Digital India: Digital sectors to contribute 10% to India’s GDP by 2025, says McKinsey

Must Read

Microsoft partners with Accenture to host virtual startup challenge in India

Microsoft 100X100X100 program that focuses to bring 100 companies and 100 early and growth startups will collaborate with Accenture Ventures Open Innovation program to host Accenture Ventures Challenge

SAP eyes India’s MSMEs with ‘Global Bharat’ program

With the aim to focus on MSMEs market in India, SAP has launched 'Global Bharat' program with Nasscom, UNDP and Pratham

With AWS Outposts, Amazon Web Services enters into data center in India

Amazon Web Services said that , a new product that brings its cloud infrastructure to on-premises data center is now available in India

The contribution of core digital sectors like IT-business process management (IT-BPM), digital communications, and electronics manufacturing to India’s gross domestic product () may increase from seven per cent in 2017-18 to eight to 10 per cent in 2025, according to a new report from Global Institute.

India’s core digital sectors accounted for about $170 billion – or seven per cent of GDP in 2017-18, said the report titled “: Technology to transform a connected nation”. Out of this $170 billion, $115 billion came from IT-BPM, $45 billion from digital communications, and $10 billion from electronics manufacturing.

Based on industry revenue, cost structures, and growth trends, McKinsey Global Institute estimates these sectors could contribute between $355 billion and $435 billion, accounting for 8 to 10 percent of India’s 2025 GDP.

For the study, the researchers analysed 17 mature and emerging economies across 30 dimensions of digital adoption since 2014 and found that India is digitising faster than all but one other country in the study, Indonesia.

India had 560 million Internet subscribers in September 2018, adding that the country has the potential to add about 275 million Internet subscribers by 2023, taking the total number of Internet subscribers in the country to 835 million.

While the public sector has been a strong catalyst for India’s rapid digitization, private sector innovation has helped bring Internet-enabled services to millions of consumers and made online usage more accessible, the research showed.

“For example, Reliance Jio’s strategy of bundling virtually free smartphones with mobile service subscriptions has spurred innovation and competitive pricing. Data costs have plummeted by more than 95 percent since 2013 and fixed-line download speeds quadrupled between 2014 and 2017,” the report stated.

As a result, mobile data consumption per user grew by 152 per cent annually — more than twice the rates in the United States and China, it added.

Subscribe to receive the day's headlines from Tech Observer straight in your inbox

Leave a Reply

*The moderation of comments is automated and not cleared manually by techobserver.in. Embedding of any link and use of abusive or unparliamentary language are prohibited.
- Advertisement -

Latest in TECH

- Advertisement -SAP Hana

Related Articles