New Delhi: Digital transformation will add an estimated $154 billion to India’s GDP by 2021 and increase the growth rate by 1% annually, according to a new study released by Microsoft and IDC Asia Pacific on Wednesday.
The study predicts a dramatic acceleration in the pace of digital transformation across India and Asia Pacific’s economies. In 2017, about 4% of India’s GDP was derived from digital products and services created directly through the use of digital technologies, such as mobility, cloud, Internet of Things (IoT), and artificial intelligence (AI).
“India is clearly on the digital transformation fast track. Within the next four years, it is estimated that nearly 60% of India’s GDP will have a strong connection to the digital transformation trends" said Anant Maheshwari, president, Microsoft India.
The study surveyed 1,560 business decision makers in mid and large-sized organizations across 15 economies in the region highlights the rapid impact and widespread disruption that digital transformation is having on traditional business models. The study identified five key benefits from digital transformation: greater productivity, improved customer advocacy, more cost reduction, increased revenue from new products and services and higher profit margins.