The Internet of Things (IoT) is already revolutionising the global digital space. The Asia-Pacific region is set to become a hotspot; by the year 2020, it is estimated that there will be some 8.6 billion ‘connected’ devices in the area. In line with this estimate, analysts project the market to grow to over 580 billion US dollars – a figure which is likely to be even higher when the numbers for Japan are factored in. 20 percent of those 8.6 billion devices will be in China, home to the largest population of internet users in the world. However, while the largest IoT market may end up being China, it is not considered the most ‘mature’ market. Calculating market maturity based on connections per capita, or the number of connected devices compared to a country’s population, the International Data Corporation suggests that South Korea is in fact the most mature of the Asia-Pacific markets. In anticipation of this growth and the regulatory challenges it may pose, countries are trying different tactics to keep pace. India’s Department of Electronics & Information Technology, under the Ministry of Communication and Information Technology, has gone so far as to release a Draft Policy on the topic.

India’s policy defines the IoT as “an interplay for software, telecom and electronic hardware industr” which has great potential. Already there are nearly twice as many connected devices as there are people on the planet. India’s planned IoT policy aligns with other major projects of the government, including the Smart Cities project and the Digital India programme. The Internet of Things will not only feed into those projects, but itself be developed further as they progress. Given the implications of a smoothly-running IoT network for sectors like disaster management, health, security, energy and agriculture, the goal of the Indian government is to create an IoT network that is “connected, secure and smart”.

For the purposes of the IoT policy, the ‘system’ underlying the Internet of Things has been divided into three areas: technology, analysis and decision making. The first stage, technology, represents one end of the network, with sensors and devices collecting information and eventually performing tasks. Much of the public consciousness around the Internet of Things comes from wearable devices and household items that are connected to the internet. These include ‘fitness devices’ which measure physical exertion, sleep and other activities; smart watches and other technologies which sync with phones; and items like Google Glass which incorporate several of these elements. However, the aforementioned technologies all involve humans in direct contact with devices. Increasingly remote devices are being developed and it is very likely that IoT growth will continue in this direction. An example is Cisco’s plant-watering system. A sensor attached to a bottle of water, poised strategically over a plant, sends information on the plant’s water levels to its owner, who may be many miles away. The owner can then decide to reply, indicating to the system that the plant should be watered. The one man-one plant example is remarkable in itself, but has great scope for expansion. Particularly in relatively closed environments like smart cities, such sensors and systems could make maintenance more effective and less time-consuming for humans by taking on tasks like waste management and transportation.

The example of the plant being watered also highlights the other two stages of the IoT system. A ‘dumb’ sensor will do no more than collect information, but it becomes more useful when connected to an application or process which can analyse this data. This is particularly true as the amount of information collected by various devices in our everyday lives increases. Once the data has been analysed, whatever is relevant can be passed on to the third stage, that of decision making. For more complex decisions, the ultimate decision maker will be a human, who then issues a command (say to water the plant) that makes its way back through the network. Yet it is not inconceivable that for simpler decisions, the call could be made by a machine. In fact there are currently devices that do just that in the field of agriculture, where there are vehicles which can “drive themselves, inject fertiliser at precise depths, automatically space seeds based on soil fertility and measure harvest data in real time”.

While the IoT market will continue to grow and mature globally, India still has a way to go. Reports suggest that despite contributing to the Asia-Pacific statistics mentioned earlier, until 2020 IoT adoption in India will be slow. The Indian government has certainly decided to embrace smart systems, and there are signs that the healthcare, energy and transportation sectors in the country are following suit.

Part of the reluctance to fully support the IoT stems from the risks associated with it. A greater reliance on computerised networks means that if they are not fully secured, they are vulnerable. The consequences of hacking can be significant and widespread. When networks control electricity grids and transportation systems, failures could result in injury to humans and serious setbacks to the economy. This is connected intimately to India’s other problem of providing access at affordable prices – somewhere a compromise has to be made. The other issue pertains to the volume of data being collected and stored. Who would have access to this information? Who would control how it would be used? Without a comprehensive privacy protection system in place and in light of concerns about government surveillance (domestic and foreign), people are hesitant to transfer their lives to completely networked systems.

India has taken a proactive step in anticipating the policy questions and regulatory issues that come with a robust Internet of Things network. Its draft policy, though short, covers topics like industry standards, research and development and critically human resource development. Increasing awareness about the Internet of Things, its opportunities and dangers, is essential for the country to succeed. Computers may be getting smarter, but they’re still only as smart as the programmers and users behind them.

The author is a Junior Fellow at ORF.

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