India is poised to help shape our innovation era. Here’s how – BusinessToday
• India is the third largest ecosystem for start-ups in the world with 94 unicorns worth around $300 billion.
• Alongside its entrepreneurial ambitions India is also committed to using technology to advance key global priorities.
• A focus on solutions to public health, social inclusion, and climate sustainability could be replicated in other countries.
The world is in the midst of an innovation era – one that began before the pandemic but is increasingly being defined by the acceleration in digital development and uptake over the past two years.
Faster internet speeds and 5G mobile technology are serving as the foundations for deeper and greater connectivity and they are fuelling new economic opportunities. As a result of these digital building blocks, the world will likely experience more technological progress in the coming decade than in the preceding 100 years, according to McKinsey.
The rapid progress in digital innovation raises a fundamental question: will leaders look only to capture the resulting economic gains or steer new technologies towards advancing both prosperity and fulfilling key global priorities?
As a fast-growing technology leader, India is poised to play an important role in answering this question.
Nurturing start-ups and incentivising innovation
India currently has 94 unicorns with a total valuation of around $300 billion. The high number of start-ups is part of the reason India rose in the World Intellectual Property Organization’s Global Innovation Index ranking, from 81 in 2015 to 46 in 2021.
India’s technology ascent in recent years is due in large measure to its focus on nurturing tech start-ups and incentivizing innovation. For instance, the $3 billion Startup India initiative the government launched in 2016 has helped pave the way digitally by offering micro-financing and low-interest rate loans to entrepreneurs.
Most recently, India’s fiscal year 2022-2023 budget, released on 1 February, has been called “a budget for a digital-first India” in that it positions the country to be among a few that are leading the way in regulating crypto assets and introducing a national digital currency.
Advancing solutions to global problems
Alongside its aim to become the largest start-up ecosystem, India is also sending signals that it is committed to using technology to advance key global priorities. In 2018, Prime Minister Narendra Modi announced the launch of the Centre for the Fourth Industrial Revolution India in partnership with the World Economic Forum. The centre serves as a hub for the public and private sectors to work together in accelerating the widespread adoption of new technologies and shaping these technologies in a way that benefits society.
India is also sending signals that it is committed to using technology to advance specific priorities, particularly relating to public health, social inclusion, and climate sustainability.
Notably, India has deployed technology to advance public health priorities during the COVID-19 pandemic. The government launched the Aarogya-Setu app to track infections, which was developed in 21 days through public-private partnership. A part of this app, the CoWIN Portal, has received global acclaim for its success in becoming the digital backbone of world’s largest vaccination drive executed by India. These innovations offer powerful examples of robust, inclusive and scalable models for expanding public services through digital technology.
India has also demonstrated the important role of technology to advance equitable development through efforts to promote digital empowerment and last-mile financial inclusion. The government launched its flagship Digital India mission in 2015 as an umbrella programme covering multiple ministries and departments. Digital India is a consolidation of various smaller initiatives with the common vision to digitally empower citizens through improved infrastructure and connectivity. Aadhaar, a pillar of Digital India, is a biometrics-based identification system that covers 99 per cent of India’s population and is helping the government more efficiently deliver payments and social services to citizens and residents.
India’s strides in innovation are also advancing climate action and net-zero transition. India has been leading the International Solar Alliance – a group of 106 countries working to scale efficiencies of solar technologies – and the government recently launched the National Hydrogen Mission to leverage the potential of green hydrogen technology. It is also working closely with the private sector to put in place policies that support sustainable mobility, such as electric vehicles.
Promoting inclusive, sustainable development
The direction of reforms launched by the Indian government to harness the gains from its technological and entrepreneurial capabilities highlights its strong focus on promoting balanced, inclusive and sustainable development. With its scale and diversity, any proof of a successful model in India that uses technology to build a more inclusive and sustainable society can be replicated in other economies, affecting billions of people.
Committed to its mission to improve the state of the world, the World Economic Forum is proud to work as a partner with the Indian government and business leaders to help realize this vision and advance our collective progress and prosperity.
Views are personal. Brende is President, World Economic Forum and Mehta is Head of Regional Agenda – India and South Asia and Member of the Executive Committee, World Economic Forum.