Address of the President of India to the Dubai Chamber of Commerce and Industry, Dubai

ECONOMIC TRANSFORMATION: CHALLENGES & OPPORTUNITIES

I am indeed delighted to be here and address the Dubai Chamber of Commerce and Industry. My greetings to the Chairman and all the members of this Chamber. Friends, I realize that your mission is quite different from that of the regular business community. I am aware that UAE is driven by oil economy. I am going to discuss with you some experiences that India has had when the whole world was experiencing the impact of the transition from agriculture to the present day knowledge society. I would like to share with you my thoughts on what type of transformation our society will undergo in the coming years.

Economic Growth in different societies

During the last century, the world has undergone a change from agriculture society, where manual labour was the critical factor to an industrial society where the management of technology, capital and labour provided the competitive advantage. Then the information era was born in the last decade, where connectivity and software products are driving the economy. In the 21st century, a new society is emerging where knowledge is the primary production resource instead of capital and labour. Efficient utilization of this existing knowledge can create comprehensive wealth of the nation and also improve the quality of life - in the form of better health, education, infrastructure and other social indicators. Ability to create and maintain the knowledge infrastructure, develop knowledge workers and enhance their productivity through creation, growth and exploitation of new knowledge will be the key factors in deciding the prosperity of this Knowledge Society. Whether a nation has arrived at a stage of knowledge society is judged by the way the country effectively deals with knowledge creation and knowledge deployment in all sectors like IT, Industries, Agriculture, Health Care etc.

Changes in employment, agriculture, Industry and Service-Knowledge Industries

In 1980, agriculture areas employed in parts or in full 76% of people of India and it reduced to 65% in 1994 and is expected to further fall to 60% by 2012. Whereas the demand of agricultural products will double in quantity, productivity using technology and post harvest management will have to compensate the manpower reduction in farming and agricultural products sector. In the case of industry, in 1980, 13% of the population was employed in small scale and large scale industries. The trend continued during 1994. However, it has to increase in 2010, as the GDP growth with high technology in the situation of opening up of the economy under WTO regime. The pattern of employment will take a new shape. Service with knowledge industry component from 11% employability in 1980 has increased to 20% in 1994. And further it will increase to 54% in 2012 in view of infrastructure, maintenance areas, financial sector, IT sector and entertainment demands. This big change will demand in all areas more trained skilled human power and technology personnel. Indian industrialists, commercial chiefs and technologists may have to get ready for such transformation in agriculture, industries and service - knowledge industries for which human manpower with knowledge and skills has to be evolved in a mission mode.

Low cost clean energy supplies linked to sea water desalination on large scale may provide an answer to the greening of the deserts and rekindling and revitalization of an agricultural economy. Low cost sustainable supplies of clean energy obtained from large scale use from solar energies would then commence a new era in the manufacturing economy. If these two become a reality, for UAE, the knowledge economy model will become applicable.

Knowledge Society

As society transforms itself through education, health-care, agriculture and good governance, it has now to focus on resolving impending major crisis in the areas of energy, environment, ecology, water and mineral resources. While opportunities exist for markets upto 80 billion dollars by 2008 for knowledge-based products for India, by a careful planning it is possible to touch a target of even 150 B$ by 2010.

The world is going through water crisis coupled with enhanced energy needs. DCCI have to look at it based on the UAE experience. For the world crisis, do they have a solution in terms of commercial marketable system products. This point I would like to mention, that out of 6 billion world population, only one third get adequate water supply. Desalination is an attractive solution but it is presently prohibitively costly. Hence this Chamber has a huge potential for business in drinking water generation, which may result in birth of solar, and hydrogen economy.

In the next 20 years, I feel that more and more technology transformation and infusion will be seen in the UAE. India, has the core competence in ICT, Biotechnology, nano technology, and also in the newer areas that arise due to the convergence between all of theses, such as Integrated Intelligent Systems. India also has its traditional strength in space and agriculture. Opportunities for long and mutually beneficial joint ventures exist in pharmaceutical, manufacturing and entertainment industries.

India can play a "Friend in need" and a contributing role when UAE is going through the transition to the knowledge economy.

Our institutions both in the public and private sector would be willing and capable of working with the Dubai Chamber of Commerce and Industry to promote Information and Communication Technology- ranging from Education to Research, from applications to systems software, from E-commerce to E-Governance, From Tele Medicine to Robotic Surgery.

The Chambers in India and UAE would have a great challenge to promote missions and programs in the areas of Energy and Water that will culminate in a prosperous and sustainable development. Renewable energies with special reference to terrestrial and space solar systems are seen as possible avenues for exploration. Highly imaginative and advanced schemes for generating solar energy on large scales from photovoltaic systems, spread out on the vast deserts would add value to these desolate spaces through exports of electrical energies to other countries.

Your distinguished and eminent President who is the founding father of the UAE has a well-articulated vision that aims at the use of advanced technologies for the prosperity of UAE. I would like to assure you all, that India would be a partner in your efforts to fulfill this vision. When you walk through the doors of the technologically advanced world, we will surely be there- walking together hand in hand.

My best wishes.