Beyond the manifestos, technology challenges for India’s next government

The global arena is currently witnessing an unprecedented competition for technological dominance, with a staggering 5.44 billion individuals worldwide connected to the internet as of April 2024, constituting approximately 67.1% of the global populace.

Major economies are increasingly recognizing the pivotal role of advanced technologies in shaping their future trajectories. Notably, China has made significant strides in prioritizing technology and innovation, exemplified by initiatives like the Made in China 2025 plan, aimed at reducing dependence on foreign technologies. Similarly, the United States and Europe are intensifying efforts to regain and maintain leadership in critical technology sectors.

India, endowed with a rich scientific heritage and harboring aspirations for a technology-driven economy, finds itself at a crucial juncture, confronting both challenges and opportunities in the global technological race.

What is the Status of India’s Technology Sector?
Current Landscape: The Indian Technology Industry is poised to surpass the USD 250 billion mark, with projections indicating a growth trajectory towards the USD 300-USD 350 billion revenue range over the next five years.
The Telecom industry in India ranks as the second-largest globally, boasting a subscriber base of 1.1 billion as of February 2024.
India has solidified its position as the world's second-largest manufacturer of mobile handsets.
India's startup ecosystem stands as the third-largest globally, with over 1.25 lakh startups and 110 unicorns.

Key Sub Sectors Driving India’s Tech Growth:
IT and Business Process Outsourcing (BPO) Services: This segment constitutes over 60% of India’s service exports, driving overall export growth significantly.
E-Commerce: The burgeoning e-commerce market in India, spanning various sectors like online travel and food delivery, is on a rapid growth trajectory, expected to reach USD 1 trillion by 2030.
FinTech and Digital Finance: India boasts one of the fastest-growing financial technology markets globally, driven primarily by digital payments, especially through Unified Payment Interface (UPI).
Edtech: The edtech sector has witnessed substantial traction, particularly during the Covid-19 pandemic, offering innovative educational solutions and online learning platforms. India ranks as the second-largest market for e-learning, with significant growth potential expected by 2025.
Cleantech and Renewable Energy: India's emphasis on renewable energy sources such as solar and wind has catalyzed growth in the cleantech sector, with a focus on energy storage, smart grids, and energy efficiency technologies.
Space Sector: India's space industry contributes 2%-3% to the global space economy, with ambitious goals to capture a larger share by 2030, including plans for its own Space Station by 2035.

What are the Government Initiatives Driving Technological Growth?
India’s Semiconductor Mission: Launched in 2021, this initiative aims to bolster the sustainable semiconductor and display ecosystems in the country.
IndiaAI Mission: With an allocation exceeding Rs 10,300 crore, the IndiaAI Mission seeks to fortify India's AI ecosystem through various initiatives, including AI computing infrastructure, innovation centers, datasets platforms, and startup financing, fostering AI leadership and ethical deployment.
DigiLocker: As a flagship initiative of the Indian government's Digital India program, DigiLocker offers a free, secure online platform for storing, sharing, and verifying documents and certificates in the cloud.
Unified Payment Interface: Developed by the National Payments Corporation of India (NPCI), this real-time payment system facilitates instant money transfers between bank accounts via smartphones.
Mission on Advanced and High-Impact Research (MAHIR): Launched in 2023, MAHIR focuses on accelerating research, development, and demonstration of cutting-edge technologies in the power sector, including clean energy solutions and smart grids.
PLI Schemes (Production Linked Incentive): Introduced for various sectors like semiconductors and electronics manufacturing, these schemes aim to incentivize domestic production and bolster India's manufacturing capabilities.
National Supercomputing Mission: A collaborative effort between the Department of Science and Technology (DST) and Ministry of Electronics and IT (MeitY), this mission aims to enhance the country’s computing power through strategic initiatives.

What are the Major Technology Related Challenges in India?
Digital Divide: Despite the burgeoning internet user base, a significant urban-rural divide persists, with inadequate Information and Communication Technology (ICT) access in about 70% of India, according to the Oxfam India Inequality Report 2022.
Lack of Relevant Skilling: While the Indian IT sector excels in certain areas, there's a growing demand for specialized skills in emerging fields like AI, cybersecurity, and data science, highlighting the need for updated educational curricula.
Lack of Adequate Focus on R&D: India's relatively low investment in research and development, at 0.64% of GDP, compared to developed nations, poses challenges to innovation and the domestic production of cutting-edge technologies.
Cybersecurity Threats: With increased technological integration, cybersecurity threats are escalating, encompassing cyber frauds, online financial frauds, and deep fakes, necessitating robust cybersecurity measures and incident response capabilities.
Lack of Comprehensive Regulation on AI: India currently lacks a unified legal framework for regulating AI, leading to uncertainty for businesses and concerns regarding potential risks associated with AI deployment.

In conclusion, India's technology sector is poised for significant growth and transformation, driven by key initiatives and robust entrepreneurial spirit. However, addressing challenges such as the digital divide, skilling gaps, and cybersecurity threats is crucial to ensure inclusive and sustainable progress. By leveraging strategic alliances, fostering innovation, and prioritizing skill development and cybersecurity, India can emerge as a global leader in technology, realizing its vision of a digitally empowered society and economy.

"This editorial is inspired by 'Beyond the manifestos, technology challenges for India’s next government' published in The Indian Express on 01/05/2024.