HomeLatest NewsEnterprise ITDigital Transformation to contribute $154 billion to India GDP by 2021: Microsoft-IDC report

Digital Transformation to contribute $154 billion to India GDP by 2021: Microsoft-IDC report

The use of technology in government and enterprises in India could add an estimated $154 billion to India’s GDP.

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The use of technology in government and enterprises in India could add an estimated $154 billion to India’s GDP, an increase in growth rate by 1.0% annually, said a report. In its report – Unlocking the Economic Impact of Digital Transformation in Asia Pacific – American technology giant Microsoft and research firm IDC claimed that there was a dramatic acceleration in the pace of digital transformation across India and Asia Pacific’s economies.

“In 2017, about 4% of India’s GDP was derived from digital products and services created directly through the use of digital technologies, such as mobility, cloud, Internet of Things (), and artificial intelligence (AI),” report said.

“The pace of digital transformation is accelerating, and IDC expects that by , at least 60% of India’s GDP will be derived from digital products and services, with growth in every driven by digitally enhanced offerings, operations and relationships,” said Daniel-Zoe Jimenez, Research Director Digital Transformation Practice Lead, IDC Asia/Pacific.

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Agreeing with Jimenez, Anant Maheshwari, President, Microsoft India said, “Within the next four years, it is estimated that nearly 60% of India’s GDP will have a strong connection to the digital transformation trends.”

As far as India is concern, the study indicates that while 90% of organisations in India are in the midst of their digital transformation journey, only 7% in the entire region can be classified as leaders in digital transformation.

“There is a pressing need for organisations to fully capitalise on the potential value of digital transformation in the next few years. To do so, organisations need to invest in building their ecosystem, from employees, to customers, to partners, across their value chain by gaining new insights through new data sources, and incorporating digitisation in their products and services, said Anil Bhansali, Managing Director, Microsoft India ().

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Microsoft and IDC said it surveyed 1,560 business in mid and large-sized organisations across 15 economies to reach this conclusion.

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Sanjay Singh
Sanjay Singh
Sanjay Singh covers startups, consumer electronics and telecom for TechObserver.in
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