Ratan Tata says infrastructure not catching up with pace of growth

Industrialists flag need to focus on skill development in the age of technology boom

Tata Trusts chairman Ratan Tata on Monday asked the government to focus more on infrastructure. “Infrastructure has not been able to match the pace of growth in the country. What we lacked is thinking big enough for the growth that we could achieve,” he said.

Maharashtra has grown at a fast pace over the years but has failed on the infrastructure front, he claimed. “This government and the chief minister have displayed a vision of resolving that, looking at it holistically and providing the balance which is necessary for growth.” He emphasised on agriculture, terming it “as important as the business sector, infrastructure”.

“We need connectivity, both electronic as well as physical, and government policy that facilitates growth,” he said.

The government should provide young entrepreneurs with more research centres to fuel innovation, as that was a necessity to develop a conducive environment for start-ups in Maharashtra, he added.

“Apart from IITs and other institutes we have here, which are a source of innovation for young people, we need research centres to encourage innovation,” Tata said at the Make in India Week here on Monday. “Maharashtra, in every other way, has what it takes. What it needs perhaps (are) industrial parks with all the benefits like the Silicon Valley where young people (move) to immediately establish their dream,” he added.

“Apart from IITs, we need to have R&Ds and Centre for Innovations. We also need financial sectors not only for bankable, but also a strong VC ecosystem is required,” said Tata at a seminar.

Sun Pharmaceuticals Managing Director Dilip Shanghvi and Bharat Forge Chairman Baba Kalyani were united in their demand for government focus on research and development, innovation centres and the development of a skilling corridor.

Maharashtra was the largest contributor to India’s gross domestic product, they said, and the state government must take a lead to further this. The fourth industrial revolution demanded a new skill set that can take away many existing jobs, the business honchos warned. Chief Minister Devendra Fadnavis assured the delegates the government would do what was required to develop the skills required for a fourth industrial revolution.

The fourth industrial revolution, according to the World Economic Forum, refers to the digital revolution characterised by a fusion of technologies that is blurring the lines between the physical, digital, and biological spheres.

According to an estimate, the future of about 65 per cent of the jobs youth are employed in today would become uncertain as the role of robotics and artificial intelligence increases in society. Kalyani said: “… these jobs will be extinct in the next 10 to 15 years.” The fourth industrial revolution certainly has advantages for a developing country like India. “But it requires a different ecosystem that can provide a level-playing field for a developing country, against developed nations. As production is likely to gravitate to where skills are available,” said Kalyani. The emphasis for new skill set was apparent across industries. Shanghvi demanded augmenting technical education to make it more suitable for emerging opportunities in biotechnology.

“Mumbai should become the R&D hub for pharma,” he added.

Nikhil Meswani, executive director, Reliance Industries, said: “Maharashtra needs to develop an intelligent corridor on the pattern of the Silicon Valley, along the lines of the Mumbai-Pune Expressway. This should focus on robotics, artificial intelligence and the new demands of the fourth industrial revolution.”