The Impact of New and Emerging Technology on Economic Development in India

The Indian economy is all set to grow by 8.3 percent in 2021, and 7.5 percent in 2022, and by 2023, India is expected to expand by 6.5 percent according to a recent report by the World Bank. The economic impact of the COVID-19 pandemic in India has been quite disruptive. The digital era has caused an unparalleled change in technology, business, and society. Furthermore, the situation is starting to break the inertia of digital adoption and the cloud will continue to be significant as part of the transformation. Emerging technology on economic development in India has influenced several sectors. Businesses across verticals have been impacted by the worldwide crisis, but certain industries are standing out to change the game for the economy in the foreseeable future.

Industries like BFSI, healthcare and pharmaceuticals, e-commerce, retail, and manufacturing are adopting emerging technologies. Companies in these industries have reacted to difficulties presented by the pandemic and are aiming heavily on creating strategies in the new setup to elevate their game in the upcoming five years. The string that ties together in all four industries is modern technology. Also, the cloud plays an important role to help all these four industries propel into a game changer for the Indian economy. New-age technologies will be offering India the possibility to carve itself a unique identity as a global hub for cloud solutions.

Industry 4.0, Digital supply chain, Digital Assistance, etc. are some of the technologies that will aid economic development by 2025. Emerging technology on economic development in India is beginning to allow industries to rebuild the country’s economic status in a post-COVID world. Organizations relevant to these verticals are boarding on their journeys. The smarter organizations are taking the advantage of the huge capability of emerging technologies to their benefit. Once the economy bounces back, these organizations will be the leaders. And will capture a larger percentage of the market.

Summary of Indian IT/ITES Sector

One of the major factors that have given rise to the growing value contributed by the services sector to the GDP is the IT/ITes sector. It is valued at USD 45 billion (domestic revenue) and USD 150 billion (export revenue) end of Fiscal 2021. India’s IT workforce accounts for 4.36 million employees as of 2020. Furthermore, it is predicted that IT spending in India could reach up to USD 98.5 billion in 2022, driven by rapid digitization. As well as the IT industry’s timely move to remote working settings. This helped them to maintain the industry’s growth amid the COVID-19 pandemic. It is anticipated that the contribution of the IT industry to India’s GDP will reach 10% by Fiscal 2025. Currently, India is one of the largest data generators, with an increasingly young and tech-savvy population. Therefore, emerging technology in economic development in India is playing a huge role.

Role of Emerging Technologies

The cloud services market’s growth in India is driven by the growing adoption of big data, Artificial Intelligence (AI), and the Internet of Things (IoT). IoT links multiple devices or appliances that need to be connected to the internet. This includes automation and real-time device control. IoT-connected devices such as connected cars, household appliances, and electronics use a cloud-based backend to interact and record information. Moreover, AI Technology is being embedded into IT infrastructure to automate repetitive tasks and streamline workloads. Companies are using cloud infrastructure to collect, store, process, and analyze the bulk of data needed for AI tools and applications. The increasing adoption of Big Data in India is also driving the expansion of the cloud services market. Since cloud infrastructure enables real-time processing of Big Data.

• Cloud Services – Indian public cloud services spending is predicted to increase at a CAGR of 29%, from INR 384 Bn. in 2020 to INR 1,103.4 Bn. by 2025
• IoT – The IoT market was forecasted at USD 9 Bn. in FY20 (as per projections made in 2016)
• Business Analytics and Big Data – Business Analytics and Big Data revenue were anticipated to be valued at USD 4 billion in 2019, up from USD 2 billion in 2016, with growth at a CAGR of 25%. The growth, propelled primarily by IT/ITes, has increased the demand for data storage space

Conclusion

Emerging technology on economic development in India has influenced the Indian Economy to a certain degree. The market conditions in other countries, particularly emerging market conditions in Asia. Emerging technologies & their adoption have escalated quickly with time and have contributed considerably to the Economy. Furthermore, several government policies and initiatives have driven technology adoption across various verticals.

If you are also interested in taking an initiative in the information technology sector and looking for discussions with industry experts, then do not hesitate to contact us at Aeologic Technologies.