India - Enroute to becoming the new Global Leader

India is forging its way towards becoming one of the potential superpowers of the world. Let’s see how. I would be sharing a series to share examples, please share your feedback.

India is home to one-sixth of humanity. With a young population and a grand consumer base – complete with ethnic and linguistic diversity – it is a country with unparalleled economic potential.?One would argue that India is still a country going through the developmental-hiccups. Though India is still a developing country, one that is showing strong development. Many nations are moving to forge better relationships with India.

And what better way to show this than the tangible and intangible results of India’s resilience during the pandemic. As India is steadily recovering from the devastating 2nd wave of CoVID, as per IBEF, the current GDP stands at Rs. 135.13 lakh crore (US$ 1.82 trillion) at current prices in FY21.

Let us look at a few of the major reasons behind India’s fast-tracked development:

·?????AI

As per an article published in ET, “Better?technology?adoption?backed by automation can keep Indian?economy?afloat to realize the target of a $5 trillion economy by 2024-25. Automation technologies including artificial intelligence, natural language processing, and machine learning will be the next-gen growth drivers for the economy propelling more job creations than any other sector.”

The government is encouraging startups to have AI applications that have a social impact (AI in health, AI in education, etc), where startups compete to solve social problems.

For example, in diabetes, AI innovations?will decide how much insulin needs to be delivered every day by measuring the kind and quality of food the patient is eating. A lot of changes are happening in robotic surgeries with remote capabilities and the use of AI. For instance, implantables in the brain are becoming smaller? They will become smaller and much more effective with algorithms that are going to come out. Cloud computing is the latest trend in AI and many businesses are foraying into it to maximize their business potential with cost savings.

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·?????R&D

India’s excellence in science has now been combined with the recognition of its brilliance as an innovative economy. While the country has already attained the third position in terms of publications, it now features among the top 50 innovative economies globally as per the Global Innovation Index (GII), placing it ahead of many developed and developing countries. The combination of scientific excellence and innovation has been possible through encouraging investments in scientific activities, infrastructure as well as manpower development along with boosting the entire innovation chain in an environment charged with the start-up India movement.

The cutting-edge innovations currently taking place in the country have garnered the interest of international investors looking to leverage Indian ingenuity. This brings to the fore the need to understand the nuances of R&D and its contribution to India’s growth story.?The Government of India has provided an impetus to investments in R&D by way of various tax incentives. These incentives are available with respect to revenue and capital expenditures incurred by entities for carrying out R&D activities in relation to their businesses, including their contributions to various institutions for carrying out scientific research.?For example, companies such as Microsoft, Oracle, Motorola, Intel, IBM, and GE have set up their R&D or design centers in India, and companies like GE and Bosch have their largest and second-largest R&D facilities, respectively in India.

As per IBEF, “India ranks third?among the most attractive investment destinations for technology transactions in the world. Technology is a strong priority area for the Government, and it aims to make people science-centric. Modern India has had a strong focus on science and technology, realizing that it is a key element for economic growth. India is among the topmost countries in the world in the field of scientific research, positioned as one of the top five nations in the field for space exploration.”

As rightly pointed out by N Chandrasekaran, Chairman, Tata Group - “We need to recognize the fact that tech, manufacturing, and energy are converging in the creation of a new platform and new ecosystems.” Also, the brilliant initiative by TCS, CEO – Rajesh Gopinathan to expand the revenue base from the existing customer base by branding TCS as a high-end business strategist alongside cutting-edge IT services provider is a constructive step towards putting India on a higher pedestal in the global market.