IndiasDigitalDominance Deloitte

The Digital Dominance | Catalysing India's rise as a global digital leader
The Digital Dominance

Catalysing India's rise as a
global digital leader
October 2023
1
Table of contents
Foreword by CII 4
Foreword by Deloitte 5
Executive summary 6
Section 1 – Digitisation and public goods 8
• Citizen empowerment 9
• Future of healthcare 14
• Equity in education 16
• Innovation in agritech 18
Section 2 – Digitisation and industry 22
• Next-gen communication 23
• Future of manufacturing 30
• India as a “semicon nation” 35
• Evolution of cloud-based services 38
Section 3 – India: The digital hub of the world 42
• Endorse digital trust and infrastructure across the world 43
• Digital capabilities as services to the world 45
• Building a skilled workforce for the future 49
Abbreviations and acronyms 51
3
Foreword - CII
India is taking its flourishing digital economy to new heights. The It would be remiss not to make mention of India’s success story with
Government is poised to accelerate India’s journey to digitisation UPI. UPI has resulted in a digital financial revolution for the country
in the ongoing techade and achieve a range of milestones, creating – a revolution Meta has also been part of through WhatsApp Pay.
new opportunities to maximize the potential of India’s demographic Akin to UPI, the ONDC is another example of a unique home-grown
dividend. digital product. The vast potential of the ONDC initiative is indicative
of India’s rising prowess in the e-commerce sector. Meta is, once
Currently, digitisation is playing an important role in improving access again, proud to have contributed to the growth of e-commerce in
to public services, digital applications and knowledge resources, India through products such as WhatsApp for Business, that have
and this role will only grow in the future. The Government’s ‘Digital encouraged small and medium businesses to go digital.
India’ initiative is working towards this goal and has made notable
strides in narrowing the digital divide between rural and urban Separately, setting the stage for the future, technologies such
India. Technology is the key leveller that is building a more inclusive as predictive analytics, generative AI, and quantum computing
society and empowering citizens – future-facing technologies such will finally bring about the 6th industrial revolution. As India
as 6G, open-source datasets, quantum computing, and AI powered accelerates its integration into the global value chain, each of the
ecosystems will undoubtedly buttress this goal. above-mentioned initiatives mentioned will undoubtedly aid in
this mission. Meta is also committed to investing in future-first
Moreover, as this white paper notes, the adoption of innovative technologies like next-gen AI that will require powerful new
technologies in different sectors like healthcare, education, and computers. In preparation, Meta has designed and built the AI
agriculture will help these markets grow, increase the quality of Research SuperCluster, one of the fastest AI supercomputers today,
offerings, and help deliver more efficient and effective solutions. with the aim of creating foundational technologies (such as large
For instance, innovation in healthcare technology such as sensors language models) that will power the Metaverse and advance the
and AI will augment early detection of disease and preventive care. broader AI community.
Similarly, a digital overhaul of education will improve interactive
lessons, and technologies like learning analytics will do the same Lastly, as India positions itself to become a significant player in the
for student outcomes and facilitate better decision making. The global semiconductor market, the Government can capitalize on
Government is also tackling the task of feeding India’s growing the limited number of players currently in the market, and use as
population amidst climate uncertainties. Investing in agri-tech opportunities the vulnerabilities that create global uncertainties,
innovation will lead to an increase in productivity and sustainability, like economic stand-stills. While India has a long journey before
and, more importantly, improve returns for farmers. it becomes self-reliant in semiconductors, investments in AI and
automation will contribute to more innovation in the semiconductor
The launch of next-gen communication technologies like 5G, and industry. Moreover, as developments in AI technologies create
the gradual transition to technologies like 6G and satellite networks demand for powerful and scalable computing capabilities and
will have positive effects such as reducing energy consumption and massive storage and computing resources, they will not only create
improved broadband connectivity. These developments will also a boom of cloud services and data centres but will also generate
bolster the sharing of online content and lead to a greater rise of millions of employment opportunities.
the creator economy (which has generated both jobs and revenues
in hitherto untapped areas), and which Meta is also proud to have Where India was once underestimated as being a destination for the
contributed to, through its platforms. BPO industry due to cost savings, it is now rightfully taking its place
as a leader in offering critical digital and technological solutions
New technologies aside, rethinking old systems like manufacturing will across different sectors. With its unyielding, visionary focus on
allow India to reap the benefit of economies of scale and integrate into revolutionizing the digital ecosystem, the India of today is cementing
the global value chain. In the initial stage, as the white paper notes, its position as an emerging digital economy – and Meta, like the
technologies like robotics and automation will help reduce errors and wider technology sector, will continue to be an ally in this journey.
costs in the delivery of products, and technologies like the Metaverse
and AR/VR will provide immersive and interactive experiences that
can equip workers with new skills and create safer (and more efficient) Ms. Sandhya Devanathan
working environments. As part of this, Meta has invested in the Chairperson, National Digital Summit and Vice President,
development of AR/VR products – which we believe to be the future of Meta India
digital connection – and whose long-term value stands to be realised
from the way developers and creators use such products.
4
Foreword - Deloitte
The “digital” wave hit India for good and today, digitisation extends Through interesting use cases, the report brings interesting
far beyond a technological transformation. It is evidently unfolding movements, including ONDC, 5G infrastructure, healthcare, or
our country’s future and bringing in affordability, security, GCC success stories shaping up the world, with more investments,
and accessibility for goods and services. Digital has brought in interoperability, and the ease of doing business.
transparency, competitiveness across the globe, and a broader
sense of societal well-being − both for consumers and corporate Leveraging the strength of internet, India has created a plethora
India. It has also opened up new avenues for international trade of digital public goods and government services that democratise
and sustainability; created new business and job opportunities; and the digital infrastructure. Keeping innovation at the heart of
ultimately brought in economic efficiency for a nation. development, our nation is focused on leading by example with
concepts such as UPI, a unique case study. This report shares use
As India moved swiftly to become the fifth-largest economy, digital cases and examples to give a glimpse of the metaverse.
penetration efforts now play an even larger role given the large
population spread across multiple terrains and economic strata. A prudent risk policy and regulations are crucial to protect the
rights of citizens and corporations and build a resilient society.
A child living in a remote village in Rajasthan deserves the same Technological developments also pose numerous risks, such as
quality of education that his peers in Delhi receive. A small and cyber-attacks or geo-political issues. Therefore, holding a nimble
medium businessman deserves profitability and hassle-free posture against the threats lurking in this digital world is important.
commerce through a swift, secure, and agile supply chain.
The Government of India has laid out a comprehensive plan of
With India’s focus on technologies such as 5G and Satcom, villages safeguarding measures that cover virtual interactions and user
now have fast and reliable internet and telecommunication interests. For instance, the Digital Personal Data Protection Act,
connectivity. This enabled people to make digital payments, buy rolled out on 11 August 2023, frames processing digital personal
goods online, stream movies, or book a doctor’s appointment from data in a manner that recognises the right to safeguard personal
the comfort of their homes. data and the need to process such personal data for lawful
purposes and development. The country also expects to usher
After the pandemic, medical professionals or human resource Digital India Bill 2023 which will replace the existing Technology
managers now use intellectual capital via digital communications Act (IT Act) of 2000. This new legislation is designed to establish a
channels at the grassroots level, bringing in the concepts of “gig comprehensive oversight over India’s digital landscape, effectively
economy”. managing evolving challenges, such as deepfakes, cybercrimes, data
theft, and unethical use of AI.
Therefore, the technology and digital boom are making citizens
more aware and improving their well-being by offering services Read our report with an optimistic perspective, as we envision
such as digital banking, healthcare, or access to talent in smaller immense potential in how the future unfolds for our country.
towns − just as seamlessly as offered across metros. In short, the
digital technology thread now connects India and binds it to bridge
the economic islands. Peeyush Vaish
Partner and TMT Industry Leader
The Deloitte-CII report unveils how “digital technology” is catalysing Deloitte India
India's rise as a global digital leader.
5
Executive summary
The year is 2035.
Vikas, a man in his 60s from a remote region of India, wakes up to a video buzz as his daughter responds to a
Microsoft Teams call from her manager in Bengaluru asking her to attend to a project for their client in the United
States. After his morning chores, Vikas decides to consult his doctor in Delhi about his joint pain and quickly books
a virtual appointment using his mobile app. He pays the doctor’s fee using digital currency after checking his
account balance using his bank’s digital online service.
Right then, he receives a notification on his mobile app that one of his crop fields may be experiencing an increase
in pest infestation. After Vikas decides on a course of action, a message is immediately sent to the nearest
pesticide supplier using an e commerce platform, where an artificial intelligence (AI)-enabled app quickly scans
the crop profile and invading pests using a drone. It then transmits real-time information using cloud-based
services to the nearest pesticide factory. After additional investigation, the concerned departments place the
order and deliver the appropriate pesticide directly to his field within just a few hours of Vikas being informed
about the pest issue.
In the meantime, Vikas has a video consultation in which the doctor thoroughly investigates his joint problem
along with his colleague in Singapore using Vikas’s digital twin. Without delay, the medications prescribed by his
doctors are then delivered to his home by a nearby pharmacy. In the evening, his grandson excitedly recounts
his experience of seeing the planet Mars up close and discussing the possibility of life existing on the planet in a
Metaverse world at his school.
Is this scenario difficult to imagine? In fact, such a scenario In this journey of digitisation, emerging technologies,
may not be far from a not-too-distant reality. such as next-generation communications, the evolution of
cloud and smart factories and India’s ambition to become
The rapid adoption of smartphones, an increase in the a semiconductor giant will be the key enablers of the
quality of Internet connectivity and the government’s country’s innovation and technological transformation.
push towards establishing a digital economy are about Moreover, India’s innovation in technology, spearheaded
to unleash tremendous opportunities and possibilities, by the government and industry alike, will proliferate not
like those described above, over the next decade. only within its borders but also throughout the rest of the
Digitisation will drive India’s ambition to become a US$ world. The need to cater to global demand, maintain a high
10 trillion economy by 2035 by revolutionising finance, level of quality, address sustainability concerns and bridge
healthcare, education and industry. Digitisation will not the skilled labour gap will drive technological integration
only contribute to India’s overall growth but also address and partnerships across borders, thereby leading to even
the age-old challenges of inclusion and equity that the greater innovation.
government has been attempting to address in recent
years. Technology will be instrumental in empowering In 2035, India is going to be a very different place from
citizens, transforming the healthcare system, modernising what it is today. Technology will provide an advantage
education and enhancing the potential success of all through which we may remain competitive while
industries and services. addressing skill gaps to prepare our workforce for the
future.
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The
TheDigital
DigitalDominance
Dominance | Catalysing India's rise as a global digital leader
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Digitisation and
public goods
8
Citizen empowerment
India’s governance system is unmatched due to its scale, in unleashing a plethora of possibilities for holistic economic
reach and scope. Strengthening democracy and enhancing and social development. Technologies will aid in inclusivity
governance to empower citizens has never been an easy and improve trust, leading to better opportunities and
task, but the recent extensive penetration of technology meaningful participation for every citizen. It will create a world
throughout all aspects of society is transforming the state– wherein individuals may express themselves via a digitally
citizen relationship. Digitisation plays an important role in connected society. In short, digitisation will be the key to citizen
improving accessibility to public services, digital applications empowerment.
and knowledge-based resources. By 2035, it will be instrumental
Driving the citizen empowerment agenda is primarily the government’s

responsibility. It is the government that must implement and promote
innovative measures to increase inclusivity and build trust.
The Indian government had a head start on implementing this society that is empowered by new-age emerging technologies.
agenda by ensuring that the country’s digital transformation The three main pillars upon which the “Digital India” initiative is
specifically benefits its citizens. The “Digital India” initiative based are listed in Figure 1.
was launched to make India a knowledge-based economy and
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Figure 1. Three main pillars of the “Digital India” initiative
Digital infrastructure as a core service for every citizen
• Unique Identification Authority of India - Aadhar • Open Network for Digital Commerce (ONDC) in
• Unified Payment Interface (UPI) commerce
• Bharat Interface for Money (BHIM) • Unified Health Interface (UHI) Gateway
• Indian Customs Electronic Gateway (ICEGATE) • Health Claims Exchange (HCX)
• BharatNet • Health Information Exchange Consent Manager
• National Optical Fibre Network (NOFN) (HIE-CM) in healthcare
• DigiLocker • India Urban Data Exchange (IUDX)
• Account Aggregator (AA) • GI Cloud Initiative - Meghraj
Digital governance and services available on demand
• e-Governance: MCA21 (Ministry of Corporate Affairs), e-Procurement (e-Procurement Government of

India), and online passport services (Passport Seva)
• Online bill payment: Municipal corporations, electricity boards, and water supply departments
• Digital health record: Ayushman Bharat Digital Mission (ABDM), Arogya Setu, CoWin, Ayushman
Bharat Health Account (ABHA), and eSanjeevani OPD
• e-Courts: E-filing, e-payment, e-judiciary, e-hearings ('Virtual Justice Clock'. 'JustIS', 'Digital court’, and
'S3WaaS’
• Online education and employment: SWAYAM, digital library, Digital Infrastructure for Knowledge
Sharing (DIKSHA), VidyaDaan, e-textbooks, PRAGYATA, Shiksha Vani, National Career Service (NCS), and
Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
• Digital MSMEs: Udyam, Government e-Marketplace (GeM), Trade Receivables Discounting System
(TReDS), and msmemart.com
Citizen empowerment through digital literacy
• Digital literacy: Making citizens digitally literate (through the digital India campaign)
• E-commerce and digital payments: Encouraging citizens to use digital payments with increased
security and transparency
• Online KYC: Reducing the need for physical verification
• Online employment opportunities: Providing training and assisting in job search
• Online healthcare services: Providing access to healthcare services through teleconsultation,
telemedicine, and online appointments with doctors
• Digital banking: Ensuring a bank account to every Indian citizen to promote financial inclusion
Source: National Government Service Portal, Deloitte Research, www.MyGov.in.
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Figure 2. Success of the Digital India initiative in empowering citizens using government services
Aadhar has enabled Digilocker holds nearly

nearly 1.37 billion 5.7 billion documents
Indians financially as as in March 2023
in Aug 2023
CoWin administered Bhashini, an AI-powered

more than 2 billion
tool, offers translation
vaccines across India 22 Indian

capabilities for
official languages
UPI transactions 450 million

Over
recorded a volume of individuals created

10.6 billion in Aug 2023 their Ayushman Bharat
Health Account (ABHA) card as
in Aug 2023
As of March 2023, the BharatNet project laid

628,949 km. of optical fibre cables connecting
191,069 gram panchayats
Source: National Government Service Portal, Deloitte Research, www.MyGov.in.
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Another effort has been minimising the digital divide.1 Almost Most importantly, one of the government’s most successful
65percent of India’s population resided in rural areas as of 2021. initiatives (as shown in Figure 2) is digital public infrastructure
In addition to ramping up the 4G infrastructure and extending it (DPI) innovation and its integration with the governance
to the remotest villages, the launch of 5G technology will enable architecture to promote inclusion and build trust. Such
underserved areas to be brought into the mainstream.2 innovation provides hassle-free digital services to citizens.
The government is now preparing for the next big leap—preparing

India for a world led by AI. The vision is to “make AI in India” and
“make AI work for India.”
By 2035, 6G technology, open-source datasets and an AI- the platforms that will likely further improve efficiency in
powered ecosystem will be at the core of e governance. These transactions and public expenses, close gaps in financial
technologies will enable digital inclusion throughout the nation inclusion, and boost government revenue collection.3 Private
and will strengthen e-governance by providing enhanced sector players, which are currently leveraging some of these
transparency and promoting increased compliance. They will platforms for the efficient implementation of their own services,
also improve the efficiency of public service delivery by making improving their reach and identifying new opportunities for
digital options available. business growth, will also contribute to the development of this
infrastructure and the establishment of this ecosystem. This
DPI: Foundation for empowerment coordinated effort will improve the reach of DPI to every corner
The government is deploying DPI, and India Stack is one of of the nation.
Case study 1: Interoperability of digital services
The National Rural Employment Act (NREGA), which was later renamed the Mahatma Gandhi Rural Employment
Act (MGNREGA), is regarded as the Indian labour law and social security measure that empowers Indian
citizens by guaranteeing Indian people the “right to work.” MGNREGA was enacted in September 2005. The
success of MGNREGA was driven by the collaborative implementation of digital assets by the government in the
following ways:
• Aadhaar verifies the identity of MGNREGA applicants, thereby reducing fraud.
• Meghraj stores and processes data for its Direct Benefit Transfer (DBT) programme.
• The India Urban Data Exchange (IUDX) shares data between different government
agencies, such as the Ministries of Health and Education.
• A Unified Payments Interface (UPI) is used to transfer wages directly to workers’ bank
accounts, thereby reducing the time required to process workers’ pay.
DPIs have become a tool that empowers citizens in several ways, as illustrated in Figure 3.
1
https://pib.gov.in/PressReleasePage.aspx?PRID=1894901.
2
https://www.business-standard.com/article/companies/bsnl-s-125-000-new-4g-towers-to-come-up-in-rural-hinterland-122111800813_1.html.
3
https://www.imf.org/en/Publications/WP/Issues/2023/03/31/Stacking-up-the-Benefits-Lessons-from-Indias-Digital-Journey-531692.
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Figure 3. How DPIs empower citizens
Promote financial inclusion

in digital payments such
as UPI by providing
financial services that
are transparent, secure,
accountable, and
cost-effective
Improve the Indian Empower MSMEs through
education system through Account Aggregators (AA)
IT-enabled services and by providing access to
promote the concept of formal financing to the
learning by all, with unbanked and with low
all, and for all credit history
Enable farmers to make Enhance data collection

informed decisions using through the National
Agri-stack and provide Financial Information
innovative solutions Registry and share with
to address the current lending agencies to
agriculture challenges improve credit flow
Provide income
opportunities in digital
commerce on their own
terms and integrate all
types of sellers, buyers,
and network participants
Source: Deloitte Research
Case study 2: A UPI as a tool to reach beneficiaries directly and improve financial inclusion
The Government of India is using a UPI to transfer subsidies for food, fertilisers and other essential commodities
directly into the bank accounts of eligible beneficiaries. This has helped reduce leakages
and ensures that benefits reach the intended recipients. Beneficiaries have also received
benefits without having to travel to a government office or wait in line. Going forward, DPI
will empower citizens to make their own financial decisions with a greater sense of security
and will likely serve as a model for other developing nations in the years to come.
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Future of healthcare
India’s healthcare system is poised to be transformed into an

integrated, interconnected, effective and patient-centric model
by 2035. Several factors support this prediction, including rapid
technological advancements, increasing government investment and
growing awareness of the importance of holistic healthcare.
This shift will be facilitated by the convergence of multiple services, particularly in rural and historically underserved
technologies, such as AI, natural language processing (NLP) areas.4 The advent of Internet of Things (IoT) devices and
and robotics, as well as innovative collaborations among robotics will further augment the shift of healthcare delivery
diverse stakeholders across the healthcare ecosystem. These from hospital to non-hospital settings, such as home. In
will fundamentally change the patient journey, resulting in a decade, most patient healthcare tasks in India may be
performed remotely using telehealth technology rather than a
drastically improved health outcomes and a much-enriched
traditional clinical environment; at-home advanced healthcare
patient experience.
services may in fact become the accepted norm.
• Less dependence on hospitals and doctors: The collection
Forthcoming digital revolution in healthcare
of massive amounts of data will aid in the development of
Healthcare technology innovation and adoption in India will
algorithms that will help develop AI- and NLP-based decision
create new markets and establish a tremendous opportunity for support tools for physicians. Such tools will reduce physicians’
healthcare providers and start-ups to expand their reach, offer workload and mitigate doctor shortages by supporting their
new services and serve patients more efficiently. By 2035, it is diagnostic tasks with evidence-based recommendations. This
predicted that the following changes will occur: will enable patients to receive more prompt, accurate and
• A shift towards preventive, predictive, and more personalised diagnoses and prescription recommendations
personalised healthcare services: The integration of modern remotely.
technologies, such as NLP, will enable patients to make • Advancements in highly sensitive miniaturised sensors
better choices by becoming better informed and exhibiting and robotics, combined with machine learning (ML) and
a preference for paths that offer seamless, transparent and artificial learning methodologies, will simplify even the
frictionless care. Technologies such as sensors, genetic analysis most complex surgeries and significantly reduce the time
and AI will enhance the early detection of diseases and risk required to train doctors, mitigate patient risk and improve
factors and promote preventive care (as shown in Figure 4). surgical outcomes.
• A transition of care delivery from hospitals to home: • Innovative new-age interventions will improve patient
Telemedicine, remote patient monitoring, home-based outcomes throughout the patient journey in all
healthcare delivery and mobile health apps, which have been therapeutic areas: Technological shifts will create several
growing at a compound annual growth rate (CAGR) greater opportunities for the life sciences industry to innovate and
than 30 percent since the outbreak of COVID-19 in 2020, will develop new products and services to enhance patient
continue to gain traction, improving access to healthcare outcomes throughout all therapeutic areas and stages.
4
https://inc42.com/datalab/telemedicine-market-opportunity-in-indian-healthtech.
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Figure 4. Digital solutions and core technology platforms for a tech-enabled healthcare system
Category Core technologies Solution implementation
• Augmented Reality/Virtual Reality • Initial virtual consultation

(AR/VR) • Health in the hands of consumers
• Artificial Intelligence (AI) • Better experience
• IoT and wearables • Real-time decisions
Telemedicine • Chatbots
• Software and apps • Infrastructure supporting

• Electronic records interaction between users and
• Big Data technologies
• App-driven diagnostics • Last-mile telehealth delivery
Healthcare IT
• Robotics • Physical intervention tested

• 3D printing through robots, AI, Digital Twins
• Smart devices • Predictive analysis
• Machine Learning (ML) • Early diagnosis
Treatments • Nanotechnology • Connected healthcare platform
• Synthetic artificial organs economy
• Blockchain • Research and clinical

• IoT development
• AI • Patients have access to their own
• Open health records data
Data exchange and • Medication management
privacy • Data security and transparency
Source: Future-proofing healthcare report, Deloitte Research.
Case study 3: A connected healthcare system
By 2035, a patient journey like the following might well become the norm. A patient suffers a road accident and
damages several internal organs and limbs. They are rushed to the Intensive Care Unit, where they are given
synthetic blood transfusions until they are out of mortal danger. Instead of waiting for a compatible transplant
donor, a doctor operating a semi-autonomous surgical robot implants 3D-printed organs to replace their
internal organs. Their lost limbs are replaced by hybrid-assisted limbs, exoskeletons or neuro-
prosthetics. They are discharged in a few days. A drone regularly delivers medicines at their
home, where a suite of sensors and assistive robots monitor their recovery and help them
until they learn to walk again. They regularly discuss the data recorded by these sensors with
their doctor and physiotherapist, who adjust their treatment regimen as required.
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The Indian government has demonstrated commitment to Key requirements that will enable and facilitate the
healthcare reforms, as evidenced by the National Health Policy, implementation of these shifts in India’s healthcare
e-Sanjeevani and the ambitious Ayushman Bharat Digital ecosystem:
Mission (ABDM). Furthermore, the National Health Portal • Policy and regulations: The government should create clear,
established by the Ministry of Health and Family Welfare for consistent and business-friendly policies that encourage
Indian citizens will act as a single source for consolidated health foreign investment in India’s healthcare sector.
information in the future. As healthcare providers, insurers, • Infrastructure development: Although its digital
government agencies and technology companies work towards infrastructure is improving, further enhancement specifically in
a unified and integrated system, seamless data exchange rural and remote areas is necessary to ensure the widespread
and collaboration will be increasingly emphasised. Enhanced reach of healthcare services.
interoperability will foster innovative partnerships among • Data privacy and security: Given the sensitive nature of
diverse stakeholders, allowing the development of holistic and health-related data, the government must establish robust
patient-centric solutions. For example, collaborations between data protection laws to build trust between users and
providers.
pharmaceutical companies, diagnostic labs and healthcare
providers can streamline patient care, reduce wait times and • Interoperability standards: The government should establish
improve treatment outcomes. Moreover, enhanced data-sharing and enforce standards that facilitate interoperability between
various healthcare technologies by encouraging seamless data
capabilities will empower patients to take control of their health
exchange.
information and make informed decisions about their care.
• Education and training: Investment in education and
training programmes will ensure that healthcare providers
How can global healthcare organisations grow and
are equipped to utilise new technologies, thereby enhancing
expand in India?
adoption rates.
The vast potential of the Indian healthcare market, coupled
with the ongoing digital transformation, presents significant
India can enhance the healthcare system for its population,
opportunities for global companies looking to expand their
which has long been deprived of optimal access to healthcare.
businesses. However, to successfully penetrate this market,
According to Deloitte, the United States may find a vibrant new
they must focus on localisation, collaboration and technological
market in India to fuel the next stage of growth for its industry-
integration to develop value-based solutions by investing in
leading MedTech companies.5
digital healthcare platforms.
Equity in education
The entire educational system is poised to be completely transformed

by modern technology. Digitally empowered classrooms using modern
technology (such as augmented reality (AR)/virtual reality (VR) and AI-
ML technologies) will make learning more collaborative, engaging and
available to anyone who wants to learn, anytime and anywhere.
India needs low-cost and open-sourced technologies to create of increasing the current higher education gross enrolment ratio
top-end content using non conventional delivery mechanisms (GER) from 27 percent to 50 percent by 2035.6
to meet the educational needs of its massive youth population. In this regard, technology will be a game-changer for India as it
Moreover, India must ensure quality education for all, upgrade will ensure equal access to high-quality education, engaged and
existing teaching staff and improve its educational infrastructure. interactive lessons and personalised instructions to students in
The National Education Programme (NEP) 2020 has set a target every corner of the country. Over the past few years, the massive
5
https://www2.deloitte.com/in/en/pages/about-deloitte/articles/the-future-of-health-india.html.
6
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open online courses platforms have gained recognition because it is overlaying digital information about the real world using
of their potential to reach those who are not enrolled in schools, AR and VR or the gamification of learning to make education
colleges and universities. Many edtech companies are offering more interactive, digitisation will create a holistic approach for
learning management resources, including blended learning, 3D establishing a more effective and engaging learning experience
and do-it-yourself kits and AI-based experiential and interactive in a cost-effective manner. Collaboration and team-based
learning, to provide an unrivalled experience.
learning will be two important trends in digital education,
thereby helping students develop the skills they require for a
As technology evolves, digital learning will offer several
future-ready workforce.
advantages over traditional classroom learning, including
flexibility, engagement and personalisation (Figure 5). Whether
Figure 5. Integration of emerging technologies across edtech platforms
Collaborative
and team-based
learning approach
Widespread use of Holistic approach:

Virtual Reality (VR) focusing on the
and Augmented development of
Reality (AR) in cognitive, emotional,
education and social skills
Future
of digital
education
Microlearning and
Nano-learning Mobile learning and
learning analytics
Algorithms and
Gamification of machine learning
learning to deliver hyper-
personalised learning
experiences
Learning analytics will drive improved student outcomes, more efficient use of resources and better decision-making.
Algorithms will be used for customised learning materials and adaptive tests, all of which will provide students with personalised
learning experiences.
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Innovation in agritech
India overtook China as the world’s most populated country market potential. With the penetration of technology, this
in 2023, and the population is expected to reach 1.5 billion sector can unleash massive opportunities for new agritech
by 2030.7 Assuring sufficient food is available for such a huge start-ups and expansion opportunities for existing ones.8 The
population amidst climate change and global uncertainties is not government is making an effort to build an interoperable, open-
going to be an easy task. India’s agricultural sector must become source agricultural DPI for creating farmer-centric solutions and
future-ready. Agritech presents an exceptional opportunity to supporting the agritech industry and start-ups.9
provide solutions that will simultaneously increase productivity
and sustainability, enhance market access, improve farmers’ Technology will transform the entire farming production cycle,
income prospects, reduce costs and time to market and from sowing to production to distribution, thereby reshaping
facilitate the effective implementation of government schemes. the future of the industry. Figure 6 depicts a few digital solutions
that may revolutionise every stage of farming.
India’s agritech market is US$ 204 million but has a significantly
low market penetration of 1 percent of the overall agritech
7
https://www.weforum.org/agenda/2022/08/world-population-countries-india-china-2030/.
8
https://www.niti.gov.in/sites/default/files/2023-05/Final_UNCDF_14_5.pdf.
9
https://www.fortuneindia.com/long-reads/the-agtech-transformation/112562.
18
Figure 6. Tech-enabled agritech value chain
Market
Access
Market
linkage - Output
Blockchain e-commerce Post

Harvest
Post-harvest Quality management

Digital supply Best price automation and traceability
networks access
Data Smart Machine

Farming analytics contract learning
Digital Sensors
Farm Precision aggregation
mechanisation agriculture
Agronomic/ Internet of Computer

Weather data things, sensors vision Input
Market Linkage Financial Content

- Farm inputs Services Biotech
Smart Digital Cognitive
contract aggregation technologies
Artificial Machine Procurement

intelligence learning Insights
Enablers

Cognitive Blockchain
technologies
19
The following characterisation summarises what agriculture may look like in the future.
Seed selection and sowing will be assisted by Artificial Intelligence of Things (AIoT) technologies. Farmers
will be able to monitor resource usage and check on the health and fertility of the soil and the development
of pests and illnesses in real time. Big data analysis will aid in selecting the right crops to sow and the
appropriate time to harvest them, which will ultimately improve the success of a crop.
Production and evaluation of harvest will be supported by ML, IoT and cloud technology. By monitoring,
analysing and evaluating agricultural output, farmers will be able to better predict output. Smart sensors
will collect data that can be fed to a digital twin. With the help of digital twins, precision agriculture will
yield higher-quality products at greater quantities locally, and farmers will be able to view a 3D digital
recreation of an entire farm. These digital landscapes will utilise agronomic models and decision-making
algorithms to determine appropriate decisions regarding crop selection and output and actions regarding
water use and fertiliser access across the entire production value chain.
The post-harvest and distribution stages will be assisted by AI analytics and linked sensors, among
other new technologies, providing real-time intelligence to stakeholders on how agricultural products
move through value chains. The blockchain will address several challenges in the supply chain by bridging
demand–supply gaps, logistics issues and weak market functioning. Digital traceability along with
certification technology will enable the agroindustry to monitor products from the point of origin to the
customer. ML algorithms integrated with blockchain technology will be used by farmers to predict client
orders and schedule them months in advance. Customers could also make annual purchases in blocks to
ensure a steady supply of farm products.
Market linkage and integrating digital mandis with the blockchain and AI will drive transparency
in the supply chain. Underserved rural areas will obtain better access to fragmented services, such
as decentralised exchanges of sensitive data, tamper-proof merchant repositories and operational
transparency using smart contracts. Market linkages may help farmers obtain a better price for their
crops, reduce risks (by providing information about market prices, weather forecasts and pest and disease
outbreaks) and improve their overall income, enabling farmers to sell crops to a wider range of buyers,
which could lead to higher prices and enable them to make more informed decisions.
Sustainable practices: Technology will enable farming to shift away from horizontal cultivation and
move towards soilless growing methods, such as hydroponics, aquaponics and aeroponics, and in close
proximity to cities. Vertical agriculture is an example of an innovative farming technique using real-time
data from AIoT smart sensors that boosts food product output with limited resources. Communication
technologies, such as RFIDs, QR codes and distributed ledger technology (similar to the blockchain)
will be used widely to encourage transparency about the health benefits of food products and the
nutritional value of farm output throughout the value chain as well as for biodiversity conservation. Digital
documentation will guarantee farm compliance with quality, environmental and social commitment
criteria. More importantly, digital practices may address issues related to climate change.
20
Case study 4: Tech adoption beyond farming
Farmers are increasingly using the application of technologies like sensors and wearable devices to monitor
animals’ health, behaviour and productivity, data analytics and robotic automation and
remote monitoring of live stocks in their new-age farming practices. These applications are
being used across the animal husbandry dairy, fisheries and poultry, among others, and
exploring ways to increase output, efficiency and animal welfare.
Two essentials for the success of agritech – analysing data that can be accessed by anyone (post
As technology continues to develop, we will see more innovative authorisation) at any time through big data and cloud
ways to improve agritech practices. However, their success will computing and
depend on two factors. – intelligent decision-making by processing data and
• Start-up ecosystem: The key to strengthening the future of forecasting alternate scenarios using the blockchain, AI and
agriculture will be innovation by agritech start-ups that will ML.
bring the right mix of technology to agriculture. Agritech start-
• Connectivity: New solutions, such as real-time monitoring,
ups will play an essential role in
Unmanned Aerial Vehicles (UAVs), virtual consultation and
– developing seamless digital platforms that can fully integrate maintenance, robotics and cloud repositories will need to be
data collection at every point; improved and require seamless connectivity. As technological
– bringing data integration capabilities of digital agricultural innovations result in increasing use cases, a greater demand
solutions and support actors in the value chain; for next-gen technologies that are gaining traction throughout
– providing intelligence using historical and real-time the agritech sector—such as 6G, AI-ML and UAVs—will be
agricultural data to deliver analytical patterns and developed by 2030.10
valuable data;
10
https://www.youthapps.in/2023/04/remote-farm-equipment-management-through-6g-revolutionizing-agriculture.html
21
Digitisation and
industry
22
Next-gen communication
With the advent of the 5G in the telecommunication sector,

communication technology is slated to not only fulfil the communication
needs of humans but also serve as a catalyst to digital transformation
and a driving force in shaping human lives, society, businesses and
the government.
5G would unlock a plethora of use cases driving digital finance and insurance will be among the highest contributing
transformation across enterprises industries (as shown in Figure 7).
The launch of 5G begins a new era for India’s digitisation
journey. As it becomes more widely available, more innovative 5G focuses on software-isation and virtualisation of the
and ground-breaking applications for next-gen technologies previous generations of technology while offering a higher
will emerge. Recognising its importance, India has aggressively capacity, coverage, and enhanced performance characteristics
ramped up the rollout of the 5G network throughout the with improved security. Further developments will enable
country. Since the launch of 5G services in October 2022, the core characteristics of 5G technology as formulated by
200,000 sites covering 700 districts were installed in just eight the International Telecommunication Union (ITU), thereby
months. The 5G network has been rolled out in all 28 states and unlocking a wide spectrum of use cases that were not feasible to
8 Union Territories.11 The road map for rolling out 5G services is implement previously. These characteristics include
planned to cover approximately 4,500 cities and towns over the
• Enhanced Mobile Broadband (eMBB),
next year.12
• Ultra-Reliable Low Latency Communications (URLLC) and
By 2040, the economic contribution of 5G could be as much • Massive Machine-Type Communications (mMTC).
as US$ 455 billion.13 5G technologies will enable more efficient
and productive economic activity and revolutionise a wide These features are paving the way for emerging technologies,
range of use cases. Manufacturing, retail, information and such as IoT, Cloud, Edge Computing, AR/VR, AI-ML and
communication, agriculture, public administration and defence, Metaverse, which are connected to a vast network of devices
and systems (Figure 8).
11
12
https://www.counterpointresearch.com/5g-rollout-accelerates-in-india/.
13
https://www.gsma.com/asia-pacific/wp-content/uploads/2022/09/India-report-FINAL-WEB.pdf.
23
Figure 7. India: Economic impact of 5G by sector (in US$ billion) (2023–2040)14
Manufacturing 26 63 89
Retail 18 35 53
Information and
18 33 51
communication
Agriculture 18 33 51
Public
administration 15 31 46
and defence
Finance and
12 24 36
insurance
Construction and
10 18 28
real estate
Transport and 21
6 15
storage
Services 7 11 18
Education 7 11 18
Mining and 16
5 11
quarrying
Healthcare 4 8 12
Utilities 8
3 5
Others 3
1 2
mmWave-enabled 5G 5G enabled by other spectrum bands
Note: Contributions by sector are estimated based on the source data.

Source: GSMA India Report
14
https://www.gsma.com/spectrum/wp-content/uploads/2020/11/mmWave-5G-in-India.pdf.
24
Figure 8. 5G: Key drivers for the adoption of next-gen technologies
Metaverse Internet of Things (IOT)
Offers a strong evolution path Supports massive connectivity

for enhanced Mixed Reality (XR) requirements of IOT devices that
experiences. 5G-Advanced will will connect thousands of physical
offer enhanced 5G’s boundless assets such as machine, cars, and
XR capabilities to bring more consumer appliances.
immersive experiences in the
metaverse.
5G
Edge computing Artificial
Intelligence (AI)
Allows enablement of edge
computing infrastructure Analyses the data
closer to the network edge, generated from the billions
Underlying connectivity
enhancing the performance of connected physical
of applications’ requirement technology; driver for assets using AI/ML to draw
and real-time data adoption of next-gen predictive and cognitive
processing unlocking a wide technologies insights that propel growth
spectrum of use cases. of enterprises.
Cloud Augmented Reality/

Virtual Reality (AR/ VR)
Uses purpose-built cloud native
applications will increase, driven Enables immersive and seamless
by the need for compute, storage. interactions driving widespread
adoption of AR/VR technologies.
Source: Deloitte Research.
5G enables seamless connectivity, leveraging URLLC and mMTC eMBB use cases for enterprises. Using the standalone mode,
features to efficiently drive mission-critical IoT and Industrial telco operators will be able to provide network slicing and create
IoT (IIoT) applications. It will enable enterprises to unlock the full network segments, separating users, devices or use cases that
capabilities of next-generation communication technology by require particularly high service quality, extreme reliability,
integrating these features across their business applications (as precise positioning, ultra-low latency or high-level security. This
shown in Figure 9). will allow them to provide dedicated and innovative services
across multiple sectors extending to URLLC and mMTC use cases
Using the non-standalone mode of deployment, service supporting a massive IoT network.
providers can deliver high-speed connectivity to consumers and
25
Figure 9. 5G networks significantly improved networks enabling a wide spectrum of use cases
Deep coverage
To reach challenging
locations
Availability Higher data rates

and resiliency 10 Gbps uplink
≥99.999%
Network
5G
characteristics
Ultra-low energy Ultra-low latency

10+ years As low as
of battery life <1 milli-second
Ultra-high density
Mobility support 1 million nodes
≥ 500 km/h per KM2
Higher capacity
10 Tbps per KM2
will allow
Use Cases
• Deployment of data- • High-definition cloud gaming

Enhanced Mobile Broadband (eMBB) intensive use cases • Massive content streaming
• Enhanced spectral efficiency • Augmented Reality and • 3-D video/4K screens
• Higher throughput Virtual Reality (AR/VR) • Enhanced digital signage
• Deep coverage • Intelligent surveillance and • In-building broadband
video analytics services
Ultra-Reliable and Low-Latency

Communications (uRLLC)
• Low latency • Autonomous vehicles • Health monitoring system/
• High reliability • Drones tele-health
• High availability • Robotic applications • Smart grid
• Greater mobility support (location • Real-time industry • Intelligent transportation
precision) applications
Massive Machine Type

• Smart cities • Consumer wearables
Communications (mMTC)
• Energy/utility management • Asset tracking and predictive
• Energy optimisaiton
• Industrial automation maintenance
• High connection density
• Smart logistics • Smart retail
• Deep coverage
• Low complexity
26
5G has the potential to revolutionise a wide range of use cases are expressing an interest in India’s homegrown technology
while improving the quality of life for individuals across the stack. By 2035, we expect telecom to take a significant leap
country. More importantly, from a business-to-business (B2B) towards establishing a next-generation ecosystem, thereby
perspective, the full value of 5G is yet to be unlocked. Given giving a significant impetus to the efforts being undertaken to
that only 10–15 percent of urban India has 5G coverage and that develop indigenous technology stacks.
covering the entire Indian subcontinent would require Indian
telcos to spend approximately US$ 19.5 billion15 in developing Globally, 6G is expected to be available by 2030 and is expected
advanced 5G infrastructure by 2025 to strengthen their wireless to surpass the valuation of US$ 300 billion by 2033.18 As it will
infrastructure, the way forward will require a collaborative operate in the terahertz band of frequencies, it will provide
approach.16 superior coverage and capacity due to its wider range of
spectrum usage. 6G will be built upon the 5G technology stack
Evolution of 6G to provide unprecedented speeds (e.g., it will be 100 times faster
Despite the early stages of the 5G rollout, the government is than 5G)19 and ultra-low latency (e.g., featuring potentially less
already aspiring to build sixth-generation technology. India than a millisecond to microseconds of latency). Integrating ultra-
is now contributing to the design and development of next- low-latency communications with massive access (mURLLC) 6G
gen communication technologies, such as 6G by means of wireless networks will provide a wide range of delay-sensitive,
government, industry and academia collaboration. India has real-time services and applications by satisfying users’ stringent
already registered more than 100 patents in 6G technology.17 requirements.
With their indigenous 4G/5G stack developed, many countries
15
https://telecom.economictimes.indiatimes.com/news/indian-telcos-to-spend-19-5-bn-on-5g-infra-by-2025-gsma/94117276.
16
https://data.gsmaintelligence.com/api-web/v2/research-file-download?id=74383454&file=130922-India-digital-nation.pdf.
17
18
https://www.communicationstoday.co.in/6g-market-size-is-rising-at-5-cagr-to-surpass-us-300-billion-by-2033/.
19
https://dot.gov.in/bharat-6g.
27
Figure 10. 5G vs. 6G: A comparison of performance indicators
Performance indicators 6G 5G
Operating frequency Up to 1 THz Up to 300 Ghz
Peak data rate >100 Gb/s 1 Gb/s
Traffic density >100Tb/s/km2 >10Tb/s/km2
Connection density >10 million/km2 >1 million/km2
<1ms
Latency (planned to be in ms level
microseconds)
Reliability >99.999% >99.9%
Mobility >1000 km/h >350 km/h
Spectral efficiency > 3x relative to 5G 3-5x relative to 4G
Energy efficiency 10x relative to 5G 1000x relative to 4G
28
5G will eventually transition to 6G, and 6G will yield a far superior ML capabilities.20 This will enable the seamless convergence
advancement in next-gen network technology (as shown in of humans with digital entities in a connected ecosystem in
Figure 10), including intelligent network management controls which one may move freely between the cyber and physical
and integrated wireless sensing communications. Further, 6G continuum, thereby establishing a connected physical world of
balances the potentially negative consequences of its carbon senses along with its programmable digital representation.21
footprint by means of its lower level of energy consumption. Additionally, with a 6G-powered truly immersive extended
reality, high-fidelity holographic imaging will begin to emerge. A
The primary focus of 6G technology will be to foster the wide range of next-gen technologies will undergo advancement
widespread use of digital twins (i.e., real-time replicas of driven by 6G, as detailed in Figure 11.
physical processes) utilising past and present data with AI-
Figure 11. Illustrative 6G use cases22

Enhanced human communication
XR immersive holographic telegraphic communication
Multi-modal communication for teleoperation
Intelligent interaction: senses, skills, thoughts
Enabling services
3D accurate positioning,
localisation and tracking
Interactive mapping, digital

Enhanced machine twins, virtual worlds
communication
Automatic inspection,
Robotic network fabric detection and protection
Interacting cobots Digital healthcare
Smart industry
Trusted composition of
services
Network evolution
Trusted native AI- AIaaS
Coverage expansion
Energy efficiency
Source: Next Generation Mobile Networks Alliance
20
https://www.nokia.com/about-us/newsroom/articles/6g-explained/.
21
https://www.ericsson.com/en/reports-and-papers/white-papers/a-research-outlook-towards-6g.
22
https://www.ngmn.org/wp-content/uploads/220222-NGMN-6G-Use-Cases-and-Analysis-1.pdf.
29
Enhanced satellite communication crucial to ensuring ubiquitous connectivity, even to the remotest
Although recent technological advances have made it possible regions—where establishing connectivity through mobile towers
to achieve impressive broadband speeds, one technology and fibre deployment is not feasible.
that stands out for its potential to provide “connectivity to all”
(even in the most remote, disconnected locations) is satellite By 2030, Deloitte predicts that India’s satellite broadband
networks. service market will reach US$ 1.9 billion and grow at a CAGR of
36 percent.23 However, to achieve this, there must coordination
Multi-satellite services will improve speeds and rationalise between operators, service providers and the government.
prices, while the use case horizon for satellite broadband will Indian communication service providers (CSPs) are partnering
expand to emergency response communications and last-mile with the SATCOM operators to design “mega-constellations” of
and backhaul services for connecting rural areas. In India, satellites with potential use cases across businesses, industries
satellite-based communications will emerge as an inherent and academics, among others. In April 2023, the Indian cabinet
part of the blueprint for delivering quality Internet services approved the Indian Space Policy, which allows the private
to citizens and enterprises. Considering the vastness of the sector to work with the government to carry out end-to-end
Indian geography and the challenges of broadband connectivity satellite communication tasks and to construct spaceports and
(especially in rural areas), broadband satellite networks will be mobile launch platforms.24
The convergence and coexistence of wireless technologies like 5G

and satellite communication is inevitable. Satellites are expected
to play a more complementary role in telecom networks, with both
technologies working in tandem for a wider diversity of functions.
Future of manufacturing
From Research and Development (R&D) to quality assurance,

technology has transformed the entire manufacturing value chain
of a product over the years. Rapid technological advancements will
redefine the next phase of manufacturing growth and innovation. The
future of manufacturing will encompass a strong digital infrastructure,
giving rise to smart factories with connected devices and data-rich
production systems.
The drive to digitisation has been a function of both global socially responsible consumers, skill gaps and governments’
demand and supply factors leading to the establishment of commitment to sustainability have all pushed the industry to
Industry 4.0 as it exists today. Globalisation, the emergence of innovate and diversify manufacturing (Figure 12).
23
https://www2.deloitte.com/in/en/pages/technology-media-and-telecommunications/articles/tmt-predictions-2023.html.
24
https://www.pib.gov.in/PressReleseDetailm.aspx?PRID=1917307.
30
Figure 12. Digital trends of re-shaping the manufacturing value chain
Demand
Globalisation Skill Gaps Self-sufficient Sustainability New consumer

Maintain high Leveraging labor cost Securing supply Increased customer class
quality and across the industries chains and reducing awareness towards New market and
standards Expand and Diversify dependence of enhancement of opportunities
the Advanced developed/foreign environmental
Manufacturing Talent countries sustainability to
Pool address climate
change.
Supply
Design & 3D printing Robotics & Automation

Advanced modeling and sustainable innovation Transforming traditional business models
with nanotechnology and new materials. with modular production Decision
Customization of products on-demand algorithms and CoBots implementation
with 3D printers
Digital twins (AR/VR & Metaverse) Digital factory & warehouse (IoT sensors and
Virtual replicas of the entire manufacturing AI/ML) IoT sensors, predictive maintenance and
ecosystem Use of AR and VR throughout analytics with engines for decision making Use of
manufacturing environment for better cutting-edge technologies like AI/ML to enhance
quality and output and optimize order-fulfillment operations
Cybersecurity
cybersecure the production
devices and ecosystem
Impact
Innovative & agile services Hyper connected processes Faster go-to-market with
increased customer satisfaction
Higher quality and reduced Supply chain optimization and

rework accurate planning
Infrastructure
Smart communication Digital Infrastructure

Connected ecosystem with new-age Future Industry revolutions RnD and
telecom technologies like 5G and 6G adoption of new-age technologies
Source: CB Insights, Deloitte Research.
31
Evolution of manufacturing optimising the manufacturing process, resource use and the
However, the path ahead will lead to a new era that will focus supply chain. This will result in hyper-connected processes
on human¬–tech partnerships.25 The industrial revolution and improve efficiency by enabling a new, higher level of
will extend beyond manufacturing techniques and evolve to information processing, monitoring, collection and analysis.
incorporate improved resilience, a human-centric strategy and a • New-age telecom technologies like 5G and 6G will provide
sustainability focus in three distinct stages. a strong and reliable network at an optimal cost to ensure
the smooth transmission of data, successful implementation
In the near term, we may expect the following to occur: of integrated and connected smart factories in the age of IoT
and defence against cyberattacks by means of encryption
• 3D printing or additive manufacturing technology will techniques.26
provide flexibility in production, aid in achieving economies of
scale, accelerate the customisation of on-demand products
In the medium term, we may expect the following to occur:
using sustainable materials, compress design cycles and
reduce the time required to go to market. We may see a massive increase in the use of digital twins as they
mature and replicate the entire organisation and drive radical
• Robotics and automation will help deliver products that
advancements in the manufacturing industry (as shown in
meet global standards with fewer errors at a reduced cost. The
smart use of co-bots (robots supporting existing workers) will Figure 13). The same thing may happen with predictive analytics,
help perform complex tasks and minimise rework. which will evolve into a discipline that is prescriptive in nature—
it will not only perform the analysis but also inform the specific
• Metaverse and AR/VR technologies will provide immersive
and interactive experiences that help workers learn new skills, actions that should be taken to ensure that any predictions can
improve quality control, perform maintenance more efficiently, be reversed correctly or improved. In this way, analytics will go
collaborate more effectively and work more safely. beyond simple prediction and advise on corrective actions on a
• IoT sensors and AI/ML along with data analytics (integrated proactive basis.
throughout digital factories and warehouses) will aid in
25
https://www.twi-global.com/technical-knowledge/faqs/industry-5-0.
26
https://www.yash.com/blog/how-6g-technology-will-revolutionize-industries-and-create-new-opportunities/. | Author - Sacheen Patil
32
Figure 13. Factories of the future
Different production components

from different suppliers 01 Connected logistics integrated
with operations
The company has visibility across various aspects —ranging from quality and
efficiency to the delivery stage and other critical production components
(being delivered by different suppliers). The connected logistics ecosystem
enables the company to collaborate with critical suppliers to mitigate quality
check, delivery, and operations challenges. The company can further track
the real-time shipping of final products and predict delivery time.
02 Connected operations
The end-user can also track the different stages of their final
product — including production status, quality, delivery status,
and estimated delivery time —granting visibility of the final
product implementation plan.
03 Connected workers
Workers are trained on desired technical skills and have access to
interactive simulations and tutorials. This enables automated tasks,
improved collaboration, and streamlined processes. This can lead to
increased efficiency. Wearables are used to monitor workers’ health
and safety, while sensors detect hazards in the workplace. These
advancements result in an improved quality of the product.
04 Connected product Final product with

Command in-built sensors installed
The products that are in service are connected to the command centre centre at customer site
through sensors. This transmits the product's health and critical data to the
manufacturing company, alerting them of possible failures. This enables
predictive maintenance, reduces downtime, and builds customer trust.
Additionally, the manufacturer can use the data collected from different
installed products to improve product design, efficiency, and quality. This
provides an opportunity to offer it as an additive service.
End User
33
Going further into the future, we may expect the following • Enabling process automation and material handling (i.e.,
to occur: creating automated synthetic data and code generation for
robots)
The Sixth Industrial Revolution (illustrated graphically in Figure • Product personalisation and optimisation of manufacturing
14) will create opportunities for manufacturers to: processes by identifying the most efficient and effective ways
• explore areas beyond their existing business models and to enhance operations and maintenance instructions
venture into new markets; • Establishing an automated shopfloor (i.e., task automation
• address complex business issues in a more efficient way; through multi-modal robots) and
• improve supply chain management by utilising superior • Using predictive analytics to forecast demand and supply
tracking systems enabled by blockchain technology and by
using predictive analytics to forecast demand. Quantum computers, another distant but highly potent
technology, may be used in the following ways:
The overall influence of generative AI on smart manufacturing • Design new materials and products
is still quite hypothetical and in its early phases of development. • Allow more precise and accurate testing and prototyping,
Future applications of this technology to smart manufacturing thereby reducing costs
will provide many intriguing possibilities. Some of these are • Manage areas such as real-time supply chain optimisation,
mentioned below: processes and quality optimisation as well as implement
• Improving product design (rapid prototyping and design of cybersecurity solutions using quantum encryption
new products that were previously unimaginable, thereby
reducing the time to market)
Figure 14. Landscape of the industrial revolution
• Mechanical production • Digital revolution led by • Personalisation and cognitive system

• Water and steam power PCs and the internet • Co-operation between man and
• Industrialisation of rural societies • IT systems and robotics machine
• Mass production powered • Embedded technologies and • Quantum computing

by electricity and oil smart factories and nanotechnology
• Assembly lines • Cyber-physical system with 3D
printing, AI, Big data
Industry 1.0 Industry 2.0 Industry 3.0 Industry 4.0 Industry 5.0 Industry 6.0
Source: Springer, Deloitte Research.
34
India strives to create a new-age factory for the world India will require a focused strategy that goes beyond labour
China has become a major player in global manufacturing cost arbitrage to labour capability advantage backed by
over the last 30 years. However, the COVID-19 pandemic technology-driven processes. Moreover, Indian manufacturers
and geopolitical uncertainty has prompted multinational will need to accelerate their digital adoption to become future-
corporations (MNCs) to focus more on supply chain resilience. ready. By utilising technology, this sector will be able to reap the
This shift in global value chains has led to competition among benefits of economies of scale and accelerate its integration into
nations, including India, to gain a greater share of the global the global value chain. However, this will require focused efforts
manufacturing market. as mentioned below:
Strong government initiatives to modernise manufacturing and achieve self-reliance will be important.
The role of the government will be that of a regulator and enabler to make India a “product developer
and manufacturing nation.” Schemes and initiatives such as Digital India, the production-linked incentive
scheme for local production of telecom equipment, the launch of 5G and Samarth Udyog Bharat 4.0,
among others, will propel the growth of new-age manufacturing in India.
Strengthening public–private partnerships in building the physical and digital infrastructure for the
transition from Industry 4.0 to 6.0. This will require the development and sharing of industry-relevant
facilities, co-location of tools, the development of technology test beds and embedded expertise. By 2030,
this approach will give rise to regional innovation ecosystems and may stimulate economic growth both
within and between regions.
Collaborative (open-source) business models for smart manufacturing driven by both start-ups and
large enterprises. Start-ups that lack legacy systems and procedures (which frequently impede larger
organisations) will generate novel ideas and creative methods as they can develop and deploy new
technologies quickly. Large businesses will have the means and the know-how to scale up and incorporate
new technologies into their current manufacturing procedures. Collaboration will result in the creation of
open-source infrastructure, making innovation accessible to all.
India as a “semicon nation”
India’s chip manufacturing sector is still in its nascent stage, yet it is

growing. With China-plus-one diversification underway, India will be
well-positioned to be a significant player in the global value chain. India
aims to become a leading semiconductor design capital of the world
like the Chip4alliance countries, which includes the United States,
Taiwan, South Korea and Japan.27
27
https://www.india-briefing.com/news/setting-up-a-semiconductor-fabrication-plant-in-india-what-foreign-investors-should-know-22009.html/.
35
Semiconductors are everywhere. They are key components makes the global semiconductor value chain highly vulnerable
in smartphones, cloud servers, new-age cars, IoT devices and to global uncertainty as we recently witnessed during the
even in critical infrastructure. Every subsequent generation U.S.–China trade war and the COVID-19 pandemic. Nations
of an electronic gadget has seen a significant rise in the use of are seeking to diversify their supplier base and construct
semiconductor chips to support its advanced technology. Rising new onshore facilities. This provides India with an immense
digitisation in the post-COVID era between industry, businesses opportunity to become a part of the global value chain in
and consumers has further boosted the application of digital this industry. Growth in the software and services industries
products. This may only be the beginning as this increasing further promotes taking advantage of this opportunity to gain a
demand will further accelerate with the growing application of stronger position in semiconductor design and manufacturing.
miniaturised electronic equipment across telecommunication
devices, mobile and personal computing devices, IT, original However, India is currently dependent on imports to meet its
equipment manufacturers (OEMs), office automation (OA), domestic demand. In 2021, India imported a staggering US$ 5.38
industrial machinery and automobile manufacturing. billion in semiconductor devices, becoming the seventh-largest
importer of semiconductor devices in the world. Consequently,
India’s opportunity India’s manufacturing sector (especially the automobile and
Currently, the global semiconductor value chain for each stage mobile phone industries) remains highly dependent on the
is distributed only to a few regions. Chip design and major countries from which India imports. In 2021, the government
R&D are cantered in the United States and Europe, whereas rolled out a US$ 10 billion initiative to make India more self-
semiconductor fabrication units known as foundries, which reliant in terms of semiconductor imports by allocating.29
includes wafer fabrication, are mainly located in East Asian Further, this initiative was revised to make it more attractive
countries. Taiwan and South Korea alone comprise about 80 to investors.
percent of the global semiconductor foundry market.28 This
Figure 15. Semiconductor manufacturing value chain
Private players OSAT to support fab Collaboration

Investment from private Slowly creating a Multiple small companies
players by taking advantage network of small collaborating to form a
joint venture to fund and
of government incentives OSAT’s that can drive drive development of
and schemes testing and assembly semiconductor fabrication
requirements to assembly
Country-specific fab Cluster approach

Focusing on semiconductor A dedicated cluster with
fabrication technology that large semiconductor
is affordable to build and manufacturing fabrications
high on demand that cater to different
industries
28
https://country.eiu.com/article.aspx?articleid=1222633905&Country=South+Korea&topic=Politics&subt_1.
29
36
The semiconductor chip manufacturing supply chain is Development of Semiconductors and Display Manufacturing
complex due to multiple supply routes and hand-changes that Ecosystem. As the in-house semiconductor manufacturing
must occur before the ultimate delivery of the final product30 ecosystem matures, the sector will create strong backward
(as shown in Figure 15). India recognises the necessity of and forward linkages in the digitisation world. This will create
contributions from both the government and industry players demand for chemicals, metals, minerals, gases and power—with
by understanding the complexity of the supply chain and thus a strong backward linkage (as shown in Figure 16). It will also
raising capital. promote the success of start-ups and incubators, which are
currently growing at a staggering pace.
Several investments have been channelled into the
semiconductors space since the approval of the Programme for
Figure 16. The forward and backward linkages of the semiconductor sector boosting digitisation
The fabrication of semiconductors

will help in creating demand for:
• Chemicals
• Metals
• Minerals
• Gases
• Power
Backward linkage Forward linkage
The semiconductor (nodes of 45 nm.

and above) will boost application across:
• Electronics
• Automotive
• Power
• Telecommunication
30
https://www.tsmc.com/english/aboutTSMC/dc_infographics_supplychain.
37
India will simultaneously achieve a higher degree of self- Creating demand for new skills
sufficiency by creating strong forward linkages. The metal oxide • India is host to one of the largest R&D centres outside of the
semiconductor field-effect transistor (MOSFET) technology headquarters for some of the most prominent semiconductor
nodes of 45 nm and above have high demand, driven by the enterprises. In August 2022, these R&D centres employed
electronics, automotive, power and telecom applications. about 55,000 design engineers, which accounts for 20
This segment accounts for almost 50 percent of the entire percent of the total global talent pool.33 However, as per the
semiconductor market.31 Support from the government across estimation, R&D will create 75,000 jobs by 2026, whereas
all technology nodes for developing semiconductor fabrication supporting value-added activities, such as logistics will create
an additional 25,000 jobs.24 With the increase in semiconductor
capabilities will help India progress towards the establishment
manufacturing in India, R&D will move past traditional domains
of its own semiconductor ecosystem. Self-sufficiency will cater
to greater value-added research such as material science,
to domestic demand for other industries, helping them ramp up system-on-chip (SoC), electromagnetics, plasma chemistry,
their own digitisation journey in the years ahead as they will not lithography, microelectronics, silicon processing, smart factory
have to depend on other nations for their semiconductor supply. automation and chip design research, thereby creating
In this way, end-user industries will be better able to meet the demand for skills in these areas.
changing preferences of consumers. This achievement will also • The current focus remains mainly on chip design process
enable India to participate in the global semiconductor value engineering and back-end support functions. This presents
chain. the need for a highly skilled workforce that specialises in chip
design and manufacturing to support the growth of India’s
The Indian semiconductor market is expected to reach US$ semiconductor industry. It is estimated that about 150,000
120 billion by 2030, and it will cater to approximately 12 jobs will be created across the value chain (i.e., manufacturing,
percent of the global semiconductor market (US$ 1 trillion).32 assembling, packaging, and testing).
However, the industry will go through a transformation as
investment in AI and automation increases, which is currently India is making its next big leap in establishing and driving
occurring in India. Although conventional processors will indigenous semiconductor fabrication units.34 This will
help manufacture electronic gadgets, such as mobiles and prompt increased participation in the industry and promote
laptops, processors will also evolve to meet the demand for collaboration with academia to provide training and internship
AI processors and applications, leading to more innovation. opportunities to students and investments in Electronic Design
As digitisation transforms the economy, the semiconductor Automation (EDA) and Intellectual Property to develop new
industry will meet the need for customisation of processing technologies and products.
requirements across AI, automotive and electronics industries
to improve the capabilities and adaptabilities of the underlying
processing chips.
Evolution of cloud-based services
Strong growth in cloud-based services will come from the rising

demand for digital platforms, as India aspires to realise the “Digital
India” dream. Cloud-enabled technologies will aid in powering the
core themes of Digital India’s vision.
31
32
https://www.digitimes.com/news/a20230109VL202/forecast.html.
33
https://www.businesstoday.in/india-at-100/story/india-to-become-a-major-semiconductor-manufacturing-nation-in-next-5-6-years-minister-ashwini-
vaishnaw-345753-2022-08-26.
34
https://www2.deloitte.com/in/en/pages/technology-media-and-telecommunications/articles/tmt-predictions-2023.html.
38
The shift among businesses to cloud-based services started GDP is recorded as US$ 70–90 billion in 2021.36 A significant
picking up pace in the early 2010s when major hyper-scalers share of this growth is coming from large-scale cloud
started setting up their businesses in India. Between 2017 and transformations driven by the network-centric government’s
2021, potential investments in cloud transformation tripled with digital infrastructure (India Stack) in the space of e-commerce
the growth of digital services. It enables cloud service providers (ONDC), healthcare (ABDM), fintech (UPI) using NIC (National
to expand their business while providing scalability, flexibility, Informatics Centre) cloud (MeghRaj) and e-governance portals.
rapid elasticity, faster implementation, lower deployment cost, This contribution is set to increase fourfold and will reach US$
ubiquitous access and greater resiliency, among others. Further, 310–380 billion in 2026, accounting for approximately 8 percent
in the post-COVID era, the need to “go digital” accelerated the of the total GDP. Further, the Indian public cloud services
dependency on cloud-based services with shifting enterprise market (including IaaS, PaaS and SaaS) has recorded a revenue
priorities, such as remote workforce accessibility, growing of US$ 6.2 billion in 2022 and is forecast to grow at a five-year
demand for digital channels, and the need for moving from CAGR of 23.4 percent for 2022-2027. It is expected to reach US$
legacy technology infrastructure and databases to modern 17.8 billion by 2027.37 Approximately 53 percent of enterprises
cloud-based database models. increased their cloud adoption in the past year, and 84 percent
of large organisations have adopted SaaS.38
Cloud services will become a strategic priority for enterprises, • Foundation for start-ups and SMBs: The cloud will enable
small and medium-sized businesses (SMBs), start-ups, and the these enterprises to innovate and reach out to diverse markets
government to achieve their business goals with accelerated without incurring high investments in their early stage. Such
time to market in a secure manner (mostly by contracting services will also provide them access to high-end technologies
out). Many are prioritising the pay-per-use model instead to compete with larger organisations and help them deploy
of building the cloud infrastructure themselves, making it complex algorithms at a fraction of the price of traditional on-
more cost-effective. This is because of the growing needs for premise models.
data storage, analytics and insight solutions across different • Investment and employment: A concerted effort might
dimensions of the cloud models among infrastructure as lead to an aided trend of India becoming a skill hub for cloud
tooling so that large-scale global implementations can operate
a service (IaaS) (storage/compute), platform as a service
from here. These trends will require an increase in cloud
(PaaS) (developer sandbox) and software as a service (SaaS)
investment by 25–30 percent over the next five years, with
(end-user applications). For instance, developments in AI/ML
the investment reaching US$ 18.5 billion. Further, the cloud
supported by large language models (LLMs) require powerful services in India are expected to create approximately 14
and highly scalable computing capabilities to process real-time million direct and indirect employment opportunities with a
data. Therefore, the need for massive storage and computing threefold growth rate by 2026.39
resources will require elastic cloud platforms to meet the
growing demand for computing and storage power. Migrating Cloud-based services are emerging to meet novel demand
their resources from on-premises to a cloud model will minimise The proliferation of digital infrastructure, serverless architecture
enterprises’ need for expensive hardware equipment to stay and data centre management will result in the adoption of novel
connected with the world. The cloud market is expected to reach cloud-based solutions. Currently, with the shifting of cloud
a volume of US$ 881.80 billion by 2027.35 architecture design towards edge computing, there is a growing
concern about the ability to manage and control data, networks,
Cloud-contributing to the economy operating systems, storage and even individual application
In India, the value added from cloud contribution to India’s capabilities. A wider range of audiences are expected to be
35
https://www.statista.com/outlook/tmo/public-cloud/worldwide.
36
https://www.nasscom.in/knowledge-center/publications/future-cloud-and-its-economic-impact-opportunity-india.
37
https://www.idc.com/getdoc.jsp?containerId=prAP50777423
38
https://www.nasscom.in/knowledge-center/publications/future-cloud-and-its-economic-impact-opportunity-india.
39
https://nasscom.in/knowledge-center/publications/future-cloud-and-its-economic-impact-opportunity-india/.
39
catered to by the SaaS model and supported by providers (see their business models.
Figure 17). In the coming years, SaaS may become the easiest • Hybrid and Multi-Cloud: The other transition that we expect
and most cost-effective way to modernise traditional systems, to see is that as businesses modernise their IT infrastructure
enhance omnichannel customer experiences via real-time initiatives, they will optimise the investment costs and
data analytics and connected platforms and improve digital transition towards adopting hybrid and multi-cloud strategies.
capabilities.40 However, going forward, large cloud service Given the rising number of private and emerging players in
providers—known as hyperscalers—should also focus on the cloud space, vendor flexibility to move between multiple
revamping their service solutions to meet evolving needs by hyperscalers will help businesses optimise costs by using a
hybrid infrastructure (i.e., the instantaneous switch between
utilising cloud-native features, embedded AI and composability.
a public and private model) while focusing on core innovation
• Business Process as a Service (BPaaS): Over the next and increased resilience. This transition towards hybrid and
decade, service providers will also be availed from the cloud. multi-cloud strategies will drive the market forward for several
We expect to see efforts to combine human creativity with years to come, across a range of industries. According to a
digital technology, giving rise to the demand for outsourcing study by one of the leading hyper-converged cloud providers
service solutions via the cloud in BPaaS based deployment of India, the hybrid and multi-cloud infrastructure in India is
models. This will improve the efficiency and affordability currently at 12 percent of the total cloud infrastructure and is
of business process management for enterprises and expected to increase fivefold to reach 63 percent in the next
the government. Some of its new features in terms of the three years.41
flexibility associated with multiple languages and scalable
• Edge AI: Edge AI will complement cloud AI, enabling the
deployment environments will become yet another
resource-intensive training of algorithms in the cloud and
functionality that will enable businesses to achieve their
then their seamless sharing at the edge without any latency.
objectives more cost-effectively. BPaaS is expected to optimise
The combination of cloud connectivity and edge AI, along with
some common business functions—such as customer
5G private networks and Wi-Fi 6 network technology, may
relationship management, supply chain management,
tackle some of the largest and most complex business system
financial management, human capital management and risk
issues, thereby fuelling the advancement of the Industry 5.0
management, among others—by automating and streamlining
revolution.
Figure 17. Adoption of cloud-based technologies
Hybrid
multicloud
Evolution of cloud technology
Multi Hybrid
BPaaS cloud cloud
IaaS PaaS SaaS Public Private
Timeline
40
https://www.idc.com/getdoc.jsp?containerId=prAP49916322.
41
https://www.nutanix.com/enterprise-cloud-index#nav-mixed-infrastructure.
40
The way forward an ecosystem to support more broad-based cloud adoption,

Working with a heterogeneous mix of proprietary platforms, particularly for relatively underserved segments, such as
services and interfaces could be a barrier for companies to MSMEs (Micro, Small and Medium Enterprises” involved in
fully realise most of the benefits of their cloud investments. To the processing, production, and preservation of goods and
simplify multi-cloud management, enterprises will have to turn commodities).
to a layer of abstraction and automation that offers a single • Private corporations: Enterprises in India largely increased
panel of control, known as the meta-cloud, the supercloud the maturity curve in terms of cloud adoption, especially
or sky computing. This will enable enterprises to better utilise during the COVID-19 pandemic. Given the pace of change,
organisations must be continually open to adopting disruptive
and optimise their cloud investments as the workload becomes
technologies, applications and use cases such as multi-cloud
distributed across different service providers. With the rising
architecture, enhanced cybersecurity, edge computing,
interoperability of the digital infrastructure, cybersecurity will secure access service edge and deeper AI/ML embedding,
have to be prioritised. amongst others.
• Talent pool: India has approximately 0.6 million cloud
Cloud technologies continue to disrupt and transform the ways professionals, and this number is expected to increase to
of working across the government and public sector, private approximately 1.5 million by 2025.42 The government should
corporations and consumers at large. We believe that the encourage partnerships between industry and academia
following three priorities will be paramount: to nurture the appropriate skills and encourage innovation
• Government and public sector: The government, under the among young minds to meet India’s demand for professional
aegis of the Ministry of Electronics and Information Technology cloud services and eventually position India as a premier talent
(MeitY) and many other agencies, will need to continue building hub in the cloud services space.
42
https://indbiz.gov.in/cloud-professionals-in-india-to-rise-to-1-5mn-by-2025-nasscom-report/.
41
India: The digital

hub of the world
42
Endorse digital trust and infrastructure across the world
Over the last few years, India’s digital solution across distributed
architecture has established a reliable platform to foster innovation that
has led to greater inclusion and transparency. As IMF recognised it, a few
of these are now ubiquitous and have become a benchmark for other
countries that are experiencing their own digital transformation.43
In our earlier sections, we discussed how India’s DPIs are transparency and trust. Moreover, these digital platforms are
revolutionising finance, health, education and many other reinforced through open standards that enable anyone to use
services, empowering citizens and making the economy more them and implement their functionality. The specifications are
resilient. The productivity and efficiency gains are increasing standardised across end-user applications, such as payments,
the government’s revenues and limiting leakage in beneficiary identity, health and education and in terms of handling
programmes. It is estimated that India saved 1.1 percent of its compliance requirements.
GDP through March 2021 due to these digital infrastructures
in combination with other governance and tax reforms.44 Because of these characteristics, it is easy for other countries
Furthermore, the core digital economy is expected to contribute seeking digital sovereignty to adopt and tailor DPGs that
approximately 25 percent of India’s total GDP by 2029.45 meet their unique national requirements. There is evidence
that secure digital infrastructures are being considered by
The benefits of DPIs are now extending beyond geographic several international organisations for replication, including
borders. The success of India’s DPI is being internationally United Nations Development Programme (UNDP) and UNICEF.46
acknowledged and is offering an instructive example that
other countries may follow. These DPIs are set to become By 2030, India will adopt the One Future Alliance strategy,
the foundation for implementing more cost-effective bringing all nations and stakeholders together to collaborate,
and transparent solutions to addressing global issues of develop, build and create the next generation of DPIs that can
inclusion and empowerment. be used by all countries and their people.47 These cost-effective
and transparent solutions are likely to benefit economies by
Replicating India’s success around the world enhancing inclusion, equity and development. They will also
One of India’s biggest strengths lies in its diversity. As a result, aid in designing interoperable solutions between nations,
digital solutions built for such a varied population and culture which will further assist in delivering services across borders
make them agile and easy to customise, and they address a by establishing trust and efficiency. According to a study by the
myriad of problems. The various platforms integrate technology, UNDP, just financial inclusion and lower leakages using digital
market needs and governance in unique ways that provide infrastructure will boost GDP growth by 1 percent to 1.4 percent
the government with the flexibility to build a digital ecosystem by 2030 in low- and middle-income countries.48
based on a common infrastructure for the masses. These
platforms are interoperable and are designed to utilise the
strengths of varied markets efficiently without compromising
43
https://www.imf.org/-/media/Files/Publications/WP/2023/English/wpiea2023078-print-pdf.ashx.
44
https://ies.gov.in/pdfs/dbt-in-india-by-tiwari-and-kamila.pdf.
45
https://economictimes.indiatimes.com/industry/banking/finance/kv-kamath-says-digital-economy-can-contribute-25-gdp-by-fy29/articleshow/98248649.
cms?from=mdr; https://ficci.in/sector/report/22289/news_wrap_feb27.pdf.
46
https://www.undp.org/sites/g/files/zskgke326/files/2023-04/Digital%20Public%20Goods%20for%20the%20SDGs%20-%20Case%20Studies.pdf.
47
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1931731.
48
https://digitalpublicgoods.net/Bold-Investments-Executive-Summary.pdf.
43
Case study 5: The global adoption of the UPI
The UPI, introduced in 2016, is currently being used by nearly 260 million Indians49 and has surpassed the use
of credit and debit cards in the country. Now, the success is expanding beyond India’s borders.
• In February 2023, India and Singapore collaboratively launched UPI-PayNow, a cross-
border digital payment system.50
• Neighbouring countries, such as Bhutan and Nepal also launched a UPI in April 2023.
• France recently adopted a UPI that will create new opportunities for Indians to spend
money in France.51
• A UPI is being established to facilitate payment settlements across 10 locations, including
the United Arab Emirates, Australia and Hong Kong, in the coming months.
• Japan is also considering using India’s UPI payments system as both governments strive to promote
digital collaboration by fostering interoperability wherein the digital payments system may facilitate
cross-border payments.52
Case study 6: The adoption potential of ONDC
The recently launched open-source e-commerce platform (based on Beckn protocol)—“Open Network Digital
Commerce (ONDC)”—is a platform that is poised to become the next catalyst to drive a revolution in local
commerce in India. Currently, ONDC enables any network-enabled application to explore
and engage in local commerce across categories and sectors. Being open source, start-ups
are encouraged to unbundle services and build specialised apps that enable accessibility
for reliable services. It is expected that by 2030, ONDC could contribute between US$ 60
billion and US$ 80 billion to India’s economy.53
India’s ONDC stack is expected to soon be integrated with the MSME Global Mart—a global
B2B e marketing portal—which will facilitate market access and increased visibility for
micro, small and medium-sized businesses.54
Challenges of implementing a digital stack for the world strong cybersecurity and safety for assets, effective privacy
Digital trust demands that technologies abide by a set of protection, transparent deployment, auditability, technological
standards that ensures reliability and instils confidence compatibility, the ability to seek restitution in the event of harm
among users across geographies. Any failure may have and fairness in application.55 Unless these issues are addressed,
systemic implications with the possibility of causing negative their adoption and replication of India’s success across
macroeconomic repercussions. Understandably, one domain geographies will remain limited. For instance, any DPI built on an
alone cannot solve digital trust gap issues, such as security, ecosystem with a low level of digital security could undermine
privacy, and reliability. The ability to trust a technology providing even the best intentions and efforts of a government to digitise
a service must be supported by various criteria, such as its economy.
49
https://m.economictimes.com/tech/technology/around-40-indians-use-digital-formats-like-upi-for-money-transfer-nandan-nilekani/articleshow/94203265.
cms.
50
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=1900976.
51
https://www.businesstoday.in/personal-finance/news/story/france-adopts-upi-a-look-at-other-countries-accepting-upi-for-cross-border-transactio
ns-389694-2023-07-14.
52
https://www.livemint.com/technology/tech-news/japan-seriously-looking-at-joining-indias-upi-payments-system-11684487209053.html.
53
https://www.forbesindia.com/article/take-one-big-story-of-the-day/ondc-is-indias-next-big-bet-after-upi/85073/1.
54
https://ondc.org/blog/indian-government-integrates-msme-global-mart-into-ondc/.
55
https://www3.weforum.org/docs/WEF_Earning_Digital_Trust_2022.pdf.
44
In an interconnected ecosystem, security issues must thus be mobile devices; inequalities, such as those characterised by
prioritised to build trust. Any government building or adopting the digital divide across gender, income and social groups
such digital stacks must feature a robust cybersecurity and data and a higher tolerance for criminal activity could negatively
protection framework and offer insurance to mitigate other influence adoption rates and trust. Because of its own success,
types of cyber risk. India is in a unique position to lead the development of reliable
technological solutions for the world over the coming years.
Other challenges that may arise could be a lack of digital Emerging economies will especially benefit from India’s digital
literacy and cyber awareness. Inadequate infrastructure, such diplomacy in the future, thereby strengthening India’s position
as poor Internet connectivity and limited access to supporting as a key player in the digital era.
Digital capabilities as services to the world
At the time of liberalisation in 1991, it would have been difficult

to believe that India would account for nearly 5 percent of service
exports globally, but we are witnessing this today.56 Fast forward 30
years to 2021, and India has created a niche position for itself as the
service hub of the world.
The globalisation of enterprises, the Internet boom of the offer global clients various high-end and critical solutions across
1990s, and the digital revolution, which has been ongoing specialisations, such as IT, accounting and legal. As demand for
since early 2000, have propelled India’s technological services services in management consulting and data analytics is rising,
industry. About two-thirds of the market is export-oriented, with so is the contribution to exports and employment. The digital
contributions from the IT sector being the most significant (see drive in India is attracting foreign investment with several MNCs
Figure 18). considering India for R&D in several IT-led sectors.
What started as back offices have now turned into centres of

excellence powered by global capability centres (GCCs) that now
56
https://www.moneycontrol.com/news/business/markets/indias-services-sector-exports-defy-global-slowdown-grab-higher-global-market-share-morgan-
stanley-10653701.html.
45
Figure 18. Market size and employment of the IT and ITeS sector in India
Export Domestic
USD billion 178.0
147.0 149.0
137.0
126.0
117.0
108.0
98.5
45.0 49.0
34.0 37.0 41.0 41.0 44.0
35.0
FY2015 FY 2016 FY2017 FY2018 FY2019 FY2020E FY2021 FY2022E
Million people Total employment Net addition

0.5
0.2 0.1
0.2 0.1
0.2 0.2
0.2
5.1
4.7
4.4
4.1
3.9 4.0
3.5 3.7
FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022E
Source: NASSCOM Strategic Review report.
GCCs will lead the way create employment for up to 13 million individuals.58 By 2035,
GCCs in India have seen a boom in not only IT-related but also there is likely to be more than 2,000 new GCCs in India providing
non-IT-related services, with the latter generating one-quarter a myriad of services including research, consulting and advisory
of all IT-related revenue. With their revenue comprising 1 services in addition to conceptualisation and design using
percent of India’s GDP, the number of GCCs has increased by cutting-edge technologies.
approximately 60 percent since 2015 and is expected to exceed
1,900 by 2025.57 This will yield a US$ 250 billion market share and
57
https://nasscom.in/knowledge-center/publications/gcc-40-india-redefining-globalization-blueprint.
58
https://www2.deloitte.com/content/dam/Deloitte/in/Documents/Consulting/in-consulting-gcc-value-proposition-for-india2-noexp.pdf.
46
Figure 19. Estimated revenue from Indian technology market (in US$ billion, FY2023 estimates)
Hardware ER&D products BPM IT services
Total estimated revenue = 245.3
IT services, 125.3
BPM, 47.4
ER&D products, 54.7
Hardware, 17.8
Revenue
Source: NASSCOM strategic review report, 2023
Although, IT services have been the greatest contributors partner programmes will drive partnerships with various
to technology sector revenue (i.e., US$ 125.3 billion), the stakeholders in global operations and innovation. Government
contribution of engineering and research expertise in Indian initiatives, such as Digital India, national fibre optics
GCCs is also notable (refer to Figure 19). It is expected to (BharatNet) and the new National Education Policy 2020 (which
approach a quarter of India’s total revenue in 2023 and sharply aims to include AI in the curriculum) will create a favourable
space for global organisations to set up their GCCs.
increase over the next few years.
• Robust innovation and tech start-up network: India’s
Two factors will drive the potential of GCCs: innovation and start-ups will help reduce operational costs,
increase customer and user reach and expand and even create
• Favourable IT infrastructure, ecosystem and policies: markets catering to less serviced areas.
Synergies with parent organisations, ecosystem partners and
over 15 incubators and 40 accelerators as well as multiple
47
Figure 20. Ecosystem of GCCs and technology start-up network
Total recognised start-ups in

GCC market size (FY2023) India (H1 2023) 99,380
US$46 billion
GCC and
start-up
ecosystem Total funding in deep-tech
Total GCC (FY2023)
start-ups (2022)
1580+ GCCs with US$ 3.6 billion
2740+ GCC units in India
Total unicorns
Most preferred destinations of GCCs (H1 2023) 110
Bengaluru, Delhi NCR,
Hyderabad, Pune
GCC headcount (FY2023)
1.66+ million
Source: Department for Promotion of Industry and Internal Trade; NASSCOM Startup and GCC4.0 report; Inc42 Unicorn report
The way forward will need a shift in the mindset from a will incorporate emerging technologies, such as AI and ML to
cost-savings to a capability-development perspective. build capability development and innovation and R&D centres
(Figure 21). This way, GCCs will enhance agility and advance
With technology disrupting market dynamics and competition, India’s industry to the high-value-added tasks of data analytics,
India’s GCCs’ selling proposition will shift away from the safe conceptualisation and design.
harbour of cost savings to competence and value creation. GCCs
48
Figure 21. Capabilities that can move GCCs up in the value chain
Establish
RnD centers R&D facilities use highly qualified FTE
to develop and enhance products and
services.
Access to
market R&D centres use the skill arbitrage in India
to open up new markets or tap into current
ones for their parents.
Setting up
delivery centers Capability development centres offer
their parent organisation specialised
competencies through Indian talent.
Collaborate with
Indian IT companies Acquire or partners with Indian IT
companies to get access to Indian talent
without having to set up their own facilities.
Remote
hiring from India We plan to recruit Indian experts in AI,
robotics, data analytics, and cybersecurity
remotely without requiring them to
relocate.
Source: GCC Value Proposition Report, Deloitte.
Building a skilled workforce for the future
For India to become a developed country by 2047, it must shatter the

historic shibboleths of skilling. We must equip our talent strategically
to actualise the potential of GCCs and digital transformation.
49
Addressing the skilling gap will be critical, and India will non-technical talent pool with the required skills. This will
require a strong foundation of digital talent force. According to encourage more women to join the workforce.61 The National
NASSCOM’s estimation, there is a gap of approximately 6 million Education Policy (NEP) 2020 will also provide an overarching
between the demand and supply of digital talent among eight framework that should encourage at least 50 percent of all
countries, including the US, China, India and parts of Europe.59 learners to attain a vocational education by 2025.62
For India, talent is going to be the biggest obstacle for its IT • A strong academia–industry ecosystem that can drive
sector to thrive, the lack of which may create barriers to rapid innovation and future-ready business models. Although
innovation and the adoption of cutting-edge technologies. India the industry will bring an outside-in view of the skills and
personality development required to survive and thrive in a
will need to not only improve digital and data literacy but also
business ecosystem, enterprises will have direct access to the
instil critical thinking and emotional intelligence as desirable
talent trained to meet their needs.63
skills for its population by 2030.60
• Non-technical skill development: Workplaces and
requirements will change, and the abilities needed to succeed
Be like water: Curriculum scope to attend to the “multiple
in the workforce will differ from what we know today. Soft
futures” of business skills, such as communication and emotional intelligence,
India must transition away from traditional academics to more and the ability to tackle increasing intercultural nuances and
agile and dynamic training models by focusing on generating disruptive technologies will go a long way in improving a
a skilled workforce that is more employable by providing the person’s employability in non-technical advisory and consulting
following resources: service focused positions.
• Vocational training to freshers out of school, tapping
into resources from Tier 2 and Tier 3 cities and reskilling the
Figure 22. Thrust in soft skills64
Global powerhouse of learning focused on education, employability, and global mobility
English Higher
Language Learning Education Digital Workforce Skills
AI-powered language Hybrid and innovative To provide learners

assessments – Personal solutions, including e-library with hands-on skills for
Test of English (PTE) and and MePro, for institutions, employability
VersantAI-powered educators, and learners
Source: Pearson India.
Please note that businesses will have “multiple futures” to contend with; therefore, early intervention in upskilling and reskilling will
be important, as illustrated in Figure 22.
59
https://community.nasscom.in/communities/emerging-tech/war-digital-talent-india-can-emerge-global-hub-it.
60
https://do3n1uzkew47z.cloudfront.net/siteassets/pdf/ISR_Report_2023.pdf.
61
https://www.indiabudget.gov.in/economicsurvey/.
62
https://pib.gov.in/PressReleaseIframePage.aspx?PRID=188494101.html.
63
https://community.nasscom.in/communities/emerging-tech/war-digital-talent-india-can-emerge-global-hub-it.
64
https://www.cii.in/PublicationDetail.aspx?enc=XF2FtOKR1TnDFQ/BVpAZp2KoWPo5sapXv7+q7UwuUFs=.
50
Abbreviations
and Acronyms
Abbreviation Expansion Abbreviation Expansion
AA Account Aggregator MeitY Ministry of Electronics and Information

Technology
ABDM Ayushman Bharat Digital Mission MOSFET Metal oxide semiconductor field-effect
transistor
AIoT Artificial Intelligence of Things NEP National Education Programme/Policy
BHIM Bharat Interface for Money NIC National Informatics Centre
BPaaS Business Process as a Service NLP Natural Language Processing
BPM Business Process Management NOFN National Optical Fibre Network
Co-bot Collaborative Robot NREGA National Rural Employment Guarantee

Act
CoE Centres of Excellence OEM Original Equipment Manufacturer
CSP Communication Service Providers ONDC Open Network Digital Commerce
DBT Direct Benefit Transfer OSAT Outsourced Semiconductor Assembly

and Test
DPG Digital Public Goods PaaS Platform as a Service
DPI Digital Public Infrastructure RFID Radio Frequency Identification
EDA Electronic Design Automation SaaS Software as a Service
ER&D Engineering, Research, and Development SASE Secure Access Service Edge
FTE Full Time Equivalent SATCOM Satellite Communications
GCC Global capability centers SoC System-on-Chip
GER Gross Enrollment Ratio UAV Unmanned Aerial Vehicle
IaaS Infrastructure as a Service UNDP United Nations Development Programme
ITU International Telecommunication Union UNICEF United Nations Children's Fund
IUDX India Urban Data Exchange UPI Unified Payments Interface
JV Joint Venture XR Extended Reality
LLM Large Language Models
51
About CII
The Confederation of Indian Industry (CII) works to create and sustain an environment conducive to
the development of India, partnering Industry, Government, and civil society, through advisory and
consultative processes.
CII is a non-government, not-for-profit, industry-led and industry-managed organization, with around

9,000 members from the private as well as public sectors, including SMEs and MNCs, and an indirect
membership of over 300,000 enterprises from 286 national and regional sectoral industry bodies.
For more than 125 years, CII has been engaged in shaping India's development journey and works
proactively on transforming Indian Industry's engagement in national development. CII charts
change by working closely with Government on policy issues, interfacing with thought leaders, and
enhancing efficiency, competitiveness, and business opportunities for industry through a range of
specialized services and strategic global linkages. It also provides a platform for consensus-building
and networking on key issues.
Extending its agenda beyond business, CII assists industry to identify and execute corporate
citizenship programmes. Partnerships with civil society organizations carry forward corporate
initiatives for integrated and inclusive development across diverse domains including affirmative
action, livelihoods, diversity management, skill development, empowerment of women, and
sustainable development, to name a few.
As India strategizes for the next 25 years to India@100, Indian industry must scale the
competitiveness ladder to drive growth. It must also internalize the tenets of sustainability and
climate action and accelerate its globalisation journey for leadership in a changing world. The role
played by Indian industry will be central to the country's progress and success as a nation. CII, with
the Theme for 2023-24 as 'Towards a Competitive and Sustainable India@100: Growth, Inclusiveness,
Globalisation, Building Trust' has prioritized 6 action themes that will catalyze the journey of the
country towards the vision of India@100.
With 65 offices, including 10 Centres of Excellence, in India, and 8 overseas offices in Australia, Egypt,
Germany, Indonesia, Singapore, UAE, UK, and USA, as well as institutional partnerships with 350
counterpart organizations in 133 countries, CII serves as a reference point for Indian industry and the
international business community.
Confederation of Indian Industry

The Mantosh Sondhi Centre
23, Institutional Area, Lodi Road, New Delhi - 110 003 (India)
T: 91 11 45771000
E: [email protected] * W: www.cii.in
52
About Deloitte
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of
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All the facts and figures that talk to our size and diversity and years of experiences, as notable and
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So, when people ask, “what’s different about Deloitte?” the answer resides in the many specific
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Deloitte Globally has grown in scale and diversity—more than 415,000 people in 150 countries,
providing multidisciplinary services yet our shared culture remains the same.
(C) 2023 Deloitte Touche Tohmatsu India LLP
53
Connect with us
Deloitte CII
Peeyush Vaish Ramesh Karwani

Partner and TMT Industry Leader Head - IT and Telecom
Deloitte India CII
[email protected] [email protected]
Harsh Kapoor Sagar Raj Upadhyay

Partner, Consulting Deputy Director
Deloitte India CII
[email protected] [email protected]
Aditya Khaitan
Partner, Consulting
Deloitte India
[email protected]
Contributors
Sarthak Rout Dr. Rumki Majumdar
Roshan Kule Srikanth Mahadevan
Triparni Biswas Siddharth Bhaskar
Acknowledgements
Deloitte CII National Digital Summit 2023
- Steering committee members
Anandorup Ghose Mou Chakravorty
Ankita Vaiude P.S Easwaran
Antony Prashant Rishika Saluja
Arti Sharma Siddhartha Tipnis
Debashish Biswas Shridhar Kamath
Harsheen Anand Vikram Venkateswaran
54
55
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Without limiting the rights under the copyright reserved, this publication or any part of it may not
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The Digital Dominance | Catalysing India's rise as a global digital leader

The Digital Dominance

Section 1 – Digitisation and public goods 8

Section 2 – Digitisation and industry 22

• India as a “semicon nation” 35

• Evolution of cloud-based services 38

Section 3 – India: The digital hub of the world 42

• Endorse digital trust and infrastructure across the world 43

• Digital capabilities as services to the world 45

• Building a skilled workforce for the future 49

Abbreviations and acronyms 51

Driving the citizen empowerment agenda is primarily the government’s

Figure 1. Three main pillars of the “Digital India” initiative

Digital infrastructure as a core service for every citizen

Digital governance and services available on demand

• e-Governance: MCA21 (Ministry of Corporate Affairs), e-Procurement (e-Procurement Government of

Citizen empowerment through digital literacy

Source: National Government Service Portal, Deloitte Research, www.MyGov.in.

Aadhar has enabled Digilocker holds nearly

CoWin administered Bhashini, an AI-powered

vaccines across India 22 Indian

UPI transactions 450 million

recorded a volume of individuals created

As of March 2023, the BharatNet project laid

Source: National Government Service Portal, Deloitte Research, www.MyGov.in.

The government is now preparing for the next big leap—preparing

Case study 1: Interoperability of digital services

Figure 3. How DPIs empower citizens

Promote financial inclusion

Enable farmers to make Enhance data collection

Source: Deloitte Research

India’s healthcare system is poised to be transformed into an

Category Core technologies Solution implementation

• Augmented Reality/Virtual Reality • Initial virtual consultation

• Software and apps • Infrastructure supporting

• Robotics • Physical intervention tested

• Blockchain • Research and clinical

Source: Future-proofing healthcare report, Deloitte Research.

Case study 3: A connected healthcare system

The entire educational system is poised to be completely transformed

Figure 5. Integration of emerging technologies across edtech platforms

Widespread use of Holistic approach:

Source: Deloitte Research

Figure 6. Tech-enabled agritech value chain

Blockchain e-commerce Post

Post-harvest Quality management

Data Smart Machine

Agronomic/ Internet of Computer

Market Linkage Financial Content

Artificial Machine Procurement

Source: Deloitte Research

Case study 4: Tech adoption beyond farming

With the advent of the 5G in the telecommunication sector,

Figure 7. India: Economic impact of 5G by sector (in US$ billion) (2023–2040)14

mmWave-enabled 5G 5G enabled by other spectrum bands

Note: Contributions by sector are estimated based on the source data.

Figure 8. 5G: Key drivers for the adoption of next-gen technologies

Metaverse Internet of Things (IOT)

Offers a strong evolution path Supports massive connectivity