IT in Rural India: IT in Rural India: Opportunities and Opportunities and ChallengesChallenges

DMS,Pondicherry

DMS,Pondicherry

UniversityUniversity

Gro

up M

em

bers

Gro

up M

em

bers

Amit kumarAmresh PandeyAnil Kumar K.Anitha KumariAravind R.Ashwin JosephAswini R.Balachandran R.

Pre

senta

tion

Pre

senta

tion

Outl

ine

Outl

ine

Introduction to IT in

Introduction to IT in

Rural Sector

Rural Sector IT in Rural Sector in

IT in Rural Sector in

Developed Countries

Developed Countries

IT in Underdeveloped

IT in Underdeveloped

countriescountries Education

Education Healthcare

Healthcare

IT in Rural Sector in

IT in Rural Sector in

IndiaIndia Employment

Employment Case Study 1 –

Case Study 1 – Drishtee BPO

Drishtee BPOCase Study 2 –

Case Study 2 – NREGANREGAGovernance (Case

Governance (Case Study - E-Seva)

Study - E-Seva)Services (Case Study

Services (Case Study

– E-Chaupal by ITC)

– E-Chaupal by ITC)

Pre

senta

tion

Pre

senta

tion

Outl

ine

Outl

ine

Information Information TechnologyTechnology

Information technologies (IT) is Information technologies (IT) is increasingly moving to the increasingly moving to the core of national core of national competitiveness strategies competitiveness strategies around the world.around the world.

All over the world, IT has All over the world, IT has empowered individuals with empowered individuals with unprecedented access to unprecedented access to information and knowledge, information and knowledge, with important consequences with important consequences in terms of providing education in terms of providing education and access to markets, of and access to markets, of doing business, and of social doing business, and of social interactions, among others.interactions, among others.

Intr

oduct

ion t

o IT

Intr

oduct

ion t

o IT

in R

ura

l Sect

or

in R

ura

l Sect

or

Approximately 70% of Indian

Approximately 70% of Indian Population lives in Rural

Population lives in Rural Areas.Areas. Today, Rural Development is

Today, Rural Development is essential for the

essential for the development of the Indian

development of the Indian Economy.Economy. Rural economy can be

Rural economy can be developed by using modern

developed by using modern Information technology (IT)

Information technology (IT)

Indian Government has Indian Government has realized the role of the realized the role of the rural development and the rural development and the contribution of I.T. in the contribution of I.T. in the development of Rural development of Rural Markets. Markets.

A large number of projects A large number of projects are introduced in the rural are introduced in the rural area with many upcoming area with many upcoming projects in pipeline;which projects in pipeline;which are likely to be introduced are likely to be introduced by the Government in the by the Government in the short span of time.short span of time.

The role of I.T. has The role of I.T. has increased from providing increased from providing only the Networks to set-only the Networks to set-up the basis of updated up the basis of updated technological programs technological programs in the rural area.in the rural area.

The Rural Market of The Rural Market of India is showing an India is showing an impressive growth impressive growth largely due to changing largely due to changing lifestyle patterns, better lifestyle patterns, better communication network communication network and rapidly changing and rapidly changing demand structure of demand structure of consumers of rural area.consumers of rural area.

Development info

projects, programs,

schemes & feedback

Procurement

of ProduceSupply of

inputs

Supply of

consumer

produce &

services

Knowledge & info

useful for

economic activities

Entertainment &

info for social needs

Issue of Certificates and Licenses

Delivery of health &

educational services

Education, tr

aining to

enhance

employm

ent &

economic

opportunity

Access to MarketsRural Citizen

IT in Rural Sector IT in Rural Sector in Developed in Developed

CountriesCountries

IT in

IT

in

Underd

eve

loped

Underd

eve

loped

countr

ies

countr

ies

Education Healthcare

Educa

tion

Educa

tion

Projected Growth in

Projected Growth in

Education: 24.4% today to

Education: 24.4% today to

55.6% by 2020 .

55.6% by 2020 .

Affordable, high quality

Affordable, high quality

education in rural areas.

education in rural areas.

Confident, English

Confident, English

speaking, computer

speaking, computer

literate students.

literate students.

Increased educational

Increased educational

awareness in rural

awareness in rural

societies.societies.

Includes female children

Includes female children

Healt

h C

are

Healt

h C

are

Projected Growth in Healthcare: 24.4% today to

55.6% by 2020.Health care facilities was not

good between the early 1950s

and early 1980s. But now IT has improved care, primarily through more

timely diagnosis and intervention, reduction of

medical errors, and better

communication within the

care team.

IT in Rural Sector in IT in Rural Sector in IndiaIndia

Case Study 1 – Drishtee Case Study 1 – Drishtee BPOBPO

Case Study 2 – Case Study 2 – NREGANREGA

Dri

shte

e B

PO

Drishtee is present in 5 States and is currently available in six districts. It is a private company, which has the main work of developing the modules for the poor section of the society who cannot understand the international language.Currently, Drishtee has over 100 rural Internet kiosks in several states, run by franchisees according to a revenue sharing arrangement.

NR

EG

AN

REG

A• NREGA is an Indian

NREGA is an Indian

job guarantee scheme, scheme,

enacted by legislation on

enacted by legislation on

August 25, 2005.

August 25, 2005.

• NREGA later renamed as the

NREGA later renamed as the

Mahatma Gandhi NREGA

Mahatma Gandhi NREGA

promised work with minimum

promised work with minimum

wages for all BPL individuals

wages for all BPL individuals

for a minimum of 100 days a

for a minimum of 100 days a

year.year.

• The project saw the rollout of

The project saw the rollout of

new technologies like

new technologies like

biometric identification and

biometric identification and

handheld data devices.

handheld data devices.

Governance (Case Study - E-Governance (Case Study - E-Seva)Seva)

It was initially implemented in West Godavari It was initially implemented in West Godavari District to deliver e-governance facility.District to deliver e-governance facility.

The centers are designed with the view to The centers are designed with the view to provide better governance facilities to the provide better governance facilities to the people of the Rural India.people of the Rural India.

The popularity of e-seva can be estimated The popularity of e-seva can be estimated from the fact that in the year 2003, more than from the fact that in the year 2003, more than 400 million rupees was collected only for the 400 million rupees was collected only for the electricity payment.electricity payment.

Services (Case Study – E-Chaupal by Services (Case Study – E-Chaupal by ITC)ITC)

eChoupal Infrastructure and eChoupal Infrastructure and ServicesServices

Internet kiosk in the house of a trained farmer Internet kiosk in the house of a trained farmer ((Sanchalak)Sanchalak) within walking distance of target within walking distance of target farmersfarmers

Warehousing hub managed by the erstwhile Warehousing hub managed by the erstwhile middleman, middleman, w within tractorable distance of ithin tractorable distance of target farmerstarget farmers

Customised knowledge on farm and risk Customised knowledge on farm and risk managementmanagement

Better supply chain for ITC for farm inputs --Better supply chain for ITC for farm inputs --lower transaction costs, better value through lower transaction costs, better value through traceabilitytraceability

Relevant real-time information results in higher Relevant real-time information results in higher incomeincome

Direct marketing channel for farm produceDirect marketing channel for farm produce

eChoupal Scale, Scope and eChoupal Scale, Scope and Plans Plans

3,500 eChoupals in 5 states of India covering 3,500 eChoupals in 5 states of India covering 21,000 villages, servicing 2.0 million farmers, 21,000 villages, servicing 2.0 million farmers, sourcing a range of agri commodities (oilseeds, sourcing a range of agri commodities (oilseeds, grains, coffee, aquaculture)grains, coffee, aquaculture)

Marketing a variety of goods and services (agri-Marketing a variety of goods and services (agri-inputs, consumer goods, insurance, market inputs, consumer goods, insurance, market research)research)

Plan for 20,000 Choupals in 15 states covering Plan for 20,000 Choupals in 15 states covering 100,000 villages, servicing 25 million farmers by 100,000 villages, servicing 25 million farmers by 2012 with projected transactions of US$ 2.5 billion2012 with projected transactions of US$ 2.5 billion

Higher incomes through-better yields and pricesHigher incomes through-better yields and prices Power of scale to the small farmerPower of scale to the small farmer

Demonstrated Opportunities

Education: Akshaya (Kerala), Sub Titles on TVEducation: Akshaya (Kerala), Sub Titles on TV

Health: Health: Webhealthcenter.com,Webhealthcenter.com, Sri Lanka, MIS Sri Lanka, MIS in AP,SA, nLogue-Arvind Hospitalin AP,SA, nLogue-Arvind Hospital

Economic: eChaupal, GPS by fisherman, Economic: eChaupal, GPS by fisherman, Tara Tara Haat, Datamation, nLogue,Drishtee Haat, Datamation, nLogue,Drishtee telecenters, Agriwatch Portal, telecenters, Agriwatch Portal, e-Krishi Vipnan e-Krishi Vipnan (EKVI)MP(EKVI)MP

E-Government: Bhoomi, eSeva, DrishteeE-Government: Bhoomi, eSeva, Drishtee

Empowerment: Computerized milk collection, Empowerment: Computerized milk collection, Lokvani (Sitapur), Lok Mitra (Jhalawar)Lokvani (Sitapur), Lok Mitra (Jhalawar)

Bridging the Digital Divide

NGOs and grass root organizations that catalyze and mange the community building process

Applications that draw a large clientele that pays for the service, ensuring economic viability of the kiosk

Content that empowers rural citizens and enables formation of communities

Technology that makes rural access inexpensive and robust

Innovations and Creativity: Innovations and Creativity: Key to SuccessKey to Success

Making a market despite many missing linksMaking a market despite many missing links

Creative use of technology in places or for a Creative use of technology in places or for a purpose not originally intended.purpose not originally intended.

Organizational design- coming together of Organizational design- coming together of partners with specific value proposition, partners with specific value proposition, incentives and rules to cooperate.incentives and rules to cooperate.

Combining emerging and traditional Combining emerging and traditional technologies to overcome constraintstechnologies to overcome constraints

Adapting business models to local contextsAdapting business models to local contexts

Role of network orhestrators Role of network orhestrators

Enablers of Innovation in ICT UseEnablers of Innovation in ICT Use

Political will Political will Technology Technology

infrastructureinfrastructure Funding and enabling Funding and enabling

policy environmentpolicy environment Human capacityHuman capacity PartnershipsPartnerships Creativity, Creativity,

entrepreneurship and entrepreneurship and managementmanagement

Awareness in citizensAwareness in citizens

Technology

InnovationProcessPeople

Funds

Role of Government/Private Role of Government/Private Sector/NGOs and DonorsSector/NGOs and Donors

Big Small

Size of Villages

High

Low

Economic potential

Funding Strategies for Rural Funding Strategies for Rural ICT ProjectsICT Projects

Innovation requiresInnovation requires

• InitiativeInitiative

• Risk takingRisk taking

• Tolerance for failureTolerance for failureTherefore need for a venture fund Therefore need for a venture fund

to support projects in rural ICTto support projects in rural ICT