According to a study released on Tuesday by the Asia-based Hinrich Foundation, India has a historic opportunity to turn into one of the world’s big technology hubs.
The country is concentrating on developing smartphones and other digital hardware as it seeks to expand its local manufacturing capabilities. It’s also hoping to produce a new generation of national unicorns.
According to the paper, the government believes that this would turn India into a technology export hub.
China vs USA
According to the report, tensions between the US and China will provide India with the boost it requires to become a global tech hub.
President Joe Biden recently signed an executive order requiring the establishment of “China-free” supply chains in critical industries such as pharmaceutical and biopharmaceutical products, batteries, rare earths, and semiconductors.
In these fields, companies from the United States, the European Union, Taiwan, South Korea, and Japan are all participating. They’re even considering moving some geo-fenced operations to India.
Apple, Amazon, and Samsung, which have depended on China for years, are moving output to India and Southeast Asia, a step that has intensified as US-China tensions have risen.
INDIA’s significance as a Quad member
India’s increasing significance as a member of the Quadrilateral Security Dialogue (Quad), which includes the United States, Australia, and Japan, is also important.
According to the paper, it covers a wide range of issues as a US Indo-Pacific security partner, from joint military policy to vaccine diplomacy.
For example, India, Australia, Japan, and the United States agreed earlier this year to stockpile billions of extra Covid-19 vaccine doses for distribution in Southeast Asia and beyond. The aim of this action was to fight Beijing’s global vaccine diplomacy programme.
Internet accessibility at cheaper rates
The country’s internet users have access to the world’s cheapest internet services. Reliance Jio began providing virtually free 4G internet connectivity to all of its customers in 2016.
This has not only doubled the number of mobile subscribers, but it has also expanded internet access. By 2020, nearly half of the population will have internet access, up from 10% in 2010.
As a result, the e-commerce market saw an increase in users. By 2027, the industry is projected to grow to $200 billion, up from $64 billion now.
Technological industry investments
According to the Hinrich report, the United States, European Union (EU), Taiwan, and Japan are India’s largest foreign investors in the technology sector.
The top investment categories are services, computer hardware, software, and telecommunications.
According to the study, most of the world’s largest technology companies already have a major presence in India and are well placed to contribute to the country’s increased production capacity.
The government hopes to absorb strategic foreign direct investment (FDI) and technology transfer from global firms in order to expand production potential in the domestic market.
Smartphones are the central focus of the engineering manufacturing departmemt
The government plans to manufacture one billion smartphones in the country by 2025 under the production-lined incentive scheme.
India recently overtook Vietnam as the world’s second-largest smartphone maker. China, on the other hand, continues to be the world’s largest economy.
According to the survey, Chinese low-cost phone brands appear to be the logical option as partners for Indian companies.
This would allow Indian companies to break away as independent brands and compete directly with their former Chinese partners both domestically and internationally.
The way India introduced the world’s largest biometric ID scheme, Aadhaar, is a testament to the country’s technological prowess, according to the Hinrich article.
By collecting iris, fingerprint, and facial data, the 12-digit identification number assisted in the development of a national database of 1.26 billion Indians.
The number is used to disburse all forms of government services across the country, including financial assistance and other direct benefit transfers, and is controlled by the Unique Identification Authority of India (UIDAI).
Furthermore, according to the survey, India is on the verge of launching the world’s largest fintech boom, as millions of “unbanked” people join the platform economy.
Fintech-driven services in India could be worth $170 billion by 2025, according to McKinsey.
Latest manufacturing incentives
Many policy-driven reforms have been implemented by the Centre in recent years to boost and enhance the country’s market environment.
India’s Ease of Doing Business ranking has risen from 100th to 63rd in the last three years.