The threat of Industrial Revolution 4.0

In simple terms , large number of people are becoming jobless because their share of work is being performed by machines. The earlier concept that intellectual functions have to be performed by human beings is being challenged by new technologies. Such technologies are also called Automation Technologies.

Examples of such technologies are Artificial Intelligence , Driverless Cars , Smart Robotics , Cloud Computing , Internet of Things , 3-D Printing and tougher and lighter materials.

The economic threats can be observed under following heads.

INDUSTY

It would lead to disruption of existing industries. The industries have not been able to adapt themselves in the wake of new developments. The new technology introduction in industries require an overhaul of the production system which is a slow process.

The smaller industries would be extinct due to unfair competition with bigger giants in terms of cost of production. Thus , economies like India where a major source of manufacturing comes from MSME sector would be badly hurt. The increasing number and cost of patents is also an area of concern for small manufacturers.

The demands of the consumer would change drastically. People today are aware of global developments due to Internet and expect to avail them as soon as possible. But to shift whole production system to any country takes time and money. 

It would also lead to uniformity of products due to sudden demise of traditional industries. Thus , the diversity of products would become an illusion. India , suffering from low manufacturing growth would be hurt by such trends.

The threat on Services would be seen in the next post.  All queries , suggestions and other feedback on this post are heartily welcome.