Context:With the necessary government push, India can soon become the tech garage of the world.
Potential of India to become the Tech Garage of the World
A vibrant start-up ecosystem: In 2019 alone, over 1,300 startups were added, thereby solidifying India’s position as the third-largest start-up ecosystem in the world.
Encapsulates the principle of Atma Nirbhar Bharat - not just confident, outward-looking and non-insular, but also one that develops indigenous technology solutions at a super scale for complex problems.
Preferred investment destination:
Unaffected by covid-19 pandemic: Resilience of India’s tech industry during the covid-19 pandemic has been on display, with investments soaring to a mammoth $38 billion.
Private equity investments at a 10-year-high in 2019, attracting $17.3 billion and registering a yearly growth of 60.5%.
Provide solutions to the massive and intractable challenges across sectors such as healthcare, education, financial inclusion, modernisation of agriculture and others.
India’s IT/ITeS industry is a global powerhouse: The massive $167 billion IT industry mostly comprises companies that provide software and backend IT support.Govt should act as a catalyst with the aim of innovating for India and the world
software services and backend IT support.
But there is absence of platform companies that can compete with global players.
Presence of platform-based models: could serve as the blueprint for the emergence of future platform companies.
For E.g. National Health Stack and Aarogya Setu were developed envisioning a cohesive future for a health-tech ecosystem in India with public and private participation.
Government Promotion:
Prime Minister also launched the Aatma Nirbhar Bharat App Innovation Challenge to encourage the creation of world-class made in India Apps
The Atal Innovation Mission (AIM) is driving Atal Tinkering Labs with Artificial Intelligence (AI), and robotics and 3D printing are being taught from class VI onward
Unified Payment Interface (UPI) acts as one of the most powerful examples of the potential that India in the digital financial inclusion space.
Partnering with the private sector: Prime Minister recently entrusted NITI Aayog with the task of developing technological products in partnership with the private sector.
Way forward
Creating world-class product: which requires skillful application of AI and necessitates 5 critical inputs:
Flow of data-hungry young entrepreneurs
AI algorithm engineers: Our IIITs and IITs must be reoriented to produce AI engineers who can partner with tech entrepreneurs to launch cutting-edge global tech companies.
Computing powers
AI-enabling policy environment
A balance between regulation and product design:
Role of Government: Bring together the synergies of the private sector with the aim of innovating for India and the world and provide an enabling environment and a favourable regulatory ecosystem
Role of Private Sector: Product development should be undertaken through private entrepreneurship, with the government acting as a facilitator.