India’s journey towards becoming an IT-empowered nation is a testament to the transformative potential of IT in inclusive growth
In the contemporary landscape of the Indian economy, the infusion of disruptive technologies has ignited a digital revolution, propelling the nation into a global IT powerhouse. India is currently witnessing an unprecedented ubiquity of technology, with entrepreneurs leveraging cutting-edge technologies like AI, blockchain, Internet of Things (IoT), machine learning, and data analytics to tackle multifaceted challenges. Today, India possesses all the necessary ingredients to become a modern IT-empowered nation: a wealth of educated workforce, technological expertise, supportive government policies, and a collaborative digital ecosystem are driving the nation forward.
The recent G20 Summit showcased India’s prowess in emerging technologies and digital transformation. India successfully demonstrated that its IT sector is a force multiplier and a bulwark of innovation, continuing to empower cutting-edge digital solutions. According to the RBI survey, the revenue from Indian IT service exports rose to USD 185 billion during FY2022-23. This monumental contribution by India’s IT industry on the world stage underscores the sector’s pivotal role in weaving the nation’s economic fabric.
With the proliferation of low-cost data and increased system transparency, India’s revolutionary digital initiatives like BHIM-UPI and e-RUPI have gained international recognition as pioneering steps towards digital transformation. The rise of digital payment systems and the push towards a cashless economy have improved accessibility to financial services, enhanced commercial inclusion in tier-2 and tier-3 cities. Together with conducive government initiatives like the JAM trinity (Jan Dhan, Aadhaar, and Mobile), India has catalyzed the rise of a dynamic startup ecosystem, propelling the nation to the forefront of global technological innovation. This strategic approach aligns with the government’s vision of creating a holistic environment conducive to growth, exemplified by initiatives such as Make in India, Digital India, and Skill India to support schemes for Micro, Small, and Medium Enterprises (MSMEs).
Currently, India boasts the world’s third-largest IT startup ecosystem, a testament to the nation’s prowess in leveraging technology for innovation and economic advancement. As India looks ahead to 2024 and beyond, several trends and milestones indicate a bright future for the country’s digital economy. India’s digital economy is set to account for over 20 per cent of its GDP by 2026, showcasing the sector’s robust growth. From 4.5 per cent in 2014 to 11% today, the digital economy’s contribution is on a steep upward trajectory.
The focus is shifting from established players to open-source systems and disruptive startups, broadening the scope of digitization. Digital public infrastructure, security, and digital skilling are becoming pivotal areas of focus. The demographic dividend of a young, educated workforce, combined with a deep pool of tech-savvy talent, has created a fertile ground for innovation and collaboration.
The ecosystem’s vibrancy is further accentuated by the government’s supportive policies, encouraging indigenous entrepreneurship and establishing a level playing field for startups. Today, India’s tech startups are not merely addressing age-old systemic challenges; they are also sowing the seeds for a brighter and more sustainable India.
With the world looking to leverage the power of AI, India has emerged as a trailblazer in harnessing the latent potential of AI.
With a robust foundation laid by government initiatives, a dynamic private sector, and an adaptive population, India is poised to emerge as a global digital powerhouse. The year 2024 promises to be a turning point, with a focus on inclusivity and innovation reaffirming India’s status as a leader in the global digital economy.
(The writer is Director General, Software Technology Parks of India; views are personal)
