Five things the tech sector crash got right in India
- Our list of positive outcomes echoes what was observed globally but with some special Indian twists.
Much has been written about the tech crash of 2022, with companies from Zoom, Netflix and even giants like Amazon and Meta losing hundreds of billions of dollars in value over the past few months. Most of it is about hyped-up expectations, back-room shenanigans and crypto scams, and many are speculating that the lustre of tech growth stocks is dimming. It was refreshing, therefore, to find John Thornbill display a rare ray of optimism in his Financial Times article, ‘The five things the tech bubble got right’. He draws inspiration from a 2004 post-dotcom crash essay by tech guru Paul Graham, ‘What The Bubble got Right’ , in which Graham posits that “stock market investors were right about the direction of travel even if they were wrong about the speed of the journey." Thornbill’s first point in his list of five is how we learnt to attach value to data, with data rich companies being valued disproportionately high. Second, he says, while globalization seems to be receding, the world is ‘e-globalising’ with 63% of the world connected to the internet, enabling information, reach and talent at a global scale. Third is that the world of work has irrevocably changed for the better—with hybrid work, the Great Resignation, and the rise of ‘liquid’ companies. Fourth in his list is the massive energy transition from fossil fuels to electric, led by Tesla. And, finally, while crypto has crashed, its enthusiasts are asking the right questions around decentralization and democratization of the internet.