LOVELY PROFESSIONAL UNIVERSITY .

TERM PAPER.
SUBJECT:RESEARCH METHODOLOGY.
TOPIC:
INDIAS MARCH TOWARDS A KNOWLEDGE
BASED ECONOMY.

SUBMITTED BY : MUZAMIL QAYOOM BASU.

SUBMITTED TO :MR PRATISH SRIVASTAV.

ROLL NO :- B-47. REG NO : - 10906968.

SECTION :-S-1903.
Introduction
.The economy of India is the twelfth largest economy in the world by nominal value[9]
and the fourth largest by purchasing power parity (PPP).[10] In the 1990s, following
economic reform from the socialist-inspired economy of post-independence India, the
country began to experience rapid economic growth, as markets opened for
international competition and investment. In the 21st century, India is an emerging
economic power with vast human and natural resources, and a huge knowledge base.
Economists predict that by 2020,[11] India will be among the leading economies of the
world.

India was under social democratic-based policies from 1947 to 1991. The economy was
characterised by extensive regulation, protectionism, and public ownership, leading to
pervasive corruption and slow growth.[12][13][14][15] Since 1991, continuing economic
liberalisation has moved the economy towards a market-based system.[13][14] A revival of
economic reforms and better economic policy in 2000s accelerated India's economic
growth rate. By 2008, India had established itself as the world's second-fastest growing
major economy.[16][17][18] However, the year 2009 saw a significant slowdown in India's
official GDP growth rate to 6.1%[19] as well as the return of a large projected fiscal deficit
of 10.3% of GDP which would be among the highest in the world. [20][21]

India's large service industry accounts for 62.6% of the country's GDP while the
industrial and agricultural sector contribute 20% and 17.5% respectively. Agriculture is
the predominant occupation in India, accounting for about 52% of employment. The
service sector makes up a further 34%, and industrial sector around 14%.[22] The labor
force totals half a billion workers. Major agricultural products include rice, wheat,
oilseed, cotton, jute, tea, sugarcane, potatoes, cattle, water buffalo, sheep, goats,
poultry and fish.[23] Major industries include telecommunications, textiles, chemicals,
food processing, steel, transportation equipment, cement, mining, petroleum,
machinery, information technology enabled services and software
Problem statement.
India is a developing country, and it has faced a lot of problems since independence
related to its economical development. Now as india has increased its rate of
economical development, but still it needs some changes to get incorporated in its
economical structure so that there can be a scope for improvement.

The main problem is that whether india is marching towards a knowledge based
economy or just a growing economy.

Research objective.
The main objective of this research related to indias march towards a knowledge based
economy is that ,this research will determine the direction of indias efforts to be a
developed nation, also this research will help in analyzing various important factors
which are responsible in determining the extent of exposure given to india so that it
focuses towards a knowledge based economy.

This research will focus on the fact that india is diversifying its aim related to economical
development not only in relation to gdp or nnp but also in relation to the knowledge base
type of growing economy.

And mainly this research will help in analyzing the truth that is india realy transforming
towards a knowledge based economy,, or just a growing economy.

Literature review.

1.

 India enjoys unique advantages in having a large pool of English-speaking

professionals with degrees in engineering, science or mathematics, who are
capable and flexible to learn new skills fast given the right opportunity and reward
structure.
 The Indian Diaspora in the United States and the United Kingdom have several
among them who have achieved thought leadership in knowledge intensive
fields. They are a rich source of domain expertise and can be motivated to help
 transfer knowledge and expertise to India and nurture a new generation of India-
based thought leaders.
 The entrepreneurial and energetic business community in India has the capacity
to step up to this challenge and is capable of working closely with a supportive
government to remove barriers that stand in the way of achieving of this vision.

2.

The Indian vision of a knowledge based economy will be realized only when it is based
on the foundation of a robust industrial economy .to be truly beneficial the rain of it must
be strong.THE Indian software industry has compiled an impressive track record over
the past decade. Entrepreneurs, bureaucrats and politicians are now advancing views
about how India can transform itself into a knowledge-based economy by riding the
information technology (IT) bandwagon. Isolated instances of villagers using e-mail are
cited as examples of such transformation. Likewise, e-governance is being projected as
the way of the future. all at the right place, in the right quantity, at the right time and for
the right purpose.

3.

The access to knowledge is a fundamental goal of India’s strategy. It is critical for the
majority of the population to possess the means to not only obtain this information but
have the necessary educational background to understand and then communicate with
others about the knowledge to expand learning through discussions. The skills and
intellectual abilities of India’s young people will provide a strong foundation of human
capital; thus, facilitating India’s transition to a knowledge based economy. The nation’s
universities, research institutions and laboratories are an integral player in the
development of this knowledge. The following issues regarding access to knowledge
will be addressed by the commission:

a. Adult literacy
b. Delivery of information
c. Public information availability
d. Affirmative action framework
Further development of India’s educational system is believed to be the key in fostering
the advancement of the knowledge economy since knowledge concepts are distributed
through the education system. The role of education in the context of a developing
country is considered significantly valuable. As a result, the citizens and students of
India will develop the skills to think independently, improve decision making, monitor
current events at a local, national and global level, and question socio-economic
situations to inspire innovation and change.
4.

Knowledge management is a new emerging discipline with its inter-disciplinary

approach in today's business world. It has now become a mainstream priority for any
business organization. It has become the driving force for social development.
Globalization of the technology would indeed bring the world closer. Today, knowledge
economy is converting intellectual assets of manpower into productive force. It helps in
reserve knowledge resources that already exist in the economy. This paper highlights
the concept of knowledge management and its need, components, India's position in
the global economy. Growth of India as knowledge economy, current issues and
challenges faced by Indian knowledge economy.

.Knowledge management is visionary, which generate enthusiasm, buy-in, and

motivates managers to work together toward reaching common goal. It draws upon the
expertise relationships and alliance. Knowledge management is the management of
diffusion and transfer of knowledge. This is a concept in which an organization or an
institute consciously and comprehensively gathers organizes, share and analyze its
knowledge in terms of resources, documents and people skills. Knowledge
management can be described as--"Knowing what you know and then bringing from it."
Knowledge management is the form of application of strategic management practice to
human resources as whole which are the carrying vectors of Knowledge"--(Nonaka,
1995) "Knowledge is information that has value"--(Elliott, 1996) "Knowledge
management is the art of creating value from an organization's intangible assets"--
(Sveiby, 2000). "Knowledge management is the ability to create and retain greater value
from core business competencies"--(Kirk klasson) "A form of expertise management
which draws out tacit knowledge, making it accessible for specific purpose to improve
the performance of organization about how the organization's know-how should be
structured, organized located and utilized to provide the most effective action at that
point in time.

6.

Knowledge based economy is concerned with the expectation and development of the
knowledge asset of an economy with a view to furthering the economy's objectives.
Indian knowledge based economy is based on the concept of "Improving ourselves by
learning from others". In today's scenario, the time is very favorable for India to make its
transition to the knowledge-based economy that creates, disseminates and uses
knowledge to enhance its growth and developments. The knowledge economy is after
taken to mean only high technology, Industries or information and communication
technology. The domestic corporate sector has shown a remarkable level of absorption
of information services into its main mainstream operation to face challenges of
globalization and economic liberalization. The companies like INFOSYS, WIPRO, TCS,
ICICI BANK, EUREKA FORBES also influence the knowledge economy in India. The
major input for knowledge economy has come from the accelerating rate of change in
the business world. Whenever changes occur, people need new knowledge to do their
work.

7.

Knowledge based economy is all about enhancing the use of organizational knowledge
through sound practices of information management and organizational learning. The
21st century is now the era of knowledge. Knowledge economy has gone through series
of steps, making up an ongoing life cycle. In this phase, it is important to go to all the
sources available and judge the usefulness of the captured knowledge. Speed user
friendliness, efficiency of access and accuracy of information are important elements to
be considered throughout the organizing phase of knowledge based economy. The
countries that will build themselves by undertaking the dynamics of the knowledge and
create true knowledge society will survive and succeed in the today's era. Knowledge
management is a sub component of knowledge based society or knowledge economy.

8.

The well educated and skilled people of India help in creating, sharing, disseminating
and using knowledge effectively in Indian economy with the growth of secondary and
tertiary education along with the primary education help in developing core skills nag
encourage creative and critical thinking. It also helps the various factors to change their
skills necessary to be competitive in the global economy. India also boasts of
remarkable and impressive global achievements in so many industrial sectors, specially
Information Technology, Telecom, Insurance and Banking Power etc,. Many high quality
services are provided in the economy with a very low price. The growth of the Indian
economy is due to strategic information system, better policy and legal framework,
skilled human resources development. In India, economy has major advantages has
Knowledge player. There is tremendous increase multiple perspective of the
knowledge-based economy with acquisition of knowledge and rescued cost of it. There
ate significance changes in the theoretical and practical experience in designing and
implementing of knowledge based economy. Vigorous growth with strong macro
economic fundamentals has characterized development in the Indian economy.

In a knowledge-based economy, there must be a business-driven vision of decision that

can help in transforming the economy, as 21st century belongs to knowledge economy.
The biggest challenge of Indian economy is to guiding and encouraging the young
manpower. The India has maximum number of persons/young children below the age of
16yrs in the world. The young has amazing ideas, who can give practical shape to the
Indian knowledge economy.
9.

Another important aspect is to given proper infrastructure is technological support to the

gazelles industries as compare to Elephant and Tiny Industries, so that they should
create enormous number of Productive and high quality Jobs. India possesses a large
pool of highly educated and qualified manpower, which ate making domestically and
globally in all the fields of economy, but they consist only a small percentage of the
people. India will need to develop a more relevant educational system, transparent
organizational structure and more emphasis on the learning. The innovation system in
any economy consists of institution's rules and procedure that affect how it acquires,
creates and use knowledge. Innovation in a developing country is the application of new
& existing knowledge in an economy.

10.

Knowledge is an important asset for any economy the ability to create and harvest
knowledge is an increasing becoming a key factor in the competitiveness of nations,
industries and societies. The purpose of organizational is to be able to ensure that the
application of expert knowledge by the top performers is replicable by all. New the
information society has become; knowledge Based Society and Indian economy has
become 'Knowledge Based Economy'. As Swami Vivekananda said unity is knowledge,
diversity is ignorance. You have to attain it in the long run and become free. We are
already free, only we don't know it. So, the information and knowledge society have
increased the comfort of living, which tell us that many heads together are better than
are with many hats.

11.

The concept of a "knowledge economy" came into being with the wide acceptance of
the idea that knowledge--embodied in the experience, skills and creativity of people--is
the most important factor in creating and sustaining an organization's competitive
advantage. The phrase "people are our most important asset" used to be rhetoric--lip
service paid by many organizations. The rhetoric has become reality: An organization's
success is directly linked to the talent it employs.

As burgeoning countries such as China and India join the knowledge economy, the
increasingly fierce competition for talent is waged on a global scale. The headlong
global shift to a knowledge-based economy and the worldwide demand for highly skilled
knowledge workers will put the spotlight on the strategic value of HR.
12.

India is on a roll. The nation of 1.1 billion is finally being taken seriously by the big
players on the world economic stage, namely the United States and China. With a
young population, a solid private sector and a stable democratic government, India is in
the spotlight and it's predicted that in 2040 it will have the third largest economy.
Granted, there are many problems to address, but economic growth in India has been
so impressive since major reforms took hold in the early 1990s that it's unlikely that this
South Asian tiger's roar will easily be silenced, or even lowered.

A report in Newsweek magazine in October, 2005 cited many grand statistics about one
Indian conglomerate in particular. The Tata Group, India's largest firm in market
capitalization, was expected to post revenues of U.S. $24 billion in that year. That
number is staggering but this year profits are expected to go up even further. The auto
industry is also doing very well. Revenues will exceed $10 billion this year. In 2008
General Motors plans to import $1 billion worth of auto components from India.

The software giants in the Indian arena are Wipro and Infosys Technologies. According
to The Hindu Business Line, the April 2005 edition of the Global Outsourcing publication
had ranked a total of 12 companies in terms of their "value as an outsourcing company."
IBM was put in first place, Infosys and Wipro took fourth and fifth place respectively.

13.

With per capita paint consumption currently at one of the lowest levels in the world,
India presents the coatings industry with a vast market potential. Both domestic and
international paint manufacturers hope to leverage that potential into real sales value as
consumers in the country become more able and willing to buy their products. The
Indian market differs in a number of ways, though, from markets in other emerging
regions as well as developed countries. New entrants will need to be aware of these
unique characteristics.

Estimates for the value of the Indian coatings market differ depending on the source.
Market research firms put the total value of sales at $2.4-$2.7 billion dollars, while
domestic paint manufacturers believe the figure to be as much as $3.2-$3.5 billion.
Volume consumption is estimated to be around 900,000 to 1,000,000 tonnes per year.

Most agree that the market has been growing at about 15% per year in both value and
volume terms and that a rate of 12-15% should be maintainable for the foreseeable
future. In general, sales of coatings increase at a rate approximately 1.5-2 times that of
the overall growth rate for the Indian economy.

14.

Economists frequently cite economic growth as the surest way out of poverty for the
developing world. In this context, China is an often mentioned example, where double
digit growth has brought over 300 million people out of extreme poverty over the past
few decades. But closely tied to growth is the question of equality – of growing the pie,
as opposed to distributing it.

15.

DESCRIBING India as the "stealth miracle economy'' among the democracies of the
world in the last two decades, Mr P.K. Basu, Director & Chief Economist, South East
Asia and India, Credit Suisse First Boston, Singapore, today predicted that India would
emerge as the fastest growing economy in Asia by 2010. Hailing India's performance in
the external sector, especially in manufactured exports, software and other service
sectors, he said the country may emerge as a net creditor nation in the none too distant
future.

16.
The Organisation of Petroleum Exporting Countries (Opec) has projected that a rise in
India’s gross domestic product (GDP) would lead to increased oil consumption next
year. India oil demand was not affected by the economic crisis in 2009, and next year’s
oil usage is forecast to grow further..

17.

Recent years have witnessed a growing optimism about the potential for Indian
economic growth. In part, this is fueled by the example of strong sustained growth in
China, raising the obvious question of why India cannot do as well. However, the
optimism also reflects the fact that India's growth has accelerated over the past two
decades. And while its growth rate remains well below that of China, this favorable
performance contrasts with the slowing of growth in other regions. It has also enabled
the emergence of a significant middle class in India. Interestingly, India's economic
performance has differed from that of China and other parts of Asia in at least two
dimensions. First, India's success has not been based on strong growth in the
manufacturing sector and in exports. Instead, it has reflected very rapid expansion of
service-producing industries. Second, it has been associated with relatively modest
levels of investment. Even incorporating recent data revisions, India's physical capital
accumulation has not been impressive. And despite substantial increases in the number
of Indians attaining higher education, illiteracy rates remain high.
18.

Early commentary on India's national budget for 2008-09 has focused almost entirely
on a single parameter: the aggregate level of economic growth. Missing in all the
punditry has been a serious effort to engage with the sources of growth in the Indian
economy.

Evidently, the recent growth dynamic has had little to do with agriculture. As the
Economic Survey preceding the budget pointed out, growth in the farm sector, despite
favourable environmental parameters, is expected to be a disappointing 2.6 percent this
year.

This would, the Survey continues, "be translated into a lower overall GDP (gross
domestic product) growth".

What the Survey does not attend to though, is the nature of the relationship between
agricultural growth and overall GDP. It is no mere arithmetical relationship. And the
untold story of India's growth experience over the last decade or so has been that it has
almost entirely excluded agriculture.

19.

India’s recent spectacular rate of economic growth, combined with the sheer size of its
population, means that it is beginning to take its place as one of the key players in the
global economy.1 One way in which India stands out from other Asian economies is in
the better performance of its service sector. Whereas other emerging Asian economies,
such as China, have experienced growth led by dynamic manufacturing performance,
India’s growth has been led by sectors such as business services.

This is sometimes used to portray India’s performance as fragile, focusing attention on

shortcomings of the industrial sector . But as much of manufacturing becomes
increasingly automated and “de-skilled”, it is not clear that manufacturing-led growth is
such a good long-run bet on the road to development. It may be that a focus on services
will prove to be a better long-run route to prosperity. Furthermore, this pattern of
service-led development may be more in tune with the legacy of India’s past.
20.

MUMBAI: India's economy is seen growing at a faster pace in 2010/11 than earlier
expected, supported by a global recovery, domestic demand and a double-digit
expansion in factory output, a Reuters poll shows. Such expansion will generate greater
inflation than previously expected, requiring a steady series of rate rises from the central
bank by the end of December.
Asia's third-biggest economy will grow at annual rates above 8 percent in coming
quarters and is seen expanding 8.4 percent for the 2010/11 fiscal year, the survey of 20
analysts showed.
A similar quarterly poll in January had forecast growth of 8 percent. The poll showed
that growth would accelerate in the fiscal year 2011/12 to 8.6 percent.
"A good pick-up in growth will depend upon good private demand and investment
demand. Two factors sustaining growth in FY11 will be a normal monsoon and the level
of global crude prices in the band of $70 to $80 a barrel," said Rupa Rege Nitsure, chief
economist at Bank of Baroda. "Growth will gradually build up because real sector
adjustment takes time," he added.
India's economy grew 6.7 percent in 2008/09, slowing from rates of 9 percent or more in
the previous three years. The government has said it expects growth in 2009/10, or the
fiscal year that ended on March 31, to have been 7.2 percent.
Analysts expect the Reserve Bank of India (RBI) to tighten policy further, raising the
repo rate , at which the central bank lends to banks, by 100 basis points to 6.0 percent
by the end of December from the current 5 percent.
Last month, the RBI raised the repo rate and the reverse repo rate , at which it absorbs
excess cash from the banking system, by 25 basis points each. That took the reverse
repo rate to 3.5 percent.
Research design.
The research design will consist of two parts.

A)Data collection:
Data will be primarily collected from secondary data,as it will prove to be a very usefull
source of authentic and relevant data, the various secondary sorces of data would be
newspaper, internet , magazines.

Data collection technique would be simple and general.the collectred data will be first
analyzed and then re-evaluated for further selection of more appropriate data.

B) Sampling:
Sampling is very important in research,and specially the method of sampling adopted
for the particular research. I will use probability sampling technique because this
technique is more appropriate and gives equal chance to every item in the population to
be included in the sample,and hence more accurate results will be obtained,because
the participation of each item will incorporate enormous changes in the research. The
sample size will be 1500 ,and the method of collecting information will be by preparing
questionnaires.the questionnaires will consist of different open ended questions and
close ended questions to satisfy the need of the person who will be answering the
questions.
 Data analysis:

This section deals with the analysis of data collected from a secondary source and in
relation to this research the data collected and presented in literature review is quite
relevant to the research problem,and from the data collected I analyze that india is
moving towards both a growing economy as well as a knowledge based economy,
"India’s rapidly growing economy and its commitment to expand its investment regime
will provide significant opportunities for investors in a variety of sectors, including
infrastructure, education, life sciences, science and technology and natural resources
among many others,".

. , India's success has not been based on strong growth in the manufacturing sector and
in exports. Instead, it has reflected very rapid expansion of service-producing industries.
Second, it has been associated with relatively modest levels of investment. Even
incorporating recent data revisions, India's physical capital accumulation has not been
impressive. And despite substantial increases in the number of Indians attaining higher
education, illiteracy rates remain high.

The knowledge economy is after taken to mean only high technology, Industries or
information and communication technology. The domestic corporate sector has shown a
remarkable level of absorption of information services into its main mainstream
operation to face challenges of globalization and economic liberalization. Knowledge
economy has gone through series of steps, making up an ongoing life cycle. In this
phase, it is important to go to all the sources available and judge the usefulness of the
captured knowledge. Speed user friendliness, efficiency of access and accuracy of
information are important elements to be considered throughout the organizing phase of
knowledge based economy. The countries that will build themselves by undertaking the
dynamics of the knowledge and create true knowledge society will survive and succeed
in the today's era. Knowledge management is a sub component of knowledge based
society or knowledge economy.

Many high quality services are provided in the economy with a very low price. The
growth of the Indian economy is due to strategic information system, better policy and
legal framework, skilled human resources development. In India, economy has major
advantages has Knowledge player. There is tremendous increase multiple perspective
of the knowledge-based economy with acquisition of knowledge and rescued cost of it.
There ate significance changes in the theoretical and practical experience in designing
and implementing of knowledge based economy. . India possesses a large pool of
highly educated and qualified manpower, which ate making domestically and globally in
all the fields of economy, but they consist only a small percentage of the people. India
will need to develop a more relevant educational system, transparent organizational
structure and more emphasis on the learning. The innovation system in any economy
consists of institution's rules and procedure that affect how it acquires, creates and use
knowledge. Innovation in a developing country is the application of new & existing
knowledge in an economy

New the information society has become; knowledge Based Society and Indian
economy has become 'Knowledge Based Economy'. As Swami Vivekananda said unity
is knowledge, diversity is ignorance. You have to attain it in the long run and become
free. We are already free, only we don't know it. So, the information and knowledge
society have increased the comfort of living, which tell us that many heads together are
better than are with many hats.

REFERENCES & BIBLIOGRAPHY:

(1) Kalseth, Karl., Knowledge management from a business strategy perspective FID
review, 1999.

(2) Grant, R.M., Towards knowledge based theory of firm, Strategic management
journal, 1996.

(3) S.K. Yreme, David., Creating the knowledge based business, Business Intelligence,
London (U.K), 1997.

(4) Alavi, M. and Leidwer., Knowledge Management and Knowledge Management

system, conceptual framework and research and issues, 2001.

(5) Awad, Elias M and Ghaziri, Hassan M., Knowledge Management Pearson
Education, Delhi, 2006.

(6) Shukla, J.J., Theories of knowledge Ahmedabad Karnavati, 1999.

(7) Lethbridge, T.C., Practical Techniques and Measuring knowledge, University of

Ottawa, Ottawa, (Ontario), Canada, 1994.

(8) Penrose. E.T., The Theory of growth of firm, Oxford University press, 1959.

(9) Raman, A Thothathri., Knowledge Excels books, New Delhi, 2004.

(10) Myers Paul, Knowledge Management and Organizational design,:-Butterworth

Heinemaun, Boston, 2001.

(11) Dale Neef., Making the case for knowledge management, The bigger picture,
Management Decision, 1999.

(12) Liebowits, jay., Knowledge management learning from knowledge management,

Boca ration: C.R. C .Press, 2001.

(13) Malhotra, Yogesh., Knowledgement for the new world of business Asian Strategy
Leadership Institute Review, 1998.

(14) Government of India, Ministry of Finance., Survey of India, New Delhi, 2006-07.

(15) www.wikipaedia.com, www.google.com, www.gartner.com and www.knowledge.

Commission.gov.in