India plans to be in the top three largest economies of the world in the next 10 years and it is picking up a smart lane to get there, literally. And while broadband highways and eKranti indicate its aggressive digital initiative, following are five trends that will change India for good.
Digitizing is “in” in India
India is on the fast lane to digitize itself. From government to manufacturing, all sectors are vying to store their data in the cloud.
And why not?
Government’s digitization effort reported a record 18% surge in its tax collections since introducing e-tax filing services. 35% of the manufacturing companies have invested in digital technologies to create better opportunities. Across Asia, BFSI have been influenced into increasing the digital services. While the digitization was 11% in 2011, it increased to 56% in 2016 thus resulting in 45% efficiency at banking outlets. India is bound to be influenced by such a progress and upgrade its own services and technologies.
This process, however, is not going to happen in the blink of an eye. Accommodating technologies and rules to it is going to take a good time, at least until 2022. But once it does, it will be very impactful.
India’s mobile penetration is barely 30% but it is estimated that by 2020 670 million will have access to mobile internet. That is almost half of its population.
Having half the population access to device(s) that can do anything anywhere opens vistas. Employees can work from anyplace and anytime. Users – public or stakeholders in a value chain – can easily have access to software, apps, and business functions that will enhance their working experience. For example, mCommerce in the country has grown from $2 billion in 2014 to $6.1 billion in 2016, a 300 percent growth in a matter of two years! With more mobile users, India will be a hotbed for global participants such as Apple and Alipay to promote their product. It is likely such a development would add in the rise of global mobile wallet industry.
Having connected cities is in the to-do list of developing countries like India, especially as it the world’s largest IT sourcing destination, generating a whopping $160 million in 2016. IT resources have been growing at 11.5% YoY since 2005. At home, Indian manufacturing sectors will have at least a billion IoT installed devices in three years, a four-fold increment from 250 million in 2015. Another sector in India that will play an important role in Indian economy and its efficiency is transportation. Trucks using M2M technology for vehicle operation have reported an increment in fuel efficiency by 15-20%. The sooner the vehicles adopt the technology, the better in the bigger picture. Especially as government plans to deploy intelligent transportation systems to manage the cities better in terms of traffic and pollution.
Big Data Analytics and bottlenecks
Data has proven to be one of the most valuable assets in recent times. As valuable as $2.8 billion in 2016 for Indian Retail and Consumer Packaged Goods (CPG) market. India’s adoption of big data and analytics in retail is not as much as Europe and America currently, mainly because 80% of the companies report that it is highly complex to be handled internally. Second most challenging aspect is its integration and data storage as reported by 47.5% of the companies. However, these companies have to be careful about fraud identifications the most. Almost 82% of the companies voted it as an important step in adopting analytical solution. If these steps are considered, the adoption rate can grow and even double the revenues.
Cloud services and further plans
India’s education and retail sector are heavily relying on cloud computing services that will enable them to access resources and services that will best suit them. Especially the education sector which got a booster due to Microsoft’s Edu-Cloud. Its adoption is slowly growing even in other sectors like BFSI, telecom, and healthcare. Cloud adoption has reported a 55% growth in the past three years. This can be attributed to 62% Indian enterprises promoting bring your own device (BYOD) drive among their employees which has reported increment also in work efficiency and satisfaction. And just like Microsoft’s Edu-Cloud, cloud service providers are presenting potential clients with canned cloud services that is expected to simplify the cloud experience.
What is outstanding is that among the cloud service users in business, 72.7% have reported that communication has improved. 69.7% have shared that it has enabled them to utilize the resources better. This says that cloud computing fad is a beneficial investment and could prove better in the long term.
So these are a few trends which define India’s digital transformation. The next five years are crucial for all these trends and technologies, and can even account for 16-20% of the Indian GDP growth by 2025. Though the goal seems enormous, the trends’ benefits will sway the scales towards a higher adoption rate and even vice versa.
Sachi Mulmi is a researcher with Frost & Sullivan. She can be reached at firstname.lastname@example.org
Sapan Agarwal drives content and marketing for Frost & Sullivan. Sapan is based out of Kuala Lumpur Malaysia and can be reached at email@example.com | +603 6204 5830