Click Here to View/Download Magazine
While the size of the global digital transformation market is anticipated to increase from USD 469.8 billion in 2020 to USD 1009.8 billion by 2025, at a CAGR of 16.5%, the market for digital transformation in India is anticipated to rise at a CAGR of 74.7%, to reach $710.0 billion by 2024. Industry 4.0 adoption, the usage of cutting-edge technologies including cloud, IoT, big data and analytics, mobility, and social media are key growth drivers of the market. The most important component in influencing corporate strategy and growth to make a difference in the process of digital transformation revolves around data analytics and artificial intelligence (AI). And heron forth India remains to be one of the fastest growing economies expanding at almost 3-4 times the rate.
In the 2018–19 Budget, the Indian government gave increasing technological capacity top priority and launched a national initiative to focus government efforts on artificial intelligence. In June 2018, NITI Aayog published India’s National Strategy for Artificial Intelligence (NSAI), which is titled “AI for All” and promotes India as the “AI Garage of the World.” The NSAI blends the economic potential of AI with social development and inclusive progress. The National AI Portal, which serves as a one-stop platform for all AI-related advancements in India and shares crucial resources like articles and information on AI-based companies and educational firms in India, was launched by MeitY with industry participation with the goal of promoting AI to the youth. “Power to Empower,” is actually living up to its objectives and expectations.
The success of Digital India over the past eight years has only served to emphasize how important it will be to India’s future growth. MSMEs in India are currently contributing to around 6.11% of the country’s manufacturing GDP, 24.63% of GDP from service activities and 33.4% of manufacturing output. Now, the digitization of these businesses can add up to $200 billion to the nation’s overall GDP. Despite the difficulties mentioned above, MSMEs in India are quickly embracing the digital means of conducting business. A survey by Cisco India found that 31% of MSMEs in the Asia Pacific area are still in the early stages of digital transformation, while approximately 13% have moved to these stages. Effective digitization strategies are now required in order for developing firms to stand out from the competition and expand.
When properly implemented, digital transformation can assist India’s growing MSMEs in reimagining their distinctive business models and reworking a value-driven organisational structure. Additionally, it can enhance worker productivity through techniques for sustainable skill development. Small firms must urgently reinvent their business strategies as we move into the new normal to create inclusive and sustainable value for all stakeholders. The vast potential of digital processes may be tapped with the help of the digitalization of the MSME sector’s service and manufacturing sectors. The quickly growing industry may increase the productivity, profitability, and overall expansion of MSMEs in India by applying low-cost, high-efficiency technology. By maximising customer advantages and pleasure, this will subsequently add to the benefits of the Indian economy as it transitions into the next normal future.
—
Tarun Kumar Taunk
Editor-In-Chief
