CHAPTER - 1

INTRODUCTION

1.1 Introduction

After independence, Jawaharlal Nehru, the first prime minister of India, in-

itiated reforms to promote higher education and science and technology in India. The In-

dian Institute of Technology (IIT)—conceived by a 22-member committee of scholars and

entrepreneurs in order to promote technical education—was inaugurated on 18 August

1951 at Kharagpur in West Bengal by the minister of education Maulana Abul Kalam

Azad. More IITs were soon opened in Bombay, Madras, Kanpur and Delhi as well in the

late 1950s and early 1960s along with the regional RECs (now National Institutes of Tech-

nology (NIT). Beginning in the 1960s, close ties with the Soviet Union enabled the Indian

Space Research Organisation to rapidly develop the Indian space program and advance nu-

clear power in India even after the first nuclear test explosion by India on 18 May 1974

at Pokhran.

India accounts for about 10% of all expenditure on research and develop-

ment in Asia and the number of scientific publications grew by 45% over the five years to

2007. However, according to former Indian science and technology minister Kapil Sibal,

India is lagging in science and technology compared to developed countries. India has only

140 researchers per 1,000,000 population, compared to 4,651 in the United States. India

invested US$3.7 billion in science and technology in 2002–2003. For comparison, China

invested about four times more than India, while the United States invested approximately

75 times more than India on science and technology.

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 While India has increased its output of scientific papers fourfold between

2000 and 2015 overtaking Russia and France in absolute number of papers per year, that

rate has been exceeded by China and Brazil; Indian papers generate fewer cites than aver-

age, and relative to its population it has few scientists. India was ranked 46th in the Global

Innovation Index in 2021 Information Technology in India is a vast industry which com-

prises information technology services, consulting, and outsourcing. The IT industry ac-

counted for 8% of India's GDP in 2020.

The IT and BPM industry's revenue is estimated at US$194 billion in FY

2021, an increase of 2.3% YoY. The domestic revenue of the IT industry is estimated at

US$45 billion and export revenue is estimated at US$150 billion in FY 2021. The IT–

BPM sector overall employs 4.5 million people as of March 2021. The Indian IT–BPM

industry has the highest employee attrition rate.

In recent years the industry has been witnessing skyrocketing resigna-

tions cutting across hierarchy. As a global outsourcing hub, the Indian IT industry is infa-

mous of exploiting cheap labour. As IT–BPM sector evolves, many are concerned that ar-

tificial intelligence (AI) will drive significant automation and destroy jobs in the coming

years. The United States accounts for two-thirds of India's IT services exports.

1.2 History

India aimed "to convert India's economy into that of a modern state and to

fit her into the nuclear age and do it quickly." It was understood that India had not been at

the forefront of the Industrial Revolution, and hence made an effort to promote higher ed-

ucation, and science and technology in India.

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 Planning Commission (1950) fixed investment levels, prescribed priorities,

divided funds between agriculture and industry, and divided resources between the state

and the federal governments. The result of the efforts between 1947 and 1962 saw the area

under irrigation increase by 45 million acres (180,000 km2), food production rise by 34

million metric tons, installed power generating capacity increase by 79 million kilowatts,

and an overall increase of 94 percent in industrial production. The enormous population

rise, however, would balance the gains. The economically beleaguered country was nev-

ertheless able to build a large scientific workforce, second in numbers only to that of the

United States and the Soviet Union.

Education provided by the government of India was free and compulsory up

to the Age of 14. More emphasis was paid to the enhancement of vocational and technical

skills. J. P. Naik, member-secretary of the Indian Education Commission, commented on

the educational policies of the time. The main justification for the larger outlay on educa-

tional reconstruction is the hypothesis that education is the most important single factor

that leads to economic growth [based on] the development of science and technology.

On 18 August 1951 the minister of education Maulana Abul Kalam Azad,

inaugurated the Indian Institute of Technology at Kharagpur in West Bengal. Possibly

modeled after the Massachusetts Institute of Technology these institutions were conceived

by a 22-member committee of scholars and entrepreneurs under the chairmanship of N. R.

Sarkar.

The Sino-Indian war (1962) came as a rude awakening to military prepar-

edness. Military cooperation with the Soviet Union partially aimed at developing advanced

3
military technology was pursued during subsequent years. The Defence Research and De-

velopment Organisation was formed in 1958.

Radio broadcasting was initiated in 1927 but became state responsibility

only in 1930. In 1947 it was given the name All India Radio and since 1957 it has been

called Akashvani. Limited duration of television programming began in 1959, and com-

plete broadcasting followed in 1965. The Indian Government acquired the EVS EM com-

puters from the Soviet Union, which were used in large companies and research laborato-

ries.

The roots of nuclear power in India lie in the early acquisition of nuclear

reactor technology from several western countries, particularly the American support for

the Tarapur Atomic Power Station and Canada's CANDU reactors. The peaceful policies

of Mohandas Karamchand Gandhi may have delayed the inception of nuclear technology

in India.

Stanley Wolpert (2008) describes the measures taken by the Indian govern-

ment to increase agricultural output.

The Indian space program received only financial support from the Soviet

Union, which helped the Indian Space Research Organisation achieve aims such as estab-

lishing the Thumba Equatorial Rocket Launching Station, launching remote sensing satel-

lites, developing India's first satellite—Aryabhatta, and sending astronauts into space. In-

dia sustained its nuclear program during the aftermath of Operation Smiling Buddha, the

country's first nuclear tests.

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 Though the roots of the Steel Authority of India Ltd. lie in Hindustan Steel

Private Limited (1954), the events leading up to the formation of the modern avatar are

described below:

The Ministry of Steel and Mines drafted a policy statement to evolve a new

model for managing industry. The policy statement was presented to the Parliament on 2

December 1972. On this basis, the concept of creating a holding company to manage inputs

and outputs under one umbrella was mooted. This led to the formation of Steel Authority

of India Ltd. The company, incorporated on 24 January 1973 with an authorized capital of

Rs. 2000 crore, was made responsible for managing five integrated steel plants

at Bhilai, Bokaro, Durgapur, Rourkela and Burnpur, the Alloy Steel Plant and the Salem

Steel Plant. In 1978 SAIL was restructured as an operating company.

In 1981, the Indian Antarctic Programme was started when the first Indian

expedition was flagged off for Antarctica from Goa. More missions were subsequently sent

each year to India's base Dakshin Gangotri.

Indian agriculture benefited from the developments made in the field of bi-

otechnology, for which a separate department was created in 1986 under the Ministry of

Science and Technology Both the Indian private sector and the government have invested

in the medical and agricultural applications of biotechnology. Massive biotech parks were

established in India while the government provided tax deduction for research and devel-

opment under biotechnological firms.

The Indian economy underwent economic reforms in 1991, leading to a new

era of globalisation and international economic integration. Economic growth of over 6%

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annually was seen between 1993 and 2002. Same year a new permanent Antarctic

base Maitri was founded and remains in operation till date.

On 25 June 2002 India and the European Union agreed to bilateral cooper-

ation in the field of science and technology. A joint EU-India group of scholars was formed

on 23 November 2001 to further promote joint research and development. India holds As-

sociate Member State status at CERN, while a joint India-EU Software Education and De-

velopment Centre is due at Bangalore. Certain scientists and activists, such as MIT systems

scientist VA Shiva Ayyadurai, blame caste for holding back innovation and scientific re-

search in India, making it difficult to sustain progress while regressive social organisation

prevails. In addition, corruption and inefficiencies in the research sector and have resulted

in corruption scandals and undermine innovation initiatives.

Bangalore is considered to be the technological capital of India. IT, biotech-

nology, aerospace, nuclear science, manufacturing technology, automobile engineering,

chemical engineering, ship building, space science, electronics, computer science and other

medical science related research and development are occurring on a large scale in the

country.

In 2017, India became an associate member of European Organization for

Nuclear Research.

India's IT Services industry was born in Mumbai in 1967 with the establish-

ment of Tata Consultancy Services who in 1977 partnered with Burroughs which began

India's export of IT services. The first software export zone, SEEPZ – the precursor to the

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modern-day IT park – was established in Mumbai in 1973. More than 80 percent of the

country's software exports were from SEEPZ in the 1980s.

Within 90 days of its establishment, the Task Force produced an extensive

background report on the state of technology in India and an IT Action Plan with 108 rec-

ommendations. The Task Force could act quickly because it built upon the experience and

frustrations of state governments, central government agencies, universities, and the soft-

ware industry.

Much of what it proposed was also consistent with the thinking and recom-

mendations of international bodies like the World Trade Organization (WTO), Interna-

tional Telecommunication Union (ITU), and World Bank. In addition, the Task Force in-

corporated the experiences of Singapore and other nations, which implemented similar pro-

grams. It was less a task of invention than of sparking action on a consensus that had already

evolved within the networking community and government. Regulated VSAT links be-

came visible in 1994. Desai (2006) describes the steps taken to relax regulations on linking

in 1991.

In 1991 the Department of Electronics broke this impasse, creating a corpo-

ration called Software Technology Parks of India (STPI) that, being owned by the govern-

ment, could provide VSAT communications without breaching its monopoly. STPI set up

software technology parks in different cities, each of which provided satellite links to be

used by firms; the local link was a wireless radio link. In 1993 the government began to

allow individual companies their own dedicated links, which allowed work done in India

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to be transmitted abroad directly. Indian firms soon convinced their American customers

that a satellite link was as reliable as a team of programmers working in the clients' office.

A joint EU-India group of scholars was formed on 23 November 2001 to

further promote joint research and development. On 25 June 2002, India and the European

Union agreed to bilateral cooperation in the field of science and technology. From 2017,

India holds an Associate Member State status at CERN, while a joint India-EU Software

Education and Development Center will be located in Bangalore.

1.3 Digital India: Technology to Transform A Connected Nation

India’s digital surge is well under way on the consumer side, even as its

businesses show uneven adoption and a gap opens between digital leaders and other firms.

This report examines the opportunities for India’s future digital growth and the challenges

that will need to be managed as it continues to embrace the digital economy.

India is one of the largest and fastest-growing markets for digital consumers,

with 560 million internet subscribers in 2018, second only to China. Indian mobile data

users consume 8.3 gigabits (GB) of data each month on average, compared with 5.5 GB for

mobile users in China and somewhere in the range of 8.0 to 8.5 GB in South Korea, an

advanced digital economy. Indians have 1.2 billion mobile phone subscriptions and down-

loaded more than 12 billion apps in 2018. Our analysis of 17 mature and emerging econo-

mies finds India is digitising faster than any other country in the study, save Indonesia—

and there is plenty of room to grow: just over 40 percent of the populace has an internet

subscription.

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 The public and private sectors are both propelling digital consumption

growth. The government has enrolled more than 1.2 billion Indians in its biometric digital

identity programme, Aadhaar, and brought more than 10 million businesses onto a common

digital platform through a goods and services tax. Competitive offerings by telecommuni-

cations firms have turbocharged internet subscriptions and data consumption, which quad-

rupled in both 2017 and 2018 and helped bridge a digital divide; India’s lower-income

states are growing faster than higher-income ones in internet infrastructure and subscrip-

tions. Based on current trends, we estimate that India will increase the number of internet

users by about 40 percent to between 750 million and 800 million and double the number

of smartphones to between 650 million and 700 million by 2023.

Our survey of more than 600 firms shows that digital adoption among busi-

nesses has been uneven across all sectors. Digital leaders in the top quartile of adopters are

two to three times more likely to use software for customer relationship management, en-

terprise resource planning, or search engine optimisation than firms in the bottom quartile

and are almost 15 times more likely to centralise digital management. Firm size is not al-

ways a differentiator: while large firms are far ahead in digital areas requiring large invest-

ments like making sales through their own website, small businesses are leapfrogging ahead

of large ones in other areas, including acceptance of digital payments and the use of social

media and video conferencing to reach and support customers.

Digital applications could proliferate across most sectors of India’s econ-

omy. By 2025, core digital sectors such as IT and business process management, digital

communication services, and electronics manufacturing could double their GDP level to

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$355 billion to $435 billion. Newly digitising sectors, including agriculture, education, en-

ergy, financial services, healthcare, logistics, and retail, as well as government services and

labour markets, could each create $10 billion to $150 billion of incremental economic value

in 2025 as digital applications in these sectors help raise output, save costs and time, reduce

fraud, and improve matching of demand and supply.

The productivity unlocked by the digital economy could create 60 million

to 65 million jobs by 2025, many of them requiring functional digital skills, according to

our estimates. Retraining and redeployment will be essential to help some 40 million to

45 million workers whose jobs could be displaced or transformed.

New digital ecosystems are already visible, reshaping consumer-producer

interactions in agriculture, healthcare, retail, logistics, and other sectors. Opportunities span

such areas as data-driven lending and insurance payouts in the farm sector to digital solu-

tions that map out the most efficient routes and monitor cargo movements on India’s high-

ways. In healthcare, patients could turn to teleconsultations via digital voice or HD video,

and in retail, brick-and-mortar stores would find value from being part of e-commerce plat-

forms.

All stakeholders will need to respond effectively if India is to achieve its

digital potential. Executives will need to anticipate the digital forces that will disrupt their

businesses and invest in building capabilities, including partnering with universities and

outsourcing or acquiring talent to deliver digital projects. Governments will need to invest

in digital infrastructure and public data that organisations can leverage even as they put in

place strong privacy and security safeguards. Capturing the gains of the digital economy

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will require more ease in creating, scaling, and exiting startups as well as policies to facil-

itate retraining and new-economy jobs for workers. Individuals will need to inform them-

selves about how the digital economy could affect them as workers and consumers and

prepare to capture its opportunities.

Summary – Here in the chapter -1 we have studied about the basics infor-

mation of new rising technology in India we also studied the historical background behind

the development of the Indian Technology.

In the next chapter – 2 We will study the invention that were developed by

the Indian scientists.

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 CHAPTER - 2

INVENTIONS IN INDIA

2.1 Administration

1. DigiLocker world's first digital locker, DigiLocker provides an account in cloud to

every Aadhaar holder to access all authentic documents/certificates such as driving

license, vehicle registration, academic mark sheet in digital format from the original

issuers of these certificates.

2. Janapada (democratic republic system) (1100-500 BCE)

3. Local government: presence of municipality in Indus Valley Civilization is charac-

terised by rubbish bins and drainage system throughout urban areas. Megasthenes

also mentions presence of a local government in the Mauryan city of Pataliputra.

4. Passport: Arthashastra (c. 3rd century BCE) make mentions of passes issued at the

rate of one masha per pass to enter and exit the country. Chapter 34 of the Second

Book of Arthashastra concerns with the duties of the Mudrādhyakṣa (lit. 'Superin-

tendent of Seals') who must issue sealed passes before a person could enter or leave

the countryside. This constitutes first passports and passbooks in world history.

2.2 Communication

1. 5Gi, is an Indian wireless communication standard that features low mobility large

cell (LMLC), is designed to enhance the signal transmission range of a basestation

several times, helping service providers cost-effectively expand coverage in rural

areas.TSDSI 5Gi is set to be merged with 3GPP 5G standard.

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 2. Crystal detector by Jagadish Chandra Bose. Crystals were first used as radio wave

detectors in 1894 by Bose in his microwave experiments. Bose first patented a crys-

tal detector in 1901.

3. Horn antenna or microwave horn, One of the first horn antennas was constructed

by Jagadish Chandra Bose in 1897.

4. Microwave Communication: The first public demonstration of microwave trans-

mission was made by Jagadish Chandra Bose, in Calcutta, in 1895, two years before

a similar demonstration by Marconi in England, and just a year after Oliver Lodge's

commemorative lecture on Radio communication, following Hertz's death. Bose's

revolutionary demonstration forms the foundation of the technology used in mobile

telephony, radars, satellite communication, radios, television broadcast, WiFi, re-

mote controls and countless other applications.

2.3 Computers and Programming Languages

1. J Sharp: Visual J# programming language was a transitional language for program-

mers of Java and Visual J++ languages, so they could use their existing knowledge

and applications on .NET Framework. It was developed by the Hyderabad-

based Microsoft India Development Center at HITEC City in India.

2. Kojo: Kojo is a programming language and integrated development environ-

ment (IDE) for computer programming and learning. Kojo is an open-source soft-

ware. It was created, and is actively developed, by Lalit Pant, a computer program-

mer and teacher living in Dehradun, India.

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 3. Julia is a high-level, high-performance, dynamic programming language. While it

is a general-purpose language and can be used to write any application, many of its

features are well suited for numerical analysis and computational science.

4. Intel Pentium, Vinod Dham acted as General manager for the group that developed

Intel's 5th generation x86 ISA, and is considered the 'Father of Pentium Chip'

5. USB, Accelerated Graphics Port and PCI Express : The USB, AGP & PCI. Ajay

Bhatt, while working as Chief Systems technologist at Intel lead a group that cre-

ated these Industry standards.

6. SHAKTI processors are based on the RISC-V ISA. The processors are based on

22 nm FinFET technology. SHAKTI has envisioned a family of processors as part

of its road-map, catering to different segments of the market.

7. VEGA Microprocessors: India's first indigenous 64-bit, superscalar, out-of-order,

multi-core RISC-V Processor developed by C-DAC.

2.4 Construction, Civil Engineering and Architecture

1. BharatNet (National Optical Fibre Network) is establishment, management, and op-

eration of the National Optical Fibre Network as an Infrastructure to provide a min-

imum of 100 Mbit/s broadband connectivity to all rural and remote areas. BBNL

was established in 2012 to lay the optical fiber.

2. English Bond: The English bond is a form of brickwork with alternating stretching

and heading courses, with the headers centred over the midpoint of the stretchers,

and perpends in each alternate course aligned. Harappan architecture in South Asia

was the first to use the so-called English bond in building with bricks.

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3. Dedicated Freight Corridors is an electric high speed and high capacity railway cor-

ridor that is exclusively meant for the transportation of double stack freight cargo.It

will help in freeing up the passenger corridor.

4. Dockyard: The world's earliest enclosed dockyard was built in the Harappan port

city of Lothal circa 2600 BC in Gujarat, India.

5. Genome Valley is world's first organized cluster for Life Sciences R&D and Clean

Manufacturing activities, with world-class infrastructure facilities in the form of

Industrial / Knowledge Parks, Special Economic Zones (SEZs), Multi-tenanted dry

and wet laboratories and incubation facilities.

6. Light Gauge Steel framing is a construction technology using cold-formed steel as

the construction material. It can be used for roof systems, floor systems, wall sys-

tems, roof panels, decks, or the entire buildings.

7. Multi-Modal Logistics Parks (MMLPs) defined as a freight-handling facility with

a minimum area of 100 acres (40.5 hectares), with various modes of transport ac-

cess, mechanized warehouses, specialized storage solutions such as cold storage,

facilities for mechanized material handling and inter-modal transfer container ter-

minals, and bulk and break-bulk cargo terminals.

8. Plumbing: Standardized earthen plumbing pipes with broad flanges making use

of asphalt for preventing leakages appeared in the urban settlements of the Indus

Valley Civilization by 2700 BC. Earthen pipes were used in the Indus Valley c.

2700 BC for a city-scale urban drainage system,

9. Plastic road are made entirely of plastic or of composites of plastic with other ma-

terials. Plastic roads are different from standard roads in the respect that standard

15
 roads are made from asphalt concrete, which consists of mineral aggregates and

asphalt. Most plastic roads sequester plastic waste within the asphalt as an aggre-

gate. Plastic roads first developed by Rajagopalan Vasudevan in 2001.

10. Chenab Bridge is world's highest rail bridge and world's first blast-proof steel

bridge.The bridge is built using 63mm-thick special blast-proof steel.

11. Regional Rapid Transit System (RRTS) semi high speed metropolitan rail network

which will operate within the range of 80–100 km which is the range between a

metro system and conventional rail system, RRTS will be a rail based system that

will connect small but fast developing towns in the NCR region.The goal of RRTS

is to reduce the dependence of commuters on road based transportation to a combi-

nation of road-cum rail transportation system.

12. Squat toilet: Toilet platforms above drains, in the proximity of wells, are found in

several houses of the cities of Mohenjodaro and Harappa from the 3rd millennium

BCE.

13. Soil Health Card under the scheme, the government plans to issue soil cards to farm-

ers which will carry crop-wise recommendations of nutrients and fertilisers required

for the individual farms to help farmers to improve productivity through judicious

use of inputs. All soil samples are to be tested in various soil testing labs across the

country.

14. Stupa: The origin of the stupa can be traced to 3rd-century BCE India. The stupa

architecture was adopted in Southeast and East Asia, where it evolved into the pa-

goda, a Buddhist monument used for enshrining sacred relics.

2.5 Finance and Banking

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 1. InvITs(Infrastructure Investment Trusts) are a hybrid between equity and debt in-

vestment, i.e., it has features of both equity and debt. While the operating business

model helps provide stable, predictable, and relatively low-risk cash flows like debt,

there is growth potential like equity as the returns are not fixed with a scope of

change in the unit price.

2. Payments bank is an Indian new model of banks conceptualised by the Reserve

Bank of India (RBI) without issuing credit.

3. Cheque: There is early evidence of using cheques. In India, during the Maurya Em-

pire (from 321 to 185 BC), a commercial instrument called the adesha was in use,

which was an order on a banker desiring him to pay the money of the note to a third

person.

4. Direct Benefit Transfer, This program aims to transfer subsidies directly to the peo-

ple through their bank accounts. It is hoped that crediting subsidies into bank ac-

counts will reduce leakages, delays, etc.

2.6 Games

1. Badminton: The game may have originally developed among expatriate officers

in British India.

2. Blindfold Chess: Games prohibited by Buddha includes a variant of ashtapada

game played on imaginary boards. Akasam astapadam was an ashtapada variant

played with no board, literally "astapadam played in the sky". A correspondent in

the American Chess Bulletin identifies this as likely the earliest literary mention of

a blindfold chess variant.

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3. Carrom: The game of carrom originated in India One carrom board with its surface

made of glass is still available in one of the palaces in Patiala, India. It became very

popular among the masses after World War I. State-level competitions were being

held in the different states of India during the early part of the twentieth century.

Serious carrom tournaments may have begun in Sri Lanka in 1935 but by 1958,

both India and Sri Lanka had formed official federations of carrom clubs, sponsor-

ing tournaments and awarding prizes.

4. Chaturanga: The precursor of chess originated in India during the Gupta dynasty (c.

280–550 CE). Both the Persians and Arabs ascribe the origins of the game of Chess

to the Indians.

5. The words for "chess" in Old Persian and Arabic are chatrang and shatranj respec-

tively terms derived from caturaṅga in Sanskrit, which literally means an army of

four divisions or four corps. Chess spread throughout the world and many variants

of the game soon began taking shape. This game was introduced to the Near

East from India and became a part of the princely or courtly education of Per-

sian nobility. Buddhist pilgrims, Silk Road traders and others carried it to the Far

East where it was transformed and assimilated into a game often played on the in-

tersection of the lines of the board rather than within the squares. Chaturanga

reached Europe through Persia, the Byzantine empire and the expanding Ara-

bian empire. Muslims carried Shatranj to North Africa, Sicily, and Spain by the

10th century where it took its final modern form of chess.

6. Kabaddi: The game of kabaddi originated in India during prehistory. Suggestions

on how it evolved into the modern form range from wrestling exercises, military

18
 drills, and collective self-defence but most authorities agree that the game existed

in some form or the other in India during the period between 1500 and 400 BCE.

7. Ludo: Pachisi originated in India by the 6th century. The earliest evidence of this

game in India is the depiction of boards on the caves of Ajanta. A variant of this

game, called Ludo, made its way to England during the British Raj.

8. Mallakhamba: It is a traditional sport, originating from the Indian subcontinent, in

which a gymnast performs aerial yoga or gymnastic postures and wrestling grips in

concert with a vertical stationary or hanging wooden pole, cane, or rope. The earli-

est literary known mention of Mallakhamb is in the 1135 CE Sanskrit classic Ma-

nasollasa, written by Someshvara III. It has been thought to be the ancestor of Pole

Dancing.

9. Nuntaa, also known as Kutkute.

10. Seven Stones: An Indian subcontinent game also called Pitthu is played in rural

areas has its origins in the Indus Valley Civilization.

11. Snakes and ladders: Vaikunta pali Snakes and ladders originated in India as a game

based on morality. During British rule of India, this game made its way to England,

and was eventually introduced in the United States of America by game-pio-

neer Milton Bradley in 1943.

12. Suits game: Kridapatram is an early suits game, made of painted rags, invented in

Ancient India. The term kridapatram literally means "painted rags for playing." Pa-

per playing cards first appeared in East Asia during the 9th century. The medieval

Indian game of ganjifa, or playing cards, is first recorded in the 16th century.

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 13. Table Tennis: It has been suggested that makeshift versions of the game were de-

veloped by British military officers in India around the 1860s or 1870s, who

brought it back with them.

14. Vajra-mushti: refers to a wrestling where knuckleduster like weapon is em-

ployed.The first literary mention of vajra-musti comes from the Manasollasa of

the Chalukya king Someswara III (1124–1138), although it has been conjectured to

have existed since as early as the Maurya dynasty.

15. Kalaripayattu: One of the world's oldest form of martial arts is Kalaripayattu that

developed in the southwest state of Kerala in India. It is believed to be the oldest

surviving martial art in India, with a history spanning over 3,000 years.

16. Dice: Excavations from graves at Mohenjo-daro, an Indus Valley civilization set-

tlement, unearthed terracotta dice dating to 2500–1900 BC. Games involving dice

are mentioned in Amrapali mango is a named mango cultivar introduced in 1971

by Dr. Pijush Kanti Majumdar at the Indian Agriculture Research Institute in Delhi.

2.7 Genetics

1. Synthetic genes and decoding of protein synthesizing gene: Indian-American bio-

chemist Har Gobind Khorona, created the first synthetic gene and uncovered how a

DNA's genetic code determines protein synthesis – which dictates how a cell func-

tions. That discovery earned Khorana, along with his two colleagues, the Nobel

Prize in Physiology or Medicine in 1968.

2. Pseudomonas putida: Indian (Bengali) inventor and microbiologist Ananda Mohan

Chakrabarty created a variety of man-made microorganism to break down crude

oil. He genetically engineered a new variety of Pseudomonas bacteria ("the oil-

20
 eating bacteria") in 1971. In Diamond v. Chakrabarty, the United States Supreme

Court granted Chakrabarty's invention patent, even though it was a living organism.

The court ruling decreed that Chakrabarty's discovery was "not nature's handiwork,

but his own..." Chakrabarty secured his patent in 1980.

3. Mynvax is world's first "warm" COVID-19 vaccine, developed by IISc, capable of

withstanding 37C for a month and neutralise all coronavirus variants of concern.

2.8 Metallurgy and Manufaturing

1. High ash coal gasification(Coal to Methanol), The Central Government gave the

country world's first 'coal to methanol' (CTM) plant built by the Bharat Heavy Elec-

tricals Limited (BHEL). The plant was inaugurated in BHEL's Hyderabad unit, The

pilot project is the first that uses the gasification method for converting high-ash

coal into methanol. Handling of high ash and heat required to melt this high amount

of ash is a challenge in the case of Indian coal, which generally has high ash content.

Bharat Heavy Electricals Limited has developed the fluidized bed gasification tech-

nology suitable for high ash Indian coals to produce syngas and then convert syngas

to methanol with 99% purity.

2. CBM in Blast Furnace, Tata Steel has initiated the trial for continuous injection of

Coal Bed Methane (CBM) gas in one of the Blast Furnaces at its Jamshedpur

Works, making it the first such instance in the world where a steel company has

used CBM as injectant. This process is expected to reduce coke rate by 10 kg/thm,

which will be equivalent to reducing 33 kg of CO2 per tonne of crude steel.

3. Crucible steel: Perhaps as early as 300 BCE—although certainly by 200 BCE—

high quality steel was being produced in southern India, by what Europeans would

21
 later call the crucible technique. In this system, high-purity wrought iron, charcoal,

and glass were mixed in a crucible and heated until the iron melted and absorbed

the carbon.

4. Diamond drills: in the 12th century BCE or 7th century BCE, Indians not only in-

novated use of diamond tipped drills but also invented double diamond tipped drills

for bead manufacturing.

5. Diamond cutting and polishing: The technology of cutting and polishing diamonds

was invented in India, Ratnapariksha, a text dated to 6th century talks about dia-

mond cutting and Al-Beruni speaks about the method of using lead plate for dia-

mond polishing in the 11th century CE.

6. DMR grade steels for several high-technology applications, such as military hard-

ware and aerospace, need to possess ultrahigh strength (UHS; minimum yield

strength of 1380 MPa (200 ksi)) coupled with high fracture toughness in order to

meet the requirement of minimum weight while ensuring high reliability.

7. Etched Carnelian beads: are a type of ancient decorative beads made from carnel-

ian with an etched design in white. They were made according to a technique of

alkaline-etching developed by the Harappans during the 3rd millennium BCE and

were widely disperced from China in the east to Greece in the west.

8. Fortified Cabin, is a car designing technique by TATA Motors such that the high-

strength steel structure absorbs impact energy and protects the passenger during an

unfortunate collision. Tata Nexon has the fortified cabin design for achieving full 5

star safety ratings.

22
9. Glass blowing: Rudimentary form of glass blowing from Indian subcontinent is at-

tested earlier than Western Asian counterparts(where it is attested not earlier than

1st century BCE) in the form of Indo-Pacific beads which uses glass blowing to

make cavity before being subjected to tube drawn technique for bead making dated

more than 2500 BP. Beads are made by attaching molten glass gather to the end of

a blowpipe, a bubble is then blown into the gather. The glass blown vessels were

rarely attested and were imported commodity in 1st millennium CE though.

10. Iron pillar of Delhi: The world's first iron pillar was the Iron pillar of Delhi—erected

at the time of Chandragupta II Vikramaditya (375–413). The pillar has attracted at-

tention of archaeologists and materials scientists and has been called "a testament

to the skill of ancient Indian blacksmiths" because of its high resistance to corro-

sion.

11. Lost-wax casting: Metal casting by the Indus Valley civilization began around 3500

BC in the Mohenjodaro area, which produced one of the earliest known examples

of lost-wax casting, an Indian bronze figurine named the "dancing girl" that dates

back nearly 5,000 years to the Harappan period (c. 3300–1300 BC). Other exam-

ples include the buffalo, bull and dog found at Mohenjodaro and Harappa, two cop-

per figures found at the Harappan site Lothal in the district of Ahmedabad of Guja-

rat, and likely a covered cart with wheels missing and a complete cart with a driver

found at Chanhudaro.

12. Lost wax Casting: It is the process by which a duplicate metal sculpture (often sil-

ver, gold, brass or bronze) is cast from an original sculpture. Intricate works can be

achieved by this method.The oldest known example of this technique is a 6,000-

23
 year old amulet from the Indus Valley Civilization. * Seamless celestial globe: Con-

sidered one of the most remarkable feats in metallurgy, it was invented in India in

between 1589 and 1590 CE. Before they were rediscovered in the 1980s, it was

believed by modern metallurgists to be technically impossible to produce metal

globes without any seams, even with modern technology.

13. HIsarna a new process for production of steel, one it says "results in enormous ef-

ficiency gains" and reduces energy use and carbon dioxide emissions by a fifth of

that in the conventional blast furnace route.It's IP belongs to TATA Steel.

14. Stoneware: Earliest stonewares, predecessors of porcelain have been recorded at In-

dus Valley Civilization sites of Harappa and Mohenjo Daro, they were used for

making stoneware bangles.

15. Jackal steel is an advanced grade high strength low alloy steel, The technology of

Jackal steel has been passed on to Steel Authority of India Limited (SAIL) and

MIDHANI for its bulk production.

16. 1200 kV UHDVC Transformer, world's first ultra high voltage ac 1200kV trans-

former through in-house R&D by BHEL in 2011.

17. Tube drawn technology: Indians used tube drawn technology for glass bead manu-

facturing which was first developed in the 2nd century BCE.

18. Tumble polishing: Indians innvoted polishing method in the 10th century BCE for

mass production of polished stone beads.

19. Wootz steel: Wootz steel is an ultra-high carbon steel and the first form of crucible

steel manufactured by the applications and use of nanomaterials in its microstruc-

ture and is characterized by its ultra-high carbon content exhibiting properties such

24
 as super plasticity and high impact hardness. Archaeological and Tamil lan-

guage literary evidence suggests that this manufacturing process was already in ex-

istence in South India well before the common era, with wootz steel exported from

the Chera dynasty and called Seric Iron in Rome, and later known as Damascus

steel in Europe. Reproduction research is undertaken by scientists Dr. Oleg Sherby

and Dr. Jeff Wadsworth and the Lawrence Livermore National Laboratory have all

attempted to create steels with characteristics similar to Wootz, but without success.

J.D Verhoeven and Al Pendray attained some success in the reconstruction methods

of production, proved the role of impurities of ore in the pattern creation, and re-

produced Wootz steel with patterns microscopically and visually identical to one of

the ancient blade patterns.

2.9 Music

1. Musical Notation: Samaveda text (1200 BC – 1000 BC) contains notated melodies,

and these are probably the world's oldest surviving ones.

2.10 Metrology

1. Crescograph: The crescograph, a device for measuring growth in plants, was in-

vented in the early 20th century by the Bengali scientist Sir Jagadish Chandra Bose.

2. Incense clock: The incense clock is a timekeeping device used to measure minutes,

hours, or days, incense clocks were commonly used at homes and temples in dy-

nastic times. Although popularly associated with China the incense clock is be-

lieved to have originated in India, at least in its fundamental form if not func-

tion. Early incense clocks found in China between the 6th and 8th centuries CE—

25
 the period it appeared in China all seem to have Devanāgarī carvings on them in-

stead of Chinese seal characters. Incense itself was introduced to China from India

in the early centuries CE, along with the spread of Buddhism by travelling

monks. Edward Schafer asserts that incense clocks were probably an Indian inven-

tion, transmitted to China, which explains the Devanāgarī inscriptions on early in-

cense clocks found in China. Silvio Bedini on the other hand asserts that incense

clocks were derived in part from incense seals mentioned in Tantric Buddhist scrip-

tures, which first came to light in China after those scriptures from India were trans-

lated into Chinese, but holds that the time-telling function of the seal was incorpo-

rated by the Chinese.

3. Shearing Interferometer: Invented by M.V.R.K. Murty, a type of Lateral Shearing

Interferometer utilises a laser source for measuring refractive index.

2.11 Science and Technology

1. Fibonacci number The Fibonacci numbers were first described in Indian mathemat-

ics, as early as 200 BC in work by Pingala on enumerating possible patterns of

Sanskrit poetry formed from syllables of two lengths.

2. Bipyrazole Organic Crystals, the piezoelectric molecules developed by IISER sci-

entists recombine following mechanical fracture without any external intervention,

autonomously self-healing in milliseconds with crystallographic precision.

3. e-mode HEMT, In 2019 scientists from Bangalore have developed a highly reliable,

High Electron Mobility Transistor (HEMTs) that is a normally OFF device and can

switch currents up to 4A and operates at 600V. This first-ever indigenous HEMT

26
 device made from gallium nitride (GaN). Such transistors are called e-mode or en-

hancement mode transistors.

4. Nano Urea, the size of one nano urea liquid particle is 30 nanometre and compared

to the conventional granular urea it has about 10,000 times more surface area to

volume size. Due to the ultra-small size and surface properties, the nano urea liquid

gets absorbed by plants more effectively when sprayed on their leaves.Ramesh

Raliya of IFFCO is the inventor of nano urea.

5. Locomotive with Regenerative braking, BHEL has developed world's first ever DC

electric locomotive with a regenerative braking system through its in-house R&D

centre, First proposed by the Railway Ministry, the concept involving the energy-

efficient regeneration system was put into shape by BHEL in a 5,000 HP WAG-7

electric locomotive.

6. In2Se3 transistor developed by the Centre for Nano Science and Engineering

(CeNSE), a ferroelectric channel semiconductor FET, i.e., FeS-FET, whose gate-

triggered and polarization-induced resistive switching is then exploited to mimic an

artificial synapse.

7. Indian Ocean Dipole is an unusual pattern in the ocean-atmosphere system of the

equatorial Indian Ocean that influences the monsoon and can offset the adverse im-

pact of El Nino. It is typically characterized by cooler than normal eastern equatorial

Indian Ocean and warmer than normal west and unusual equatorial easterly winds.

It was discovered in Centre for Atmospheric And Oceanic Sciences, IISc. team led

by NH Saji in 1999.

27
8. Toe stirrup: The earliest known manifestation of the stirrup, which was a toe loop

that held the big toe was used in India in as early as 500 BCE or perhaps by

200 BCE according to other sources. This ancient stirrup consisted of a looped rope

for the big toe which was at the bottom of a saddle made of fibre or leather. Such a

configuration made it suitable for the warm climate of most of India where people

used to ride horses barefoot. A pair of megalithic double bent iron bars with curva-

ture at each end, excavated in Junapani in the central Indian state of Madhya Pra-

desh have been regarded as stirrups although they could as well be something

else. Buddhist carvings in the temples of Sanchi, Mathura and the Bhaja caves da-

ting back between the 1st and 2nd century BCE figure horsemen riding with elabo-

rate saddles with feet slipped under girths. Sir John Marshall described the Sanchi

relief as "the earliest example by some five centuries of the use of stirrups in any

part of the world".

9. In the 1st century CE horse riders in northern India, where winters are sometimes

long and cold, were recorded to have their booted feet attached to hooked stir-

rups. However the form, the conception of the primitive Indian stirrup spread west

and east, gradually evolving into the stirrup of today.

10. Solution combustion synthesis (SCS) was accidentally discovered in 1988 at Indian

Institute of Science (IISc), Bengaluru, India. SCS involves an exothermic redox

chemical reaction between an oxidizer like metal nitrate and a fuel in an aqueous

medium.

11. Three-stage nuclear power programme was formulated by Homi Bhabha, the well-

known physicist, in the 1950s to secure the country's long term energy

28
 independence, through the use of uranium and thorium reserves found in the mon-

azite sands of coastal regions of South India.

2.12 Textile and Material Production

1. Button: Ornamental buttons made from seashell were used in the Indus Valley civ-

ilisation for ornamental purposes by 2000 BCE. Some buttons were carved into ge-

ometric shapes and had holes pierced into them so that they could be attached to

clothing by using a thread. Ian McNeil (1990) holds that: "The button, in fact, was

originally used more as an ornament than as a fastening, the earliest known being

found at Mohenjo-daro in the Indus Valley. It is made of a curved shell and about

5000 years old."

2. Calico: Calico had originated in the subcontinent by the 11th century and found

mention in Indian literature, by the 12th-century writer Hemachandra. He has men-

tioned calico fabric prints done in a lotus design. The Indian textile merchants

traded in calico with the Africans by the 15th century and calico fabrics from Gu-

jarat appeared in Egypt. Trade with Europe followed from the 17th century on-

ward. Within India, calico originated in Kozhikode.

3. Carding devices: Historian of science Joseph Needham ascribes the invention of

bow-instruments used in textile technology to India. The earliest evidence for using

bow-instruments for carding comes from India (2nd century CE). These carding

devices, called kaman and dhunaki would loosen the texture of the fibre by the

means of a vibrating string.

29
4. Chintz: The origin of Chintz is from the printed all cotton fabric of calico in In-

dia. The origin of the word chintz itself is from the Hindi language word चित्र् (chitr),

which means an image.

5. Cashmere: The fibre cashmere fibre also known as pashm or pashmina for its use

in the handmade shawls of Kashmir, India. The woolen shawls made from wool in

Indian administered Kashmir find written mention between the 3rd century BCE

and the 11th century CE.

6. Cotton cultivation: Cotton was cultivated by the inhabitants of the Indus Valley civ-

ilisation by the 5th millennium BCE – 4th millennium BCE. The Indus cotton in-

dustry was well developed and some methods used in cotton spinning and fabrica-

tion continued to be practised till the modern industrialisation of India. Well before

the Common Era, the use of cotton textiles had spread from India to the Mediterra-

nean and beyond.

7. Single roller cotton gin: The Ajanta Caves of India yield evidence of a single roller

cotton gin in use by the 5th century. This cotton gin was used in India until innova-

tions were made in form of foot powered gins. The cotton gin was invented in India

as a mechanical device known as charkhi, more technically the "wooden-worm-

worked roller". This mechanical device was, in some parts of India, driven by water

power.

8. Modrant (Dye Fixing): Modrants for fixing dyes were used since Indus valley civ-

ilization, it exhibited Indian mastry over clothes dying which was unrivalled until

the invention of western chemical dyes.

30
9. Muslin: The fabric was named after the city where Europeans first encountered

it, Mosul, in what is now Iraq, but the fabric actually originated from Dhaka in what

is now Bangladesh. Roman document Periplus of Erythraean Sea describes Muslin

dated 59–62 CE being exported from Barygaza (Bharuch). In the 9th century,

an Arab merchant named Sulaiman makes note of the material's origin in Ben-

gal (known as Ruhml in Arabic).

10. Palampore: of Indian origin was imported to the western world—notable England

and Colonial America—from India. In 17th-century England these hand painted

cotton fabrics influenced native crewel work design. Shipping vessels from India

also took palampore to colonial America, where it was used in quilting.

11. Prayer flags: The Buddhist sūtras, written on cloth in India, were transmitted to

other regions of the world. These sutras, written on banners, were the origin of

prayer flags. Legend ascribes the origin of the prayer flag to the Shakyamuni Bud-

dha, whose prayers were written on battle flags used by the devas against their ad-

versaries, the asuras. The legend may have given the Indian bhikku a reason for car-

rying the 'heavenly' banner as a way of signyfying his commitment to ahimsa. This

knowledge was carried into Tibet by 800 CE, and the actual flags were introduced

no later than 1040 CE, where they were further modified. The Indian monk At-

isha (980–1054 CE) introduced the Indian practice of printing on cloth prayer flags

to Tibet.

12. Charkha (Spinning wheel): invented in India, between 500 and 1000 CE.

13. Super Cotton, BARC has developed super absorbent for removal of oily substance

from aqueous media.

31
 14. Tanning (leather): Ancient civilizations used leather for waterskins, bags, harnesses

and tack, boats, armour, quivers, scabbards, boots, and sandals. Tanning was being

carried out by the inhabitants of Mehrgarh in Ancient India between 7000 and

3300 BCE.

2.13 Wellbeing

1. Indian clubs: The Indian club which appeared in Europe during the 18th century

was used long by India's native soldiery before its introduction to Europe. During

the British Raj the British officers in India performed calisthenic exercises with

clubs to keep in physical condition. From Britain the use of club swinging spread

to the rest of the world.

2. Meditation: The oldest documented evidence of the practice of meditation are wall

arts in the Indian subcontinent from approximately 5,000 to 3,500 BCE, showing

people seated in meditative postures with half-closed eyes.

3. Shampoo: The word shampoo in English is derived from Hindustani chāmpo and

dates to 1762. A variety of herbs and their extracts were used as shampoos since

ancient times in India, evidence of early herbal shampoo have been discovered from

Indus Valley Civilization site of Banawali dated to 2750–2500 BCE. A very effec-

tive early shampoo was made by boiling Sapindus with dried Indian goose-

berry (aamla) and a few other herbs, using the strained extract. Sapindus, also

known as soapberries or soapnuts, is called Ksuna in ancient Indian texts and its

fruit pulp contain saponins, a natural surfactant. The extract of Ksuna, creates a

lather which Indian texts identify as phenaka , leaves the hair soft, shiny and man-

ageable. Other products used for hair cleansing were shikakai (Acacia concinna),

32
 soapnuts (Sapindus), hibiscus flowers, ritha (Sapindus mukorossi) and arappu (Al-

bizzia amara). Guru Nanak, the founding prophet and the first Guru of Sikhism,

made references to soapberry tree and soap in 16th century. Washing of hair and

body massage (champu) during a daily strip wash was an indulgence of early colo-

nial traders in India. When they returned to Europe, they introduced their newly

learnt habits, including the hair treatment they called shampoo.

4. Yoga: Yoga as a physical, mental, and spiritual practice originated in ancient India.

2.14 Weapons

1. ASMI, Indian submachine gun which means "pride, self respect and hard work",

was first showcased in January 2021, and developed over the course of four months

by Lieutenant Colonel Prasad Bansod. 3D printing was utilized to make parts of the

gun.

2. Catapult by Ajatashatru in Magadha, India.

3. Mysorean rockets: One of the first iron-cased and metal-cylinder rockets were de-

ployed by Tipu Sultan's army, ruler of the South Indian Kingdom of Mysore, and

that of his father Hyder Ali, in the 1780s. He successfully used these iron-cased

rockets against the larger forces of the British East India Company during the An-

glo-Mysore Wars. The Mysore Rockets of this period were much more advanced

than what the British had seen, chiefly because of the use of iron tubes for holding

the propellant; this enabled higher thrust and longer range for the missile (up to

2 km range). After Tipu's eventual defeat in the Fourth Anglo-Mysore War and the

capture of the Mysore iron rockets, they were influential in British rocket

33
 development, inspiring the Congreve rocket, and were soon put into use in the Na-

poleonic Wars.

4. Scythed chariot by Ajatashatru in Magadha, India.

2.14 Role of Technology in Banking Sector

Banking environment has become highly competitive today. To be able to

survive and grow in the changing market environment banks are going for the latest tech-

nologies, which is being perceived as an ‘enabling resource’ that can help in developing

learner and more flexible structure that can respond quickly to the dynamics of a fast chang-

ing market scenario. It is also viewed as an instrument of cost reduction and effective com-

munication with people and institutions associated with the banking business.

The Software Packages for Banking Applications in India had their begin-

nings in the middle of 80s, when the Banks started computerising the branches in a limited

manner. The early 90s saw the plummeting hardware prices and advent of cheap and inex-

pensive but high powered PC’s and Services and banks went in for what was called Total

Branch Automation (TBA) packages. The middle and late 90s witnessed the tornado of

financial reforms, deregulation globalisation etc. coupled with rapid revolution in commu-

nication technologies and evolution of novel concept of convergence of communication

technologies, like internet, mobile/cell phones etc. Technology has continuously played on

important role in the working of banking institutions and the services provided by them.

Safekeeping of public money, transfer of money, issuing drafts, exploring investment op-

portunities and lending drafts, exploring investment being provided.

34
 Information Technology enables sophisticated product development, better

market infrastructure, implementation of reliable techniques for control of risks and helps

the financial intermediaries to reach geographically distant and diversified markets. Inter-

net has significantly influenced delivery channels of the banks. Internet has emerged as an

important medium for delivery of banking products and services.

The customers can view the accounts; get account statements, transfer funds

and purchase drafts by just punching on few keys. The smart card’s i.e., cards with micro

processor chip have added new dimension to the scenario. An introduction of ‘Cyber Cash’

the exchange of cash takes place entirely through ‘Cyber-books’. Collection of Electricity

bills and telephone bills has become easy. The upgradeability and flexibility of internet

technology after unprecedented opportunities for the banks to reach out to its customers.

No doubt banking services have undergone drastic changes and so also the expectation of

customers from the banks has increased greater.

IT is increasingly moving from a back office function to a prime assistant in

increasing the value of a bank over time. IT does so by maximizing banks of pro-active

measures such as strengthening and standardising banks infrastructure in respect of secu-

rity, communication and networking, achieving inter branch connectivity, moving towards

Real Time gross settlement (RTGS) environment the forecasting of liquidity by building

real time databases, use of Magnetic Ink Character Recognition and Imaging technology

for cheque clearing to name a few. Indian banks are going for the retail banking in a big

way

35
 The key driver to charge has largely been the increasing sophistication in

technology and the growing popularity of the Internet. The shift from traditional banking

to e-banking is changing customer’s expectations.

E-banking made its debut in UK and USA 1920s. It becomes prominently

popular during 1960, through electronic funds transfer and credit cards. The concept of

web-based baking came into existence in Eutope and USA in the beginning of 1980.

In India e-banking is of recent origin. The traditional model for growth has

been through branch banking. Only in the early 1990s has there been a start in the non-

branch banking services. The new pribate sector banks and the foreign banks are handi-

capped by the lack of a strong branch network in comparison with the public sector banks.

In the absence of such networks, the market place has been the emergence of a lot of inno-

vative services by these players through direct distribution strategies of non-branch deliv-

ery. All these banks are using home banking as a key “pull’ factor to remove customers

away from the well entered public sector banks.

Many banks have modernized their services with the facilities of computer

and electronic equipments. The electronics revolution has made it possible to provide ease

and flexibility in banking operations to the benefit of the customer. The e-banking has made

the customer say good-bye to huge account registers and large paper bank accounts. The e-

banks, which may call as easy bank offers the following services to its customers:

The banking system is slowly shifting from the Traditional Banking towards

relationship banking. Traditionally the relationship between the bank and its customers has

been on a one-to-one level via the branch network. This was put into operation with clearing

36
and decision making responsibilities concentrated at the individual branch level. The head

office had responsibility for the overall clearing network, the size of the branch network

and the training of staff in the branch network. The bank monitored the organisation’s per-

formance and set the decision making parameters, but the information available to both

branch staff and their customers was limited to one geographical location.

The most visible impact of technology is reflected in the way the banks respond strate-

gically for making its effective use for efficient service delivery. This impact on service

quality can be summed up as below:

1. With automation, service no longer remains a marketing edge with the large banks

only. Small and relatively new banks with limited network of branches become bet-

ter placed to compete with the established banks, by integrating IT in their opera-

tions.

2. The technology has commoditising some of the financial services. Therefore the

banks cannot take a lifetime relationship with the customers as granted and they

have to work continuously to foster this relationship and retain customer loyalty.

3. The technology on one hand serves as a powerful tool for customer servicing, on

the other hand, it itself results in depersonalising of the banking services. This has

an adverse effect on relationship banking. A decade of computerization can proba-

bly never substitute a simple or a warm handshake.

4. In order to reduce service delivery cost, banks need to automate routine customer

inquiries through self-service channels. To do this they need to invest in call centers,

kiosks, ATM’s and Internet Banking today require IT infrastructure integrated with

their business strategy to be customer centric.

37
 Data being stored in the computers, is now being displayed when required

on through internet banking mobile banking, ATM’s etc. all this has given rise to the issues

of privacy and confidentially of data are:

1. The data processing capabilities of the computer, particularly the rapid throughput,

integration, and retrieval capabilities, give rise to doubts in the minds of individuals

as to whether the privacy of the individuals is being eroded.

2. So long as the individual data items are available only to those directly concerned,

everything seems to be in proper place, but the incidence of data being cross refer-

enced to create detailed individual dossiers gives rise to privacy problems.

3. Customers feel threatened about the inadequacy of privacy being maintained by the

banks with regard to their transactions and link at computerised systems with sus-

picion.

Aside from any constitutional aspect, many nations deem privacy to be a

subject of human right and consider it to be the responsibility of those who concerned with

computer data processing for ensuring that the computer use does not revolve to the stage

where different data about people can be collected, integrated and retrieved quickly. An-

other important responsibility is to ensure the data is used only for the purpose intended.

Summary – Here in the chapter- 2 we have studied about the various inven-

tions that were developed in Indian by Indian scientist and the various kind of technologies

that was developed by Indians in India and outside the india.

In the next chapter – 3 we will study about the a relation between modern

technology and businesses.

38
 CHAPTER - 3

MODERN TECHNOLOGY AND BUSINESS

3.1 Business

Business is a process whereby an individual/group of people offering or sells

goods or services for the aim of gaining profit. Business starts with the desire of humans to

meet the requirements that are impossible by themselves. Therefore, comes the desire to

interact and help each other. In development, humans have a variety of needs and interests

that continue to grow. So it is not enough to give and take, humans, try a system that brings

benefits to fulfil the instincts of individuals to prosper themselves. Business becomes a

structured system for getting welfare in life (Juan, 1991). High profits in any business ob-

tained when there are cooperation and proper organised management, so the business is

now it has a close relationship with the company, which is an organisation that runs to get

benefits for its members. The company structured in a structured manner, and there is a

clear division of labour within a company. Regulators in the company are known as man-

agers, and the implementers are known as employees (Nikoloski, 2014).

3.2 Electronic Business (E-Commerce)

E-business is an electronic media-based business system like radio and tel-

evision. Since the ebusiness system is better known by the wider community when the

internet employed as an electronic media, the broad community assumes that e-business is

an internet-based business as its medium. The development of e-business continues to

change with the availability of electronic devices, like mobile phones and tablets. On cell-

phone or tablet systems, internet access is wireless, and this supports the ameliorate of new

39
protocols such as the Wireless Application Protocol (WAP), which is an internet applica-

tion without using a cable so that by using a cellphone or tablet, users can access the internet

in when and wherever there available(Oetomo, 2001 & Shaqiri, 2015).

According to Mohan Sawhney(Indrajit, 2002, Rudianto, & Zainuddin,

2007), e-business is: "the use of electronic networks and associated technologies to enable,

improve, enhance, transform, or invent a business process or business system to create su-

perior value for current potential customers. "In principle, the definition clearly shows how

electronic and digital technology function as a medium for achieving business processes

and systems (exchanges of goods and services) that are far better compared to conventional

methods, especially seen from the benefits that can be felt by those concerned (stakehold-

ers).

3.3 Changes in Technology

Technology is advancing very fast and diverse; the existence of IT now has

entered various aspects of life. Technology provides a smoother, more efficient, and more

comfortable 151 experience. Currently, almost all people use technology in their daily life

in ranging from simple to complex. Technology has a very broader area, so it is not com-

fortable to be explicitly categorised. In essence, technological change can be grouped in

four fields, including the Computer sector, Transportation and Communication Sector, En-

ergy and natural resources, and New production process fields. Technological advancement

in the computer sector influences the company's internal performance, especially in admin-

istration. Database systems can easily classify company data in detail and accurately. Even

this system can also be used for employee absence.

40
 In general, the database system plays an essential role in the collection of

company inventory. The sophistication of the computer that previous doubted would de-

crease the number of employed people now actually applies vice versa, such as increasing

employment opportunities because most of the large companies’ present time needs com-

puter experts in the fields of data collection, informatics (programming), and of course

computer technicians. It is because of the importance of the presence of technological re-

sources that support the company's works(Issa-salwe, Ahmed, Aloufi, & Kabir, 2010) The

capability of computers to handle complex problems today is undeniably beneficial for the

performance of the company’s employees. Processing various variables that takes a long

time to solve manually now is very easy and fast with a computer.

Also, supported by the progress of various analytical applications that are

very diverse. Many choices for companies to use in which applications are suitable for

company needs. Secure storage and back up is also a plus. Now no longer need to worry

about missing data provided; the computer has no errors. Advancement of technology in

the field of transportation facilitates the movement of goods flow in a company. Various

services are available both from the land, sea, and most express, like airlines. The transpor-

tation budget now is one of the things that take into consideration given the consequences

of funding and speed that are rising equally. Land transportation has the advantage of

cheaper funds. Sea transportation allows interisland services and large amounts of capacity.

Air transportation is flexibility and speed, but not for the size of the transport capacity and

cost. Communication is the most talked-about field, easy to access due to the expansion of

the internet network, shifted the existence of tools such as facsimile, telegram, or post.

41
 E-mail facilities that are easy, inexpensive, and fun with a variety of exciting

features now become the foremost choice. The internet is also a powerful weapon for mar-

keting, given the increasingly increasing public consumption of the internet. Networks also

facilitate communication between employees and the board of directors. Informal relation-

ships now are more needed because they are considered to have a significant impact on

strengthening relations. Aside from the internet, TV and radio remain the most significant

focus of public consumption that companies use mainly and advertise. Increasingly diverse

and quality TV programs now adding certain parties' interests. For instance, Automotive

events initiated by transportation companies now adorned many screens. The possibility of

exchanging resources within one another is minimal, but technological development makes

it possible, even though sometimes it expensive. The issues of environmental pollution are

not friendly from the excessive use of technology. It is undeniable; many technological

tools made from inorganic (chemical) than natural ingredients (organic). Carbon emissions

are enormous, particularly in sophisticated equipment such as computers, motor vehicles,

and air conditioners.

Nevertheless, present days, scientists are starting to find solutions for the

use of environmentally friendly technology initiated by advanced companies, mainly from

Japan and other parties of the world. Therefore this paper intends to determine the effect of

information technology on the global business and economic performance, to know the role

of technology in business and companies. The following section of this paper is the re-

searcher explains the methodology applied in this paper, section 3 consist the main results

and discussion about the impacts of technology on business, Utilization of Information

Technology in Business, The Role of Technology in the Company/Organization, and the

42
Impact of Technology Change on Economic Transformation and the last section is the con-

clusion and recommendation based on data obtained in findings.

3.4 The Utilization of Information Technology in Business

Many companies enjoying the presence of IT, the global business, the bank-

ing sector, education, and health, these assist people in various activities and certainly ame-

liorate the standard of living, while the description in this field is the application of Infor-

mation Technology incorporate needs time, and cost efficiency causes each business actor

feels the need to use information technology in the work environment. One of its uses is in

business. Information Technology is used for electronic trading.

E-commerce is part of e-business, where the scope of e-business broader,

not just for business but also includes collaborating with business partners, customer ser-

vice, job vacancies. Besides, e-business also needs a technology database, e-mail, and other

forms of non-computer technology, such as goods delivery systems and payment instru-

ments for ebusiness. E-business was first introduced in 1994 when electronic banners first

utilised for promotional and advertising purposes on a website. Examples of popular e-

commerce in the world are Amazon, Alibaba and Apple

3.5 The Role of Technology in the Company/Organization

Technology is significant in the development of any company and organi-

sation; it plays a substantial role in boosting the economy of a particular company, the

following are fundamental roles of information technology in a company such as

1. Operational functions make the organisation structure more streamlined, and it”s

functions are taken over by information technology. Due to the nature of use that

43
 spreads throughout the organisation's functions, units related to information tech-

nology management carry out it”s functions as supporting agencies where infor-

mation technology is considered as a secure infrastructure.

2. The Monitoring and control function, imply that the existence of information tech-

nology is an inseparable part of the activity at the managerial level embedded in

each manager's function, so that the organizational structure of the unit associated

with it must be able to have a span of control or peer relationship that allows for

effective interaction with managers in related companies.

3. The Planning and decision function, as an elevates information technology to a

more strategic role because of its existence as an enabler of a company's business

plan and is a knowledge generator for company leaders who are confronted with

reality to make some critical decisions every day. It is not uncommon for companies

to ultimately choose to place the information technology unit as part of the corpo-

rate planning and development function because of the strategic functions men-

tioned above.

4. The function of Communication, in principle, included in firm infrastructure in the

era of modern organisations where information technology placed as a medium for

individual companies in communicating, collaborating, cooperating, and interact-

ing.

5. Inter organisational function is a role that is unique because it triggered by the spirit

of globalization that forces companies to collaborate or establish partnerships with

other companies.

44
 The concept of a strategic partnership or information technology-based part-

nerships, such as the implementation of Supply Chain Management or Enterprise Resource

Planning, makes the company make many significant breakthroughs in designing the or-

ganisational structure of its information technology unit. Indeed, it is not uncommon to find

companies that tend to outsource several business processes related to information technol-

ogy management to other parties for the smooth running of their business. The type and

function of the role of information technology directly affect the design or structure of the

company's organisational structure; and the organisational structure of departments, divi-

sions, or units related to information systems, information technology, and information

management. Many entrepreneurs nowadays are using Information Technology.

The need for time and cost efficiency influence every business sector to feel

the requirement of applying information technology in the activities. Application of Infor-

mation and Technology causes changes in work habits. For example, the application of

Enterprise Resources Planning (ERP). ERP is a software application that includes a man-

agement system in a company. Also, the application of ICT in Banking used in global In-

formation and Communication Technology in transactions through the internet or known

as Internet Banking. Some transactions that can be done through Internet Banking include

money transfers, checking balances, bookkeeping, bill payments, and account information.

3.6 Effect and Role of Information Technology in Business

In recent days there is an explosion of information; information is vital for

operations management activities. Many information outcomes in some companies being

carried out by human being and partly carried out by machines; as a result, the idea arises

45
to overcome the problem of humans and machines having to form a joint system with the

results obtained from dialogue and interaction between machines (computers) and human

processors. Information technology is one of the things needed in global business develop-

ment. Indeed, we can say that Information Technology (IT) is a critical factor for the de-

velopment of global business nowadays. Everywhere already using IT inside process the

business activities.

That is clear because IT makes it easy for business people to carry out their

business activities. The reason companies implement IT in their companies is to get closer

to consumers because of the ability of IT to bring distance and time so that the company's

products are near to consumers. So this facilitates the business to grow, this period compa-

nies that do not use IT, we can say is waiting the day of the company bankrupt. Doing

business by using information technology creates a broad open market opportunity. Con-

ducting business through the internet makes it easier to promote products, find consumers,

customers through advertisements.

There are factors that influence business development, such as: increasing

business complexity which is accelerated by the influence of the international economy,

global business competition, IT advancement and growth, time utilization, social consider-

ations and information technology capacity which are caused by information, service needs,

interaction capacity in computer network, data access speed capacity. In the field of busi-

ness, both trading goods and computer services, the role of information technology is es-

sential for routine, periodic, and incidental transaction activities and offers a wealth of in-

formation faster and accurately.

46
 The influence and role of IT on the development of online business include:

1. IT facilitates the dissemination of information can develop online business in various

regions of the world. such as e-commerce used by companies selling books, music, videos,

games and electronic goods. The experts in the IT field also assist in expanding and grow-

ing online businesses on the internet.

A significant number of experts in the IT field lead to the improvement of

many online business systems. Online businesses are very vulnerable to credit card tapping,

which causes consumers' disinterest in this business. Nevertheless, with the amelioration

of the system, the confidentiality of consumer identity, the product again the trust to buy

needs they want online. 3. Online businesses are popular because of the flexibility. Seller

does not need to be in the shop to wait for customers, but with computers and connectivity,

the seller can sell the products throughout the country and outside. Purchasers do not have

to tire out to buy their needs, because by only buying online, the purchased goods c deliv-

ered directly to his address.

3.7 The Impact of Technology Change on Economic Transformation

Technological advancement not only motivates economic transformation

but also somewhat the result of technological advancement is social transformation. In

many studies, it elaborated those technological changes affect effectiveness and efficiency.

So, this is proven because, in many cases, when technology advance, the higher level of

sophistication happens. The advancement of technology is not as fast as the advancement

of information technology (IT). Because of the rapid advancement of information technol-

ogy, it is inevitably to spur the development of other technologies. Technology continues

47
to change with the process of globalisation, shift towards the transformation of the econ-

omy known as the Knowledge-Based Society (KBS). The further stage of economic devel-

opment based on natural resources towards science-based development. In this, human re-

sources are the result of the growth of education is a factor that determines in public policy

to ameliorate the welfare and quality of life of a country.

Some literature provides a simple meaning of KBS is an economic estab-

lishment with a knowledge or information base for the production, distribution, application

and consumption processes. In some unique sense, KBS is the outcome of a technological

revolution in the previous era. Three aspects of change are essential in the process of im-

plementing KBS. First, the factors of production that significantly affect economic growth

change in principle. Innovation and accumulation of knowledge are the main factors of

production. Second, the production equipment, which also affects economic growth,

changes in principle. Third, the primary sectors that drive economic growth experience

change qualitatively. There are four pillars to support KBS, such as

1. Education System, which 155 guarantees that the public can utilize knowledge

widely; Innovation system, which is enable to bring researchers and business people

to apply commercially the results of research and technology;

2. Infrastructure information Society, guaranteeing that the community can effectively

access information and communication and

3. Institutional and Economic Framework, guaranteed macroeconomic environment

stability, competition, labour employment and social security (Purbo, 2004, 2008).

Economically, the advancement of information technology influences the increase

of productivity, and It facilitates to accomplish many works efficiently due to

48
 effective utilisation of resources, In the 1980s developing countries aggressively

promoting the vitality of their natural resources by utilizing information technol-

ogy.

These activities were successful and then motivated to increase the invest-

ment in developing countries which subsequently encouraged local capacity building, as-

sist determination of government regulations, policies, and ameliorated the effectiveness

of technology implementation, because the countries interested in investing due to promo-

tion also bring technology from their home countries to developing countries.

To accelerate technological change that greatly facilitates development in

China, since the 1980s the Chinese government tried to stimulate and encourage the influ-

ence of technological advancement by providing various facilities and aids for domestic

companies to conduct Research and Development in various fields (Zen and Qiang,

2007.4). Outcomes of technological advancement influence the execution of commercial

shifting by attaining efficiency and effectiveness in economic activities. The technological

advancement condition also eventually created a new mindset for the society, particularly

in urban areas, which lead to a shift in values and culture as a form of social transformation

in the life of the community. Improving the quality of life humans to carry out various

activities required by optimising the resources they have. Information Technology, whose

development is fast indirectly requires humans to use it in its activities.

3.8 Small Businesses Are Closing the Digital Gap With Larger Firms

Investing in some advanced technologies, such as artificial intelligence and

the Internet of Things, tends to require the financial resources and expertise of large

49
companies. However, growing high-speed internet connectivity and shrinking data costs

are opening digital opportunities for many small business owners and sole proprietors in

India. More than 86 percent of the small firms surveyed believe digital has created new

roles in the company. As noted earlier, a firm’s size as measured by revenue was not pre-

dictive of its overall level of digitisation across our sample of 664 businesses. In some

technology areas where agility is key to adoption, small firms have even surpassed their

larger counterparts. Digital payments are one example. Small businesses are ahead of large

companies in accepting digital payments and are paving the way for increased adoption of

digital as a replacement for cash payments. In our survey,

94 percent of small firms said they accept payment by debit or credit card,

compared with only 79 percent of big firms; for digital wallets, the figures were 78 percent

versus 49 percent. Small companies also are more willing to use digital technologies such

as video conferencing and chat to support their customers. Where they are behind large

companies, the gap is often not very large. For example, our survey found that 70 percent

of small firms have built their own websites to reach clients, compared with 82 percent of

large firms, and are just about as likely as those big companies to have optimised their

websites for mobile devices. Small firms are less likely than big firms to buy display ads

on the web (37 percent versus 66 percent), but they are ahead of big companies in connect-

ing with customers via social media, and more likely to use search engine optimisation to

make themselves easier to find. More than 60 percent of the small firms surveyed use

LinkedIn to hire talent, and about half believe that most of their employees today need to

have basic digital skills. The absence of those skills may explain why 27 percent of the

small firms surveyed still outsource some or all their digital jobs and responsibilities.

50
 While only 51 percent of smaller firms said they “extensively” sell goods

and services via their websites (compared with 73 percent of big businesses), small busi-

nesses use e-commerce platforms and other digital sales channels just as much as large

firms and are equally likely to receive orders through digital means like WhatsApp.

The uneven digitisation of Indian businesses is both an opportunity and a

challenge. As digital strategy, organisation, and capabilities become key points of differ-

entiation, a new generation of leaders is emerging that appears to be pulling ahead of their

peers. These leaders in the top quartile of our India Firm Digitisation Index progressed by

fully committing to invest capital, acquire expertise, and build every part of their businesses

around digital technology. Companies that are behind risk losing out as digital raises

productivity and boosts innovation—and revenue. Yet nothing is set in stone. While some

companies lead, their peers have myriad ways to catch up, and even the leaders have con-

siderable room to harness the power of the new technologies more fully. As all companies

wrestle with the imperatives of the digital age, the potential benefits are coming into view.

In the next chapter, we look at how big those benefits could be by sizing the value of digital

applications in a number of key sectors.

3.9 Digital Strategy

Leading companies adopt strategies that cause them to stand out from their peers in sev-

eral ways. They centre their strategies on digital, let digital technologies shape how they

engage with their customers, and invest more heavily in digital than their peers. Top-quar-

tile firms are 30 percent more likely than bottom-quartile firms to say they fully integrate

their digital and overall strategies. They are 2.3 times more likely to sell their products

51
through e-commerce platforms. Digital leaders also are more adaptive to unexpected cir-

cumstances. They are much more likely to have proactive strategies to deal with digital

disruptions; leaders are about 60 percent more likely than laggard firms to plan for a dis-

ruption to their supply chains or products and services, and about 3.5 times more likely to

prepare for a disruption to their operations or distribution channels. Top-quartile firms are

3.5 times more likely than bottom-quartile firms to say that digital disruptions led them to

change their core operations. Indeed, this is a particularly distinctive trait of digital leaders:

53 percent of firms who report having done this have top-quartile digitisation scores. As

part of their overall strategies, digital leaders also make digital investment a priority. Top-

quartile firms are 5.5 times more likely than bottom-quartile firms to outspend their peers

on digital initiatives, and 40 percent more likely to consider digital a top priority for in-

vestment.

3.10 Digital Organisation

Many more digital leaders than laggards have a single business unit that

manages and coordinates digital initiatives for the entire company. Top-quartile firms are

14.5 times more likely than bottom-quartile firms to centralise digital management, and

five times more likely to have a stand-alone, properly staffed analytics team. Companies

we identify as digital leaders tend to have stronger support from their senior executives.

Top-quartile firms are 70 percent more likely than bottom-quartile firms to say their CEO

is “supportive and directly engaged” in digital initiatives.

3.11 Digital Capabilities

Almost by definition, digital leaders are digital adopters, and they use digi-

tal productivity tools far more often than laggards. Top-quartile firms are 2.6 times more

52
likely than bottom-quartile firms to use customer relationship management software, for

example, and 2.5 times more likely to coordinate the management of their core business

operations by using an enterprise resource planning system. Digital leaders also optimise

their digital marketing. Our survey shows that top-quartile companies are 2.3 times more

likely than bottom-quartile firms to use search engine optimisation, and 2.7 times more

likely to use social media for marketing. While leaders and laggards are similar in some

areas for example, more than 90 percent of each use internet banking and around 75 percent

sell through their own websites significant differences exist in other areas.

Less than 2 percent of laggards make use of Internet of Things– enabled

products, compared with 51 percent of leading firms; that is another example of how lead-

ing companies are quicker to employ new digital technology, as is the fact that two-thirds

of leaders but only one-fourth of laggards have optimised their websites for mobile devices.

The difference between firms on the digital frontier and those far behind is not just about

whether firms invest in information technology most companies do. Rather, the gap reflects

the degree to which digital assets are used, how they are used, and the extent to which firms

digitise their workplaces.

Top-performing firms see going digital as an opportunity to reinvent core

processes, create new business models, and put customers at the centre of everything.

Highly digitised firms also can rewrite the rules of competition by disrupting intermediar-

ies, breaking apart value chains, and exploiting network effects and low marginal costs to

gain hyperscale. When digitisation reaches critical mass across industries, it can spark

fierce price competition, shifting profits, and competitive churn in commercial

53
ecosystems.80 Digitally enabled innovations can have powerful network effects with “win-

ner-take-most” dynamics, although India may not yet be on the edge of such an economy-

altering revolution.

3.12 Financial Services and Digital Payments

We size the potential economic value from digital initiatives such retail e-

payments, flow-based lending, and advanced credit underwriting to micro, small, and me-

dium-size enterprises at $130 billion to $170 billion in 2025. Fintech innovation is growing

exponentially in India. Firms made early gains in digital payments as the number of trans-

actions in India payments made with digital wallets, mobile apps, and net banking grew

tenfold in four years, to 2.03 billion a month in 2017–2018 from 202 million a month in

2013–14.88 In addition, the United Payments Interface system processed another 3.71 bil-

lion digital interbank transactions worth more than $68 billion during 2018.89 A large ma-

jority of Indians 77.9 percent, behind only China say they use at least one nontraditional

financial services firm.90 Some of these digital-first banks are reaching significant scale.

Paytm, which is backed by the Chinese e-commerce and technology con-

glomerate Alibaba, has become India’s largest mobile payment and commerce platform,

with more than 300 million mobile wallet users and six million merchants.91 Based on

these trends and cross-country benchmarks, we estimate that 55 percent to 60 percent of

the value of all India’s retail transactions will be noncash payments by 2025, making sav-

ings of 0.7 to 0.9 percent of GDP possible through better cash management, time saved,

and lower interest forgone. Exponential growth in digital payments and associated data

create new opportunities in the way credit is assessed and delivered. India’s businesses,

54
large and small, are poised to generate a substantial amount of data, such as historical rec-

ords of revenue, costs of doing business, and market growth. This data on money flows can

be used for advanced credit underwriting and could enable banks to engage in so-called

flow-based lending to businesses that until now have been too small to efficiently assess

their credit risk. The efficiency gained from digital payments as well as the value unlocked

by flow-based lending could help India realise economic value between $130 billion to

$170 billion in 2025, assuming 60 to 80 percent of the unmet credit needs of micro, small,

and medium-size enterprises is fulfilled through such products.

3.13 Agriculture

Digital initiatives in farmer financing and insurance, precision agriculture,

and online agricultural trading may help India’s farm sector realise $50 billion to $65 bil-

lion of additional value in 2025. We discuss agriculture in more depth in the next chapter.

Farmers, like many small businesses, can benefit by finding cheaper credit in a data-driven

environment. As a class, they rely on noninstitutional sources of capital, such as village

moneylenders, for more than 30 percent of their credit; interest on noninstitutional borrow-

ing is ten percentage points higher on average than bank rates.92 Digital applications that

use online payment history, receipts and credit records, invoices from input companies,

digitised land records that establish titling of collateral, and imaging solutions that establish

crop status can all help improve access and reduce the cost of crop finance and insurance.

Better access to capital would make it easier for farmers to acquire and use equipment and

services that raise productivity, such as networked satellites and terrestrial sensors and

probes, which capture and analyse real-time data on weather, soil conditions, ani-

mal health, and other variables. Farmers could use the information to determine how much

55
fertiliser, pesticide, and other inputs are needed to maximise yields. Pilot programs em-

ploying this precision agriculture have been found to increase productivity by 10 to 15 per-

cent or more.

Farmers (and consumers) can also benefit by gaining digital access to mar-

kets, offering better prices for produce. Inadequate transportation and poor communication

currently compel many farmers to sell their crops at the nearest wholesale market, or

mandi, with no choice but to accept the prices at that location. Digital technology gives

them access to buyers across the country, often eliciting higher prices. Online trading in-

creased farmers’ revenue by 13 percent in a pilot project run by the Karnataka state gov-

ernment and the National Commodity and Derivatives Exchange spot market.94 Digitisa-

tion also could address the issue of food lost to spoilage while being stored or transported.

More than $15 billion worth of agricultural goods were lost in this way in 2013.95 E-ne-

gotiable warehousing receipts may eventually let farmers sell to buyers in other parts of

India without having to transport their produce or livestock. Installing internet-connected

sensors in warehouses can warn of conditions that result in spoilage.

3.14 Education

Using digital tools and technologies to teach and train 40 to 60 percent of

India’s nearly 70 million new labour force entrants could add $20 billion to $50 billion of

economic value in 2025, according to our estimates. Over the years, India has invested

heavily to improve access to education, and this has resulted in increased enrolment. Ele-

mentary education has become nearly universal, with a gross enrolment ratio of 96.9 per-

cent in 2015–16.96 Trends also show significant improvement at the secondary and higher

56
secondary levels: from 2010–11 to 2015–16, the gross enrolment ratio for secondary

schools increased from 65 percent to 80.1 percent, and from 39.3 percent to 56.2 percent

for higher secondary. The next step is to enrol the more than six million children who do

not go to school and to monitor and address the high rates of absenteeism among those who

are enrolled. Digital content and channels provide a powerful opportunity to bridge remain-

ing gaps in access and improve learning outcomes. Interactive and gamified digital content

that is tailored for individual students can improve retention and learning outcomes by

making instruction more effective. Each additional year of schooling is estimated to result

in about 8 percent higher wages.

3.15 Retail and E-Commerce

India’s retail sector is poised for extensive digitisation, with e-commerce at

the forefront. We describe this transformation in more detail in the following chapter. By

our estimates, e-commerce has the potential to create economic value of $25 billion to

$35 billion in 2025 in India’s retail sector, with the share of e-commerce gross merchandise

value rising from 5 percent of trade output (wholesale and retail) to about 15 percent by

2025, in line with countries such as China in 2015.

Propelled by the explosive growth of smartphone ownership, the number of

online shoppers in India more than quadrupled in four years, from 40 million in 2013 to

176.8 million in 2017, when online sales revenue surpassed $20 billion.98 A McKinsey

survey of consumer sentiment in 2019 indicates that 79 percent of urban Indians already

buy household supplies online, making it the second most heavily used buying channel. In

a global sample of 15 countries, India is the most likely to increase the frequency of using

57
the internet to buy household supplies, either somewhat or significantly. Access to the in-

ternet is a precondition for the rise of e-commerce. About 60 to 65 percent of Indians are

likely to have internet access by 2025, we estimate. Data from other countries, such as

China, indicate that when half or more of a nation’s populace has internet access, e-com-

merce accounts for at least 15 percent of overall trade. More than half of India’s e-com-

merce growth is coming from medium-size and smaller urban areas, often referred to as

Tier 2 and Tier 3 cities.

Consumers in these cities do not have retail shops comparable to those of

large metro areas, so online stores expand their choice and increase convenience. E-com-

merce platforms will impact India’s retail sector throughout the value chain, and not just

the consumer end. Large manufacturers, small and medium-size vendors, wholesale and

retail trade channels, and e-commerce companies constitute the supply chain. Customers

expect faster delivery and better service, while businesses need to lower the cost of carrying

inventory and reliably delivering to more locations. A digital supply chain can address

these issues. Leading consumer goods and e-commerce companies in India are already

digitising their supply chains—and reaping the benefits. Amazon runs its own end-to-end

digital platform with warehouses and fulfilment centres across India and offers its digital

supply chain service to more than 300,000 sellers on its platform, many of them small and

mediumsize enterprises.99 The economic value in reduced inventory costs associated with

digitisation is reflected in the logistics and supply chain opportunity.

3.16 Logistics and Efficient Transportation

Digital technologies can raise efficiencies in India’s sprawling logistics and

58
transportation systems, as we describe in more detail in the next chapter. We estimate that

digitised applications in logistics, supply chains, and passenger transportation can unlock

value ranging from $25 billion to $30 billion in 2025. India currently spends 13 to 14 per-

cent of its GDP on logistics, compared to 9 percent for the United States and 8 percent for

Europe, according to McKinsey estimates. Multiple factors explain high costs in India,

including inadequate infrastructure and repetitive and cumbersome procedures. In 2018,

India ranked 44th out of 160 countries on the World Bank’s Logistics Performance Index,

with a score of 3.18 out of 5.100 Poor performance on timeliness (shipments reaching their

destinations by their scheduled or expected delivery times) and inefficient clearance pro-

cesses, including customs, dragged down India’s overall score.

The government of India is putting together an integrated logistics portal

that links shippers, carriers, and customers to facilitate trade and collaboration. The plat-

form is envisioned to be a single-window clearance system that will allow shippers to find

the optimal means of transporting goods and the right warehousing and packaging facility

(including cold chain) while also helping them to initiate and complete the associated doc-

umentation process. Efficient logistics coupled with digitised supply chains (discussed ear-

lier in the section on the retail sector) can drive significant savings in inventory costs. The

economic value sized for this sector includes the potential impact of 60 to 80 percent of the

output of India’s industrial sector being connected through digitally enabled supply chains

by 2025, with consequent reductions in inventory and improved ability to match customer

needs with stock at retail outlets. Online platforms for passenger transportation (for exam-

ple, hired rides for taxis) also form part of the opportunity.

59
3.17 Energy

India is the fourth-largest consumer of electricity and the third-largest pro-

ducer of electricity in the world. The efficiencies promised by digital technology in India’s

power sector could realise $10 billion to $15 billion of savings by 2025, according to our

estimates. Installing digital meters for all households while also digitising and automating

the power grid could both improve the reliability of service and bring down aggregate tech-

nical and commercial losses, a combination of energy lost to equipment malfunction and

theft as well as revenue lost to inefficient billing and collection. Linking digital meters to

the internet to enable bidirectional communication between consumers and the utility—

technology known as advanced metering infrastructure— could provide utilities with data

they can use to improve the speed and accuracy of billing, detect grid problems quicker,

advise customers on saving energy, and uncover electricity theft. Advanced metering in-

frastructure also is essential to creating a “smart grid” that would, among other things,

allow for the bidirectional flow of power required for distributed electricity generation by

rooftop solar panels, wind turbines, and other means. The government has initiated a Na-

tional Smart Grid Mission to optimise and automate the grid for efficient power delivery.

3.18 Healthcare

Digital technology has the potential to deliver value in many areas of the

healthcare system, as we describe in the following chapter. We estimate that it may save

$4 billion to $5 billion in 2025. Telemedicine models have the technical capability to han-

dle up to half of in-person outpatient consultations. We believe a program of accelerated

implementation may enable India to tap 60 to 80 percent of this potential by 2025. Tele-

medicine initiatives globally have shown that virtual doctor visits cost about 30 percent

60
less than in-person visits.101 To tap this potential, India will need to enact legislation to,

among other things, establish the validity of telemedicine and online prescriptions, and

determine the legal jurisdiction for medical negligence cases if a doctor and patient are in

different states. The Ministry of Health and Family Welfare has released a draft Digital

Information Security in Healthcare Act to enforce privacy and security measures for elec-

tronic health data, and to regulate storage and exchange of electronic health records.

Beyond its economic value, telemedicine could benefit patients in remote

and rural areas by reducing their reliance on unqualified local medical practitioners and

saving time and money spent travelling to a nearby city or town to see a medical expert.

India has too few doctors: just 0.8 physician for every 1,000 persons, which is below the

World Health Organization’s recommendation of 1.0 per 1,000.102 Adding to the problem

in rural areas, cities have only 32 percent of India’s people but 60 percent of its hospi-

tals.103 Data also could help public officials make better-informed decisions about annual

budgets and infrastructure expansion, among other matters.

3.19 E-government Services

Government is the biggest economic entity in the digital ecosystem, and its

efficiency and productivity significantly influence systemic efficiency. Digital applications

have direct impact on two government interactions: subsidy transfer and government pur-

chases. Accelerated implementation and expansion of current government initiatives in

both of these areas combined could yield savings of $20 billion to $40 billion in 2025, we

estimate. From the launch of the Direct Benefit Transfer programme in January 2013

through December 2018, the government transferred a total of $82.6 billion in benefits from

61
434 schemes to 3.4 billion beneficiaries cumulatively.104 The government could move ad-

ditional large payments—including subsidies for food grains, skills training, midday meals

for schoolchildren, and the construction of toilets under the Swachh Bharat programme—

to DBT over the next few years. Procurement by general government, department enter-

prises, and non-departmental enterprises constitutes about 13 percent of GDP, which

amounts to about $300 billion annually.105 Efficiencies unlocked in the government pro-

curement process could therefore yield significant benefits. In 2016, the government set up

the Government e Marketplace (GeM) to significantly cut the cost of frequently used goods

and services, reduce the time taken in procurement without weakening risk management,

and promote the transition to digital payments. GeM is an open API that includes e-com-

merce functionalities such as demand aggregation, dynamic pricing, e-bidding, order place-

ment, price comparisons, reverse auction, and search, as well as continuous vendor assess-

ments, digital contract signatures, digitally verified buyer authentication, easy return poli-

cies, and facilities for digital documents.

3.20 Jobs and Skills Markets

Nationwide, online marketplaces that bring together potential workers and

employers or work providers could improve India’s fragmented and largely informal job

markets. Scaling up the digital marketplaces could yield $65 billion to $70 billion of eco-

nomic value in 2025, by our estimates. Much of India’s economy relies on informal net-

works for employers to fill vacancies and workers to find employment. Job market systems

have not kept pace with increased worker mobility or with disruptions to organisational

and business models. Digital technologies offer alternatives because they can be deployed

to quickly and accurately match job seekers with openings based on their skills, experience,

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and interests. The first step is to aggregate information about trained candidates and avail-

able jobs by sector and geography across the country, including remote and rural areas. A

few private online job marketplaces, such as Naukri.com and Babajob, currently collect

information on the job seekers and employers who use their platforms, but this does not

present a complete picture of the labour market.

More comprehensive platforms of labour market information could be cre-

ated. They would measure and match demand and supply for skills and by geography.

Based on benchmarks from global experience, we estimate that large online talent market-

places could help 20 million to 28 million people secure work that they otherwise would

not have found. About 6 million to 8 million could find jobs that are better matched to their

skills. Online talent marketplaces could significantly improve job seekers’ and employers’

productivity by reducing job search time by 7 to 22 percent. Employers also could benefit

by lowering attrition rates and having better information to target employees with required

skills.

High-tech workers trained in the digital technologies of the future. In the

past few years, employment growth has represented about two-thirds of revenue growth in

India’s IT-BPM sector, with productivity (as measured by revenue per worker) accounting

for the rest. Based on a range of scenarios for productivity growth, McKinsey estimates

that the industry could employ five million to six million workers by 2025. Since most

future revenue (40 percent) is likely to be from digital technologies, this implies strong

demand for IT workers trained in areas such as big data analytics, artificial intelligence,

and blockchain.

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 Digitally enabled on-demand work for independent freelance workers Dig-

ital technologies and the platforms they enable make work divisible and help workers ac-

cess opportunities remotely. A growing army of freelancers worldwide wants autonomous,

project-based work, typically in the work-from-home model. This is a particularly attrac-

tive opportunity for women professionals who may drop out of the regular workforce for a

time due to family obligations. Currently, around 15 million freelancers are registered in

India, and platforms such as Flexing It are providing them with employment opportunities.

3.21 Building Digital Ecosystem

Digital technologies are most powerful, and can create the most value, when

the forces they unleash integrate services across digital sector boundaries into new digital

ecosystems. Online shopping, mobile banking, ride sharing, and other digitally enabled

services are all examples of these new ecosystems, and they have raised consumers’ ex-

pectations of speed and convenience. In this chapter, we offer a more detailed look at how

technology forces connect businesses with customers and one another, automate interac-

tions, and analyse the data created. The resulting digital ecosystems could transform four

sectors of India’s economy: agriculture, healthcare, retail, and logistics.

Digital technologies can fundamentally change how individuals and busi-

nesses perform dayto-day activities in three ways: by allowing people to connect to collab-

orate, transact, and share information; by enabling organisations to automate routine tasks

to boost productivity; and by providing organisational leaders with the tools they need to

analyse data to formulate insights and improve decision making. — Digital connectivity is

the ability of individuals to communicate and collaborate quickly and easily within big

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organisations and around the world. Corporate solutions like Slack and Skype allow col-

laboration in widely distributed workforces, enabling businesses to save time and money

on travel. Connectivity also removes the need for intermediaries in many transactional re-

lationships, which not only improves efficiency but has given rise to the shared economy,

leading to significantly better utilisation of assets and skills. — Automation improves

productivity by using digitally enabled machines to perform tasks once done only by peo-

ple, such as packing boxes and assembling automobiles. The advent of faster computers,

advanced sensors, and sophisticated algorithms is allowing automation to expand into more

complex tasks, such as driving cars. Previous MGI research estimated that automation

could raise productivity growth globally by 0.8 to 1.4 percent annually. Digital analytics is

the process of using computers to sort, compare, and contrast large amounts of data to find

patterns, relationships, and insights that previously were too expensive or time-consuming

to produce. This information can markedly refine decision making and improve customer

service. Data-driven decision making has given rise to new business models, such as instant

claims processing by the online insurer Lemonade.

India’s growing number of connected consumers increasingly expect to

have multiple needs met simultaneously and seamlessly. This has opened an opportunity

for businesses to capture value by integrating services across traditional sector boundaries

in new digital ecosystems. Companies best positioned to seize digital’s lucrative ecosystem

opportunities are those that aggregate consumer needs and serve them in an integrated fash-

ion. Amazon is an example: born an online bookseller, it has expanded aggressively into

many corners of e-commerce as well as cloud computing, logistics, consumer electronics,

entertainment, and even groceries.

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Amazon seeks to become a “one-stop shop” for needs related to shopping, entertainment,

and finance. Customers can, for example, use Amazon Pay to watch TV shows on Prime

Video or listen to music on Prime Music. All of these services are available via a single

login account, maximising consumer convenience. Tencent is another example of an eco-

system player: from its roots as an instant-messaging service, it has regularly added other

businesses of interest to its customers, including finance, gaming, movies, and social me-

dia. Rakuten began as an online mall and added financial services (credit cards, mortgages,

and securities brokerage), created one of Japan’s largest online travel portals, and signed

up 800 million users to its instant-messaging app, Viber. What these digital conglomerates

have in common is a knack for integrating services across traditional sector boundaries to

satisfy consumers who increasingly expect seamless service.

Speed and convenience are becoming more and more important to consum-

ers, adding an important dimension on which service providers must compete. Successful

companies are responding by dismantling legacy parallel value chains and collapsing

them into new single chains to meet each key customer need (Exhibit 20). New ecosystems

are likely to emerge in sectors that are ripe for digital transformation. Agriculture is India’s

largest source of jobs but is unproductive: crop yields lag behind global benchmarks, and

a significant share of each year’s harvest is lost to spoilage. Healthcare suffers from too

few doctors and hospital beds, and those it has are misallocated, with most resources in

cities while most Indians live in rural areas. Retailers often operate in the cash-only infor-

mal economy, depriving the government of tax revenue and raising the cost of credit for

store owners. Logistical services are expensive, heavily reliant on paperwork, and depend

on increasingly congested national highways.

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3.22 Digital Apps Can Significantly Alleviate Retailers’ Pain Points

Aided by the increasing availability of high-speed digital connectivity, the

growing number of smartphones, and the adoption of accommodative government policies,

digital technologies can seamlessly connect sellers and buyers. Retailers, both small and

large, stand to gain significantly from the adoption of digital technologies. Some of the

more prominent digital applications are briefly described below:

1. Online buying and selling: E-commerce via online marketplace or through a com-

pany’s own website offers a direct connection with consumers, supplementing phys-

ical shops.

2. Store and inventory management: Readily available software for laptops or tablets

can help retailers keep their accounts, pay suppliers, manage inventory, and bill cus-

tomers, all while generating data that can provide insights into how to improve

productivity.

3. Digital marketing: Commercial platforms can place targeted advertising, generate

leads, analyse the effectiveness of campaigns, and make data-backed recommenda-

tions about discounting and other management decisions.

4. In-store digital applications: Retailers are bringing digital technology into their

brickand-mortar stores in several ways. Some use augmented-reality solutions to let

shoppers see how a garment or makeup would look on them without requiring them

to physically put it on. Others have created virtual stores—two-dimensional displays

of groceries or other products, each with a QR code—where customers make a pur-

chase by scanning the code; the physical products are then delivered to their homes.

5. Financing: As noted earlier, digital applications such as e-commerce and point-of-

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 sale credit- and debit-card terminals automatically create revenue and cost data that

lenders can rely on to more accurately assess potential borrowers’ creditworthiness.

This can make it easier for retailers to access credit for working capital or expansion.

6. Digital payments: United Payments Interface, the interbank money-transfer service,

and digital wallets such as Paytm are card-free options to make or receive digital

payments. Using them in lieu of cash also creates data on revenue and expenditure

and can help retailers expand their customer bases and reduce the cost of handling

cash.

These digital innovations are likely to restructure India’s retail industry and

produce significant industry churn. Few retailers will be able to avoid the effects of digiti-

sation, and businesses of all sizes will need to learn how to use technology to connect with

their customers, automate internal processes, and analyse data collected from customer

profiles, online orders, and digital payments. Well-managed, forward-thinking retailers

even mom-and pop shops who master these skills will be much more likely to build cus-

tomer loyalty, identify ways to become more efficient, and thrive.

Data is a constant in the connect-automate-analyse process. Each step offers

opportunities to both gather and apply data. For example, connecting with customers digi-

tally, whether by alerting them to new products and new promotions or by taking orders,

can produce insights.

Retailers can glean a lot about individual or collective interests, tastes, and

even income of their customers by knowing which digital communications they bothered

to read and which they acted on. Their purchasing histories offer even richer insights. Data

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provide insights into which items sell quickest or provide the biggest profit margin, infor-

mation that is useful for strategic planning and inventory management. In the next section,

we explore three specific digital applications that pertain to online buying and selling,

3.23 Major Information Technology Hubs

Bangalore- is a global technology hub and is Indias biggest tec hub. As of

fiscal 2016–17, Bangalore accounted for 38% of total IT exports from India worth $45 bil-

lion, employing 10 lakh people directly and 30 lakh indirectly.

The city is known as the "Silicon Valley of India". Notable tech parks

are Electronic City, ITPL, Bagmane Tech Park, Embassy Golf Links, Manyata Tech

Park, Global Village Tech Park, Embassy TechVillage.

Apart from these IT companies are also located in several other parts of the

city. Notable IT companies of the area include Infosys, Wipro, HCL Technologies, SAP

Labs, Accenture, TCS, Oracle, IBM India, Sonata Software, Mindtree, and Intuit India.

Bangalore is also known as the "startup capital of India"; the city is home to

44 percent of all Indian unicorn startup companies as of 2020.

Hyderabad -known for the HITEC City or Cyberabad – is India's second

largest information technology exporter and a major global IT hub, and the largest bioin-

formatics hub in India. Hyderabad has emerged as the second largest city in the country for

software exports pipping competitors Chennai and Pune.

Notable tech companies include Accenture, Amazon, AMD, Deloitte, Ap-

ple, Intel, Tata

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ConsultancyServices, Microsoft, HCLtechhnologies, Oraclecorporation, Google, Qual-

comm, Dell, Cognizant, Novartis, Pega, J.P Morgan, UBS. As of 2022, the IT exports from

Hyderabad was ₹183,569 crore (US$23 billion), the city houses 1500 IT and ITES compa-

nies that provide 7,78,121 employment. Notable tech and pharma parks are HITEC

City, Genome Valley, and Hyderabad Pharma City. The number of startups in Telangana

had increased from 400 in 2016 to 2,000 in 2022. Hyderabad added two companies in uni-

corn startup list in first two months of 2022.

Chennai- As of 2018, Chennai is India's third-largest exporter of infor-

mation technology (IT) after Bangalore and Hyderabad and business process outsourc-

ing (BPO) services. TIDEL Park in Chennai was billed as Asia's largest IT park when it

was built. Notable tech parks are International Tech Park, DLF Cybercity SEZ, Mahindra

World City, SIPCOT IT Park, Olympia Tech Park, One Indiabulls Park, L&T Estancia IT

SEZ, Ramanujan IT City and Chennai one SEZ. City has an expressway called as IT ex-

pressways and a preferred location for IT industries.

Pune- The Rajiv Gandhi Infotech Park in Hinjawadi is a ₹60,000 crore

(US$8.9 billion) project by the Maharashtra Industrial Development Corpora-

tion (MIDC). The IT Park encompasses an area of about 2,800 acres (11 km2) and is home

to over 800 IT companies of all sizes. Besides Hinjawadi, IT companies are also located

at Magarpatta, Kharadi, Kalyani Nagar, Yerawada, Aundh and several other parts of the

city. Major IT companies like TCS, Wipro, Infosys, Cognizant, Tech mahindra, Cybage,

Zensar technologies, Amdocs, Capegemini, Google , Sungard, HCL Technologies,

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Persistent technology etc. have offices in Pune. As of 2019, the IT sector employs more

than 500,000 people.

Delhi Ncr- is one of the major IT hub in India. Cities in NCR like Gur-

gaon and Noida have several companies that serves the local and global markets who take

help from these IT hubs.

Kolkata- is one of the major IT hub in India. As of 2020, The IT sector

employs more than 200,000 people directly. Major software companies such as Tata Con-

sultancy Services, Infosys, Capgemini, Wipro, Ericsson, Mindtree, Cognizant, Accen-

ture, ITC Infotech, RS Software have their offices set up here, with TCS making Kolkata

their largest base.

Summary – Here in the Chapter – 3 we have studied a lot about the a rela-

tion between the new modern technology and the business trends that how new technolo-

gies are impacting the modern businesses.

In the next chapter – 4 we will study the various science, technology and

business policies in India.

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 CHAPTER - 4

INDIA’S SCIENCE, TECHNOLOGY AND BUSINESS POLICY

The Government of India has passed four policy documents on science and technol-

ogy:

1. Science Policy Resolution 1958

2. Technology Policy Statement 1983

3. Science and Technology Policy 2003

4. Science, Technology, and Innovation Policy 2013

5. The fifth policy, the National Science, Technology, and Innovation Policy, is in the

draft and public consultation stage

4.1 Science Policy Resolution 1958

1. No. 131/CF/57. - The key to national prosperity, apart from the spirit of the people,

lies, in the modern age, in the effective combination of three factors, technology, raw

materials and capital, of which the first is perhaps the most important, since the cre-

ation and adoption of new scientific techniques can, in fact, make up for a deficiency

in natural resources, and reduce the demands on capital. But technology can only

grow out of the study of science and its applications.

2. The dominating feature of the contemporary world is the intense cultivation of sci-

ence on a large scale, and its application to meet a country's requirements. It is this,

which, for the first time in man's history, has given to the common man in countries

advanced in science, a standard of living and social and cultural amenities, which

were once confined to a very small privileged minority of the population. Science has

72
 led to the growth and diffusion of culture to an extent never possible before. It has

not only radically altered man's material environment, but, what is of still deeper sig-

nificance, it has provided new tools of thought and has extended man's mental hori-

zon. It has thus influenced even the basic values of life, and given to civilization a

new vitality and a new dynamism.

3. It is only through the scientific approach and method and the use of scientific

knowledge that reasonable material and cultural amenities and services can be pro-

vided for every member of the community, and it is out of a recognition of this pos-

sibility that the idea of a welfare state has grown. It is characteristic of the present

world that the progress towards the practical realisation of a welfare state differs

widely from country to country in direct relation to the extent of industrialisation and

the effort and resources applied in the pursuit of science.

4. The wealth and prosperity of a nation depend on the effective utilisation of its human

and material resources through industrialisation. The use of human material for in-

dustrialisation demands its education in science and training in technical skills. In-

dustry opens up possibilities of greater fulfilment for the individual. India's enormous

resources of man-power can only become an asset in the modern world when trained

and educated.

5. Science and technology can make up for deficiencies in raw materials by providing

substitutes, or, indeed, by providing skills which can be exported in return for raw

materials. In industrialising a country, heavy price has to be paid in importing science

and technology in the form of plant and machinery, highly paid personnel and tech-

nical consultants. An early and large scale development of science and technology in

73
 the country could therefore greatly reduce the drain on capital during the early and

critical stages of industrialisation.

6. Science has developed at an ever-increasing pace since the beginning of the century,

so that the gap between the advanced and backward countries has widened more and

more. It is only by adopting the most vigorous measures and by putting forward our

utmost effort into the development of science that we can bridge the gap. It is an

inherent obligation of a great country like India, with its traditions of scholarship and

original thinking and its great cultural heritage, to participate fully in the march of

science, which is probably mankind's greatest enterprise today.

7. The Government of India have accordingly decided that the aims of their scientific

policy will be to foster, promote, and sustain, by all appropriate means, the cultivation

of science, and scientific research in all its aspects - pure, applied, and educational;

to ensure an adequate supply, within the country, of research scientists of the highest

quality, and to recognize their work as an important component of the strength of the

nation; to encourage, and initiate, with all possible speed, programmes for the training

of scientific and technical personnel, on a scale adequate to fulfil the country's needs

in science and education, agriculture and industry, and defence; to ensure that the

creative talent of men and women is encouraged and finds full scope in scientific

activity; to encourage individual initiative for the acquisition and dissemination of

knowledge, and for the discovery of new knowledge, in an atmosphere of academic

freedom ; and, in general, to secure for the people of the country all the benefits that

can accrue from the acquisition and application of scientific knowledge. The Gov-

ernment of India have decided to pursue and accomplish these aims by offering good

74
 conditions of service to scientists and according them an honoured position, by asso-

ciating scientists with the formulation of policies, and by taking such other measures

as may be deemed necessary from time to time.

4.2 Technology Policy Statement 1983

Technology policy statement of the government is an important element of

a country’s technological environment. The government may contribute to technology de-

velopment by direct involvement in setting up research institutions and funding R & D. It

may also encourage private enterprises to invest in R & D. by providing incentives like tax

holiday, subsidy, etc. For a developing country, government policy with respect to foreign

technology makes a vital difference to the industrial economy.

A Technology Policy Statement (TPS) was formulated by the Government

of India in 1983 with the basic objective of developing indigenous technology and ensuring

efficient absorption and adaptation of imported technology appropriate to national priorities

and availability of resources. It is aimed at attaining technical competence and self reliance,

reducing vulnerability particularly in strategic and critical areas and making maximum use

of indigenous resources. The TPS also aims at using traditional skill and capabilities mak-

ing them commercially competitive. As per the provision of TPS and following the recom-

mendations of the Technology Implementation Committee, the Department of Science and

Technology has set up an autonomous body, viz. Technology Information Forecasting and

Assessment Council (TIFAC). Its main objectives include generation of technology fore-

casting and technology assessment and techno market survey documents and enabling a

75
technology information system. TIFAC has carried out technology forecasting/technology

assessment in a number of areas and brought out about 250 specialized reports by 2003.

In India, technology policy has been pursued by Government to develop

agricultural technology through the research centers of the ICAR and farm Universities,

and at the same time, adopted policies with guidelines for financial cum technical collabo-

ration of foreign enterprises with Indian corporate.

The policy statement relating to foreign investment and collaboration an-

nounced in April 1949 was intended to an assurance of non-discriminatory treatment of

foreign investment and remittance facilities for both profit and capital. The policy empha-

sized the importance of employment and training of Indians at higher positions. The general

policy was to allow such foreign investments and collaborations as would be in line with

the priorities and targets of the five-year plans. The policy was to restrict foreign collabo-

ration to those cases which would bring technical knowhow into the country, such as was

not available indigenously for developing new lines of production. Foreign investment was

not allowed in banking, financial, commercial or trading activities and in consumer goods

industries, which could be developed with indigenous know-how.

The foreign exchange crises of 1957-58 led to a shift in policy with in-

creased emphasis on foreign financial collaboration. The liberal policy followed during

1958-65 permitted existing foreign enterprises to expand. The policy also encouraged the

conversion of branches of those enterprises into subsidiaries and bringing additional re-

sources from their parent companies abroad to finance their expansion schemes in

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industries. Besides, the policy led to a rise in the number of financial and technical collab-

orations as well.

A change in government policy was again called for in the mid-60s when there

was a serious foreign exchange problem. A more restrictive policy was thus adopted in the

late-60s and specific guidelines were laid down for approval or disapproval of foreign col-

laboration proposals. An illustrative list was issued in 1968 wherein industries were

grouped into three categories:

1. Industries in which financial and technical collaboration might be permitted;

2. those in which only technical collaboration would be allowed; and

3. those in which no foreign collaboration at all would be permitted.

In 1969-70 further tightening of the foreign investment policy was reflected

in the fourth five-year plan. In 1970, it was decided that in future foreign investment would

be encouraged only in the core sector consisting of industries like fertilizers, nonferrous

metal and heavy machinery in 1973, the list was further narrowed down to 19 industries.

The statement on industrial policy announced in July 1980 also spelt out the

government’s policy relating to foreign investment and collaboration. The policy under-

lined that with a view to enable industry to increase competitiveness abroad with – a larger

production base; the government would favorably consider induction of advanced technol-

ogy. The policy on transfer of technology provided that companies which had well estab-

lished R & D organizations, and demonstrated their ability to absorb, adopt and disseminate

modern technology would be permitted to import such technology which will increase their

77
efficiency and cost effectiveness. The following guidelines were issued for approval of

proposals for foreign technical and/or financial collaboration:

1. The ceiling for foreign equity participation would be 40 per cent subject to such

participation being justified having regard to such factors as technology involved,

whether it would enable or promote exports and the alternative terms available for

securing the same or similar technological transfer. The foreign capital would have

to be by way of cash without being linked to tie imports of machinery and a equip-

ment or to payment for know-how, trademarks, brand names, etc.

2. Technical collaborations would be considered on the basis of annual royalty pay-

ment linked with the value of actual production. The percentage of royalty should

not ordinarily exceed percentage of the ex-factory selling price of the product, net

of excise duties minus the cost of standard bought out components and landed cost

of imported components. Royalty payments would be subject to Indian taxes. Wher-

ever appropriate, payment of a fixed amount of royalty per unit of production would

be preferred. Lump sum payment might also be considered in appropriate cases for

import of drawings, documentation and other forms of know-how. The lump sum

payment should be phased out as follows: 1/3rd after the agreement has been taken

on record; 113’~ to be paid on the transfer of documentation, etc; and 113’~t o be

paid at the commencement of production or after completion of 48 months of the

signing of the foreign collaboration agreement whichever is earlier.

3. Renewal of collaboration agreement would be considered under certain circum-

stances e.g. (a) If the item of manufacture is sophisticated and the renewal and ex-

tension for a short period is needed to enable the Indian party to fully absorb the

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 know-how; (b) If the collaboration involved manufacture of a large number of items

and the Indian party could start manufacturing some of the items only at a later

stage; (c) If the extension would be in the interest of exports.

In May 1990, the Government announced certain policy decisions with re-

spect to foreign investment and collaborations with the object of attracting inflow of tech-

nology more effectively. If import of technology was considered essential, the entrepreneur

would be free to conclude an agreement with the foreign collaborator without obtaining

clearance from the government. Two conditions were laid down in that connection viz., (i)

Royalty payment should not exceed 5% on domestic sales and 8% on exports; Environment

(ii) if lumpsum payment was involved in technology import, the proposal must be submit-

ted for clearance by government, but decisions would be communicated within 30 days.

In July 1991 again, as a part of the policy on economic reforms, the Gov-

ernment initiated technology policy changes as follows:

1. Approval would be given for direct foreign investment upto 51% foreign equity in 34

categories of high priority industries without bottlenecks of any kinds if foreign eq-

uity covers the foreign exchange requirement for imported capital goods.

2. Import of components, raw materials and intermediate goods and payment of know-

how fees and royalty would be governed by general policy, but dividend payment

would be monitored through the Reserve Bank to ensure that outflows on account of

dividend payments are matched by export earnings over a period of time.

3. Automatic permission would be given for foreign technology agreement in high pri-

ority industries with a lump sum payment up to Rs. 1 crore, 5% royalty for domestic

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 sales and 8% for exports, subject to a total payment of 8% of sales over a ten year

period from the date of agreement or 7 years from commencement of production.

4. Automatic permission would also be given for foreign technology agreements to in-

dustries other than high priority industries subject to the same guidelines as above if

free foreign exchange is not required for any payments.

5. No permission would be necessary for hiring of foreign technicians, foreign testing

of indigenously developed technologies. Payment may be made from blanket permits

or free foreign exchange according to RBI guidelines.

It is evident from the above that the technology policy of the government of

India has been stated at different times with varying approaches to the problem of technol-

ogy development. While the policy was one of self-reliance with respect to agricultural

technology, it evolved from cautious encouragement and selective approach to increasingly

greater reliance on foreign collaboration with Indian counterparts and foreign investment.

In the Ninth Five Year Plan (1997-2002), the Planning Commission has observed, “in the

contest of exploring new horizons and new visits of economic prosperity, science and tech-

nology (SST) has to remain the main focal point and meet the economic, industrial, trade

and societal challenges. The technology policy must go beyond technology import, adap-

tation and assimilation.” To quote further, “for the development and marketing of technol-

ogy, there is a need not only to upgrade, modernize and expand the existing S & T infra-

structure but also to establish linkages between industry and the research institutions / la-

boratories and encourage venture capital funds for the purpose”.

4.3 Science and Technology Policy 2003

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 The Government has unveiled a new Science and Technology Policy State-

ment which follows in the footsteps of the Scientific Policy Resolution (1958) and Science

and Technology Policy Statement (1983). After intensive dialogue involving scientists,

technologists, social scientists, activists, politicians, administrators and concerned citizens

which also involved a draft on the web for discussion, the final version has been approved

and announced at the 90th Session of the Indian Science Congress at Bangalore. The main

policy objectives are to advance scientific temper and fully integrate science and technol-

ogy into all spheres of national activity on a sustainable basis. It would foster scientific

research in universities and other institutions and create suitable employment opportunities

in the S&T sector. Women would be ensured full and equal participation. There would be

necessary autonomy and freedom of functioning for academic institutions. Full potential of

science would be harnessed to accomplish national strategic objectives with encouragement

for research and innovation in areas of relevance for the economy and society. Mechanisms

would be strengthened for technology development evaluation, absorption and upgradation

from concept to utilization. An IPR regime would be formulated for speedy and effective

domestic commercialization of such inventions. Special emphasis would be placed on fore-

casting, prevention and mitigation of natural hazards. International cooperation would con-

tinue to be encouraged. Briefly, the key points of the strategy and implementation plan of

the policy 2003 are:

1. Science and technology governance and investments: This would involve mecha-

nisms to obtain science and technology planning inputs on a continuous basis from

a cross-section of the scientific community. Also, an allocation in a certain percent-

age would be made by each of the socio-economic ministries for relevant

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 programmes and states would be encouraged to use science and technology for de-

velopmental purposes. Universities and institutions would be given full autonomy,

flexibility and de-bureaucratized. It would be ensured that all ‘highly science-based

ministries and departments of the government would be run by scientists and tech-

nologists’. There would be continued existence of the apex S&T advisory body.

While the Government would be committed to make the necessary budgetary com-

mitments to raise the level of investment to 2% of GDP, it would be essential for

industry to also steeply increase its investments in R&D.

2. Optimal utilization of existing infrastructure and competence by networking of ex-

isting infrastructure.

3. Strengthening of the infrastructure for science and technology in academic institu-

tions: Appropriately sized science laboratories would be supported in academic in-

stitutions with flexible mechanisms for induction of new faculty in key areas of

science.

4. New funding mechanisms for basic research: These would cater to the promotion

of basic research in science. There would be simplification of administrative and

financial procedures.

5. Human resource development: Along with schemes to nurture and attract talent

there would be encouragement for quality and productivity in science by mobility

of scientists and technologists between industry, academic institutions and research

laboratories. This is to be supported by substantial funding, retraining and reskilling.

Women’s needs would be met through flexibility in rules and regulations. Scientists

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 of Indian origin from abroad would be encouraged to return to India and their net-

working facilitated.

6. Technology development, transfer and diffusion: An aggressive bench-marking of

technologies would be carried out along with adoption, diffusion and transfer of

innovation to the productive sectors. An enhanced push would be given to Indian

industry to avoid non-tariff barriers in global trade. Training in all aspects of tech-

nology management would be initiated in IITs, IIMs and other institutions.

7. Promotion of innovation: Support in all respects would be given for a comprehen-

sive national system of innovation.

8. Industry and scientific R&D: For increasing synergy between academia and indus-

try, ‘Autonomous Technology Transfer organizations’ would be created in aca-

demic institutions to facilitate transfer of know-how generated to industry. Industry

would be supported by fiscal and other measures to carry out R&D.

9. Indigenous resources and traditional knowledge: Development of technologies that

add value to India’s indigenous resources would be supported and the Indian share

in the global herbal product market would be increased.

10. Technologies for mitigation and management of natural hazards: A concerted plan

for enhancing predictive capabilities and meeting emergencies in natural disasters

would be made.

11. Generation and management of intellectual property: The fullest protection to com-

petitive intellectual property from Indian R&D programmes would be made.

12. Public awareness of science and technology: Keeping in mind the need for increas-

ing public awareness of the importance of science and technology in daily life and

83
 the directions which science in frontier areas is taking, popularization of science

and dissemination of information would be encouraged. A closer interaction be-

tween sciences and social sciences would be assisted.

13. International science and technology cooperation: Those international collaborative

programmes contributing directly to India’s scientific development and security ob-

jectives would be encouraged.

14. Fiscal measures: Innovative fiscal measures are planned and strategies for attracting

higher levels of investments both public and private in science and technological

development. Finally, the crux of any policy which is effective implementation

would be put in place by expeditious, transparent monitoring and reviewing mech-

anisms. The Policy–2003 hopes to build a ‘new India’ which ‘uplifts the Indian

people and indeed all of humanity’.

4.4 Science, Technology and Innovation Policy 2013

Science, Technology and Innovation Policy (STI) 2013 seeks to send a sig-

nal to the Indian scientific community, both in the private and public domain, that science,

technology and innovation should focus on faster, sustainable and inclusive development

of the people.

The policy seeks to focus on both STI for people and people for STI. It aims

to bring all the benefits of Science, Technology & Innovation to the national development

and sustainable and more inclusive growth. It seeks the right sizing of the gross expenditure

on research and development by encouraging and incentivizing private sector participation

in R & D, technology and innovation activities.

84
The policy also seeks to trigger an ecosystem for innovative abilities to flourish by lever-

aging partnerships among diverse stakeholders and by encouraging and facilitating enter-

prises to invest in innovations. It also seeks to bring in mechanisms for achieving gender

parity in STI activities and gaining global competitiveness in select technological ar-

eas through international cooperation and alliances. The policy goal is to accelerate the

pace of discovery, diffusion and delivery of science led solutions for serving the aspira-

tional goals of India for faster, sustainable and inclusive growth. A Strong and viable Sci-

ence, Research and Innovation system for High Technology led path for India (SRISHTI)

is the goal for the STI policy.

The Key Features of the STI Policy 2013

1. Promoting the spread of scientific temper amongst all sections of society.

2. Enhancing skills for applications of science among the young from all social sec-

tors.

3. Making careers in science, research and innovation attractive enough for talented

and bright minds.

4. Establishing the world-class infrastructure for R&D for gaining global leadership

in some select frontier areas of science.

5. Positioning India among the top five global scientific powers by 2020 (by increas-

ing the share of global scientific publications from 3.5% to over 7% and quadru-

pling the number of papers in top 1% journals from the current levels).

6. Linking contributions of Science Research and innovation system with the inclu-

sive economic growth agenda and combining priorities of excellence and relevance.

7. Creating an environment for enhanced private sector participation in R &D.

85
 8. Enabling conversion of R & D output with societal and commercial applications

by replicating hitherto successful models, as well as establishing of new PPP struc-

tures.

9. Seeking S&T based on high risk innovation through new mechanisms.

10. Fostering resource optimized cost-effective innovation across size and technology

domains.

11. Triggering in the mindset & value systems to recognize respect and reward perfor-

mances which create wealth from S&T derived knowledge.

12. Creating a robust national innovation system.

Aspiration of the policy

The main aspirational elements of the STI policy are:

1. Raising Gross Expenditure in Research and Development (GERD) to 2% from the

present 1% of the GDP in this decade by encouraging enhanced private sector con-

tribution.

2. Increasing the number of Full Time Equivalent (FTE) of R&D personnel in In-

dia by at least 66% of the present strength in 5 years.

3. Increasing accessibility, availability and affordability of innovations, especially for

women, differently-abled and disadvantaged sections of society.

Mechanism

Wide ranging mechanisms are envisaged to be deployed to realize the policy aspirations, a

few of these are:

1. Promoting the spread of scientific temper amongst all sections of society.

86
2. Enhancing skill for applications of science among the young from all social strata.

3. Making careers in science, research and innovation attractive enough for talented

and bright minds.

4. Empowering women through appropriate STI inputs and investments.

5. Facilitating private sector investment in R&D centres in India and overseas.

6. Promoting establishment of large R&D facilities in PPP mode with provisions for

benefits sharing.

7. Permitting multi stakeholders participation in the Indian R&D system.

8. Treating R&D in the private sector at par with public institutions for availing public

funds.

9. Bench marking of R&D funding mechanisms and patterns globally.

10. Aligning Venture Capital and Inclusion Innovation Fund systems.

11. Sharing of IPRs between inventors and investors.

12. Modifying IPR policy to provide for marching rights for social good when sup-

ported by public funds and for co-sharing IPRs generated under PPP.

13. Providing incentives for commercialization of innovations with focus on green

manufacturing.

14. Closing gaps in the translation of new findings at the grassroots and the commercial

space.

15. Forging strategic partnerships and alliances with other nations through both bilat-

eral and multilateral cooperation in science, technology and innovation.

87
 16. Triggering ecosystem changes in attitudes, mindset, values and governance sys-

tems of publicly funded institutions engaged in STI activities to recognize, respect

and reward performances which create wealth from S&T derived knowledge.

Policy Implementation

Implementation of the proposals contained in the Policy will necessitate

consultations with different government departments/ministries and agencies besides con-

sultations with overarching, science and engineering academies industry and business as-

sociations etc. Accordingly DST will establish a Policy Implementation Group to expedi-

tiously operationalise the proposals within the next two years.

Backdrop

Prime Minister, Shrimati Indira Gandhi had announced the Technology

Policy Statement (TPS) at the Science Congress in January 1983. It focused on the need to

attain technological competence and self-reliance. Several of the statements of TPS were

implemented. Subsequently, a Science and Technology Policy (STP) was announced in

2003, seeking to bring science and technology (S&T) together. It basically called for inte-

grating programmes of socio-economic sectors with the national R&D system and the cre-

ation of a national innovation system. The world has changed vastly since then in all spheres

of human activity. New paradigms of innovation have emerged, arising, among others, out

of the pervasive intrusion of internet and globalization. Even then systems that foster inno-

vation have become country and context specific. India has declared 2010-20 as the “Dec-

ade of Innovation.” India’s demographics have changed significantly too. The youthful

populations have high expectations and aspirations of the nation. The Science, Technology

88
and Innovation Policy (STI) 2013 approved by the Union Cabinet is in furtherance of this

declaration and aims to bring perspectives to bear on Science & Technology led innovations

in the changing context.

4.5 Science Technology and Innovation Policy 2020

As India and the world reorient in the present context of the COVID-19

crisis, a new Science, Technology, and Innovation Policy (STIP) was initiated at this crucial

juncture during mid-2020. For India to march ahead on a sustainable development pathway

to include economic development, social inclusion and environmental sustainability for

achieving an Atmanirbhar Bharat'', a greater emphasis may be needed on promoting tradi-

tional knowledge systems, developing indigenous technologies and encouraging grassroots

innovations. The emergence of disruptive and impactful technologies poses new challenges

and simultaneously greater opportunities. The COVID-19 pandemic provided a compelling

opportunity for R&D institutions, academia and industry to work in unison for sharing of

purpose, synergy, collaboration and cooperation.

The new Science, Technology, and Innovation Policy aims to bring about

profound changes through short-term, medium-term, and long-term mission mode projects

by building a nurtured ecosystem that promotes research and innovation on the part of both

individuals and organizations. It aims to foster, develop, and nurture a robust system for

evidence and stakeholder-driven STI planning, information, evaluation, and policy research

in India. The objective of the policy is to identify and address strengths and weaknesses of

the Indian STI ecosystem to catalyse socio-economic development of the country and also

make the Indian STI ecosystem globally competitive.

89
The new policy, STIP, revolves around the core principles of being decentralized, evidence-

informed, bottom-up, experts-driven, and inclusive. Also, it aims to bring in the concept of

dynamic policy with a robust policy governance mechanism incorporating features such as

implementation strategy, periodic review, policy evaluation, feedback, and adaptation, and

most importantly, a timely exit strategy for various policy instruments.

Keeping above in view, a STIP policy document ver 1.4 has been finalized

and placed here after a detailed 4 track process of consultations during last 6 months be-

ginning from May 2020. The process so far involved nearly 300 rounds of consultations

with more than 40,000 stakeholders well distributed in terms of region, age, gender, edu-

cation, economic status, etc. The STIP Secretariat was coordinated, supported, and guided

by the Office of PSA, NITI Aayog, and DST. The formulation process, by design, envi-

sioned as a very inclusive and participative model with intense interconnectedness among

different tracks of activities.

Summary - Here in the chapter – 4 we studied about the various science,

Technology and Business policies that are developed by the Indian government regarding

the development of new technologies and to establish a relation between technology and

businesses.

In the next chapter – 5 we will study out the various judgements of Indian

judiciary regarding this.

90
 CHAPTER - 5
OPINION OF JUDICIARY

5.1 Dalsukhbhai Keshavlal vs National Institute of Design: 2001 (88) FLR 561, (2001)

GLR 74

In the present petition, rule has been issued by this Court on 21st April, 1988

and by way of ad-interim direction, the operation and the implementation of order Annex-

ure-III dated 18th March, 1988 is stayed. Suspension is dismissal mitigated at the discretion

of the employer by a promise to re-employ. The principles of natural justice are easy to

proclaim but their precise extent is far less easy to define.

The rule against basis is one thing. The right to be heard is another. Those

two rules are essential characteristics of what is often called natural justice. They are the

twin pillars supporting it. The Romans put them in the two maxims : Nemo Judex in Causa

Suo : and Audi Alteram Partem. They have recently been put in the two words : Impartiality

and Fairness. But they are separate concepts and are governed by separate consideration.

One of the great principles of civilized jurisdiction which is a part of the law

in Britain and which has been adopted in this country is that no man shall be a judge of his

own cause. Closely allied to this principle is the other salutary principle that it is of funda-

mental importance that justice should not only be done but manifestly and undoubtedly

seem to be done. Justice must be rooted in confidence : and confidence is destroyed when

right minded people go away thinking.

91
 In the present petition, in all six Petitioners are there. Out of these six Peti-

tioners, Petitioner no. 1 Shri Dalsukhbhai Keshavlal has already retired from service : Pe-

titioner nos. 3 - Manubhai Damjibhai and Jasubhai Patel have settled the issue finally with

the Management. Now, the present Writ Petition relates to Petitioner nos. 2, 4 and 6 i.e.

S/Shri S. S. Pillai, Alfred Dalgada and Suresh S. Kuntmal, and in respect to Petitioner no.

1 Shri Dalsukhbhai Keshavlal who is concerned with the relief which has been sought in

the present petition. So, except Petitioners nos. 3 & 5 all the other Petitioners are interested

party in the present proceedings.

In the present petition, the Petitioners are challenging the suspension orders

dated 30th November, 1987 passed by the Respondent no. 2 and also challenges the action

of the Respondent-Management of reducing their 'subsistence allowance' to 25% [twenty

five per cent] of their salary after the completion of three months' period of suspension vide

order dated 18th March, 1988.

It is contended by the Petitioners that the very action of suspension is arbi-

trary and illegal in so far as it violates clause 4.3 of the Service Rules of the Respondent-

National Institute of Design [hereinafter referred to as 'the Institute'] which provides for a

preliminary inquiry to be conducted after giving an opportunity to the employees before

placing them under suspension. In the instant case, according to the Petitioners, no prelim-

inary inquiry was conducted nor were the Petitioners given any opportunity to show cause,

and therefore, the impugned action of the Respondent-Institute is totally illegal and void.

The second challenge is the action of reducing the 'subsistence allowance'

of the Petitioners by the Respondents to 25% of their salary, after the period of three months

92
of suspension, is malafide, illegal, unjust and in violation of the service rules of the Re-

spondent Institute, and also in contempt of the order of the City Civil Court staying the

inquiry proceedings, during the pendency of criminal case against the Petitioners. The Pe-

titioners further submit that the Respondent Institute is a 'State' within the meaning of Art.

12 of the Constitution of India, and therefore, amenable to the writ jurisdiction of this Court

under Art. 226 of the Constitution.

The case of the Petitioners is that Government of India fully finances and

control the activities of the Respondent-Institute, through the Ministry of Industry and has

all pervasive control over the affairs of the Institute. Further, this Court has admitted several

petitions against the Respondent Institute; including Special Civil Application No. 6443 of

1987, by the Division Bench.

The dispute regarding implementation of IVth Pay Commission recommen-

dations had arisen around May, 1987 between the Respondent-Institute and NID Employ-

ees' Association and in support of the said demand of employees for the implementation of

the IVth Pay Commission recommendations, the Association led by the Petitioners had

stage peaceful demonstrations and other legitimate forms of protest.

The Respondent-Institute and the Respondent no. 2 refused to negotiate with

the only Association of the employees in respect of the demand of IVth Pay Commission

pay scales and therefore, the Association and the employees were constrained to continue

their peaceful and legitimate direct action in support of their demand. On 30th November,

1987 at about 10.30 a.m. during tea-break, while the employees were demonstrating in

peaceful manner, the private security guards lead by the so-called Security Contractor Shri

93
Naranappa and the Campus Warden Shri Bhagwat P. Shah attacked the employees injuring

many, including the Petitioners herein. The said attack was solely aimed at breaking the

peaceful demonstration and help the management to take action against the leaders of the

Association on trumped up charges.

According to the Petitioners, immediately after the incident i.e. on 30th No-

vember, 1987, the Campus Warden Shri Bhagwat P. Shah filed a criminal complaint with

the Ellisbridge Police Station and a case was registered against the Petitioners and one other

temporary employee Shri Bhimjibhai. The Petitioners and said Shri Bhimjibhai were placed

under arrest and a criminal case was instituted against them, which is pending trial before

the Metropolitan Magistrate Court No. 15 at Ahmedabad.

The Petitioners no. 1 & 2 had also filed a complaint with the Ellisbridge

Police Station against Shri Naranappa and his security guards on 30th November, 1987 in

respect of the same incident, complaining that they were attacked by the so-called security

contractor and his men and that they had suffered severe injuries. One of the Petitioners

Jasubhai Patel was admitted in the V.S. Hospital with injuries, but the police has not taken

any action so far on the complaint filed by the Petitioners. Considering these facts, the

Respondent-Institute has decided to suspend the Petitioners and Petitioner no. 2 as a Gen-

eral Secretary of the Association by an order dated 30th November, 1987 on the date of the

incident itself.

The said suspension order in respect to Petitioner no. 2 has been produced

on record at page 15 Annexure I to the petition. The said suspension order has been issued

by the Respondent no. 2 under the rules of the Respondent-Institute applicable to the

94
Petitioner no. 2. The Petitioners have further pointed out in the petition that against the

order of suspension, which was clearly illegal since it violates clause 4.3 of the Service

Rules of the Respondent-Institute, has made representation to the Respondent-Institute and

similarly all the Petitioners have also submitted representation against the suspension or-

ders. It is contended that the Service Rules of the Respondent-Institute was formulated by

way of a Bipartite settlement registered under Section 2(p) read with Section 18 of the In-

dustrial Disputes Act, 1947 [hereinafter referred to as 'the Act'].

A copy of the relevant Service Rules has been produced at Annexure-III to

the petition. It is contended that the provisions regarding disciplinary proceedings agreed

to by the parties vide clause 6 of the said settlement read alongwith Annexure-II to the said

Settlement were adopted by the service rules in so far as the disciplinary proceedings are

concerned, and therefore, according to the Petitioners the said service rules have statutory

force and are binding on the parties as per the said 2-p settlement.

Thereafter, the Respondent no. 2 issued notices to all the Petitioners declar-

ing the intention of holding domestic inquiry in respect of the charges levelled against them

vide Chargesheet dated 7th December, 1987. A copy of the said charges as well as notice

of domestic inquiry are annexed at Annexures IV & V respectively. Thereafter, the Peti-

tioner had filed a Civil Suit No. 908 of 1988 before the City Civil Court, Ahmedabad op-

posing the action of the Respondent management in initiating the departmental inquiry,

pending the criminal case against them, on the very same charges which were levelled

against them vide Chargesheet dated 7th December, 1987. The City Civil Court has granted

stay against the departmental inquiry, pending the criminal case. A copy of the order below

95
Notice of Motion in Civil Suit No. 908 of 1988 is annexed at Annexure VI of the petition.

Thereafter, the Respondent no. 2 has passed an order dated 18th March, 1988 [Annexure

VII] reducing the subsistence allowance of the Petitioners to 25% of their salary. Though

the Petitioners preferred a representation against the said reduction in the subsistence al-

lowance to the Respondent Institute, no response as yet has been given, and therefore, the

Petitioners have challenged both - the order of their suspension dated 30th November, 1987

and the order of reduction in subsistence allowance dated 18th March, 1988.

The Respondent Institute has filed affidavit-in-reply by one P. S. V. Kurup

on 10th December, 1999. In the said reply, the Respondent has raised a contention that the

suspension orders of the Petitioners have been issued by the Institute on 30th November,

1987 due to their rioting disorderly behaviour and violence in the campus and causing dam-

age to the property of the Institute. It is stated that the Petitioners were also charge sheeted

on 7th December, 1987 for the charges of violence and physical harm to others and causing

bloodshed in the campus and committing criminal offence as well as abetting others to do

criminal acts and commit riotous and disorderly behaviour during the working hours at the

Institute.

The Respondent has also pointed out that they have appointed a retired High

Court Judge Mr. Justice A. D. Desai, as the Inquiry Officer and entrusted the departmental

inquiry to him. The Inquiry Officer had issued notice to the present Petitioners for proceed-

ing with the inquiry, however, instead of appearing before the Inquiry Officer, the Petition-

ers had instituted a Civil Suit being Civil Suit No. 908 of 1988 on 22nd February, 1988

before the City Civil Court at Ahmedabad inter alia praying for permanent injunction

96
against the Respondent Institute from acting in furtherance with the departmental inquiry

or taking any disciplinary action in pursuance of the charge sheet dated 7th December,

1987.

The City Civil Court has granted injunction against the Respondent to con-

duct the departmental inquiry in view of the fact that criminal trial in respect of the very

same incident was pending for decision. Now, against the order of injunction passed by the

City Civil Court, the Respondent Institute had filed an appeal from order being A.O. No.

217 of 1988 before this Court. However, this Court did not interfere with the interim order

passed by the City Civil Court in view of the fact that it was at interlocutory stage. It is

clarified in the reply that the criminal trial commenced before the Metropolitan Court at

Ahmedabad and on request being made by the Respondent Institute, the Government of

Gujarat appointed a Senior Advocate Shri R. J. Trivedi as Special Public Prosecutor of the

said case.

However, when Mr. Trivedi appeared in the matter, the present Petitioners

raised an objection and as a result, the Court decided to continue with the trial of the crim-

inal case and asked the Public Prosecutor to hand over all the papers of the case to the

learned Special Public Prosecutor Mr. Trivedi. Instead of proceeding with the trial, the Pe-

titioners challenged the appointment of Special Public Prosecutor by filing Special Civil

Application before this Court wherein this Court granted stay of the proceedings in the

criminal case pending final hearing of the writ petition. The said petition is also pending

for final hearing before this Court. It is also pointed out in the reply that in the meanwhile,

the Petitioners have filed the present petition and this Court has admitted the matter on 21st

97
April, 1988 and granted ad-interim relief staying the operation and implementation of the

order dated 18th March, 1988.

Thereafter, the Petitioners moved a Civil Application No. 1282 of 1988 inter

alia praying for 75% of the wages as subsistence allowance. On the said Civil Application,

this Court vide order dated 31st August, 1988 gave directions to the Respondent Institute

to pay 75% of the wages as 'subsistence allowance' to the Petitioners with effect from 1st

March, 1988. Against the said order dated 31st August, 1988, the Respondent preferred

Letters Patent Appeal No. 348 of 1988 before this Court which was also dismissed vide

order dated 8th February, 1990. Accordingly, the Respondent has been paying 75% of the

wages as 'subsistence allowance' to the Petitioners. Respondent, in its reply has pointed out

that besides the present petition, there are various disputes pending before various Courts

of law. The Civil Suit No. 908 of 1988 filed by the Petitioners challenging the validity of

the departmental inquiry before the City Civil Court is also pending for final hearing.

The criminal proceedings before the Metropolitan Magistrate Court No. 15

against the Petitioners is stayed pursuant to the order passed by this Court. The Special

Civil Application filed by the Petitioners challenging the validity of the appointment of

Special Public Prosecutor by the State of Gujarat is pending for final hearing and Special

Civil Application No. 5510 of 1999 filed by the Petitioner no. 1 inter alia praying for re-

tirement benefits is also pending before this Court. The Respondent has also pointed out in

the reply that during the pendency of the present proceedings, the Petitioners no. 3 & 5

gave letter of apology dated 25th July, 1999 and 16th August, 1999 admitting various

charges levelled against them and requested the Institute to consider the matter

98
sympathetically and to revoke the suspension order with immediate effect and direct the

Petitioners no. 3 & 5 to report for duty latest by 1st September, 1999.

It is also pointed out by the Respondent that in the aforesaid Civil Suit No.

908 of 1988 which is pending, if ultimately the Petitioners succeed in that event, the Peti-

tioners will get all the consequential benefits, and therefore, this petition is required to be

rejected and the same should not be entertained. It is pertinent to note that in the present

reply, the Respondent has not raised contention about the maintainability of the present

petition. The Respondent has not raised contention specifically to the effect that the Re-

spondent Institute is not a 'State' or 'other authority' within the meaning of Art. 12 of the

Constitution of India. Such a contention has also not been raised by the Respondent Insti-

tute in its reply dated 10th December, 1999.

Against the said reply, the Petitioner has filed affidavit-in-rejoinder. The

said rejoinder has been filed by the Petitioner no. 2 on 15th December, 1999. The Petition-

ers in the said rejoinder have pointed out that sometime back, the Respondent no. 1 has

given a draft letter to the Petitioners for being signed by them and based on the said letter,

the Petitioners were to be reinstated in service and the inquiry proceedings were to be

dropped.

The said letters have been given to the Respondent Institute duly signed by

the Petitioners. However, the Management wants to settle other issues which were enumer-

ated in the draft settlement points before suspension was revoked. After signing the said

letter, the Petitioners have received a communication from the Respondent on 15th April,

99
1988 from the Executive Director of the Respondent Institute, stating that the letters sub-

mitted by the Petitioners were still under consideration.

The said letters had been signed by the Petitioners on 10th of February,

1988; after protracted discussions. However, the Management had gone back on their as-

surance to revoke suspension because it was not possible for the Petitioners to agree to the

settlement points on other issues; including the issue of SEWA which were being insisted

upon. It is also pointed out by the Petitioners that the Apex Court has already rejected Spe-

cial Leave Petition filed by the Respondent Institute against the judgment and order of the

Division Bench of this Court in the SEWA case. An affidavit-in-reply to the Affidavit dated

23rd December, 1999 has been filed by the Respondent-Institute. In the said reply, the Re-

spondent has raised contention in paragraph 2 that the present petition is not maintainable

inasmuch as the Respondent Institute is not a 'State' within the meaning of Art. 12 of the

Constitution of India and the Respondent Institute is a Society registered under the Socie-

ties Registration Act and a Trust registered under the Bombay Public Trusts Act, imparting

education to the students engaged in the field of research and development in various dis-

ciplines of design, and offering consultancy services as a part of education and research.

In the said reply, it is also pointed out that the service conditions of the

employees in the Institute are governed by the Model Standing Orders; since there are no

certified standing orders; Clause 25(5) of the Model Standing Orders empowers the Re-

spondent Institute to place an employee under suspension, by an order in writing, and a

relevant sub-clause (5)(a) of Clause 25 has been incorporated in the said reply. Further, in

100
the said reply, three contentions have been raised viz., that the 2-p settlement has not been

registered, and therefore, it has no statutory force.

Moreover, in any case, the said settlement does not supersede the provisions

of the Model Standing Orders, which has the statutory force. It is also made it clear that the

situation at the relevant time was so tense that it was impossible for the Institute to act

exactly as per the 2-p Settlement as the Petitioners were demonstrating in the corridors of

the main building of the Institute during the working hours and tried to force the entry into

the administrative department of the Respondent Institute, and in the process, the Petition-

ers pelted stones breaking glass panes of the administrative department thereby injuring

security and administrative personnel available on duty and also physically assaulted the

security staff, as a result whereof the security staff and administrative staff sustained griev-

ous injuries.

Therefore, the Respondent Institute was not able to act exactly as per the 2-

p Settlement which ultimately amounts to breach of provisions of said settlement for which

an alternative efficacious remedy under the Industrial law is available to the Petitioners.

The said reply has been filed by the Respondent-Institute on 23rd December, 1999. There-

after, the Respondent Institute has filed additional affidavit on 18th January, 2000. In the

additional affidavit, it is contended that the Respondent Institute is neither a 'State' nor 'an

instrumentality of State' within the meaning of Art. 12 of the Constitution of India. In sup-

port of this contention, functions of the Respondent Institute have been narrated just to

satisfy the test that the Respondent Institute is not a 'State' or 'other authority' within the

meaning of Art. 12 of the Constitution of India. Alongwith the said affidavit, memorandum

101
of association has been produced on record. Against that, the Petitioners have filed addi-

tional Affidavit-in-reply pointing out that the present petition was filed in the year 1988

and the Respondent Institute did not file any Affidavit-in-reply till December, 1999 i.e.

about 11 years, and therefore, Respondents cannot be permitted to file counter affidavit

after a gap of 11 years and this Court cannot take into consideration such affidavits. It is

also pointed out by the Petitioners that after the arguments, such preliminary objections

cannot be permitted to be raised viz., that the present petition is not maintainable and/or the

Respondent Institute is not a 'State' or 'other instrumentality of the State' within the meaning

of Art. 12 of the Constitution. It is also pointed out by the Petitioners that the Respondent

Institute has subjected itself to the writ jurisdiction of this Court in the present petition

during past 11 years.

Further, the Respondent institute has also submitted itself to the jurisdiction

of this Hon'ble Court under Art. 226 of the Constitution in several other Writ Petitions; one

of them being Special Civil Application No. 6443 of 1987. It is also pointed out by the

Petitioners that in number of petitions, interim orders have been made by this Court for

and/or against the Institute.

It is also made it clear that not only the interim orders but also at final stage,

such orders have been complied with by the Institute from time to time. Further, such con-

tention about the Respondent Institute is not a 'State' is an afterthought and wholly frivolous

and ought to be rejected on the basis of the conduct of the Respondents. It is also pointed

out by the Petitioners that if such contention could have been raised at the relevant time i.e.

in the year 1988 and not after 11 years, then the Petitioners might have explored any other

102
remedy available to them instead of waiting for this question to be decided first by this

Court. It is contended that yet in the past 11 years, the Respondents not only did not raise

any such preliminary objection but has not even challenged the interim order passed in the

Petition, and while challenging the order passed by this Court in Civil Application No. 1282

of 1988 before the Division Bench in LPA the Respondent did not raise this preliminary

issue which would have gone to the root of the matter.

The Petitioners have placed reliance upon a decision of the Apex Court in

the matter of Ajay Hasia v. Khalid Mujid, reported in AIR (1981) SC 487 and the Respond-

ent Institute has placed reliance upon decision of Apex Court in the case of Re : NCERT,

reported in AIR (1992) SC 76. The said rejoinder has been filed by the Petitioners on 24th

February, 2000. The Petitioners have produced alongwith the said rejoinder, Annual Report

of the Respondent Institute for the year 1996-97. The Petitioners have also produced a copy

of the Affidavit-in-reply filed by the Respondent Institute in Misc. Civil Application No.

820 of 1997 in Civil Application No. 1282 of 1988 and also produced Office Memorandum

dated 27th September, 1993 dated 14th July, 1995 and 6th September, 1996. The Petition-

ers have also produced Affidavit of the Respondent Institute filed in Special Leave Petition

No. 7003 of 1998.

5.2 Manoj Oswal vs 2 Sakal Papers Pvt. Ltd.: Decided by Bombay High Court on 6th

August 2013

It is alleged that the Information Technology Act, 2000 was deliberately

used purely to convert a non cognizable offence into a cognizable one. The Petitioner be-

lieves that though there was no case against him under the Information Technology Act,

103
2000, he was framed under pressure/ influence of politically well connected person to

firstly get the Petitioner arrested and tortured in police custody and to harass him further if

needed. It is alleged that all this was with an intention to force the Petitioner to withdraw

the criminal cases against the said Prataprao Pawar and his men.

It is stated that a plain reading of the First Information Report makes it clear

that no case is made out against the Petitioner. The First Information Report does not say

that the Petitioner was harassing anyone. He did not send any menacing or threatening

messages nor that any content of the websites was obtained through illegitimate means.

The only complaint being repeated is that his "Saheb" was defamed by the actions of the

Petitioner.

After alleging as above and complaining that the Petitioner was denied bail

on unjustified grounds and put under arrest, what has been then alleged is that it is the

Petitioner who has been defamed and publicly.

For the above reasons, what is then alleged is that a perusal of the First In-

formation Report would not disclose commission of any cognizable offence. The Infor-

mation Technology Act, 2000 has been deliberately referred to purely to convert a non cog-

nizable offence into a cognizable one. Though there was no case under the Infor-

mation Technology Act, 2000, the Petitioner has been framed under pressure or influence

of politically well connected persons.

5.3 Gagan Harsh Sharma and Anr vs The State of Maharashtra and Anr: Decided by

Bombay High Court on 26th October 2016

104
 The principle question that arise in the present Criminal Writ Petition is

whether the invocation and application of the provisions of the Indian Penal Code can be

sustained in the facts and circumstances of the case when the offences committed by the

petitioners are also sought to be brought within the purview of the Information Technol-

ogy Act, 2000, in light of the judgment of the Hon'ble Apex Court in the case of Sharat

Babu Digumarti V/s. Government (NCT of Delhi)1 In order to appreciate the controversy

involved in the petition it would be necessary to refer to the basic facts involved in the

matter. The petitioners before us are two brothers. The petitioner No.1 is an Electronic

Engineer employed as Vice President-Strategy and Business Development of M/s.Bliss

GVS 1 (2017) 2 SCC 18.

During the course of the hearing of the matter, the learned counsel for the

petitioner has placed on record, copy of the order passed by the Hon'ble Apex Court on

03.10.2018 in Special Leave to Appeal (CRL) 8274 of 2018 in case of the petitioner No.1

who had approached it being aggrieved by the rejection of his Anticipatory Bail. We have

perused the said order.

The Hon'ble N.S. Kamble page 8 of 45 jud-917-wp-4361-2018 Apex Court,

in the backdrop of the factum of Writ Petition No.4361 of 2018 being filed by the petition-

ers before the Bombay High Court for quashing the provisions of the Indian Penal Code,

has observed that since the matter was examined by the High Court whether the case is

primarily under the Information Technology Act and whether Sections 408 and 420 of In-

dian Penal Code can be applied, made the following observations :-

105
 Provided that nothing contained in this Act shall restrict any person from

exercising any right conferred under the Copyright Act, 1957 (14 of 1957) or the Pa-

tents Act, 1970 (39 of 1970)." In the backdrop of the scheme of the enactment the claim of

the rival parties will have to be examined.

The Hon'ble Apex Court in case of Sharat Babu Digumarti (Supra) had in

great detail dealt with the offences punishable under the Information Technology Act and

at the same time punishable under the relevant provisions of the Indian Penal Code. In the

said case, an FIR was filed against the appellant and on investigation, chargesheet came to

be filed before the Magistrate who took cognizance of the offences punishable under Sec-

tion 292 and 294 of the Indian Penal Code and also Section 67 of the Information Technol-

ogy Act. The appellant approached the Apex Court and on the ground that the company

was not arraigned as a party and the Director could not have been liable of the offences

punishable under Section Technology Act and the proceeding came to be quashed. Subse-

quently an application came to be filed before the Trial Court to drop the proceedings and

the Trial Court refused to drop the proceedings under Section 292 of Indian Penal Code

and framed the charge.

With this issue he approached the Apex Court and the question for consid-

eration before the Hon'ble Apex Court was whether the appellant who has been discharged

under Section 67 of the Information Technology Act could be proceeded under Section

292 of the Indian Penal Code. The Hon'ble Apex Court also examined whether an activity

emanating from electronic form which may be obscene would be punishable under Section

106
292 of the Indian Penal Code or 67 of the Information Technology Act or both or any other

provision of the Information Technology Act.

5.4 Google India Private Limited vs M/S Visaka Industries Limited: Decided by An-

dhra High Court on 18th November 2016

Upon hearing argument of both the counsel and considering oral and docu-

mentary evidence on record, the Trial Court dismissed the suit holding all the issues against

the plaintiff and in favour of the defendants.

Aggrieved by the decree and judgement passed by the Trial Court, the plain-

tiff filed an appeal in A.S.No.50 of 2014 on the file of the I Additional Chief Judge, City

Civil Court, Secunderabad. Upon hearing argument of both the counsel, the First Appellate

Court while concurring with the finding recorded by trial Court on Issue No.3 in paragraphs

21(b) & 23, held the 2nd defendant (appellant) liable to remove the alleged cyber defama-

tory statements, granting relief against both, while holding that the intermediary (appellant)

not liable for posting such defamatory statements.

Assailing the decree passed by the first Appellate Court against the defend-

ants 2 & 3, the 2nd defendant alone filed the appeal raising several contentions, mainly

contending that the findings of the First Appellate Court in paragraph 23 of the judgment

is contrary to the finding in paragraph 21(b) and that when the 2nd defendant-appellant

herein being an intermediary is not liable for any such postings and upholded the findings

recorded by the Trial Court on Issue No.3 that it ought not to have granted relief against

2nd defendant-appellant. Therefore, the judgment of the First Appellate Court is erroneous.

107
 It is further contended that the First Appellate Court did not assign any rea-

son to come to a conclusion that how the postings in the blogsite of 3rd defendant are de-

famatory and issuing a direction for removal of the content in the postings against the 3rd

defendant along with 2nd defendant is nothing but fastening liability on 2nd defendant and

it is contrary to the findings recorded in paragraph 21(b). Therefore, the judgment of the

First Appellate Court is erroneous and self contradictory.

During hearing, the learned Senior Counsel Sri Raghunandan appearing on

behalf of Sri N. Vijay, Advocate on Record, drawn attention of this Court to various para-

graphs in the judgment of First Appellate Court, more particularly 7(b), 21(b) & 23 which

are self contradictory. That apart, the original Court refused to rely on the judgments of

Foreign Courts on the ground that they are not binding on Courts in India, but the First

Appellate Court, based on Shreya Singhal v. Union of India concluded that the foreign

judgments can be considered and the Supreme Court has responded positively (vide para-

graph 22 of the judgment).

In the absence of any judgment from our Indian Courts, the judgements of

foreign Courts are having highest persuasive value though not binding precedent, as those

judgments are not the law declared by the Apex Court under Article 142 of Constitution of

India. Therefore, the Trial Court and the Appellate Court would have accepted the highest

persuasive value of the judgments of foreign Courts, but ignored totally. It is also drawn

attention of this Court to Section 79 (3) of Information Technology Act, 2000, which is

amended by Act.10/2009 with effect from 27.10.2009 to claim immunity from liability,

since 2nd defendant is only an intermediary having no control over the contents of the

108
postings and the definition of the term intermediary under The Information Technology

Act, 2000, and placed reliance on the judgments in Vodafone International Holdings B.V.

v. Union of India and another , ISI SRA v Google Italy Srl, Google Infrastructure Srl, Ya-

hoo! Italia Srl. - Court of Milan translated version, A v Google New Zealand Ltd ., Duffy

v Google Inc. & anr , Crop Care Federation of India v. Rajasthan Patrika (Pvt.) Ltd. And

Ors. and R.Rajagopal @ R.R. Gopal @ Nakkheeran Gopal and another v. J.Jayalalitha and

another , on the strength of those judgments and principles laid down in those judgments,

learned counsel for the appellant (D-3) would contend that 2nd defendant being an inter-

mediary has no liability, since it has no control over the postings in the blogsite and the 2nd

defendant proved exercise of due diligence.

Per contra, Sri N.V. Anantha Krishna, learned counsel for the plaintiff sup-

ported the judgment of the First Appellate Court in all respects, while contending that the

2nd defendant is only an agent of 3rd defendant in India and therefore, all the defendants

are liable for the reliefs claimed in the suit and contents of those statements on the blogsite

of the 3rd defendant is totally defamatory in nature and issuing direction declaring that the

contents of Messages 1 & 2 referred above are defamatory in nature which effects the busi-

ness of the plaintiff company worldwide and adversely affects its business and its employ-

ees. In such circumstances, the findings of the Trial Court that contents of those Messages

1 & 2 referred supra as defamatory cannot be interfered with in the present second appeal,

as its jurisdiction is confined to substantial question of law under Section 100 of C.P.C.

Learned counsel further contended that, though relief of mandatory injunc-

tion under Section 39 of Specific Relief Act is the harshest remedy, issuing such direction

109
to the defendants including defendants 2 & 3 for removal of Messages 1 & 2 on the blogsite

on the defendants 2 & 3 by 1st defendant is justifiable for the reason that the contents of

those postings 1 & 2 would adversely effect the business of the plaintiff and it would create

fear complexion in the minds of general public in the commercial world and issuing such

direction by way of mandatory injunction is justifiable in those circumstances and prayed

for dismissal of the appeal, confirming the decree and judgment passed by the First Appel-

late Court.

As per Ex.B.4, the person, who accessing or posting any information in the

website are bound by the general terms and conditions of the Google Groups Content Pol-

icy. In such case, intermediary is not liable for such postings in the web blog by the general

public since the intermediary is only offers intermediary service between the parties subject

to proof of requirement under Section 79 of the Information Technology Act.

The liability of intermediary came up for consideration in various judgments

including the judgment in Bazee.com case in India for the first time before the Delhi High

Court. Under the Information Technology Act, 2000, no categorization of OSP/ISP/NSP

has been attempted despite the view that liability has been imposed having regard to the

functions performed by the service provider in order to give a meaningful disposition to

infringement cases.

Summary – Here in the chapter – 5 we have studied the various judgements

of Indian judiciary on the cases relating the modern technologies and businesses.

In the next Chapter – 6 we will conclude the conclusion and suggestions.

110
 CHAPTER - 6

CONCLUSION AND SUGGESTIONS

6.1 Conclusion

With more than half a billion internet subscribers, India is one of the largest

and fastest growing markets for digital consumers, and the rapid growth has been propelled

by public and private sector alike. India’s lower-income states are bridging the digital di-

vide, and the country has the potential to be a truly connected nation by 2025. Much more

growth is possible. As India’s digital transformation unfolds, it could create significant

economic value for consumers, businesses, microenterprises, farmers, government, work-

ers, and other stakeholders. Digital adoption by India’s businesses has so far been uneven,

but new digital business models could proliferate across most sectors.

We find that core digital sectors such as IT and business process manage-

ment (IT-BPM), digital communication services, and electronics manufacturing could dou-

ble their GDP level to $355 billion to $435 billion by 2025, while newly digitizing sectors

(including agriculture, education, energy, financial services, healthcare, logistics, and re-

tail) as well as digital applications in government services and labour markets could each

create $10 billion to $150 billion of incremental economic value in the same period.

Some 60 million to 65 million jobs could be created by the productivity

surge by 2025, although redeployment will be essential to help the 40 million to 45 million

workers whose jobs will likely be displaced or transformed by digital technologies, based

on our estimates.

111
 In India’s new and emerging digital ecosystems of the future—already vis-

ible in areas such as precision agriculture, digital logistics management, and digital

healthcare consultations business will have to find a new way to engage with customers.

All Indian stakeholders will need to gear up to capture the opportunities and manage the

challenges of being a connected nation. India’s digital leap is well under way, propelled by

both public and private-sector actions By many measures, India is on its way to becoming

a digitally advanced nationl.

Just over 40 percent of the populace has an internet subscription, but India

is already home to one of the world’s largest and most rapidly growing bases of digital

consumers. It is digitising activities at a faster pace than many mature and emerging econ-

omies. India’s internet user base has grown rapidly in recent years, propelled by the de-

creasing cost and increasing availability of smartphones and high-speed connectivity, and

is now one of the largest in the world (Exhibit E1). The country had 560 million subscribers

in September 2018, second in the world only to China.2Digital services are growing in

parallel. Indians now download more apps 12.3 billion in 2018 than residents of any other

country except China.3 The average Indian social media user spends 17 hours on the plat-

forms each week, more than social media users in China and the United States.4 The share

of Indian adults with at least one digital financial account has more than doubled since

2011, to 80 percent, thanks in large part to the more than 332 million people who opened

mobile phone–based accounts under the government’s Jan-Dhan Yojana mass financial-

inclusion programme.

112
 The influence and role of information technology have indirectly made the

business flourish. Because with information technology, a company can increase the need

for time and cost efficiency. The more advanced technology also has a negative and positive

impact on business, which makes it easier to increase production and income but on the

other hand much work that was initially done by humans can be replaced by technology,

this is a threat to all workers who are experts in this context because their position is taken

with technological.

In general, the role of information technology in the global business has

many tremendous positive impacts than negative impacts. The influence and role of IT on

the development of business and economic performance are as follows Information tech-

nology makes it easy to dissemination information and the advance of online business in

different areas of the world without knowing the period, limitation and boundaries of the

countries. For instance, an e-commerce that applied by companies to sell a variety of com-

modities. Currently, many people are experts in the IT field; it assists in advancing and

growing an online business through the internet. Therefore, due to many experts in the IT

field, online businesses can experience advancement and improvement in terms of the sys-

tem.

System improvement is made to overcome the vulnerability of e-commerce

against credit card tapping that can decrease consumers of a business. Nevertheless,

through the awareness of consumer confidentiality, systems can be maintained, and con-

sumers can trust again to buy products via the internet. Online business is the most popular

platform because of its simplicity. Also, online businesses do not need always to be there

113
to supervise and wait for customers, but with a system that has been made in such a way as

to run it automatically.

Internet connections that are increasingly easy and affordable due to IT ad-

vancements also lead to prosperity in online businesses. Therefore the entry of the infor-

mation technology period in the global business brings a positive impact on the business

progress, in the period of information technology, a business can run without distance and

time. Besides doing business today can run without the need for substantial costs, for ex-

ample, is conducting business by using the internet. Also through a business such as export

and import of goods and services, payment of taxes, exchange of money, creation of em-

ployment and other merits facilitate the outstanding performance of the economy, this en-

ables the growth of national income. Therefore, the author recommends the companies to

improve their services and to be innovative in using information technology in their busi-

ness this will enable the company to earn a supernormal profit, grow and advance.

There was, however, consensus on some of the challenges. There are some

concerns about meeting future skills needs, with many of the companies already experienc-

ing difficulties. These challenges are pronounced for those companies moving from the

research stage into the commercialization and/or manufacturing stage, where the need for

technician-level skills arises. Most of the companies currently have high proportions of

professional staff, but many envisage a change in employee mix, with a focus on techni-

cians.

Few anticipate increased need for trades people. Companies showed a rea-

sonable awareness of the VET sector, but there was also ongoing concern that companies

114
are not able to access the training they need. Most training appears to be custom in-house

skills development delivered either by in-house professionals or by equipment suppliers,

but the latter was seen as less desirable because it does not engender the development of

in-house capability. RTOs were seen as lacking specific industry knowledge to provide

adequate skills development for many of the companies – especially those which are world

leaders and possess unrivalled in-house expertise.

While there was recognition of the need to attract schoolleavers into the

emerging technologies, there were few examples of successful engagement and strong ev-

idence of significant challenges in this regard. At the same time, there was apparent strong

interest in and support for the concept of Technology Cadetships.

Emerging technologies are inter-related, highly multidisciplinary, highly di-

verse and somewhat difficult to classify. They cross the traditional industry boundaries and

sectoral notions which have tended to characterise the VET sector. They include converg-

ing technologies, enabling technologies and those that disrupt other technologies. The re-

searchers provided differing definitions of emerging technologies, and mainly included

technologies in the applied research or early commercialisation stage. However, some re-

ferred to technologies that have been commercialised for some time.

Specific emerging technologies include those identified in earlier Ai Group-

led research (such as nanotechnology and photonics) and numerous other emerging tech-

nologies and applications across very diverse industries. The picture is very complex and

context is important: what might be ‘old’ technology in one setting may be ‘new’ and

emerging in another, bringing fresh challenges and new or, as one researcher called it,

115
‘tweaked’ skill requirements. Key emerging technologies identified in this work include

advanced energy technologies, and enabling and converging technologies. Environmental

challenges such as climate change, global warming, expensive and dwindling fossil fuels,

and population growth demand new and novelapproaches and are driving new ways of

operating and more energy- efficient and sustainable technologies.

There was a recognition that much of the current skills development occurs

in-house, with some delegates in favour of more on-site training while others favoured ex-

ternal training options. In both cases, however, delegates stressed the importance of strong

partnerships between training providers and industry. Industry continues to be critical of

the lack of flexibility in the training system, which was identified as an impediment to

emerging technology skills development.

A number of suggestions were offered to improve training delivery, includ-

ing closer industry partnerships between RTOs, businesses and schools; more on-the-job

skills training; upskilling of TAFE staff in industry practices and latest technologies; and a

greater focus on online delivery. There were also calls for increased funding in the public

training system to develop the training resources which are needed to keep pace with tech-

nology. Funding shortfalls were particularly prevalent in thin markets (markets where there

is limited demand), and delegates called for a more strategic position to be adopted in

recognition of the broader public benefit of the development of emerging technology skills.

As physical and organizational boundaries are becoming increasingly

blurred, organizations are going to have to become significantly more agile in the way they

think about managing people’s work and about the workforce as a whole. Work is what

116
people do and not where they do it. Businesses will increasingly connect and collaborate

remotely with freelancers and independent professionals through digital talent platforms.

Modern forms of association such as digital freelancers’ unions and updated labour market

regulations will increasingly begin to emerge to complement these new organizational

models. For policymakers, an important set of regulations concerns the portability of safe-

guards and benefits between jobs and the equivalent treatment in law of different forms of

labour and employment types. (World Economic Forum, 2016, p. 30) Even if a company

is completely automated, demand must be there. 3D printers may allow artisans to create

their own products and eBay may allow them to be sold B2B, but there still needs to be a

demand. Supply may increase as more people can follow their dreams. As people who use

Airbnb have discovered, renting your room or apartment is easier before the neighborhood

becomes a place travelers want to stay. Then you may have more competition so you may

have to spend money upgrading your dwelling.

You may also have so many customers that you spend time and money

cleaning than following your own passion, which was what the room rental was supposed

to provide. Many artists and musicians have had other jobs so they could afford to follow

their passion of creating art and music. Now those jobs will be gone, but there may be more

people trying to make money in artistic endeavors. The demand for any product or service

must exist, even for robots. Brynjolfsson and McAfee (2014) claimthat the best solutions

will come from creativity and innovation that increase the value of human labor (p. 245).

For business leaders, Manyika et al. (2017) highlight the new responsibilities.

117
 Companies who recognize both the opportunities and threats of automation

to competitiveness will engage and embrace the potential that these technologies represent,

prioritizing a set of active experiments to start climbing the learning curves earlier rather

than later. To help diagnose where automation could most profitably be applied to improve

performance, business leaders may want to conduct a thorough inventory of their organi-

zation’s activities and create a heat map of where automation potential is high. Business

processes shown to have activities with high automation potential could be reimagined un-

der scenarios where they take full advantage of automation technologies (rather than me-

chanically attempting to automate individual activities using current processes). The bene-

fits and feasibility of these automation-enabled process transformations could then be used

to prioritize which processes to transform using automation technologies.

Business leaders and their organizations will also need to become more

knowledgeable about the evolution of the technologies themselves, understanding the art

of the possible, and the potential for the future, in order to best position their enterprises to

take advantage of automation. This is not just “book knowledge” that comes from reading

about technologies, or visiting global centers of innovation, but practical knowledge that

comes from devoting some resources to continually and purposefully experimenting with

technologies on real problems, and then scaling those that demonstrate promise. Perhaps

the most vital component to being successful at deploying automation is the hard work that

has to be done to prepare and adapt human capital to work in complementary ways with

technology. (Maniyka et al., 2017, p. 111)

118
 The influence and role of information technology have indirectly made the

business flourish. Because with information technology, a company can increase the need

for time and costefficiency. The more advanced technology also has a negative and positive

impact on business, which makes it easier to increase production and income but on the

other hand much work that was initially done by humans can be replaced by technology,

this is a threat to all workers who are experts in this context because their position is taken

with technological . in general, the role of information technology in the global business

has many tremendous positive impacts than negative impacts. The influence and role of IT

on the development of business and economic performance are as follows Information tech-

nology makes it easy to dissemination information and the advance of online business in

different areas of the world without knowing the period, limitation and boundaries of the

countries. For instance, an e-commerce that applied by companies to sell a variety of com-

modities.

Currently, many people are experts in the IT field; it assists in advancing

and growing an online business through the internet. Therefore, due to many experts in the

IT field, online businesses can experience advancement and improvement in terms of the

system. System improvement is made to overcome the vulnerability of e-commerce against

credit card tapping that can decrease consumers of a business.

Nevertheless, through the awareness of consumer confidentiality, systems

can be maintained, and consumers can trust again to buy products via the internet. Online

business is the most popular platform because of its simplicity. Also, online businesses do

not need always to be there to supervise and wait for customers, but with a system that has

119
been made in such a way as to run it automatically. Internet connections that are increas-

ingly easy and affordable due to IT advancements also lead to prosperity in online busi-

nesses.

Therefore the entry of the information technology period in the global busi-

ness brings a positive impact on the business progress, in the period of information tech-

nology, a business can run without distance and time. Besides doing business today can run

without the need for substantial costs, for example, is conducting business by using the

internet. Also through a business such as export and import of goods and services, payment

of taxes, exchange of money, creation of employment and other merits facilitate the out-

standing performance of the economy, this enables the growth of national income. There-

fore, the author recommends the companies to improve their services and to be innovative

in using information technology in their business this will enable the company to earn a

supernormal profit, grow and advance.

Suggestions

Implement a digital transformation strategy that aligns technology with your

organisation’s culture, employees, risks and business objectives. • Identify and implement

appropriate technology tools that increase productivity and reduce capital spending, such

as cloud technology. • Identify and implement appropriate technology tools that improve

understanding of clients’ current and future needs, such as data analytics software and busi-

ness intelligence software. • Replace legacy systems that restrict the business’s ability to

keep pace with changes in consumers’ preferences and needs.

120
1. Encourage a corporate-wide innovative culture through developing a technology

talent pool, such as by providing technology training programs to all employees

and adopting innovative approaches to secure top technology talent.

2. Look for technology companies that actively engage with customers and seek

feedback on their products or services for collaboration to improve your busi-

ness.

3. Commit appropriate levels of expenditure to maintaining and upgrading your IT

systems to protect your business from malicious cyber-attacks. • Identify and

locate your business’s sensitive data and ensure that appropriate tools and solu-

tions are in place to help protect that data.

4. Improve their operational efficiency

5. Lead to cost savings

6. Improve their customer experience

7. Lead to enhanced internal collaboration. They should also focus on:

8. How the technology will assist business modernise or integrate with their legacy

systems

9. The cybersecurity features of their products or services, and how they will assist

the business to protect its cybersecurity into the future

10. How customer and business data will be protected.

121
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122
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