2. How can they stand up and be counted?
How will they get access to resources, health and education?
How will they be able to compete?
How will they bridge the distance with their urban
counterparts or those in the developed world?
Over the last two hundred years, 4 billion people in
the developing world have been left behind
India was in this category in the recent past
Urban India has changed
will use it as an example to talk about what can be done
3. IIT Madras
India was struggling in eighties
One had to wait for eight years to get a telephone
Deposit money to get in a queue
To buy a two-wheeler took four years
Gas connection took even longer
Importing a simple $3 microprocessor IC took one year
Life was difficult
4. IIT Madras
Changing Indian Affordability:65M urban homes
21.2
15.8
12.8
5.8
3.2
2
0.8 0.9
0
5
10
15
20
25
100 180 260 360 520 840 1300 3500
Monthly Household income in $
Number
of
HH
in
millions
Nos
of
HH
in
M
Monthly HH Income in $
0
5
10
15
20
25
30
<150 225 470 825 1560 >2075
2001
2007
5. IIT Madras
Mobile Market in India boomed
5 million 50 million 150 million 400 million
Not until Mobile Infrastructure Capex
< Rs 3000 per line
and with handset price of Rs 1200 onwards
service available at 50 p per minute
ARPU of about Rs 250
7 million subscribers added each month 0
100
200
300
400
500
2003 2004 2005 2006 2007 2008 2009 2010
Year
Projected
Nos
of
Subscribers
in
million
Just Like number of TVs in India rose from
10 million to 100 million in 90’s when
prices became Rs 1200 onwards and cable
TV tariff fell below Rs 75 per month
•Number of TV channels boomed
•Entertainment industry in India
one of the biggest
6. IIT Madras
Even Airline Industry
Is booming in India
quadrupled its passenger carrying capacity in two years
Average tariffs have fallen to a fourth making it affordable
to middle class Indians
Inspite of rising petrol prices
The only limitation to growth is the airport infrastructure
7. IIT Madras
India on Move
Auto Sector is booming
R&D driven initiative: Scorpio and Tata-Indica
India emerging as leader in auto-component design and manufacturing
India’s cement plants in 90’s virtually closed as they could not compete
Today India has some of the most energy efficient cement plants of
the world
Electricity from wind energy surpasses its nuclear energy
India’s wind energy company is the fastest growing one in the world
Indian companies carrying out successful Drug discovery
Spends US$50-70M as opposed to US$800M for a drug
8. IIT Madras
Engineering Education
500K engineering students graduate every year from 1600
engineering colleges
Up from 25,000 in 100 schools in early eighties
Uneven quality is a major problem
was foreseen and resulted in reluctance to expand
But it is this human resources which has driven growth
9. IIT Madras
Growth of IT and IT enabled services is legendary
Reaching $50 billion this year
Trillion dollar IT Services industry being projected
The World is Flat
But you aint seen nothin yet
for the changes has not yet touched Rural India
10. IIT Madras
But Rural India is still struggling
637,000 villages, 700 million people
Per capita GDP about $200
Can ICT make a difference?
Rural Priority is Education, Health and Livelihood
Politically
unsustainable
11. IIT Madras
Changing Indian Affordability:150M rural homes
Nos
of
HH
in
M
Monthly HH Income in $
0
10
20
30
40
50
60
70
80
<150 225 470 825 1560 >2075
2001
2007
102.1
17
10
3.9 1.9 1 0.3 0.3
0
20
40
60
80
100
120
60 180 260 360 520 840 1300 2240
HH Income in $ per month
Number
of
HH
in
millions
12. All block headquarters are connected by optical fibre
Most villages are within 15 Kms from Block towns
Last mile technologies are rapidly emerging
Broadband CorDECT WiLL developed at IITM, India
provides a telephone line and 256 kbps Internet connection in 25 Km
radius
Exchange and tower in town
– Works at 55 C
– Power requirement: 1 KW
– start-up costs very low
Newer technologies emerging
Promising 1/2 Mbps connectivity
with OFDM (like 802.16 / WiMax)
with HDR and HSDPA
Fibre goes deep in India
Rs 10K per line deployed
Exchange and tower in town
13. Rural Service Providers
aggregate demand into a kiosk
owned & driven by a local entrepreneur
Rs 50K per Kiosk providing telephone, Internet, multimedia PC
with web-camera, printer and power back-up for PC
plus local language software, video conferencing software, training and
maintenance and 6 months unlimited Internet
set up by a village entrepreneur on the lines of urban PCOs
Provides multiple services to break even
Needs Rs5K pm to break even
Innovative Business Models
14. IIT Madras
Rural Services – An Overview
Capacity Building
– Education
– Health
Income Generation
– Agriculture
– Entrepreneurship
– Outsourcing
Enabling Services
– Finance
– Markets (exchanges
/trading)
– e-Governance
– Water Management
– Energy
– Communications and
Transportation
16. IIT Madras
Education
Curriculum based
Passing SSLC: excellent results
Skill based
Spoken English
Computer Basics
CAD, Web development, Photoshop
Repair pumps, wire for electricity, carpentry
Concept based
Science and Business concepts
17. IIT Madras
Rural BPO
Towards enabling Rural Areas….
From London, Boston, NY
To Bangalore, Mumbai and Delhi
Then Jaipur, Mangalore, and Pune
Is it the turn of Shikrapur,
Modaj and Mettupalliyam?
2
19. IIT Madras
Desi Crew
Rural BPO Services
Administrative
Data Entry
Data Conversion
Localization (English to
regional languages)
Translation
Voice Over
Engineering
2D drafting
2D to 3D conversion
20. IIT Madras
Rural Production
Towards enabling Rural Areas….
As Chennai becomes the manufacturing
hub for Nokia and BMW…
Can Pinjavakkam
become the production
hub for Chennai?
1-
21. THE MODEL
Design
Order
CLIENT
ROPE
RPC RPC RPC RPC
RPC LEADER RPC LEADER RPC LEADER RPC LEADER
RPC WORKERS RPC WORKERS RPC WORKERS RPC WORKERS
• Visual Access to
production
• Delivery of order
CLIENT CLIENT
CLIENT
• Order
• Skill Enhancement
• Quality Management
• Infrastructure
• Working Capital
• Production Processes
FOR
CLIENT
FOR
LEADER
FOR
WORKERS
22. RPO: Distributed Production enabled by Internet
Outsourcing production to rural areas
Kiosk becomes a point of co-ordination & quality
control
The ‘Crafts for Life’ projects include
Embroidery
Bags
Soap
Banana Rope
Dry Flowers
23. IIT Madras
Training in making dried banana bark rope making facilitated by ICT entrepreneur Jayamalathi at
Thirupandrutti.
• Building and Aggregating Distributed Rural Production
Units as back end for industries
• Focus Sectors: Crafts, Leather, Garments, Agro
Processing
24. PRODUCTS
Banana Fiber Table Mat Banana Fiber Window Blind
BF with Jute Placemat Bamboo Fiber Placemat Korai Grass Runners
R O P E
25. IIT Madras
Training & Recruitment: Industry Client
RTBI: Networking,
Logistics & Monitoring Operation
ICT Kiosk: ICT
Infrastructure and Marketing
Focus Sectors:
Security Personnel
Skilled Construction Workers
Sales persons
Home Service Agents
Vocational Training
26. IIT Madras
Healthcare
Towards enabling Rural Areas….
1+
Telemedicine:
Initial experiments with eye care and with Veterinary doctors
using the video conferencing tool
Moved on to video-consulting for GP & gynecology problems
Vet care with Veterinary college
Remote Eye Care with Aravind Hospitals
27. IIT Madras
ReMeDi™ Tele-medicine solution
Healthcare Delivery
Identification of village healthcare delivery centers
Linkage with a hospital partner via ReMeDi™
telemedicine solution
Supply and delivery of essential medicines
Kiosk
Operator
Pharma
Companies
ReMeDi™ Telemedicine Kit
Local
Partner
Hosp
RP RP RP RP
29. Managing Risks for farmers
Crop disease: Use of video conferencing to connect farmer
to an agricultural Expert
Obtaining answers before it is too late
After
Before
In a Village in Madurai,
the Lady’s Finger
(Okra) crop
was turning white
The problem was
sent to the experts at
the Department of
Rural Extension,
Madurai Agricultural
College and Research
Centre who
diagnosed it as
“Yellow Mosaic
disease”
30. IIT Madras
Production and Price Risk Coverage
Rain-fall insurance
Micro-weather Measurement and prediction
Collect weather data at each village
– Temperature, humidity, pressure, wind speed,
wind direction and rainfall
Weather Monitoring Kit : Rs 15K
Market risk: use of commodity exchanges
forward pricing and Options
Can one get small farmers to use it?
31. Agriculture
Agro Processing
Agricultural Advisory Services
Agricultural Supply Chain Management
Focus: Fruits and Vegetables in Theni District of Tamil Nadu
Strategy: To link markets, banks, extension partners and suppliers
to small farmers
32. IIT Madras
Facilitate Sales and post-harvest support
Use of Village Internet kiosk and mobile phones for
Obtaining market-prices in different Markets
Transaction and deal-closing from villages
Scheduling delivery
Booking of transport
Direct payment through banks and loan repayment
34. IIT Madras
Financing by banks from towns is expensive
Is Microfinance the answer
Has made great strides, but what is the interest rate?
At 24 to 30% interest rate it is good loan for
– Trading and Short term consumption loans
– But not for any manufacturing / agriculture?
Can kiosks become mini-banks?
Internet banking: But how will cash be delivered?
Can kiosks carry out credit-rating of rural people?
What about Insurance?
Can they enable different kinds of insurance?
Life Insurance, health insurance, General Insurance, rainfall insurance
35. We could put Internet in every village but for its cost?
TeNeT / VorTex develops ATM
Finger print detection
Internet kiosk based or Stand alone
Deliver even soiled notes
Single denomination today
Can be extended to multiple denomination
Electronic Lock operated using finger print detection
Cost about Rs 60K for kiosk ATM / Rs 75K for stand
alone
Vortex GramaTeller initiative, reducing
the cost of ATM to 1/15th
38. IIT Madras
Rural Businesses
Agriculture, food processing & other small businesses
Can they be enabled by ICT kiosks?
Does technology play a significant role in supply chain management
& co-ordination?
Can they be used for market linkages & pricing mechanisms?
Can kiosks be used to find jobs?
Exploring to understand the evolution of rural businesses
and the role of technology in such businesses
39. Decentralized Energy
Grid based Power Supply
Quality and availability
Urban Power will take precedence
Rural India will only get overflow
Each Village require 30 KW to 100 KW Power Generation
Solar
Biomass Combustion
Biogas
Bio-diesel
Can kiosk be used to enable this?
40. IIT Madras
Community Oriented Services
Rural Development programs
Water Management
Soil Management
Road construction
Social harmony and religious tolerance
Promoting entrepreneurship
41. To Sum Up
Towards enabling Rural Areas….
ICT can provide opportunities for those who
have been left behind
to leapfrog
provided there is will
Requires
Confidence, Local technologies & Services
and lots of hard work
Rural Areas in emerging Markets can follow
their urban counterpart
42. Today
India consumes
Less than one twentieth of per capita resource as compared to that in
the West
as per International Energy Agency Statistics Division, India consumed
512.4 Kg of oil equivalent of energy per person as opposed to 7794 Kg
of oil equivalent per person in USA in 2003
If India and China grow like West?
And their per capita resource consumption of 1.4 billion Chinese
and 1.1 billion Indians reach the level in the West
This can not be our future
Nature is already retaliating
Technology can help but cant support consumption beyond a point
43. IIT Madras
A dilemma
India and China can not be asked to wait to get out
of their deprived state
AND they can not grow and acquire the same
lifestyle as that of the West
44. IIT Madras
Need
To redefine development
Not accept the industrial revolution Development paradigm
Technology can find all the answers
Urban life is better life
Good life need not imply
Such large consumption
Migrating Rural Indians to Urban areas is not the answer
With health, education, a bit of infrastructure and livelihood
opportunity, life in Rural India may be better than in urban areas
45. IIT Madras
Urban India and China has done well
Growth in China stupendous
India started late, but is racing today
But most growth limited to urban areas
Rural Areas are being left behind
700M out of 1 B people live in Rural India
