From the Emperor down to the common man,
The cultivation of the righteous life is the foundation for all.
- Confucius-

Friends, I am delighted to address the distinguished audience of Singapore, organized by CII – India Business Forum. My greetings to the organizers, thought-leaders, professionals and media representatives participating in this programme. Friends, let me thank you for inviting me to address you. I would like to share a few thoughts on “Dynamics of National Development”, which is based on my experiences.

Let me share with you my unique experience in mid 1990’s on formulation of Indian Vision 2020 strategies. I was given the task of chairing the Technology Information, Forecasting and Assessment Council (TIFAC). I recollect, that in the first meeting of the Council itself, we took a decision that TIFAC must evolve a plan how India can be transformed into an economically developed nation by the year 2020. When the suggestion was mooted, everybody was wondering how we can evolve such a long term mission under the then prevailing economic and social conditions of the country. That was the time (1991); the then Prime Minister had announced the economic liberalization and growth measures for the Indian economy and its impact had started being felt.

In spite of this, the Council with many young members jumped into the idea and we discussed for one full day on how we can translate the thoughts into action. At a time when the economy was growing at around 5 to 6% per annum in GDP we had to envisage a growth rate of at least 10% per annum consistently for over 10 years for realizing the development vision of billion democratic people of multi lingual, multi religious and multi cultural characteristics. This really ignited the minds of all of us in the Council. We debated and arrived at 17 task teams with over 500 members who had consultations with over 5000 people in various sectors of the economy and society. Committees worked for over two years resulting in 25 reports which we presented to the then Prime Minister of India on 2 Aug 1996. Transforming India into a developed nation implies that every citizen of the country lives well above the poverty line, their education and health is of a high standard, national security assured and core-competence in certain major areas enabled production of quality goods competitively including for exports, bringing all-round prosperity for the countrymen. This event led to the birth of the book “India 2020 : a Vision for the New Millennium”.

Based on various inputs, the government announced in Parliament the vision statement that India will become a developed nation by 2020. Such a statement is very rare, since every government is elected only for a period of five years and thinking of over 20 years time frame by the Parliament and the government is a fresh breeze. Now let me present the current ambience of the nation.

In Indian history, very rarely has our nation come across a situation, all at a time, an ascending economic trajectory, continuously rising foreign exchange reserves, energy of 540 million youth, umbilical connectivities of 23 million people of Indian origin in various parts of the planet, with the potential sharing capacity of knowledge and interest shown by many developed countries to invest in our engineers and scientists including setting up of new Research & Development Centers. The distinction between public and the private sectors and the illusory primacy of one over the other is vanishing. Our technological competence and value systems with civilizational heritage are also highly respected. Foreign Institutional Investors are finding investing in India attractive. Our industrialists are also investing abroad and opening new business ventures. The Indian economy is growing with an average annual GDP growth rate of over 8%. This has been achieved by constantly enhancing the competitiveness of the Indian industry. In the 11th plan period (2007-2012), we will be reaching the target of 10% GDP growth rate. The challenge is to keep the 10% GDP growth for a decade.

There is another very important development. I have visited all the States and Union Territories several times. I am coming across many individuals and non-government organizations showing interest in grass root development issues and volunteering to do their bit.

With this background, what is our ambience in 2020?

We expect the people below poverty line to come to zero and our literacy must be nearly 100%. Human Development Index of India will be around 50. Every Indian will have either a university degree or quality training with employable vocational skill. 540 million youth will be equipped with skill and knowledge for world needs. India will have at least 5% of fortune 500 companies in its economy; India would get 10% of the world trade from the present 1.5%. India has already become a platform for multinational companies with Indian human resource for generating global innovation and R&D. We are transforming our R&D institutions as incubator for global innovation. We are determined to establish a World Knowledge Platform which will be able to synergize the core competence of multiple nations for addressing and solving pressing societal problems.

There is resurgence in our interest towards science and we are creating an environment to enthuse the younger generation to work on problems relevant to the sustainable prosperity of one billion people of multi-religion, multi-lingual, and multi-cultural characteristics which will be a trend setter for the whole world to follow. E-governance would be in position for all G2G and G2C transactions making the governance system transparent and corruption free. Tele-density will reach over 50%. All our villages will be electrified and water shortage will be managed with proper water management. Sanitary facility will reach every home. We will be using more of renewable energy and adding less to the pollution. Through venture capital system and entrepreneurial training both in schools and colleges, we will have more enterprises leading to large number of employment generators rather than employment seekers. A pro-active healthcare system in place will provide quality healthcare to all the people of the country including those living in remote areas at an affordable cost through innovative schemes such as Yeshasvini health insurance scheme being practiced in the state of Karnataka. All the students will have an opportunity to take up the courses of their choice in higher education for the reasons number of advanced higher education institutions are being established and the capacities of existing institutions have been enhanced.

With our experience in the Information Technology, Communication systems, Automobile technology, consumer durables, micro credits to self-help groups and electronic voting system innovations which have turned out to be unique successful innovative business models, we are proceeding to enlarge the scope to reach all parts of the country through a sustainable process by delivering products and services by creating awareness among consumers, making it accessible to all, producing at most affordable cost and ensuring just-in time availability at the right place. This will provide entrepreneurial and employment opportunity to the 540 million youth of the nation. Of course we have to work ceaselessly using creativity and innovation for achieving these missions.

For the mission of transforming India into a developed nation, we have identified five areas where India has a core competence for integrated action: (1) Agriculture and food processing (2) Education and Healthcare (3) Information and Communication Technology (4) Infrastructure: Reliable and Quality Electric power, Surface transport and Infrastructure for all parts of the country and (5) Self-reliance in critical technologies. These five areas are closely inter-related and if progressed in a coordinated way, will lead to food, economic and national security. During my visits to different parts of the country and during my discussions with many citizens, the results of such integrated efforts have started becoming visible. One of the major missions is the development of infrastructure for bringing rural prosperity. This is through Provision of Urban Amenities in Rural Areas (PURA) through creation of three connectivities namely physical, electronic, knowledge leading to economic connectivity.

Friends, I personally feel that the connotation of sensible investment for development goes beyond the normal business perspective. Innovative processes have to be established to attain the goal of what Plato said 2400 years ago.

“Our aim in founding the State was not the disproportionate happiness of any one class, but the greatest happiness of the whole”. Similarly, around the same period, Tamil poet Saint Thiruvalluvar said,

That is, "the important elements that constitute a nation are: being disease free; high earning capacity; high productivity; harmonious living and strong defence". We have to find how we can provide all these elements to the citizens of every nation on an equitable basis for happiness for all.

For this, in this interconnected globalized world, we have to identify areas for sensible investment, trade, cooperation bilaterally and multilaterally for mutual benefits. Obviously they will relate to certain critical aspects of human needs in the 21st century like food, infrastructure, energy, water and rural development.

Dear friends, while I will focus on typical important missions that will bring societal transformation through competitiveness and propel the vision 2020 missions of India, we could find common grounds between our nations for new challenges and opportunities for investments. They are the following:

Nation’s development is powered by Economic growth; Economic growth is powered by competitiveness; the competitiveness is powered by knowledge power; the knowledge power is powered by Technology and innovation.

When I was studying the Global innovation report for the year 2007, I found that as per Global Innovation Index, US is ranked 1; Germany 2; UK-3; Singapore 7; Netherlands-9; and India 23. There is a relationship between innovation index and competitiveness. Both innovation index and competitive index – Singapore stands 7. My congratulations to Singapore and the people of Singapore on your outstanding performance. Presently India’s innovation index is 23, whereas the competitiveness index we are working towards moving up to be within 10 and in innovation index within 5 in five year’s time. Growth competitiveness is determined by the innovative ability of an organization. This innovation arises from institutional initiative and the R&D productivity of the firm, shaped by policies and nature of local institutions apart from grass root level individual innovation. National innovative capacity has to be the country’s important potential for producing competitive products. Institutions can definitely contribute towards the enhancement in over all competitiveness index of the country. This requires the combined effort of researchers, technologists, production specialists and business leaders. For building competitiveness what you need is talent with innovation and creativity. Let us now discuss creativity.

In a knowledge society, we have to make innovations continuously. Innovations come through creativity. Creativity comes from beautiful minds. It can be anywhere and any part of the world. It may start from a fisherman hamlet or a farmer’s household or a dairy farm or cattle breeding center or it could emanate from classrooms or labs or industries or R&D centers. Creativity has got multi dimensions like inventions, discoveries and innovations. Creative mind has the ability to imagine or invent something new by combining, changing or reapplying existing ideas. Creative person has an attitude to accept change and newness, a willingness to play with ideas and possibilities, a flexibility of outlook, the habit of enjoying the good, while looking for ways to improve it. Creativity is a process through which, we can continuously improve ideas and find unique solutions by making gradual alterations and refinements to our works. The important aspect of creativity is: seeing the same thing as everybody else, but thinking of something different.

In the knowledge economy, the objective of a society changes from fulfilling the basic needs of all-round development to empowerment. The education system will be promoted by creative, interactive self learning – formal and informal education with focus on values, merit and quality. The workers instead of being skilled or semi-skilled will be knowledgeable, self-empowered and flexibly skilled. The type of work instead of being structured and hardware driven will be less structured and software driven. Management style will emphasize more on delegation rather than giving command. Impact on environment and ecology will be strikingly less compared to industrial economy. Finally, the economy will mostly be driven by knowledge and knowledge driven industry. Scientists and Technologists have an important role to play in creating new knowledge which will be applied for societal transformation. Now I would like to give my views on the challenges ahead for the scientific community in these areas.

Today, India is resolved to take the Indian innovations to Global products and systems competitively. The science and technology institutions of the Government and the private sector are collectively working to carve out a plan of action to create an Innovation eco-system in the country in association with the educational institutions, industry and entrepreneurs. They are to become the contributors for innovation fund for venture capital and also the providers of knowledge based on their core competence. The selection of products will be focused on an international market survey meeting the national and international demand. I am confident that the creation of Innovation eco-system in the country will be acclaimed by posterity as a historic decision as we acclaim today the decision for liberalization of the economy in 1990’s. With this ambience, let me now discuss with you various challenges and opportunities for the Industry, Academia from India and other countries like Singapore to become partners in these developmental missions.

Agriculture and food processing: We are in the mission of generating 340 million tones of food grains with reduced land, with reduced water and with reduced workforce from the present 230 million tonnes. New technology is needed in agricultural area from seeds to cultivation to the grain, food processing and marketing. This entire chain will enable employment particularly in rural areas in a big way.

Infrastructure: India is aspiring to build hundred million homes within next ten years. The infrastructure development in metropolitan and tier-2 cities needs to be enhanced in the form of new bridges, airports, marketing complexes and industrial units. 40% of the rural areas need to be covered with all weather roads; we need to double the present national highways road length. Simultaneously, we are in the process of developing ports, railway systems and airports. For example, the Indian construction industry employs over 31 million people for its asset generating activity of over Rs. 310,000 crore which includes expenditure of Rs. 200,000 crore incurred by the Government. This will need development of specialized quality human resource in all the spectrum of construction activity. This task will need reorientation of our education system for generating world class skills among the youth.

Energy: Energy independence is our national goal. We are determined to achieve this within the next 25 years i.e by the year 2030. While our population may touch 1.4 billion people, demand from power sector will increase from the existing 145,000 MW to about 400,000 MW. This assumes an energy growth rate of 5% per annum. Electric power generation in India now accesses four basic energy sources: Fossil fuels such as oil, natural gas and coal which have to be replaced by, Hydroelectricity; Nuclear power; and Renewable energy sources such as bio-fuels, solar, biomass, wind and ocean. We need a major thrust in solar energy (55,000 MW) and wind energy (64,000 MW) nuclear energy (50,000 MW) hydro power sources (66,000 MW) and bio-mass and municipal waste (20,000 MW). For the transportation sector, we have to concentrate on bio-diesel, ethanol and emulsified fuel.

Safe Drinking Water and Water management : We are in the process of embarking on the major mission of “Interlinking of Rivers” in the nation and the statewide creation of “Waterways” which will act as a reservoir to accommodate floodwater and enhance the irrigation, navigation and tourism.

Healthcare: India is in the mission of “Health for all” programme and “Vision 2020” for eye care. It provides tremendous opportunity in the primary, secondary and tertiary healthcare. We are also in the mission of establishing tele-medicine centers in the Primary Health Centre of 2 lakh panchayats through connectivity mission via Satellite, Terrestrial and wireless links. We have to enhance the nutrition aspects of all citizens, particularly women and children and also provide 100% sanitary facilities in homes, schools and other public places.

Pharma Vision: The global production of pharmaceuticals, branded and generics put together is of the order of $550 billion. The Indian Pharma industry at present has a turnover of US $12.5 billion of generics for domestic and export markets against the production of US $ 78 billion worth of generics in the world. Pharma Council has evolved the Pharma Vision 2020 with a view to make India the leader in drug production. We have to set a target of producing 40% of world generics production. Indian pharmaceutical companies have got the core competence for producing cost effective and quality Pharma products. Our Pharma companies are working towards molecule to drug and have embarked on number of research programmes in developing medicines using our traditional knowledge.

Information and Communication Technology: India has to become “Knowledge System Powerhouse” instead of software powerhouse. Also to achieve global operations, we have to consider introduction of virtual platforms for development of knowledge products based on national experience in engineering design of multiple systems leading to a business volume of US $ 200 billion by 2012 from the present business volume of US $ 60 billion.

Aerospace:In the area of space, India has to work for Low cost access to space bringing the cost per kg from the present US $ 20,000 per orbital kg to $ 2,000. This will eventually lead India to take part in many mass missions for earth applications and interplanetary exploration for industrial base and second habitat. India has to work for 70 seater aircraft which is viable to be produced before 2020 and with enormous potential for air transportation in our country. This will lead to a business volume of US $ 15 billion.

Automobile: The automobile industry in India accounts for a business volume of US $ 45 billion. Definitely, it has a potential to grow much faster both through Indian manufacturers and many well-known international manufacturers who have established huge facilities in the country. We are poised to increase business volume to US $ 200 billion by 2016 with an export component of at least US $ 50 billion.

Shipbuilding: India today builds ships for oil exploration, service vessels, port operations, self-propelled barges for river transports and cargo ships upto 92,000 DWT. In addition, we have facility for building combat ships for the Indian Navy. By 2008, we will have three shipyards for building vessels of capacity 100,000 to 150,000 DWT. We have to create facilities for vessel ranging from 150,000 DWT to 300,000 DWT. Simultaneously, there is a need for setting up of shipyards. The technology has under gone a sea change. Many of the shipbuilders in the world are building for India.

Rail Vision 2030: I have suggested increasing the railway route length from the existing 63,000 kilometer to 90,000 kilometer, increasing average speed of trains to 200 kilometer per hour, establishment of number of metros, integrating Indian Railways with inland smart waterways with 15,000 kilometers waterways, construction of multilevel railways platforms to reduce platform crowding and overall increase in the passenger and freight throughput.

PURA Mission: One major aspect of development is the mission for bringing rural prosperity. This is through Provision of Urban Amenities in Rural Areas (PURA) through creation of three connectivities namely physical, electronic, knowledge leading to economic connectivity. The number of PURA for the whole country is estimated to be 7000 covering 600,000 villages where 700 million people live. This will need an investment of around 175 billion dollars. Government is planning to implement 2 PURA’s per district across 600 districts in the nation. There are a number of operational PURA in the country initiated by many educational, healthcare institutions, industry and NGO’s.

All these programmes which I have mentioned above have social, research and technological content with substantial amount of opportunities for techno-managerial experts. Enterprises can carve out their own niche areas and prepare themselves for providing quality techno-managerial support which will enable execution of the economic programmes in time and at internationally competitive costs. I am sure, CII-IBF would constantly strive India-Singapore collaborations in these areas.

What is the most important ingredient that will enable us to realize Global Innovation? My study indicates that the creative leadership is the most important component for attaining success in all missions. I would like to define ‘creative leadership’, based on my experiences:

a. Leader must have a vision.
b. Leader must have passion to realize the vision.
c. Leader must be able to travel into an unexplored path.
d. Leader must know how to manage a success and failure.
e. Leader must have courage to take decisions.
f. Leader should have nobility in management.
g. Leader should be transparent in every action.
h. Leader must work with integrity and succeed with integrity.

For a sustainable growth of any organization, the important thrust will be on the generation of a number of creative leaders through nurturing the talent, and promoting innovation in every sector and R&D leading to patents. Emergence of such leaders particularly will facilitate global competitiveness and help in transforming any nation as a knowledge society.

My greetings and best wishes to all the members of Singapore community for successful partnership in the missions for societal applications using technology and leadership.

May God Bless You.

Dr. APJ Abdul Kalam,
27.08.2008