India and the Knowledge Economy: Leveraging Strengths and Opportunities

Workshop on
India and the Knowledge Economy: Leveraging Strengths and Opportunities
November  9, 2004, New Delhi

 

The Knowledge for Development (K4D) program of the World Bank
Institute delivered a very successful workshop in New Delhi on India and the Knowledge Economy: Leveraging Strengths and Opportunities, in partnership with the Confederation of Indian Industry (CII).

The aim of the workshop was to have a broad discussion with a wide range of stakeholders from the government and the private sector on how India can leverage its potential to further compete in the global knowledge economy (see the workshop agenda).

The workshop used the World Bank Report on the above theme as a launching pad for discussion among high level policy makers from the central and selected state governments in the areas of education, innovation, and ICT, including the Minister of State from the Prime Minister’s Office, industry representatives (such as from leading companies such as Infosys, Tata Consultancy Services, ITC, and NASSCOM), academics, think tanks, consulting firms, and World Bank staff.

The  objective was to move from analysis to the identification of concrete key areas for action by different stakeholders in order to further India’s transition to the knowledge economy. In this context, Carl Dahlman and Anuja Utz of the K4D program made a presentation that highlighted India’s Strengths and Opportunities in the Knowledge Economy.

The workshop led to a very good discussion of issues in the four domains of the knowledge economy.  In terms of the broader economic and institutional regime, there was endorsement that knowledge economy is a critical element of India’s reform agenda, and this requires cross sectoral coordination and partnerships among government, private sector and civil society. See presentation by Dilip Chenoy, Director General, Society of Indian Automobile Manufacturers on Prioritising key Issues in the Economic and Institutional Regime.

In the area of education and training, major reform and improvement of formal and informal education is critical for India’s future. The education system needs to be more responsive to market needs, and expanded access to education that fosters critical thinking and learning skills are essential for all, not just the elite. To provide increased education, government should embrace the contribution of private providers through accreditation and the relaxation of bureaucratic hurdles. It is also essential to make effective use of ICTs to meet the double goals of expanding access and improving the quality  of education. See presentation by Arun Nigavekar, Chairman, University Grants Commission on Higher Education and the Knowledge Economy.

In innovation, it is necessary to improve the efficiency of public R&D and to increase private R&D, as well as to encourage greater university-industry linkages. There is also the need to strengthen the emerging new model to produce innovations in more cost effective way based on leveraging traditional knowledge with modern science and exploiting public-private partnerships. Related to this, see presentation by Dr. R.A. Mashelkar, Director General, CSIR on Seizing Opportunities to Leverage India's Potential in Education and Innovation 

In ICTs, there are tremendous revenues to be had in India from continuing to expand the provision of distance services globally. However, it also merits attention that high fees garnered from providing foreign IT services preempts the application of ICTs to meet domestic needs. In addition, it is important to share successful applications of ICT, as for example, in e-government among different Indian states. This also requires scaling up successful ICT initiatives to bring the benefits of connectivity to rural communities all over the country. Rajeev Chawla, Secretary, E-Governance
Government of Karnataka provided some interesting inputs on launching this initiative, including the Bhoomi project in Karnataka.See his presentation on Seizing Opportunities to Leverage India's Potential in ICTs.

The workshop also stressed the importance of creating a shared vision between government, private sector and civil society on ways to move India forward in the knowledge economy of the 21st century.  The World Bank will be happy to contribute to this process.