Unlocking India’s Potential in Industrial Revolution 4.0

Abstract: Industrial Revolution 4.0 (IR4.0) has many opportunities and important challenges for developing countries such as India. This article takes stock of India’s opportunities in harnessing IR4.0 for inclusive development, and the challenges that the revolution presents before the country. It argues that with India’s extant capabilities in ICT software development, a youthful demography, and skill development potential, the country can be at the centre of IR4.0 -- becoming the world’s skill or talent capital, besides leveraging the potential of the new technologies for closing development gaps. It also summarizes some policy lessons for tapping the potential of India in IR4.0; these include, among others, the need to quickly transform the educational system to make it fit-for-purpose for the digital revolution, step up enterprise-level innovative activity, facilitate the adoption of relevant technologies by MSMEs, closing the digital divide, and evolving a new architecture for social protection designed to protect displaced workers, as well as gig economy workers.