CIOInsider India Magazine

Growing investments in tech are projected to elevate the overall Indian economy to expand by roughly eight percent over the next five to six years, according to the Asian Development Bank. Many analysts anticipate a surge in the Indian stock market to help it become the world's fifth largest, with the highest market capitalization. This is thanks to a number of stepping stones, including policies from the government, international ties, market dynamics and investing in latest technologies in particular. Investing in transformative technology is a fruitful way to strengthen India's position as a major worldwide hub for startups—bolstered by strong corporate governance and a welcoming regulatory framework. Here are some of the industries investing in incorporating the latest technologies in their businesses.

The E-commerce Industry
Till date and still going, India has been seeing an outstanding growth of internet users, reaching over 918 million. The advent of e-commerce is believed to be in almost all pin codes of the country, thanks to an accessible and inclusive network, enabling buyers and sellers to communicate directly. The latest entrant, Online Network for Digital Commerce (ONDC), has democratized e-commerce and empowered small enterprises, particularly in rural areas. Over 2.3 lakh different vendors and service providers, including 3000 Farmer Producer Organizations, 400+ Self-Help Groups, micro, small, and medium-sized businesses, and major corporations, have been onboarded by ONDC in the two years since its founding.

The country’s B2C e-commerce sector is anticipated to grow rapidly over the next several years, thanks to a consumer base that is becoming increasingly digital. In the startup ecosystem, both established organizations and budding startups are constantly engaging in raising funding rounds to stay competitive in the online retail boom.

The impact of e-commerce on society is by itself encouraging businesses to invest in digitization, quality standards, and logistics in urban and rural areas. Even the local government is cheering on by pushing digitalization and e-commerce services, while imposing rules to ensure safety of internet users and benefit these users as well.

The Agriculture Sector
On the agriculture side of the country, the government is promoting the integration of the latest technologies through a set of various digital initiatives, such as the National e-Governance Plan in Agriculture (NeGP-A), for instance, with funds being provided to the State(s)/UT(s) for a project involving the use of modern technologies such as artificial intelligence (AI), machine learning (ML), robotics, drones, data analytics, blockchain, etc. The government has also taken various measures to enable ease of access to the latest technology and information across the nation. For instance, the government announced that it will build an open-source, open-standard, and interoperable digital public infrastructure (DPI) for agriculture to facilitate farmer-centric, inclusive solutions through pertinent information services for health and crop planning, better access to farm inputs, credit, and insurance, assistance with crop estimation, market intelligence, etc.

The startup ecosystem is also doing its part in the sector under the Startup India club. The Startup India Database indicates that there are almost 2800 AgriTech firms recognized by the Startup India club as of September last year. These AgriTech firms are key enablers, spearheading innovation and revolutionizing India's traditional agricultural practices. Here are some areas in which AgriTech firms are making key investments to digitize the agricultural sector.

Firstly, a lot of agritech companies are investing in precision farming, as they see it fit to enhance productivity and lessen environmental impact by applying resources like pesticides, fertilizers, and water more precisely.

Then, they are making agricultural equipment and inputs more accessible to farmers.

They are handling the last mile of product delivery through technology, while forecasting the supply and demand for inputs using artificial intelligence and data-driven choices.

Lastly, agritech companies are investing in developing technology platforms that eliminate middlemen and ensure better profit sharing by bringing farmers and buyers together directly.

The Pharma Sector
Many Indian pharmaceutical companies are observed to be pouring their funds into technologies like AI, among other digital technologies, to improve patient care, increase efficiency, and eventually cement their place in the global market as a whole. We can take note of technologies like automation, machine learning (ML), predictive maintenance systems, the Internet of Things (IoT), and the idea of linking things to the internet being invested on here by the pharma industry.

Besides that, there has also been constant persistence by the Indian pharmaceutical industry to further the incentives from the government to augment its spending in pharmaceutical research and development (R&D) within the nation. As is, the Indian pharmaceutical industry is already engaged in spending more on R&D efforts for drug discovery and selling of medicines. Here, the investment focus tends to lean more on the development of novel chemical entities (NCEs), complicated generics, and biosimilars.

The Steel Industry
An analysis of the Automation, Digitalization and Technology Integration for the Indian Mining and Steel sector foresees that the country’s investment in process and digital technologies across the steel value chain could reach a total of $ 2.7 billion. From the government’s take, its National Steel Policy 2017 aims to double India’s installed steel-making capacity to 300 million tonnes by 2030, making the year 2030 significant for the country's steel sector. It’s believed that digital tools could help with compliance in environmental aspects through improved energy efficiency and emission monitoring, according to the report. It also pointed out digital technologies' ability to provide the scalability and flexibility required, which could help get everything in sync with that of the market’s changes while keeping the innovation flowing and enhancing worker safety. Additionally, the study pointed out that digital technologies provide the scalability and flexibility required to adjust to changes in the market, spur innovation, and enhance worker safety.

The Renewable Energy Market
Similar to China, India is expected to invest $250 billion a year, which is projected to significantly expand its clean energy sector. By 2030, the country plans to put 500 GW of renewable energy capacity into service, accounting for more than 40 percent of the additional electricity produced. If all goes as planned, India could be at the forefront of the renewable energy transformation, which opens up numerous avenues for investment and economic expansion.

In China, clean energy investments grew by 40 percent year over year to $890 billion last year, driving economic development. India is believed to also follow suit, with investments in clean energy emerging as a key factor in the country's GDP expansion. Again, if everything goes according to plan, the industry could raise the GDP by 10 percent and could open up a lot of vocational opportunities, industrial expansion and energy security.