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Day 52-Ques & Ans

The India of today is dotted with innovating individuals. Their inventions and out of the box solutions can transform many lives. However, innovation diffusion at the grassroots is what is needed in order to fructify the exemplar ideas of these individuals. Elucidate.

Indian Jugad is world known and many contextual innovation promoted under “honey bee network” are now well recognized as commercial business idea. There are many innovative ideas comes from tier III cities or villages and they are highly practice to day to day challenges. It has deep significance as

  • Low cost– local innovation is much cheaper than commercial solution which may or may not by suited to local context.
  • Practical and contextual- there are many innovations which are practical, contextual and people need oriented. It makes such projects more life transforming.
  • Promote entrepreneurs- local innovations help to produce entrepreneurs at grassroots level. Recent start up program and incubation centers will help to push them further.
  • Made in Local– local innovations are mostly made and designed by local resources which are readily available so its diffusion is much easier than market products.

However unfortunately as much as Innovations happens at grassroots level, that is not recorded properly and most of the time no cashed by innovator. To ensure this part innovation diffusion is equally important for-

  • Product improvement– product development is an evolving process and by knowledge sharing, a new innovation gets improvement.
  • Commercialization– for sale and commercialization of product, innovation diffusion is must.
  • For society welfare– at grassroots level small innovation can reduce lot of drudgery in different aspects so for social welfare also knowledge sharing is important.

India is becoming hub of innovation and new patent and innovation policy, start up India movement, ATAL innovation mission, and so on are need to focus on recognize and share local innovation with larger audience.

What steel industry used to be a few decades back has now been replaced by the automobile sector. Countries across the world have facilitated the automobile sector to establish manufacturing base on their lands. Why such trend is being observed? Discuss.

Today auto mobile industry has replaced steel industry because,

  • Steel production by China is much more cheaper and so many countries like Britain and India also struggling to maintain prices
  • New sectors like Automobile dominated over traditional sector like steel for providing job opportunity.
  • Environment clearance related problem
  • Now steel tech is available to mainly all countries

Auto mobile sector is a new poster boy across the globe because-

Rapid innovation– automobile section is coming with so many innovations, models, and choices that it attracts the emerging middle class income.

Emerging middle class– across the globe, middle class is emerging and investment in car is one of the most precious and need based investment for them.

Price variation– cars across globe are available at wide range of price. Nano car in India make it available to even lower middle class also.

Financial policy– banks and financial institutions have lucrative loan policy to support for car purchase

Advertisement- now established social media, print media, and internet has created a lot of space for publicity for care products among youth.

Government support– many government policies know the importance of auto mobile sector as job provider and in export so they also provide policy support to auto mobile industry. In India, recently highway minster invited Tesla, to make electric cars under Make in India.

Transportation – goods supply depends on auto mobile sector and with more and more globalization demand for more vehicles has been increased.

Poor public transport– In India, people prefer care as they do not rely on public transport so go for care purchase.

It is stable sector for providing jobs at mass level but in coming time this sector need to be more innovative against climate change challenge, road safety threats, and global slowdown and so on.

India is an under-insured country. What do you understand by this statement? What role has financial literacy or the lack of it played in this regard? Can the latest government initiatives fill this gap? Examine.

India has very low population and only about 20 crore population has insurance penetration. It is far below than other fast growing developing countries. The major reasons are poor awareness, poverty, and other priorities in life. Financial literacy can play big role for

Awareness– People in India should know the importance of insurance so for awareness especially in rural India a lot of work need to be done for mass awareness

Product details– many people do not know what insurance product will help them in long life so they do not go for any insurance.

Other benefits of insurance– tax saving and other benefits are not clear communicated and understand by many people so they do not use it as a tax saving tool. .

Limited financial services- Indian customer oriented products are limited and so without innovation in insurance policy it does not attract many customers.

In recent time government has taken many initiatives under PMJDY, PMJJSY, and RSBY, and so on. It provides life and accidental insurance to all at very limited premium price or all who have bank account under PMJDY. FDI is also allowed in insurance. Its impact is

  • Now poorest of the poor also has minimum life and accidental insurance.
  • People get awareness on insurance policies
  • FDI will allow better global practices and same time more innovative products in India
  • Private sector also get boost to cover more and more people
  • Agriculture insurance is one dimension to secure farmers livelihood
  • Post office will provide services across the villages

All these initiatives has helped to poor section of society but same time much more need to be done for people awareness as still health insurance, non life insurance, and other dimensions has huge scope in India.

 

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