- Addressing the Bengaluru Tech Summit 2020 (BTS2020) virtually, the Prime Minister said it is time for tech solutions that are designed in India but deployed for the world, and the country is uniquely positioned to leap ahead in the information era.
India’s potential in Tech-world
- In the last 5 years, India has moved from traditional economy to Digital economy and is a one stop destination in terms of IT outsourcing services.
- The Pandemic has created an environment where people started to work remotely and now there is a change in mindset of people which inturn has surged the demand for online tools and innovative solutions towards various issues.
- The potential is rising for India because now India is leading towards producing innovative solutions instead of just providing the services.
- India is heading towards becoming self sufficient in terms of solving various issues by domestic solutions.
- Eg: Make in India , Innovative India etc.
- As far as Industries are concerned, a digital led revolution is experienced especially in terms of a strong software service nation.
- The combination of strong network, foundational softwares and apps will make India head towards export led regime in terms of Technology.
What needs to be done for moving towards an IT led economy ?
- India so far has not been known as a producing country in terms of technological solutions for which a strong personnel ecosystem of IT networks, technology personnel working particularly for innovative solutions need to be created.
- India needs to move towards external branding of scaling the talent pool especially in terms of R&D as more than 50% of R&D engineers work from India.
- Domestic Market demand for technological equipment needs to be addressed through Make in India initiative under the Government e-Marketplace (GeM) portal.
- Performance linked incentive (PLI) policy can be linked with R&D for maintaining domestic value chain and removing the handicaps in economies of scale.
- India’s 200 billion dollar export of IT services needs to expand further.
(i) The investment in start-ups is very less.
(ii) Due to brain-drain, technological capability is more diverted towards global countries which is a major concern.
(iii) Policy level restrictions are high in terms of technological innovation and service export.
- In order to retain technological capability, there is a need to create high tech jobs domestically.
- Linkages between Industries and Academia need to be built.
- An industry led, design led, manufacturing, R&D led, Investment led environment should be created for startups and companies to develop solutions without hindrance along with Government policy support.
- Digital economy is a key to realise a trillion dollar economy by government and industries working together because Digital India has become a way of life particularly for the poor, marginalised and for those in government.