Instituting more IITs and IIMs is the ideal boost to corporate India
Introduction
India is poised to become a knowledge economy and an information society. The country for long been associated with mystic saints, malaria and snake charmers is increasingly being seen as an economic powerhouse. Indian corporate class and technical institutes such as IITs and IIMs are the principle levers of such a change in world’s attitudes towards India. The topic raises a pertinent question at a time when corporate India is traversing boundaries at a never before seen pace. Nehru, the architect of India’s modern temples exhorts his countrymen on the occasion of India’s independence, “The achievement we celebrate today is but a step, an opening of opportunity, to the greater triumphs and achievements that await us. Are we brave enough and wise enough to grasp this opportunity and accept the challenge of the future?”.[1] The same exhortation needs to be made to our corporates and the country at large in regards to the opening of more IITs and IIMs.
When faced by a problem we generally have the tendency to look for quick fix solutions without taking into account the long term effects. Such seems to be the case with the institution of more IITs and IIMs. Setting up of more IITs and IIMs may seem to be the answer to problems of corporate India. After all the alumni of these institutes have a proven track record of being the best in business. But advocates of such a policy forget the fact that an institute is not only about walls and laboratories. It needs to develop into an ecosystem which provides the students with opportunities for knowledge absorption as well as knowledge creation. Sadly the fundamentals seem to be missing with the proposed IITs and IIMs. The article looks at various factors to present an objective analysis of the scenario.
Shortage of Faculty
The principle actors in any educational institution are its students and teachers. In case of IITs and IIMs the second actor has become a scarce commodity. The approved faculty to student ratio in these institutions is 1:9 but almost all of them have exceeded the ratio. 9 centrally funded technical institutions, which include the prestigious IITs and IIMs, are currently short of more than 3,000 faculty members or about one-third of the sanctioned strength.[2] The political class’s misguided zeal of instituting more IITs and IIMs before addressing the issue of shortage in quality faculty seems to be a classic case of putting the cart before the horse.
Shortage of Skilled Labour
“Availability of skilled labour is a critical input for all firms and hence corporate India has an enormous self interest in the functioning of the education sector.”[3] Amit Mitra, secretary general FICCI opines, “the quality of new graduates is a critical issue that needs to be addressed”.[4] They are short of skill on many fronts. The employability of such people is a big problem. So instead of hankering just after the IITs the time seems ripe to look towards options such as opening up more vocational colleges which can take care of this shortage. Vocational education needs to be given a boost to tide over the crisis of skill shortage on such a humongous scale which will definitely be a shot in the arm to India’s corporate sector.
Going further, if we chart the growth of Corporate India, the dawn of light was seen with the liberalization and ushering of reforms consequently. India’s success story got a big momentum with the services sector revolution. But the drivers of growth were the large pool of talent in India most of whom were not from IIT or IIMs. Take the example of the software industry; there success is owed mostly to the code-writing foot soldiers not majorly supplied by the IITs.
Importance of Research
Any economy in the long run can remain competitive only if it has the capability to foster innovation at a regular pace. Research forms the backbone of such innovations. Corporate India cannot wish to be the sweatshop of the world for all times to come. Philippines and China are breathing down are neck in having a share in the outsourcing pie. To move to the next level of economic development huge investments needs to be made for research purposes.
It is a well established fact that basic sciences are a precursor to path-breaking research in the field of applied sciences and technology. The obsession with engineering and management disciplines has led to an exodus of students from the basic science field. Enrolment rate has fallen from 30% to 20% in the recent decade.[5]
The research scenario is dismal. Just to quote some figures “In terms of sheer numbers, in 2007 China had 1,423,000 researchers, second internationally to the United States, which had almost 1,571,000. India by comparison had 154,800. India spends a tiny fraction of its budget on research which reveals the gross inadequacy in India’s commitment to research, considering our scientists’ potential and our aspirations as a nation.”[6]. To quote another fact “Less than 2 per cent of world publications in science and technology originate out of India”.[7]
The IIT’s and IIM’s were established with the purpose of not only imparting knowledge and training but also to develop as centers of excellence for research and development. While the former objective has been much glorified, the latter leaves much to be desired. In the long run, for corporate India to emerge a formidable force in the global scenario we need technological innovations and strategic research. If we care to look around the world the most exciting research is happening on the boundaries of disciplines. Multi-disciplinarity seems to be passé. Now is the turn of inter-disciplinarity. Instead of building new IITs and IIMs we need to seriously consider turning them into universities as has been consistently suggested by academicians such as Professor Yash Pal.[8]
Taking cue from the Silicon Valley which has been the cradle for many famous companies in the world from Google, Yahoo, Bose Electronics, it is undeniable that its proximity, physically and intellectually to Harvard, MIT kept up the steady flow of young minds which enriched and cultivated the entrepreneurship and innovation. If India Inc has to replicate such a success story then the biggest boost it can possibly get is an overhaul in the research and development facilities.
Brain Drain
One of the major challenges faced by India Inc today is the retention of talent in the country. A few decades ago, the first priority of the IIT and IIM pass outs was to ensure a lucrative job abroad. About twenty five thousand IITians have settled abroad since 1953.[9] The UNDP report put the figures as high as 70% at a certain point of time to 30 % which was the prevailing figure.[10]
The government spends no less than Rs 200,000 annually on an individual student.[9] Corporate India will get a real boost if the pie expands and to expand the pie we need more number up entrepreneurs and start-ups.
Demographic Requirements
The GER (18-23 age-group) of India stands at around 11% way below China and US.[11]The demographic advantage of India can easily turn into its disadvantage if the youth is not engaged in meaningful occupations. A vibrant business climate needs political and social stability. No business can flourish for long in face of war or insurgencies. ‘Million Mutinies’ are already brewing in India. Education is the new necessity of the masses. Corporate India cannot exploit the resources from large sections of the north east or areas lying in the Red Corridor. It is only through education that such people can be woven into the mainstream. The inevitability of collateral damage does not merit a place in today’s discourse. We need to address the problems of equity and access in education for our large masses rather than concentrating on just a chosen few. It seems more relevant to concentrate on imparting primary and secondary education coupled with employability.
Conclusion
More IITs and IIMs cannot be the answer to the woes of Indian corporates. Even in the short run the high expectations of businesses may not be sustained and the long run will only make them lose interest in Brand IIT. Substandard products out of such a system can only lead to the dilution of brand IIT, touted as “the Biggest Indian brand after Tajmahal.[12]
These institutions could turn into white elephants owing to a sustained cost but poor productivity. Coming up of new IITs and IIMs is being guided by political provenance rather than any serious debate about its necessity and the places of institution. Such decisions cannot be left to the whims and fancies of a political class engaged in serving parochial interest in the name of opening up new IITs and IIMs. Expanding capacity in the existing institutions and not expanding in numbers should be the priority now. Prepare the ground before jumping on the IIT, IIM bandwagon. Surely Corporate India would appreciate the point.
