Need to look ahead and accept technology change to thrive

Emerging technologies are leading to a brave new world, one which countries will need to prepare for.

The ones that do, will thrive. The ones that are myopic, won’t.

Technology is changing in a variety of areas and will impact all of us. Although the change presents plenty of opportunities, the biggest challenge, especially for a country with India’s young demographic profile, will be job creation.

Many of these technologies — as wonderfully brought out in Mauldin Economics’ must-read newsletter ‘A World Gone Backwards’ — are Globalisation in reverse! Thanks to these technologies, fewer things need to be moved, thereby helping reduce the carbon footprint. In a sense, the compulsions of the environment are working in tandem with emerging technologies to create a future which would be vastly different.

Consider the change in energy technology, driven by compulsions to reduce the carbon footprint. Renewable energy, especially solar, is now price competitive with thermal power, even without subsidy. With better storage — using lithium-ion technology — they allow people to go off-grid.

This means reduced transportation of inputs, such as coal and crude oil. Or, globalisation in reverse.

The technology of additive printing, also known as 3D printing, would enable mass customisation. Using a 3D printer, customers can, simply by changing software, produce, say, a customised pair of shoes, or a made-to-order shirt, at home. This changes the way things are produced and marketed.

Instead of manufacturing in the hope of selling, 3D printing does the reverse, making the product in response to a sale.

The reduced movement of goods reduces the carbon footprint.

Along with this, there is a greater trend towards use of robots for manufacturing activities. Robots are location-agnostic, and quash the export of jobs debate. Robots don’t need a salary/bonus/perks or coffee breaks and don’t go on strike. Productivity is far higher.

Food technology is another area where technology will be a game changer. Now it is possible using LED lighting to grow bananas in Greenland, should an Eskimo have a fondness for it! This means that food can be grown closer to the customer, thus, yet again, reducing the carbon footprint.

How does all this affect us?

India is planning 100 new smart cities, each with a population of 10 lakh, which would be one of the largest rural to urban migrations in history.

Both in the construction of these cities and in their maintenance, jobs will be created. This column had pointed out last week how shared taxi service Didi-Chuxing helped create a million jobs, and thus staved off social unrest in China when 10 lakh jobs were lost in steel and construction industries. The Indian polity has to prepare for these technologies, and adapt them. Instead, we find the authorities demanding Uber/Ola use antiquated meters instead of modern GPS, to charge fares. We need to look ahead, and accept technology change, if we are to thrive.

(The writer is India Head, EuroMoney Conferences)

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