India Automated: How the Fourth Industrial Revolution is Transforming India

By Pranjal Sharma

Rethinking the future of India through automation.
From scavenging to lunar missions, from railway factories to healthcare and even tax planning, automation is growing faster and deeper in India than is visible. In a country where more than a million people get ready for jobs every month, this rise in automation can appear as an unwelcome change or a threat to their livelihood.

But the reality is that automation is enhancing efficiency, accuracy and accountability of India’s working professionals in ways that haven’t been seen before. Automation is helping generate information in a data-poor country. It is making India’s private sector more active and government’s functioning more transparent and reliable.

Through several case studies of private enterprises and government departments, India Automated chronicles the transformation that India is undergoing and how robotics and process automation are infusing proficiency in our work and personal lives. Automation is turning to be one of the most impactful results of the Fourth Industrial Revolution technologies in India. AI, drones, blockchain, cybersecurity, 3D printing, augmented and virtual reality include automated processes. These are also opening new categories of employment for job seekers.

This book argues for deeper collaboration between industrial and government sectors to ensure that automation enhances India’s steady growth while also mitigating its negative impact. With this forward-looking approach, Pranjal Sharma brings us face to face with the reality that it is imperative for India to align itself with this revolution.

• Language: English
• Publisher: Pan Macmillan
• Release date: Nov 7, 2019
• ISBN: 9781529043273

Pranjal Sharma

Pranjal Sharma is an economic analyst, advisor and columnist who focuses on technology, globalization and media. He has edited and written books and papers on entrepreneurship, business transformation and economic policy. He has held leadership positions in print and television media for over twenty-five years with organizations like the Times of India Group, India Today Group, CNBC Network 18 and Bloomberg UTV. Pranjal has served on the Global Agenda Council of the World Economic Forum for eight years and is now a member of its Expert Network. He also guides projects on business intelligence and economic trend forecasting for Indian and global organizations.

Book preview

‘Be bold and fearless and the road ahead will be clearer.’

– Swami Vivekanand

CONTENTS

Foreword by Peter Voser

Introduction by Sanjay Kirloskar

Prologue

1. National Government

2. Security and Defence

3. State Government

4. Human Resources and Skilling

5. Manufacturing

6. Services

7. Healthcare

8. Retail and Entertainment

Acknowledgements

Notes

Index

FOREWORD

Technological disruption has become the defining theme of our age. Every sphere of human activity – political, professional, personal and social – is being influenced and, in many cases, transformed by technology. Over the past twenty years, in particular, the way we power our cities, produce our goods and services, and work, live and move has been changing at an ever more rapid pace, as technology has made possible new and more efficient ways of running our societies.

What has also changed is public perceptions of the impact of technology. For a long time, it was taken for granted that technological advance was positive for humanity, and for good reason. In large parts of the world, and especially in Asia, technology has opened up previously unimaginable opportunities to hundreds of millions of people, enabling them to enjoy longer, healthier and more fulfilling lives. At the same time, it is helping to address global challenges such as climate change and to expand our horizons, here on earth and in the vast expanses of outer space.

Increasingly, however, technology is also seen as a threat, both to democracy and to employment. Voters worry that digitalization is concentrating wealth and power in fewer hands and allowing malicious hackers to undermine the electoral system, while workers fear that advances in robotics and automation will take away jobs from people and may eventually make human workers redundant.

In India Automated, Pranjal Sharma takes the reader on an eye-opening journey through a country that is being transformed by technology at a pace and on a scale that is hard to comprehend. Chapter by chapter, Sharma explores the impact of technology and automation on government, security and defence, recruitment and training, manufacturing, services, healthcare, and retail and entertainment. His contribution is to analyze, using real examples, the impact of automation from the perspective of various stakeholders, including businesses, workers and society as a whole.

Sharma’s assessment is valuable because he avoids sweeping conclusions, preferring instead to focus on what is actually happening on the ground in India. One insight that emerges is that while technology in India creates fundamentally the same opportunities and challenges as it does elsewhere, the size of the population of the world’s largest democracy means that attitudes can differ significantly to those in Europe or the United States.

An obvious example is personal privacy and data protection. In Europe, these are important considerations which have a large and growing influence on the way information is stored and used, especially by commercial enterprises. In India, by contrast, with its population of 1.3 billion people, privacy and data protection are usually the last thing on people’s minds, with the result that data is far more vulnerable, and governments and organizations are having to consider using technological rather than legal means to safeguard personal and proprietary information. Over time, these divergent approaches are likely to raise new questions about data ownership and how it should be managed.

Sharma devotes the second half of his book to the technologies that are transforming India’s industries and to the improvements in efficiency, productivity and competitiveness that they are delivering. In India, as in most other countries, it is the shift towards automation, especially in manufacturing, that is having the most profound impact.

Robots have been around for some time – ABB developed the first microprocessor-controlled industrial robot back in the 1970s – but with the emergence of low-cost sensors and data-driven software, robots have recently been freed from their cages and are now being deployed in all manner of industries and applications. Collaborative robotics, exemplified by ABB’s YuMi, are allowing even small businesses to automate aspects of their production.

With its strong position in software and services, India is well positioned to apply digital technologies to industrial equipment to advance the automation of industry. A recent innovation to have emerged from ABB’s corporate research centre in Bengaluru is a cloud-connected, smart sensor device that can be easily affixed to almost any low-voltage electric motor, allowing its health and performance to be continuously monitored to prevent malfunctions and service interruptions. Similar technologies enable robotics specialists in Bengaluru to remotely monitor thousands of ABBs operating at customer sites around the world.

Sharma makes the point that India needs to step up investment in automation and especially in artificial intelligence, if it is to avoid being left behind. The possible negative impact on certain types of jobs and employment is a concern given the size of India’s population. On the other hand, because India already has a large and growing number of unemployed people, the priority is to drive economic growth, and the best way to do that is to improve productivity. A higher level of automation in government administration and business would further accelerate growth by reducing inefficiencies and red tape and giving more people access to credit and services.

At the time of the publication of India Automated the country is still very much a nation of contrasts. In the big cities like Delhi and Mumbai, urbanites wear smart watches and fitness trackers, and have occupations and lives that closely resemble those of their urban counterparts in Europe and the United States. But in much of India, and especially in rural areas, people are still waiting for grid connections and the opportunity of a better life and prospects for their children. It is for them that India needs to embrace technology and to find a sustainable path of development.

Peter Voser

Chairman of the Board of Directors

ABB Ltd, Switzerland

INTRODUCTION

I am grateful to my friend Pranjal Sharma for asking me to write a guest introduction to his book India Automated. His work is a fascinating narrative of how technology is progressively altering the face of our nation and the fabric of our society. From government– public interfaces, to business processes and practices and even family structures and social bonds, he shows us how automation and the emergence of new consumer technologies have disrupted everything that was established and a given.

As depicted by Pranjal in his book, technology and automation have impacted every sphere of our economy and every business sector, manufacturing included. I am fortunate to have been born into an industrial family, which has been part of most of this transformation over the last 100 years. Through circumstances and luck, I was chosen to head the oldest company in our group Kirloskar Brothers Ltd, established by my great-grandfather L. K. Kirloskar in 1888, which manufactured many industrial products for the first time in India. L. K. Kirloskar was a pioneer and a visionary, who realized the power of automation very early on in his life. It was his vision that has kept the flame alive of embracing modern innovations and technologies into every aspect of our businesses till today.

The group has been one of the first adopters of different automation technologies, whether mechanical, hydraulic, pneumatic, electrical or electronic. This has helped us to keep ahead of the competition, while making our factories friendlier and safer for our workers and managers. Increased automation has also led to ease of operations and up-skilling of both workers and managers through use of the latest technologies.

In the initial days of the Kirloskar Brothers, as new products were introduced, they had to compete with goods made in the western world, especially British goods, which were promoted in India by the colonial rulers. Automation was the solution to compete globally and thus the Kirloskar Brothers factory had to have the latest machinery, follow processes which improved productivity while reducing rejection and therefore costs. This also enabled the company to export its sugarcane crushers to a Dutch firm in the 1930s, as our products were then, as now, considered to be at par with European products. Our patron, the Raja of Aundh had promoted the company because it would lead to employment in his kingdom; this visionary, however, understood that in order to have consistency of output and better quality, the company would have to automate processes, thereby reducing the scope of employment.

It was, therefore, natural that in 1939 when the company was asked to aid the war effort, my grandfather would choose to manufacture machine-tools. As the accuracy required to manufacture machine-tools was far greater than agricultural pumps and engines, a choice was made to set up a totally new factory. Of course, manufacturing machine tools gave the entire group a leg-up on the competition. With trained manpower, the various product making factories or group companies could ramp up quickly to meet market demand while producing quality products consistently.

In fact, when Pranjal puts across real life examples in his book to support his argument that there is absolutely no choice but to adopt automation and technology innovations if one wants to compete in global markets, I couldn’t agree more. This is because the success and survival of Kirloskar Brothers for more than a century has rested upon these two very pillars. While most of the new automation tools are from the First World, where there are fewer people and high labour costs, one must adopt them to meet global expectations of cost, quality, productivity and in many cases, safety. Wherever required, this has led to the adoption of flexible manufacturing allowing customization on a mass scale.

Each move must be preceded by a large amount of training of the workforce and improved robustness of processes allowing absorption of new technologies. And a strong ERP system backbone helps immensely.

Over the last few years, it has become possible to automate the entire supply chain process, starting with product design. Various 3D modelling softwares are available, allowing one to digitize the product. Recent innovations like additive manufacturing, artificial intelligence, virtual reality, Internet of Things and robotics, will change the entire landscape of industry as we see it. All these new ideas build on digitization and give the manufacturer the ability to provide more value to a customer. Additive manufacturing allows for mass customization, so each customer can get a product exactly suitable for his purposes. At the same time, the IoT will allow any manufacturing entity to monitor and improve plant utilization and efficiency continuously. Obviously, current remote and condition monitoring technologies which help understand product performance will also improve over time allowing customers to eliminate unforeseen downtime.

Similarly, it is possible for companies to automate the entire order receipt process using product selection and configuration software. Such software can choose the most appropriate product from the manufacturer’s product basket to meet the customer’s requirement and then also add on the desired accessories. Such software can be self-learning and will also give the right product drawings when required. When coupled with the company’s ERP system, the savings in time for all involved will be well justified.

Unlike us in India, developed countries have already put in infrastructure to meet their daily needs, and new orders are only for replacement or additional capacity in existing infrastructure. We find that there is a huge gap in skills required to install, commission or dismantle a product and skills that are available locally. This gap can be bridged using augmented reality and virtual reality technologies. Of course, having a 3D model of every component available is a huge plus, as unskilled individuals can be taught to recognize, disassemble or assemble a product he or she has never seen before. These technologies will have many more applications in the future.

As I have mentioned earlier, there is absolutely no choice but to move with the latest technologies to ensure that our companies continue to deliver value to customers globally. Technology and automation have been and will continue to be the enablers for Indian manufacturing, to find its rightful place in the world as they prove themselves on the parameters of productivity, quality, services and most importantly, for their ingenious innovations.

Technology is also a contributing factor for making our country self-reliant in meeting the greater demands of a growing economy and for fending the world’s second largest population. The Kirloskar Group has invested in technologies to ensure that India would never have to depend on foreign nations or companies for its fluid pumping requirements, be it for clean drinking water, irrigation needs, nuclear power projects or large infrastructure projects.

Pranjal Sharma’s India Automated deftly underscores the needs and benefits of automation, both in the government and the private sector through various case studies. The stories he narrates aren’t much different from ours, which belie the fact that automation is unwelcome for employment. The 100-year-old Kirloskar Brothers saga is a big enough proof of how timely adoption of automation technologies can help companies stay ahead of the curve for generations and create employment across geographies.

If one wants to compete, what was true hundred years ago continues to be true today. Indian companies must constantly be on the lookout for new ideas and products and if relevant, see how these can be successfully implanted and implemented within organizations and into the products.

One never knows how existing business models can be disrupted as there are so many individuals and companies trying to bring new ideas to the workplace. One only needs to keep in mind the title of Intel’s Andy Grove’s book, Only the Paranoid Survive.

Sanjay Kirloskar

Chairman, Kirloskar Brothers Ltd

PROLOGUE

Ours is a country where almost a million job seekers join the economy every month. A country where the government, academia and the industry have mostly imprecise information about job creation. A country where unemployment rates are growing steadily. A country where hundreds of thousands apply for low-level government jobs. A country of 1.3 billion people that is on the verge of overtaking China as the most populous nation in the world.

Ours is also the country where automation is on the rise.

The use of robotic systems for industrial automation is not new to India. But what stands out in recent times is the steady growth in its use. Heavy and light engineering has depended on some level of automation for some decades now. The oil and gas exploration sector was among the first to use automation. To find oil and gas companies had to operate in extreme weather and geological conditions. And to find it deep under water or beneath the ground required automated machines. Assembly lines in India now have robotic systems and even cobots – machines that assist human for semi-automated tasks.

Popular media, including movies, books and articles, glamourize the use of robots. Many also add to the dystopian view of robots overtaking humans. Among engineers and manufacturers though, automation is a prosaic and practical reality – as much in India as in the rest of the world. The presence of Sophia robot, developed by Hanson Robotics, has given a reality to what was imagined by fiction writers. Sophia has been given a citizenship by Saudi Arabia, recognizing her as the most advanced humanoid robot.

Process automation has spread to functions and sectors that were dependent on humans till recently. Despite a large and increasing working population, automation is growing across sectors – from traditional industries in manufacturing to government systems and even the services sector – and functions – from hiring processes to tax management to personal finance to water management and electricity conservation. There is now at least one element of automation built into the system in almost everything we see, experience and use.

There is a counter-intuitive change taking place in India. While automation can on the surface appear to be anti-workforce and anti-employment in a country of 1.3 billion, it is rising faster and deeper than is visible. Robotic process automation (RPA) is changing business and government operations at an unprecedented scale.

Robotics process automation is possible for any task that is rules-based and repetitive, and that handles a large number of transactions. These can exist in any organization, private or government, regardless of size. The common denominators among these industries are the large volume of data entries and shuffling between various applications.

‘While allowing humans to be more creative, innovative and providing higher-value services, RPA will change the nature of work for many employees towards activities that require judgement, emotional intelligence and client interaction. By freeing up skilled employees to provide more value-added services, RPA will make them more valuable,’¹ says Raghunath Subramanian, President and CEO (India and APAC) of UiPath, which is among India’s largest RPA solution provider. ‘Robots enhance humans to allow them to do more brain work than hand work. RPA tackles attributes that do not require human reasoning.’

The rise of automation is the result of the advance of the Fourth Industrial Revolution. In my previous book Kranti Nation: India and the Fourth Industrial Revolution, I had chronicled the use of various new technologies in the our country. The impact of all the technologies – AI, drones, blockchain, additive manufacturing, augmented and virtual reality – is the rise of automation in India. Automation is turning into the single biggest impact of the use of Fourth Industrial Revolution technologies in India. All the technologies profiled in Kranti Nation are bound by the common impact of automation. Every usage of each of these technologies is enabled by or triggers automation in some form.

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Talking to devices is no longer a fad in India. From corner rooms populated by CXOs to co-working spaces buzzing with millennials, conversations with robotic voices emanating from lifeless devices are more the norm than exception. Consumers are becoming increasingly comfortable with automated voices informing or guiding them. Hey Cortana, Alexa, Hey Google and Siri are now common prefixes for voice-based queries in India.

Google Home device is selling online for less than INR 5,000 (USD 70). Amazon’s Echo devices with voice assistant Alexa is fairly well known in Indian cities. According to International Data Corporation, about 753,000 smart speaker devices were shipped to India in 2018. This market is expected to exponentially grow more.²

According to a report by the market intelligence firm Tractica, Indian consumers are in sync with global trends. Virtual digital assistants (VDAs), which are automated software applications or platforms that assist the human user through understanding natural language in written or spoken form, are rapidly gaining traction in consumer and enterprise markets alike.³ Though smartphone-based VDAs are most popular, the usage is expanding to other devices. These include smartwatches, fitness trackers, automobiles, smart home systems, PCs and TVs. This trend is not restricted to only techsavvy, urban users in megapolises. Consumers across the country are chatting with bots to save on their typing effort. For the millions of newly emerging smartphone users, voicing a query or recording a message is much easier than typing it into a tiny keyboard. Most are making the shift from using a simple mobile to a smartphone with voice-enabled features.

The market for VDAs is expected to rise. ‘Unique active consumer VDA users will grow from 390 million in 2015 to 1.8 billion worldwide by the end of 2021,’ says Tractica. ‘During the same period, unique active enterprise VDA users will rise from 155 million in 2015 to 843 million by 2021.’ The market intelligence firm forecasts that total VDA revenue will grow from USD 1.6 billion in 2015 to USD 15.8 billion in 2021.⁴

Virtual digital assistants are just one of the many uses of natural language processing (NLP) ability of artificial intelligence (AI). According to Tractica, NLP has more than forty-two uses across fourteen industry segments. According to