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S.L. Kirloskar Birth Centenary Memorial Lecture
Pune May 28, 2003

TRANSFORMING INDIA INTO A KNOWLEDGE SOCIETY **

I am indeed delighted to participate in the S.L. Kirloskar Birth Centenary Celebrations
and to deliver the Memorial Lecture. Shri Shantanu Laxmanrao Kirloskar was a
visionary, a thinker-doer who led an exemplary life, which continues to inspire many.
The Kirloskar enterprise was managed under the firm belief that sound management,
better machines and more jobs would make a significant contribution for national
development. S.L. Kirloskar was a global thinker who had the courage and the
confidence even in the pre-independence era. He looked at India as a part of the rest of
the world and worked to make India globally competitive - that was his spirit of
patriotism. When I was reading the autobiography of S L Kirloskar 'Cactus and Roses',
one sentence captured by mind that is 'when productively used capital and materials, men
and machines, yield results in proportions to the skill and brains of the user'. What a
beautiful thought. I am happy to note that in the post independence era one voice from
the Kirloskar's was very firm in establishing the concept of self-reliance.

Vision for independence movement also created leaders

Sir CV Raman started his career in the Office of Accountant General, Calcutta. But the
scientific mind in him probed and probed. Fortunately, it was supported by a great
educationalist Shri Ashutosh Mukherjee, who encouraged Sir CV Raman to pursue his
research. What strikes to some of us is that the birth of 'Raman Effect' which brought him
Nobel Prize, did not come out of a grand establishment with major scientific
environments. I believe, the urge to show to the world the excellence of Indian minds
would have been one of the major motivating factor of Sir CV Raman for the scientific
achievement. The same is the case with Prof S.Chandrasekhar, the great astrophysicist.
There are some interesting quotations from his biography. I quote from a book "Chandra"
by Shri Kameshwar Wali:

"Chandra grew up in what was a golden age for science, art and literature in India,
spurred on partly by the struggle for independence. J.C.Bose, C.V Raman, Meghnad
Saha, Srinivasa Ramanujam, and Rabindranath Tagore, by their achievements in
scientific and creative endeavours, became national heroes along with Jawaharlal Nehru,
Mahatma Gandhi, and a host of others active in the political movement. Did their success
produce an enduring atmosphere for creativity, or did the prevailing cultural and social
conditions hamper a healthy growth of sustained activity? Over the years, Chandra and I
have discussed various facets of science in India and experiences of some of the eminent
Indian scientists. The following excerpts reflect Chandra's thoughts on these matters."

Pursuing excellence in rotational moulding.

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"Chandra: I mean it is a remarkable thing that in the modern era before 1910, there were
no (Indian) scientists of international reputation or standing. Between 1920 and 1925, we
had suddenly five or six internationally well known men. I myself have associated this
remarkable phenomenon with the need for self-expression, which became a dominant
motive among the young during the national movement. It was a part of the national
movement to assert oneself. India was a subject country, but in the sciences, in the arts,
particularly in science, we could show the West in their own realm that we were equal to
them."

Coming to the industrial field, Jamsetji Nusserwanji Tata brought the steel industry and
S.L. KIrloskar brought Industrial Manufacturing Facilities in India even though the
British rulers were not favourably disposed to the idea. Acharya PC Ray brought up
chemical and pharmaceutical industry. Likewise, in the pre-independent period we see
the birth of many great institutes like Indian Institute of Science, Bangalore started by JN
Tata, Benares Hindu University by Pandit Madan Mohan Malviya, and Aligarh Muslim
University by Sir Syed Ahmad Khan. There were also some Indian Maharajas who
started and nurtured universities like the one in Baroda. There are many examples in both
industrial and educational fields. In all these cases the basic motivations have been to
show the urge to build the Nation and demonstrate to the world that "India can do it".

Second vision for the nation

Since our independence in 1947, in many aspects of life, improvement in literacy,
agricultural products, strategic areas, certain small and large-scale industries took place.
Also, the life expectancy has increased. We are capable to produce sufficient foodgrains ,
cereals and milk. Today, India has the capability to design, develop and lead to
production strategic systems for national development and security. Also, we have seen
in the ambient conditions the growth in the Information Technology; the country is
progressing in a limited way in software business and in hardware we are yet to take off.
When India was clamped with economic sanctions in 1998, after the nuclear tests, by
developed world, we combated successfully. The tools were food security and self-
reliance in most of the strategic areas and production capability in certain sectors of
industry. Now more than fifty years have gone by and we are called as one of the
hundreds of developing countries, in a distinct way a separation from G-8 countries. We
have many challenges. We are a nation of billion people. Nearly 300 million people who
are below the poverty line have to join the mainstream of a good life. 100% literacy,
health for all, multiple industrial and agricultural productivity and life style with value
system has to change.

Technology Vision 2020 is a pathway to realise this cherished mission made by the Task
Teams formed by TIFAC with nearly 500 experts of our country worked for two years,
deliberated national status of various branches of national development. We have
identified five areas where India has a core competence for an integrated action:


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(1) Agriculture and food processing

(2) Reliable and quality electric power

(3) Education and Healthcare

(4) Information Technology

(5) Strategic sectors

These five areas are closely inter-related and lead to national, food, economic and
security. A strong partnership among the R&D, academy, industry, business and the
community as a whole with the Government departments and agencies will be essential
to accomplish the vision.

Indices of world competitiveness

One of the important need is to understand, where we stand in the competitive world. The
indices of world competitiveness are based on the global competitiveness report prepared
by the World Economic Forum. The competitiveness is defined as, 'the ability of a
national economy to achieve sustained high rates of economic growth'. In that order of
ranking, Singapore is 4, USA 1, Finland 2, Taiwan 3, Singapore 4, Sweden 5, France 30,
Germany 14, India 48. What decides world competitiveness? It is a combination triangle
consisting of progressiveness of industry, technology push and governmental
deregularisation status. All the three aspects have to work for achieving world
competitiveness. In terms of overall GDP size, we are 12 in the world; in terms of per
capita GDP we are 57 in the world. Is this status acceptable to us? Especially the young. I
believe we should work for fourth or fifth position in terms of GDP as well as in terms of
world competitiveness. This position should be reached by 2020 and we should aim for
higher position in the later decades. I will share with you some ideas about the strategies
and the tool to realise this status. That will pave the way for a developed India.

Knowledge in network society

A knowledge society can be one of the foundations for such a vision for the nation:
Developed India. Knowledge has many forms and it is available at many places.
Knowledge has always been the prime mover of prosperity and power. The acquisition of
knowledge has therefore been the thrust area through out the world and sharing the
experience of knowledge is a unique culture of our country. India is a nation endowed
with natural and competitive advantages as also certain distinctive competencies. But
these are scattered in isolated pockets and the awareness on these is inadequate. During


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the last century the world has undergone a change from agriculture society, where manual
labour was the critical factor, to industrial society where the management of technology,
capital and labour provided the competitive advantage. Then the information era was
born, last decade, where connectivity and software products are driving the economy of a
few nations. In the 21st century, a new society is emerging where knowledge is the
primary production resource instead of capital and labour. Efficient utilisation of this
existing knowledge can create comprehensive wealth of the nation and also improve the
quality of life - in the form of better health, education, infrastructure and other social
indicators. Ability to create and maintain the knowledge infrastructure, develop
knowledge workers and enhance their productivity through creation, growth and
exploitation of new knowledge will be the key factors in deciding the prosperity of this
Knowledge Society. Whether a nation has arrived at a stage of knowledge society is
judged by the way the country effectively deals with knowledge creation and knowledge
deployment. I am glad that the Planning Commission has taken a lead in generating a
road map for transforming India to a knowledge society.

Change in employment pattern, agriculture, industry and service - knowledge industries

In 1960, agriculture areas employed in parts or in full 74% of people of the country and it
reduced to 62% in 1992 and expected to further fall to 50% of people in agriculture by
2010. Whereas, the demand of agricultural products will double in quantity. productivity
using technology and post harvest management will have to compensate the manpower
reduction in farming and agricultural products sector.

In the case of industry, in 1960, 11% of the population was employed in small scale and
large scale industries. The trend continued with 11% even during 1992. However, it has
to increase by 25% in 2010, as the GDP growth with high technology in the situation of
opening up of the economy under WTO region. The pattern of employment will take a
new shape. Service with knowledge industry component from 15% employability in 1960
has increased to 27% in 1992. And further it will increase to 50% in view of
infrastructure maintenance areas, financial sector, IT sector and entertainment demands.
This big change will demand in all areas more trained skilled human power and
technology personnel. Our industrialists, commercial chiefs and technologists may have
to get ready for such transformation in agriculture, industries and service - knowledge
industries for which human manpower with knowledge and skills has to be evolved in a
mission mode.

Strategy for Employment Generation

A strong and enterprising service industry can get the IT industry support from anywhere
in the world to achieve higher extent of employment generation and higher per capita
productivity, a model is proposed which suggests designing, developing and deploying


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the high technology tools and methods in agriculture sector by focusing on all walks of
life, be it a farmer or a rural woman or a customer, we can indeed make them knowledge
workers. The direct outcome of this model will be two-folds. An increase in productivity
and release of surplus person power from traditional agriculture sector. The benefits of
higher productivity can be converted into wealth with establishment of agro based
industries. The surplus manpower can be upgraded with proper education and training
and be re-deployed in agro based industries, service sector and IT industry.

Developed India - Can we achieve?

Freedom movement (1857-1947) was the first vision for the nation. This vision was
realised in 90 years. It would have been a dream of an individual or collective groups.
That dream transformed into thoughts which lead to revolutionary actions and finally
resulted into freedom. Also, that period of independence movement created great leaders
with great actions.

Friends, a nation is made great by the thoughts of its people and their action. The people
in turn become important citizens of that great country. The next 20 years period, I
consider, is a period of technology transformation in India. I anticipate new emerging
economic situations. There is a possibility of India becoming a knowledge society with
focussed tool of Information Technology and entrepreneurial push. All the more, this
ambience will demand our cultural and traditional value system to be embedded in the
Indian minds. Also we have to be prepared for a new trend as in the case of Internet with
minimum Government initiatives and support and entrepreneurship push the project.
Internationally, Internet is wealth generating system and its development are supported
by many business houses and academics. In our country such things are also happening
as in the case of Internet, software, pharmaceuticals and road transportation.

Concluding Remarks

After independence the Kirloskar group was the first to offer services to the Railways and
the Defence establishments. In order to keep product prices low, he established a network
of many small industrial vendors. He helped these small entrepreneurs technically,
financially and through training. This was in fact the birth of the Small Scale Industry in
India.

The rapid rise of the Kirloskar Group in the post - independence years was due to S.L.
Kirloskar's insistence on the manufacture of products with minimum imported contents
and selling them through a well trained and equipped sales and service network. Quality
was of paramount importance to S.L. Kirloskar at all levels, as he was convinced that if
one did not strive towards excellence in any task it always left a gap between meeting a
need and surpassing it.


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S.L. Kirloskar not only created the Kirloskar Group but also guided many entrepreneurs
in developing their businesses based on homemade technology. The Kirloskar Group
started indigenous development and manufacture of critical and defence equipment as
early as 1967. This tradition continues today with their contribution to recent projects like
the Main Battle Tank, Warships, the missile programme and the nuclear programme.

The second movement for the nation will definitely result if our nation proclaims the
second vision - developed India by 2020. I can see a virtual image of India, the children
by 2020 will not see the high illiteracy, poverty and social differentiation. They will see a
new India. Our children will sing the song of prosperous India if we sweat in this decade.
Today, the Indian mind has to get ignited by our second vision for the nation. The ignited
human mind is the most powerful resource on the earth, under the earth and above the
earth.

May God Bless you.

***********


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