector banks (SBI) and financial institutions like BSE and NSDL among others are jointly owning ONDC. Several news reports indicate that many private banks, tech giant Google and FMCG companies like Dabur, ITC and Unilever are likely to join the ONDC network.

One of the biggest challenges ONDC will face is to replicate or better the existing user experience and quality of service provided by leading e-tailers in the country. As the e-tailers own the end-to-end system, they are able to provide assurance on the quality of products and timely delivery. ONDC would need to include the right checks and balances to create predictability in the decentralised system.

In addition, a strong grievance redressal and dispute resolution mechanism must be in place for earning the trust of buyers and sellers alike. While some of the big e-tailers provide local language support in their portals and apps, ONDC could play a significant role in language localisation, voice- based search and better user experience.

There were several unsuccessful attempts to digitise kirana stores in the past. Lack of success can be attributed to technology that was still evolving as well as low-speed internet, high mobile data tariff and low awareness amongst kirana store owners. Right now, India’s 4G data charges are among the lowest in the world at $0.68 per GB. In addition, availability of cheaper mobile phones will help in onboarding users onto the ONDC ecosystem. Awareness among local sellers, however, holds the key to success. Most importantly, established e-commerce players participating in the ONDC initiative will be a win-win for the overall ecosystem as India tries to catapult into the digital commerce space. Can ONDC replicate the success of UPI, where the banking sector actively participated? It will be a challenge, but with active participation from stakeholders, there is hope. 

(The writer is an ICT professional and a columnist based in Bengaluru)

Tuesday, April 19, 2022

Karnataka should address charging woes to become a hub of EV adoption

  The government must implement a hassle-free and affordable private charging system

G Krishna Kumar, APR 17 2022, 22:42 ISTUPDATED: APR 18 2022, 15:41 IST

The recent fire incidents involving four EV scooters have shocked both EV users and potential buyers alike. Will this put India’s EV story in jeopardy? Unlikely. Considering the importance of EV uptake in the country, the central government has ordered a forensic probe into the incidents. The manufacturers will have to take corrective and preventive actions to bring back the trust in EVs.

High consumer interest
It is encouraging to see consumers willing to experiment and switch to EVs. Sample this: Across India, 3.29 lakh EVs were sold in 2021, compared to 1.29 lakh in 2020. Electric two-wheelers contributed almost 50% of the sales, while electric three-wheelers contributed about 45% during 2021.
Vahan website shows UP leading EV sales with over 67,000 vehicles, while Karnataka stands second with sales of over 33,000 EVs. On the other hand, Karnataka leads two-wheeler sales in the country with about 30,000 vehicles sold.
A recent survey by Castrol has found that drivers in India require electric vehicles (EVs) priced at Rs 23 lakh, with a 35-minute average charge time and a range of 401 km. A new study reveals ‘tipping points’ at which most Indian drivers would consider switching to an EV. On average, they are looking to purchase an EV in just two years’ time.
It must be noted that the DC fast charging infrastructure has significantly improved, both in cities as well as highways, over the past three years. A journey from Bengaluru to Hyderabad or Mumbai or Kanyakumari can be covered with less anxiety. However, the state government can take specific steps in improving charging infrastructure significantly — both private/home charging as well as public charging in cities/along highways.

Private charging
Most people who buy an electric car would prefer to charge their cars in their home, and for this, a 7KW connection would be desirable. If a Bengaluru resident living in an independent house with a regular home connection of 2KW wants to upgrade to 9KW, BESCOM, Bengaluru’s sole electricity distribution company (discom), charges the customer about 1.5 lakh, including security deposit, installation charges. The application needs to be routed through designated electrical contractors and “convenience charges” are applicable for priority processing.
Now, let us look at apartment complexes. Most apartments were built 10-20 years ago and hence are not EV-friendly. While BESCOM is willing to help residents in apartment complexes with EV charging in parking areas, there are several Resident Welfare Associations (RWA) opposing the same.
BESCOM does not have the power to override the opposing RWAs as Karnataka lacks an EV policy that provides authority to the Urban Development Department (UDD) and the local civic body, the BBMP, to amend bylaws for supporting private EV charging.
The government must implement a hassle-free and affordable private charging system. New Delhi has implemented a consumer-friendly “Single Window” system. The ‘SWITCH DELHI’ initiative provides great insights for the end-users to switch to EV.
In New Delhi, for example, an end-user can apply for an EV charging connection through one of the four discoms. The connection is provided free of cost and an AC charger is provided for Rs 3,000 (3.2KW) and Rs 5,000 for a 7.2KW charger. A site visit is conducted by the discom and the charger is operational within a week. The Delhi government has an EV policy that overrides RWAs and can enable charging points for the end user directly.

Create awareness
It is highly likely that most EV owners in Bengaluru will not know that BESCOM has a provision for submeters, which can be used to charge EVs at subsidised rates (Rs 4.5 per unit). BESCOM would do well to create awareness about submeters.
In addition, safety guidelines for private charging in apartments and independent houses must be published. India has adopted the AIS 138 (Automotive Industry Standard) which recommends IEC60309 industrial sockets for EV charging. These sockets are waterproof and offer better safety compared to the regular 3-pin plug points at home.
BESCOM can join hands with the OEMs and companies that provide EV chargers to impart regular safety awareness campaigns. Importantly, a periodic audit confirming the worthiness of electrical wiring/switches/earthing at homes should be carried out. Perhaps, the home audit process followed by domestic gas companies can be replicated. Such audits will certainly help in reducing short circuit-related incidents, like the one where two people lost their lives in Tamil Nadu while charging their EV.

Highway charging
There are several private charging companies willing to invest in fast charging infrastructure along highways. Lack of support from discoms and rampant corruption appear to be the biggest hurdles. The time could be ripe for Karnataka to remove the discom monopoly and allow multiple discoms to operate. This would also spur competition for better service quality. The highway chargers must have a backup (maybe solar) so that the chargers are available 24X7 even during power cuts.
In addition to improved fast charging infrastructure along highways, the government should waive tolls for EVs till say 2027 (many countries in Europe have implemented zero toll and zero parking charges for EVs). Karnataka has already implemented tamper-proof high-security number plates (HSRP) and this would aid in implementing toll-free passage for EVs.
The Karnataka government needs to play a significant role in stimulating EV adoption. Willingness to improve the EV infrastructure along with a clear vision and timely implementation will help many buyers to switch to EVs rapidly. Chief Minister, hope you are listening!
(The writer is an EV enthusiast and columnist based in Bengaluru)

Wednesday, March 30, 2022

Protect youth from stock market perils

 IN PERSPECTIVE

G Krishna Kumar, MAR 28 2022, 00:02 ISTUPDATED: MAR 28 2022, 00:44 IST

A research scholar in Puducherry recently committed suicide owing to losses suffered in the stock market crash. There have been several cases of depression caused by stock market losses of late, especially among youngsters.

A global research report covering 36 countries spanning several decades suggests that a strong correlation exists between a stock market crash and depression/suicide rate, affecting men and women alike.
India’s stock market is relatively new and with a young populace, we would need the right interventions to help avoid cases of depression and suicide. But before delving into the possible interventions, it is important to understand the Indian stock market context.
The Indian stock market has gone up significantly ever since the  March 2020 market crash. The benchmark index Sensex has jumped 2.5-fold from March 2020 to October 2021 and even after the current crash, it is over two-fold. Such a phenomenal increase has meant that more and more youngsters and even college students are attracted to the stock market with the lure of easy and quick money.
The Securities and Exchange Board of India (Sebi) data shows that India has over 7.7 crore Demat accounts, up from about 3.6 crore accounts back in March 2019. Reports suggest that India has been historically adding about 4 lakh Demat accounts pre-Covid and now has zoomed to 20-30 lakh every month. It is not surprising that 75% of all the new accounts belong to people in the under-30 age group. Awareness about the stock market has gone up significantly over the past two years with many experts gaining celebrity status with “stock tips” on social media apps. The reduced interest rates in fixed deposits and savings bank accounts have aided the sudden increase in interest towards the stock market.
Each person would adopt strategies that would suit their risk profile, be it short-term trading or a long-term investment.
Warren Buffet, the most famous investor, is widely acclaimed as the 'Guru of compounding'. He achieved success by patiently holding on to the stocks for several decades.
In his book 'The Psychology of Money', Morgan Housel beautifully summarises that an average person with no financial background or flashy degrees can create wealth by patiently waiting for decades. The example of  Ronald Read, a petrol station attendant who saved his earnings, invested in Bluechip stocks and waited patiently for decades and created over $8 million wealth during his lifetime, is worth mentioning. The author argues that financial success is not hard science but a soft skill where how you behave is more important than what you know. He also stresses lesser greed and a longer time horizon as the key to wealth creation.
The other classic on personal financial advice is from 'The Richest Man in Babylon'. The 1926 book is a collection of parables that focuses on simple concepts like "paying yourself first", "living within your means", "investing in what you know" and the importance of long-term saving.

Financial literacy
While the Indian stock exchanges regularly run awareness campaigns — 'Soch Kar Samajh Kar invest Kar' from the National Stock Exchange (NSE) is very much appreciated — much more needs to be done. Market regulator Sebi should bring all the stakeholders to further improve awareness about the risks and possible benefits of stock market investing. There are several new financial investment instruments like the new NSE IFSC for investing in US-listed stocks. Sebi may do well to impose additional mandatory guidelines for all TV and social media stock market experts.
Can stockbrokers use advanced computing technologies like Artificial Intelligence to identify the risk profile of their customers? Can they run some proactive intervention for such customers when they see them falling into the yellow or red zone?
We need to prepare our Gen-Next to be financially literate. The National Payments Corporation of India (NPCI) and the CBSE have introduced a financial literacy textbook for class VI students to impart basic financial concepts at the initial stage of education. While this initiative must be lauded, the government must use the NEP (National Education Policy) framework to strengthen financial literacy.
The government should embark on a series of initiatives to educate students about money management and stock market awareness. Maybe a mandatory course for college students across disciplines with a mix of global and Indian examples could be used to increase awareness.
The risks associated with the stock market and other financial instruments must be emphasised to our youth, thereby bringing financial discipline among them. We need to act before it is too late.
(The writer is Managing Trustee, GVB Trust)


Friday, November 19, 2021

It is easier now to start a new business

G Krishna Kumar, NOV 16 2021, 23:32 ISTUPDATED: NOV 17 2021, 05:44 IST

It is easier now to start a new business my experience in setting up an IT company back in 2009 and now in 2021 throws some interesting perspective on the changes

The World Bank has decided to stop publishing the “Ease of Doing Business” and “Ease of Starting Business” reports from this year. The last report on Ease of Starting Business ranks India at 136th position in 2020. While India could improve further, my experience in setting up an IT company back in 2009 and now in 2021 throws some interesting perspective on the changes.    

 

Ease of setting up business: The Company name approval is the first step for registering a business. The process of name approval used to take 15-20 days back in 2009, now it just takes one day. Back in 2009, the name approval was handled by the state government’s Registrar of Companies (ROC), while now it is centralised.  
A major improvement is the existence of a single-window during the company incorporation. This allows for Provident Fund, Professional Tax, ESI, PAN and TAN accounts to be created instantly at the time of incorporation.
Unlike earlier, there is a greater emphasis on self-governance and self-certification with higher penal provisions. The accounting and labour compliances have been simplified now (based on the Companies Act, 2013) as against the Companies Act 1956 used as the basis in 2009.  Labour laws have seen improvement with PF, ESI, Shops and Establishment Act provisions going completely online. The new Labour Code is expected to further simplify compliances.     
Thanks to the Digital India initiatives, video KYC and online application completely removes the need to visit any government office for the whole incorporation process. Is that not wonderful? Company incorporation used to take three months back in 2009 and now it is just about 4-5 days.
Can the turnaround time be further improved? Certainly possible. If we benchmark against New Zealand, where business incorporation takes just half a day, that would be a boon.
Unlike in 2009, nowadays the moment the company is incorporated, non-stop unsolicited calls and emails from at least a dozen private banks follow.
The banks are aggressive in selling why they are the best compared to the competition. Interestingly, the public sector banks don’t figure in this. It is unclear as to how the banks gain access to the contact details. In any case, this experience is certainly not desirable.   


Infrastructure and “anything” as a service ecosystem: The communication infrastructure has seen significant improvement with 5-10 Mbps speed being premium back in 2009, while now 500 Mpbs is a norm for corporate usage.  The other big difference is the type of physical infrastructure.
Unlike earlier, now anything that a business would need is available as a service. This helps the company to focus on core activities while all the non-core/ hygiene activities can be outsourced.  For any company setting up operations in India, managing physical infrastructure would be a major task – this includes the building, security, facilities management among others.   
“Workspace as a service” is the one-stop solution for this. Managed workspace or co-working space has gained popularity as they offer attractive options with flexibility. Similarly, several companies offer HR as a service, recruitment as a service, finance/compliance as a service. This ecosystem provides a great impetus and encouragement for new companies to be established.  


Attracting talent has become tougher: With the IT industry in India doubling over the past 12 years and several MNCs setting their shop in the country, this has meant that the techies have no dearth of options to pick the “right” opportunity.
A recent report from staffing firm Xpheno states that several Indian IT companies have registered an annual net headcount growth of 15-25% over the past five years.
The report also states that 900+ tech startups have received over $27 billion in funding and the spend on tech talent is at an all-time high.  In addition, expansion hiring from existing tech companies has spurred demand for tech talent. On the talent supply side, there is a surge in job seekers now as most job seekers avoided job change last year due to the pandemic.   
We are witnessing nothing less than a war for talent and it is indeed a job seekers’ market. Companies are offering huge salaries, perks like Employee Stock Options (ESOPs), joining bonuses, flexibility to work from anywhere, and even fancy titles to name a few.
Most candidates have 2-3 offers in hand and are constantly looking for “better” options. The current demand-supply mismatch could make India become uncompetitive and some work may move to low-cost countries.
However, no other country can supply 3 lakh fresh engineering graduates in software and related disciplines. Notwithstanding the current challenges, India would continue to be the prime destination for technology companies as the sheer size of the talent available in the country is unprecedented and hard for other countries to match.
Summing up, the ease of setting up a new business has significantly improved over the past 12 years. The ecosystem for supporting new companies to establish their operations has also been a great positive change.
Talent acquisition has become tougher compared to 2009 due to significant demand-supply mismatch, but then India still accounts for the largest pool of highly skilled technology talent in the world. New technology companies will continue to find India attractive!  
(The writer is an Information and Communications Technology professional based in Bengaluru)

 

Monday, September 13, 2021

Burdened telecom sector awaits government intervention

 We had 15 operators back in 1999 and 21 in 2009, and now, it is down to four

G Krishna Kumar, SEP 12 2021, 20:38 ISTUPDATED: SEP 13 2021, 01:33 IST

The recent news of Vodafone Idea Limited’s (VIL) near-bankruptcy situation has sent shockwaves across the telecom sector. VIL accounts for the highest share of rural subscribers in the country. While the overall telecom sector’s financial distress is well known, a significant player like VIL's potential exit is not desirable. Should it exit, the mobile operators' space would become a duopoly with Reliance Jio and Airtel, and the PSU BSNL/MTNL being a fringe player. We had 15 operators back in 1999 and 21 in 2009, and now, it is down to four. Many large global telcos found it challenging to play in the highly competitive Indian market and no wonder, all of them wound up operations during the past decade. So, how many operators would be ideal for India?

 

The Herfindahl-Hirschman Index, or HHI, is often used to measure market concentration and is a metric used to determine market competitiveness. An HHI < 1,500 is a highly competitive market while 1,500 to 2,500 is seen as moderately competitive and greater than 2,500 is a highly concentrated market.
HHI trends in the Indian mobile telephony have always been below 1,500 until 2015. In 2018, the HHI moved to around 2,000 and now it is over 2,800. If VIL exits the Indian market and the subscriber base is shared between Airtel and Reliance, the HHI will be above 4,000. Globally, only China has an HHI of 4,400. China also is unique as all the three mobile operators in the country are controlled by the government. Brazil has about 2,800; USA about 3,000. India would need at least four-five players with relatively similar market shares for a competitive setup that can spur innovation and help mobile subscribers with a better user experience.
BSNL+VIL: A game-changer?
The VIL has debts close to Rs 1.8 lakh crores with 90% payable to the government. The company is struggling with its operations with an ARPU (average revenue per user) of Rs 107, the lowest when compared with the other two private telcos who have an ARPU of Rs 140. While VIL and Jio have similar spectrum holding, Jio has 60% more users per Mhz spectrum than VIL. Increasing the tariff is not an option for VIL as more subscribers will port out and worsen its operational parameters. As per a TRAI report, VIL has lost 42.8 lakh subscribers in June 2021. To stop predatory pricing by mobile operators, VIL has been persuading the government to establish a floor price and provide a level playing field. Like airline ticket prices, can the government create a price range for telcos as well?
For the sake of Indian subscribers, direct and indirect employment generated by VIL and more importantly, to emphasise India’s commitment to the telecom sector, the government should bail out VIL. Can it acquire a controlling stake in or merge with BSNL? But this needs to be done cautiously by setting clear performance parameters. The deal construct should be directly linked to improving subscriber experience parameters. When successive governments have failed to improve BSNL/MTNL’s fortune for decades, can the government be successful in reviving VIL? There are bound to be challenges including HR aspects. However, a strong governance board with experts should oversee the performance of the entity. Globally, there are several examples of government intervention in the private sector yielding significant success to the overall ecosystem. Can the VIL+BSNL become a game-changer and we have a strong government-run mobile operator like China Mobile?     

Satellites for broadband
While India has created an extremely competitive mobile telecom market, we will need four-five operators for sustaining this competitiveness and innovation for a healthy market. Although the entry barrier is high, we should encourage new local companies or global players to provide services in the country.
The price per GB of data in India at $0.16 is the cheapest in the world and no wonder, the average data usage has increased to over 15GB per month, among the highest in the world. However, over 50 crore Indians are not using mobile data. The government should open satellite communication services for improving data coverage. The ultra wide band (UWB) spectrum in the Ku and Ka bands for satellite communication can provide data rates of over 25Mpbs (although theoretically, much higher data rates are possible). This would provide internet access in the most remote areas.
Several global players like Amazon’s Project Kuiper, OneWeb (backed by Airtel), Starlink from Elon Musk’s SpaceX and Canada’s Telesat are at various stages of offering broadband data globally. The spectrum for UWB cannot be auctioned as these are global frequencies. The Indian government should consider allocating spectrum on an administrative basis, of course with appropriate fees and the right checks. Satcom would help the digitally unconnected Indians to become connected.
The government must fast-track the much-delayed 5G auctions. At the same time, spectrum pricing must be handled carefully and unsold spectrum avoided. The government must improve the fibre optic backbone in the country as this will decide our ability to rapidly move into 5G technology.
The overall debt in the telecom sector means that telcos are unable to upgrade their infrastructure. The government should lower the burden on them by reducing taxes and regulatory levies. Presently, Indian telcos pay over 25% (including GST, licence fees, etc) of their gross revenue as tax, compared to less than 10% in other countries.
News reports indicate that the government is working on a relief package for the telecom sector, triggered by the VIL issue. This could provide a breather for VIL, but from a long-term perspective, we need a multi-pronged approach for strengthening the telecom sector.


(The writer is an ICT professional and columnist based in Bengaluru)