Impact Assessment of an IIT Alumnus over Indian economy

Hi, I am Nooruddin Kapadia, 2015 batch IIT Bombay Chemical Engineering graduate, currently working in an Indian originated Chemical company. Below, I applied some mathematical calculations to find out my actual contribution towards our country. Since I used to be an Average student from an IIT, presently working in a middle-spaced company and this calculation is based upon a Normal project where I didn’t put any extra effort, so this can be taken as a good reference to find out minimum contribution of each IITian towards Indian economic growth.

Project tenure: From 14^th October’15 to 12^th December’15

Total tax filed to Indian Government from this project= 40 Lakh Rupees

Number of members in our team force for this project= 30 (including 18 casual laborers)

Therefore, each person involvement in this project = 100/30 = 3.33 %

(I was designated as an Officer, and worked throughout this project)

On a safe side, consider my contribution to this project = 2% only

Therefore, my contribution to Indian government w.r.t. this project= 40*2/100 = 80 thousand rupees

Tenure for this project = ~2months

Therefore, my one year contribution towards Indian Government = 80 thousand/ 2 * 12 = 4.8 Lakh rupees

(This 2 month period also includes downtime between two projects)

Total allowed leaves in a year = 40 leaves

Therefore, Number of leaves applicable for this project = 2/12*40 = 6.33

Number of Leaves I took during this project = 7

Extra hours for this project, I provided = 0 hours

Therefore, my contribution was Normal for this project

(At IIT, I used to be an average student.  Therefore, on an average, this much contribution can be considered from each IIT graduate)

Number of years for which I would be working in India = 35 years

% of IIT students retained in India to work this year i.e. 2015 = 76 %

Therefore, an IITian whole life contribution towards Indian Government = 4.8 Lakh * 35*76/100

= 127.68 Lakh rupees

Total money pumped into an old IIT by Indian Government per year = ~ 200 Crore rupees

Number of beneficiaries = 8000 (considering students only)

Therefore, expenditure from Indian Government on an IIT student each year = 2.5 Lakh rupees

Number of years for graduation = 4

Total expenditure from Government towards each student during Graduation = 2.5 * 4 = 10 Lakh rupees

Therefore, Contribution to expenditure ratio = 127.68 /10 = 12.768

Therefore, each IITian would be adding 12.768 times w.r.t. total expenditure of Indian Government towards their study

Ideally this Contribution to expenditure ratio is very much higher, because

1.          Value of Contribution accounted here is for a fresher. With people having experience, this value becomes much bigger
   2.      Also, contribution from an officer is intangibly much more in comparison to laborers which is not considered here
   3.      This much was contributed during normal operation hours of a project, Generally IITians are put on a very challenging role, where outcomes are damn too high
   4.      All this calculations were done on a Present Value basis, inflated value would have been much larger
   5.      Beneficiaries for Government expenditure considered here is Students only. But actually, other external works pertaining to Government and other private companies going on inside the Campus. Spending on it needs to be subtracted to get actual expenditure on each student
   6.       Students also contribute intangibly via research activity with professors which is not accounted here
   7.      Contribution from IITians residing abroad taken here is Nill, which is not true
   8.      Most of the IITians get back to India after having few years of abroad experience, their contribution has not been taken in the calculation
   9.      Also, Number of IITians going abroad is diminishing year after year
   10.  This calculation is based on a person deployed over a Job. Most of the IITians, sooner or later, becomes Entrepreneur and contribution through it is much more far away on a positive side from this value 

(Note that only aim of this whole calculation is to try to validate TOI claim that an IITian contribution towards Indian economy is 15 times that of total input from Indian Government towards IITs. All the value taken here may not be actual and without references, but under a good accuracy limits to get reasonable results. )