The Fourth Industrial Revolution- The Paradigm Shift In Economy

Have you ever imagined the backstory of the evolution of technology which brings the world in front of you just by a touch of your finger? How does it feel to you hear about a person getting a new life through man-made organs? What comes to your mind observing an upsurge in the economy? Is it something which seems unimaginable? Well, the answer is simple – All thanks to the Fourth Industrial Revolution!

As described by the founder and executive chairman of the WEF, Klaus Schwab, “The Fourth Industrial Revolution is a technological revolution that will fundamentally alter the way we live, work and relate to one another”.

In other words  the fourth industrial revolution is the current and developing environment in which disruptive technologies and trends such as the Internet of Things (IoT), robotics, virtual reality (VR) and artificial intelligence (AI) are changing the way we live and work.

Well, that was the cliché definition let’s get more deep into it by getting further towards more insights.

4th Industrial Revolution
Source – https://www.cadm.com/

Getting back to history…

The term Industrial Revolution was first popularized by the English economic historian Arnold Toynbee to describe Britain’s economic development from 1760 to 1840. The first Industrial Revolution began in Britain in the last quarter of the 18th century with the mechanization of the textile industry, the harnessing of steam power, and the birth of the modern factory. 

The second one was followed by developments in electricity, transportation, chemicals, steel, and mass production and consumption. Industrialization spread even further – to Japan after the Meiji Restoration and deep into Russia, which was booming at the outset of World War I.

The third industrial revolution, beginning in 1970, was digital with the tinge of applied electronics and information technology to the processes of production. Some yet to be imagined and mind-boggling concepts like mass customization, additive manufacturing, and 3D printing were introduced.

Furthermore, the ongoing technological age of the Fourth Industrial Revolution describes the huge changes brought about by smart technologies. From Artificial Intelligence, BlockChain and Drones to Big Data and the Internet of Things are all the wonders of this unimaginable era.

4th Industrial Revolution
Source – https://newsroom.cisco.com/

Digging into the impact factor…

In the words of Klaus Schwab, “The Fourth Industrial Revolution, finally, will change not only what we do but also who we are. It will affect our identity and all the issues associated with it: our sense of privacy, our notions of ownership, our consumption patterns, the time we devote to work and leisure, and how we develop our careers, cultivate our skills, meet people, and nurture relationships”

The impact of Industry 4.0 has a lot of aspects. The  Gradual evolution of technologies and scientific innovations are leading to the creation of new educational disciplines, which is, finally leading to more scopes for better opportunities. Fourth Industrial Revolution is enhancing the facilities for the development as well as innovation of new skills that emphasize the growth of knowledge and thirst for learning.

Coming to the impact on Economy the Technologies that underpin the 4th Industrial Revolution will have a major impact on businesses and growing economies. On the supply side, many industries are seeing the introduction of new technologies that create entirely new ways of serving existing needs and significantly disrupt existing industry value chains. It will improve the quality, speed, or price at which value is delivered. It will also lead to major shifts in the demand side as growing transparency, consumer engagement, and new patterns of consumer behavior (increasingly built upon access to mobile networks and data) force companies to adapt the way they design, market, and deliver products and services. This will, in fact, strengthen the world economies.

Industry 4.0 is influencing the Indian Economy to a great extent. Most significantly it will help India in alleviating poverty. It will enhance farmer’s income by providing them with the latest technologies, improvement in crop yield through real-time advisory, advanced detection of pest attacks, and prediction of crop prices to inform sowing practices given everything goes hand in hand with state and central governments.

Human Capital can be enriched by better and low-cost health care which can be achieved through the implementation of AI-driven diagnostics, personalized treatment, early identification of potential pandemics, and imaging diagnostics, among others. Furthermore, artificial intelligence can be used to empower and enable specially-abled people. These will enhance the human resource thus strengthening the economy. 

4th Industrial Revolution
Source –http://innovation-arts.com/

Way Forward…

In the most optimistic way, The Fourth Industrial Revolution has the potential to complement the best parts of human nature; creativity, empathy, stewardship which will further contribute to the nation-building by strengthening the economy.

By Vaibhavi Rajput (Economics Hons. – Gargi College)

Literary Sources- World Economic Forum, britannica.com

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