Digital transformation will contribute USD 154 billion to India’s GDP by 2021, says a new study conducted by Microsoft, in association with IDC.
Digital products and services will contribute approximately 60 percent of India’s GDP. By 2021, digital transformation is expected to add 1.0 percent CAGR GDP growth annually, the research said.
The research, “Unlocking the Economic Impact of Digital Transformation” predicts a dramatic acceleration in the pace of digital transformation across India and Asia Pacific economies.
In 2017, around 4 percent 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 (IoT) and artificial intelligence (AI), Microsoft said.
“India is clearly on the digital transformation fast track. Within the next four years, it is estimated that nearly 60 percent of India’s GDP will have a strong connection to the digital transformation trends,” said Anant Maheshwari, president, Microsoft India.
“Organizations are increasingly deploying emerging technologies such as artificial intelligence, and that will accelerate digital transformation led growth even further,” Maheshwari added.
Microsoft has plans to invest $5 billion in IoT over the next four years.
In order to reap the benefit of digital transformation, companies need to capitalize their own data in order to gain new market insights, create new digital products and services, and monetize data through data sharing.