India is not China and it shouldn’t be: T Ramasami

“Stop comparing India with China. They followed a scale of the economy model, but India should look at the ‘scale of scope’. India should not try to ape others when it comes to economic models.”

When Thirumalachari Ramasami talks, you listen because he is a Padma Bhushan (2014) and Padma Shri (2001) awardee, a Shanti Swarup Award winner, and has received a whole load of other honours, both national and international.

So, it was a rare opportunity that came along when Ramasami agreed to spend some time exclusively with the TikTalk Newsletter when he came down to attend the Bio Connect conclave held in Trivandrum two weeks ago.

More than the accolades, it is his remarkable record as a scientist and administrator that evokes awe. As a scientist, he holds 37 patents, out of which 12 have been successfully commercialised. After propelling the Central Leather Research Institute (CLRI) to a global powerhouse, he assumed the role of Secretary of Science and Technology in the Indian government in 2006.

His invaluable contributions to the country's advancements in science and technology resulted in his retention in the post, with several extensions, by the governments of both Atal Bihari Vajpayee and Manmohan Singh. This is a rare achievement at such a high level, and his tenure lasted for an impressive eight years.

His superstar status within scientific circles was evident during the Bio Connect conclave, as industry experts gravitated towards him seeking a quick word, and star-struck scientists eagerly posed for selfies during the breaks.

Yet Ramasami has his feet planted firmly on the ground and is refreshingly insightful in his remarks about the country’s progress in different sectors. A rarity among those who have walked along the corridors of power.

“When I join events like this conclave, my job is limited to a few minutes I am on the dais. But seeing the young faces in the crowd and interacting with them is my reward,” he says.

He keeps track of India’s progress and is ready with facts and figures relating to several sectors. And nothing sets him off when asked how China raced ahead and India is still struggling to replicate that.

When China embarked on an economic liberalisation phase, they adopted an economy of scale model which gives leeway to cut costs and operate at lower costs. It gets a larger market share even if the profit margin per product is low. They operated on a model in which natural materials like land and cost of power – which makes up 50 percent of production costs – were controlled, says the scientist-turned-bureaucrat.

They made the product cheaper than in other countries by sheer cost management. They didn't believe in profit margins, they believed in market share – the economy of scale model.

He points out there was a “denied cost” to the nation, in terms of land value and subsidies. In a democratic country like India, you can't give land free to anybody. So, you have to incur a cost and it has to be built into the product cost. That is why India needs to follow a model that suits a democratic country.

“At a particular point in time, the average income level of northern China was several hundred folds lower than that of southern China and that is not a correct thing. Should India do it too? The answer is no.”

Unlike China, India follows a different path that allows political freedom and thought freedom. So we should follow a different economic model too, says Ramasami.

In the economy of the scale model, you create one company that can produce 1,000 units. Instead, in Ramasami’s vision, India should make 100 companies making ten products each. Because medium and small enterprises are responsible for 40 percent of the employment in the formal sector in India. 

The challenge then is how to empower this sector with technology and innovation as these areas need a lot of financial muscle.

In India, large-scale research and innovation happen in the public sector. MSME sector does not have enough capacity to research and that is why complaints rise that they are not doing any innovations. “But you cannot expect a cat to play the role of an elephant. Cat has to be a cat and you can’t complain that it is not eating as much as an elephant.”

But he agrees that leaving the entire onus of research and development to the public sector is not advisable. Ramasami says what India needs to do is to bring a consortium of these units and put smaller amounts and have partnerships with public sector units and create a framework where the basic product innovation is done publicly and specific innovations are done by the individual companies.

A perfect example of this is, he says, what CLRI achieved in bringing down tannery pollution in Tamil Nadu under Ramasami’s watch.

The environmental challenge was so huge in 1995-96 and the project cost 4.5 crore rupees. But with 764 companies to be serviced, it became around 6,000 rupees per firm. In nine months, with a Supreme Court-appointed body keeping a tab on the project, we managed to implement innovative changes in the production process of each of these tanneries. All within the nine months, he says.

“Instead of don’t-do-this, don’t-do-that approach, we adopted a ‘Do Ecology’ solution and the factory owners responded.”

Asked if that is the kind of public-private sector approach he wanted India to follow, Ramasami gives a hint of what probably is the drive behind his unique achievements as the secretary for science and technology. 

“India should stop approaching development as public and private sector affairs. India is one country and it is everyone’s job to develop the country.”

Ramasami says in India’s development growth dynamics, job creation is more important than wealth creation. Wealth creation is a product, job creation is an effort. If wealth accumulation is limited to a few hands, it is not good.

“The only time in independent India when the employment generation rate was higher than the population growth was during Manmohan Singh’s tenure. That is the only time. I was a secretary then and part of that,” he says with obvious pride.

He says the country has become an attractive destination for global firms to establish their R&D centres as they can draw from an increasing pool of science talent. The data shows the push to encourage researchers and scientists received a major boost after 2006 when Ramasami became secretary of DST.

He says the creation of scientists cannot happen overnight and the steps taken then are now bearing fruition. But he also has a warning. “India will have a window of opportunity that will last about 20 years. The rise in standard of living will push us out of that bracket and we have to grab the chance now.”

A bright idea that will, hopefully, shine through

Kerala is aiming to shine bright in the solar power game, with big plans to kickstart the movement in Trivandrum. The authorities say they plan to equip around 600 government buildings with solar panels, and the officials hope that another 300,000 private buildings will follow suit. Judging by the buzz and interest generated at the recent Anert expo in the capital city, it seems like the public is genuinely onboard with this ambitious initiative.

But there is always a gap between the cup and the lip when it comes to such government projects. Nothing illustrates this better than the Smart City project that has been dragging on for the last two years in Trivandrum. Legal disputes with the contractors, lack of coordination between various departments, and inefficiency at the implementation level have turned several parts of the capital city into a living hell. The worst outcome of this is the erosion of public trust in such tech initiatives. Hopefully, Anert officials would be better than their Smart City colleagues.

Atomberg fan club gets more members

Remember Atomberg, the startup we mentioned a few weeks ago? The founders of this Mumbai-based company have not only gained our admiration but have also won over investors. They recently secured funding of 86 million US dollars, with heavyweights such as Temasek and Trifecta Capitals supporting them. This is well-deserved, considering they have introduced innovative technological advancements to the otherwise humble ceiling fans, a product that was often overlooked by tech enthusiasts. According to a report in YourStory, the company plans to utilise the funds to strengthen its manufacturing and research and development capabilities.

Did the AI drone eliminate its operator or not

The latest news from the world of AI now reads like a murder mystery. The question is, did an AI-powered drone kill its operator during a simulation or not? It all started with the USAF's Chief of AI Test and Operations, Col Tucker 'Cinco' Hamilton, telling a London conference that an AI drone started attacking its human operator as it analysed the controller was stopping it from carrying out its task of eliminating a surface-to-air missile threat. Soon after it was reported, Hamilton said he had misspoken, and no such exercise took place; what he described was actually a thought experiment. However, given the doomsday warnings that continue to come from tech experts, it would take a lot more explanation from the USAF to satisfy the sceptics.

Attention all cool-headed cricket fan techies…

It is common to see batsmen out in the middle sweating buckets, with helmets adding to their discomfort. The only way to keep their heads cool was a mere bandana, which would soak away some of the sweat. However, according to reports from the US says the football team of Louisiana State University (LSU) is now receiving air-conditioned helmets starting this season. The Sporting News states that these helmets will feature revolutionary airflow acceleration technology, and the players who have tried them on agree that they are cool. Now, we wonder when some whiz kids here will come up with something similar and tap into the billion-dollar Indian cricket market.