Are we gambling too much on the Knowledge Industry? Manmohan Singh recently announced that the eleventh five year plan would be centered around increasing the infrastructure (read institutes) for a knowledge based industry. That translates into more IITs and more IIMs with the generic mix of IISCs and IIITs thrown in as well. Effectively graduation and post graduation are been given more focus here, aimed at churning out more skilled labour and management students for corporates to come to the nation and setup bases; cost effective and efficient.
But, is this not increasing our dependence on the IT sector? Whenever the INR rises against the USD, the Indian IT sector plummets by a few percent … its obvious, direct PAT is taking a hit here, for the entire industry. Stocks of all the big IT companies see a dip. When the Rupee saw a 17-month low, the IT sector saw a cumulative 0.86% rise, the big firms’ stock rose by as high as 2%. So whenever I want my INR goes down, my IT sector does well … meaning more business … meaning more exports … meaning more employment … meaning higher cumulative disposable incomes … meaning higher GDP … meaning economic development … meaning more imports (assumption here, but generally higher disposable incomes lead to higher imports – correct me if I am wrong) … meaning INR rises back. Would it be not great if the finance minister could use other industries for balancing the economy?
Knowledge based industry? Haha what a joke! India's ruling management is full of Bozos. Increasing number of IITs & IIMs is being related to production of more brainy individuals. My foot!
Prasad, write about what you think we should do to change the things for better. I'd like to hear that. Depending on these bozos is not help us.
@K – Think, what would the govt. do? They cant afford to be meritocratic, the country is overrun with fools!
@prasad: I think the IIT’s and IIMs and not concentrating only on IT as such. Knowledge industry today is omni present, although software has become an integral part.
@Big K: Do you think IITians are not brainy enough to create the modern industrial India? They are… infact we all are. Talking about changes will not help, doing will.
Talk about INdian Pharma, Steel, Automotives, all are striving to make their foot print on the global market. They will be in huge need of such knowledge bases. Lets not narrow ourselves to IT
@mayur – true. its just that the IT industry is the major knowledge based industry out there.
It will change surely. I’m sure Manmohan Singh has already visualized whats going to come.
Hence the idea to move on from Service based economy to Knowledge based economy! The question one should ask is, if everyone is moving up the value chain, then who is doing the ground work?