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Industrial Revolution 4.0 - India's Readiness
Why is this article relevant for IBPS / SBI Bank PO, RRB, Other Bank Exam Aspirants and MBA aspirants?
Almost all exams including IBPS PO, IBPS RRB, SBI PO evaluate students on their knowledge of Banking General Knowledge and Current Affairs. This section is not only high scoring but also has high cut-offs. To ensure that you do well in this section, you need to ensure that you are regularly in touch with the latest news in the banking world and the economy.
The same applies to those appearing for Group Exercise and Personal Interview process of MBA admissions to elite B-schools. There is a Written Ability Test (WAT) which is not just writing with rhetoric, there is need for content and that comes only through reading. Similarly, to be able to put forth a view in GE or PI or both, there is the need for general awareness.
What is Industrial Revolution 4.0?
The First Industrial Revolution used water and steam power to mechanize production. The Second used electric power to create mass production. The Third used electronics and information technology to automate production.
Now a Fourth Industrial Revolution is building on the Third, the digital revolution that has been occurring since the middle of the last century. It is characterized by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.
When compared with previous industrial revolutions, the Fourth is evolving at an exponential rather than a linear pace. Moreover, it is disrupting almost every industry in every country. The possibilities of billions of people connected by mobile devices, with unprecedented processing power, storage capacity, and access to knowledge, are unlimited. And these possibilities will be multiplied by emerging technology breakthroughs in fields such as artificial intelligence, robotics, the Internet of Things, autonomous vehicles, 3-D printing, nanotechnology, biotechnology, materials science, energy storage, and quantum computing.
How is the world reacting to Industrial Revolution 4.0?
The Fourth Industrial Revolution has the potential to raise global income levels and improve the quality of life for populations around the world. The group which gains most is the one who can afford and access the digital world.
Inequality is the greatest societal concern associated with the Fourth Industrial Revolution. Technology is one of the main reasons why incomes have stagnated, or even decreased, for a majority of the population in high-income countries: the demand for highly skilled workers has increased while the demand for workers with less education and lower skills has decreased. The result is a job market with a strong demand at the high and low ends, but a hollowing out of the middle.
The velocity and the intensity of the Industrial Revolution 4.0 are making it tough to comprehend the impact on the existing business models. There is a clear evidence that the technologies that underpin the Fourth Industrial Revolution are having a major impact on businesses.
People and Government
Industrial Revolution 4.0 will enable citizens to engage with governments, voice their opinions, coordinate their efforts, and even circumvent the supervision of public authorities. Simultaneously, governments will gain new technological powers to increase their control over populations, based on pervasive surveillance systems and the ability to control digital infrastructure.
How can India benefit from Industrial Revolution 4.0?
For India, the Fourth Industrial Revolution brings tremendous opportunities to leapfrog many stages of development, hastening its journey towards becoming a developed economy. In many ways, the Fourth Industrial Revolution is a leveler. The technologies being used in India will be the same as those in use in the developed world. Robots, AI, IoT are all technologies transforming industry in the West and are ready to do the same in India.
An over reliance on automation will shrink job creation. Automation and robotics in industrial manufacturing suits countries with low productive populations. But it does not suit countries like India, where 12–13 million people enter the job market every year.
There is a natural fear of job loss resulting from automation and robotics in India. Repetitive processes are being increasingly automated. Banks in India are already using chatbots and even humanoid robots.
India, South Africa and China may face “social upheavals and increased income inequality” in the future due to increasing adoption of emerging technologies like artificial intelligence, says a report. According to the research report by Deloitte Global, while executives conceptually understand the changes the fourth industrial revolution (Industry 4.0) will bring, they are less certain how they should act to benefit from those changes.
Since the launch of “Make in India” in 2014, much progress has been achieved in pursuing the country’s manufacturing agenda and global competitiveness. Globally, India is the sixth-largest manufacturing nation and the biggest recipient of foreign direct investments (FDIs). India has also improved its rank on the Global Competitiveness Index and Global Innovation Index.
India’s manufacturing sector, accounting for just 16-17% of gross domestic product (GDP), holds enough untapped potential. The adoption of local content policy in public procurement and the goods and services tax (GST) will provide further impetus to Make in India.
India has a number of factors in its favour, including a huge and growing market, a large workforce with diverse skills, demographic dividend, English-speaking scientists and engineers, research and development centres of over 1,000 top global multinationals, the world’s third-largest technology start-up base and a government focus on making the nation an easy place to do business.
- India’s low labour cost advantage is being eroded, but its demographic dividend has potential for transformation into a strategic resource for digital revolution.
- With the right ecosystem, India could gain a significant share of embedded software services, data management, supply chain restructuring, etc.
- Beyond physical infrastructure, large-scale investments in requisite digital ecosystem are needed. Four, highly competitive micro, small and medium enterprises (MSMEs) can be central to the growth of manufacturing with small-scale localized smart manufacturing becoming feasible. They can compete with multinationals globally on digital platforms without creating their own supply chains.
Additional Resources: https://www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-and-how-to-respond/