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

Must Read

How to choose an effective DDoS mitigation plan

There are several flavours from which to choose when selecting an effective DDoS mitigation strategy. Most enterprises opt for one of the cloud protection flavours (always-on or on-demand)

How tech bolster security of online gaming platforms

The rise of and is evident throughout the world’s financial capitals with the UK, US, and a few other European nations at the forefront

Explained: The evolving nature of cybersecurity threats

Concerns such as hacking and the presence of computer viruses have existed for decades in one form or another. As technology evolved over the years, so did the   threats themselves.

The contribution of core digital sectors like IT-business process management (IT-BPM), digital communications, and electronics manufacturing to India’s gross domestic product (GDP) 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 “Digital India: 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 subscribers in September 2018, adding that the country has the potential to add about 275 million subscribers by 2023, taking the total number of 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 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

Sapience Analytics signs distribution agreement with Redington

Sapience Analytics and Redington said that they have entered into a distribution agreement where latter will resell the Sapience Vue solution through its network of over 30,000 channel partners, system integrators, and value-added resellers countrywide.
- Advertisement -SAP Hana

Related Articles