This document discusses how technology can be leveraged as a "Brahmastra" or ultimate weapon for India's development. It proposes a "5E Fulcrum" approach of using technology to Educate, Expand, make processes more Efficient, Empower citizens, and help the Environment. Specific technologies like mobile internet, cloud infrastructure, digital ID, automation and payments can act as levers while India's large population acts as a force multiplier. Examples show how this could achieve universal healthcare coverage, higher education levels, clean energy access, financial inclusion and improved farming. With the right interventions, large economic impacts of $550-1,000 billion and 20-30% of incremental GDP are possible by 2025,

1. How could technology
be the Bramhastra for
India’s development?
102nd Indian Science Congress
Engineering Sciences Section
Platinum Jubilee Lecture
Anand Deshpande
Persistent Systems Limited, Pune
anand@persistent.com
Anu Madgavkar
McKinsey Global Institute, Mumbai
Anu_Madgavkar@mckinsey.com

2. 1
Anand Deshpande
Founder, CEO and Managing Director,
Persistent Systems
Pune, India | ComputerSoftware http://www.linkedin.com/in/ananddeshpande
EXPERIENCE
Managing Director
Trustee
Member of Technical Staff
Persistent Systems
October 1990 – Present (24 years 4 months)
Computer History Museum
April 2012 – Present (2 years 10 months)
Hewlett-Packard Laboratories
April 1989 – October 1990 (1 year 7 months)
EDUCATION
Ph.D., ComputerScience, IndianaUniversity
B. Tech. (Hons.), IIT, Kharagpur
Campion School
Distinguished Alumni, School of Informatics
1984 – 1989
Computer Science Engineering, Distinguished Alumni (2012)
1979 – 1984
High School
1971 – 1979

3. Senior Fellow,
McKinsey GlobalInstitute
Anu Madgavkar
Mumbai, India http://www.mckinsey.com/insights/mgi
EXPERIENCE EDUCATION
Indian Institute of Management, Ahmedabad
Post-graduate Diploma in Management (PGDM)
1989-1991
Senior Fellow, McKinsey Global Institute
2011-2015
Partner, McKinsey & Company
2007-2010
Consultant, McKinsey & Company
1998-2007
Credit Analyst, ICRA
1994-1998
Treasury Dealer, ANZ Grindlays Bank
1991-1993
St. Xavier’s College, Mumbai
Bachelors degree in Economics & Statistics (with honours)
1984-1989
Conventof Jesus & Mary, Fort, Mumbai
1974-1984

4. 3
This presentation is based on exhaustive research by
McKinsey Global Institute
June2013
February 2014
December2014
SOURCE: http://www.mckinsey.com/insights/mgi

5. 4
Our population is growing!
@ 29 per minute
1,268,006,8201,268,006,8211,268,006,8221,268,006,8231,268,006,8241,268,006,8251,268,006,8261,268,006,8271,268,006,8281,268,006,829
Currently …

6. 5
… and will
exceed China’s
by 2030

7. 6
Today,
more than
half our
population
is under the
age of 25

8. Demographic
dividend can
bring prosperity

9. 8
Poor financial
inclusion
Poor distribution
of resources
However,
we have
wide disparity
in our income
distribution

10. 9
WATER AIR
56% of our
population does not have
minimum acceptable
standard of living
That is almost
700 million
people
FOODSHELTER

11. 10
Quality
housing is not
accessible and
affordable

12. 11
A third of the rural poor consume
20-30% less calories than their need
Malnutrition is
widespread

13. 12
59%
of our rural
households do not
have clean fuels

14. 13
30%
of our energy
depends on imports,
this could go up to
50% by 2030

15. 14
We have a crisis
of drinking
water

16. 15
70%
of rural households
do not have
access to proper
sanitation

17. 16
Medical care is
not affordable
for most of the
population

18. 17
Our labour
force is not
adequately
trained

19. 18
Double challenge:
Not enough jobs and not enough skills

20. 19SOURCE: McKinsey Global Institute’s From poverty to empowerment: India’s imperative for jobs, growth and effective basic services, 2014
Massive effort will be required to help people meet their
basic needs by 2025
>115 million new productive non-farm jobs1
Double the historical rate of agricultural productivity growth2
$1.5 trillion of infrastructure investment3
70% higher per capita spending on basic services4
Effectiveness of government spending up from 50% to 80%5

21. 20
We need to
act now!

22. 21
And we
need to
move
fast …

23. 22
Must use technology as the
lever and our population
as the force multiplier to
our advantage to address
our challenges
“Give me a place to stand on,
and I will move the Earth”
– Archimedes

24. 23
Our challenges are weighing us down
Health-care
Financial
services
Energy
Education &
Skills
Agriculture
Infrastructure

25. 24
The 5E fulcrum – the platform to stand …
Educate
Expand
Efficient
Empower
Environment
Educate to improve knowledge and awareness
Expand the reach of delivering basic services
Efficient delivery of goods, services and benefits
Empower for self-employment
Environment and natural resource conservation

26. 25
The 5E Fulcrum
The 5E
Fulcrum5E
Educate
Expand
Efficient Empower
Environment5E

27. 26
and leverage technology to our advantage
The 5E
Fulcrum5E

28. Technology as a lever
Mobile based Internet access
across the country
National cloud based infrastructure
Data infrastructure with open APIs
Verifiabledigital identity
Intelligent Systems and
Automation across processes
Efficient Digital payments
Open source development

29. 28
… and population as a force multiplier to
lift away our challenges
5E
The 5E
Fulcrum

30. Technology as a lever
Mobile based Internet access
across the country
National cloud based infrastructure
Data infrastructure with open APIs
Verifiabledigital identity
Intelligent Systems and
Automation across processes
Efficient Digital payments
Open source development

31. Mobile
based
Internet
access
across the
country

32. National
cloud based
infrastructure

33. Data
infrastructure
with open
APIs

34. Verifiable
digital
identity

35. 34
Intelligent
Systems &
Automation
across
processes

36. 35
Efficient
digital
payments

37. 36
Open
source
development

38. 37
Examples of how technology can deliver 5E
Wider reach of basic services in Healthcare1
Effective delivery of Education2
Better targeting of benefits through improved eGovernance3
Higher efficiency and saving natural resources with SmartGrids4
More knowledge and awareness with TechEnabled Agriculture5
Extend Self-employment and entrepreneurship capacity6

39. 38SOURCE: McKinsey Global Institute’s India’s technology opportunity: transformingwork, empowering people, 2014
Wider reach of basic services: health care example
400 million with access to quality health care and >40 decision
support systems at a health centre
1
Community health worker with
tablet-based tools
Patient attended to in a tech-
enabled health centre
Remote doctor on call or through
video conference
Low-cost
point-of-care diagnostics

40. 39
More effective delivery of basic services: Education
example
SOURCE: McKinsey Global Institute’s India’s technology opportunity: transformingwork, empowering people, 2014
20-30% increase in teacher’s capacity and 30-100% improvement in
learning outcomes = 40-50 million workers with additional
qualifications by 2025
2
E-administration on a smartphone
Massive Open Online Courses
Teaching apps to script classroom
experience
Online assessments

41. 40SOURCE: McKinsey Global Institute’s India’s technology opportunity: transformingwork, empowering people, 2014
Better targeting of benefits: Paperless government
payments example
$150 billion of government payments via electronic channels, 5-20%
saving through plugged leakage
3
Online checking of conditions for
receipt
UID database to identify
beneficiaries
Electronic disbursement of
benefits
Redemption of benefits via mobile
money

42. 41SOURCE: McKinsey Global Institute’s India’s technology opportunity: transformingwork, empowering people, 2014
Higher efficiency and saving natural resources: Smart
grids example
70% reduction in transmission & distribution losses and 80-110 million
people with access to electricity
4
Efficientenergystorage solutions
Renewablesintegratedwith grid
Online reporting of usage and remote
disconnection in case of failure of theft
Data analytics for operational
improvement
123

43. 42SOURCE: McKinsey Global Institute’s India’s technology opportunity: transformingwork, empowering people, 2014
More knowledge and awareness: Tech-enabled farming
example
90 million farmers with better information & 22 million with precision
agriculture: 15-60% increase in yield
5
Tech-enabled communityfarm
extension workers
Real time information on mobile
phones
Remote sensing and GISfor precision
agriculture
Hybrid and GM seeds

44. 43SOURCE: McKinsey Global Institute’s India’s technology opportunity: transformingwork, empowering people, 2014
Self-employment and entrepreneurship: Skills
marketplace example
Portal as clearing houses for certified, quality-assured service
providers seeking jobs
6
Reputation discovery by customer
Labour market information system
Digital payment and transaction
trail
“Sharing” approach to assets and
skills

45. 44
By 2025, technology
can help India
achieve….

46. 45
Affordable
healthcare
for 400
million
people

47. 46
40-50 million
more with higher
educational
qualifications and
2x the current
number of skilled
workers

48. 47
80-110 million
people with
access to clean &
reliable energy

49. 48
2x the
current
number of
financially
included
Indians

50. 49
10-15%
saving in travel
time and 30-50%
better road safety

51. 50
90 million
farmers with real
time market
information and
22 million using
precision
agriculture

52. 51
Small, but critical interventions now can translate into big
impact in 2025
Accelerating high quality, low cost connectivity1
Addressing demand side barriers (digital literacy,
picture/voice/video)2
Standards, policies and regulations3
Innovationecosystem for tech entrepreneurs
(start-up and scale-up)4
R&D – especially private sector and FDI5

53. 52
To Summarize …
5E
The 5E
Fulcrum

54. 53
The 5E fulcrum
Educate
Expand
Efficient
Empower
Environment
Educate to improve knowledge and awareness
Expand the reach of delivering basic services
Efficient delivery of goods, services and benefits
Empower for self-employment
Environment and natural resource conservation

55. Technology as a force multiplier
Mobile based Internet access
across the country
National cloud based infrastructure
Data infrastructure with open APIs
Verifiabledigital identity
Intelligent Systems and
Automation across processes
Efficient Digital payments
Open source development

56. 55
Large scale economic impact possible
The potential economic impact for India in 2025 is equivalent to …
20-30% of India’s incremental GDP from 2012 to 2025
$550-1,000 billion of annual economic impact in
2025 (50% from 6 focus sectors)
3-6 times the current economic value of the Indian IT
and IT enabled services sector
Equivalent in share of GDP in 2025 to the
Manufacturing sector today

57. How could technology
be the Bramhastra for
India’s development?
102nd Indian Science Congress
Engineering Sciences Section
Platinum Jubilee Lecture
Anand Deshpande
Persistent Systems Limited, Pune
anand@persistent.com
Anu Madgavkar
McKinsey Global Institute, Mumbai
Anu_Madgavkar@mckinsey.com