India on the trajectory of becoming a US$1 trillion digital economy by 2025: MoS for IT

MoS (Meity) lists innovation and new opportunities in the designing, engineering, consumption and servicing of products as catalysts.

October 7, 2021

Minister was addressing the 13th ‘Design and Engineering Summit’ of Nasscom.

Minister highlighted untapped opportunities in manufacturing, engineering, and digitalisation.

Proposals approved by GOI for electronic hardware to generate production worth US$ 22 billion over next four years.

India is home to over 1,000 global companies with product R&D centres, across diverse sectors.

India is on the path to becoming a US$ 1 trillion economy in the next five years, given its untapped opportunities in manufacturing, engineering, and digitalisation, according to the Union Minister of State for Electronics and IT Shri Rajeev Chandrasekhar. The Minister was addressing the 13th edition of the ‘Design and Engineering Summit’ of the IT industry association Nasscom, where he brought to light the impact of the COVID-19 pandemic which has led to an irreversible shift for innovation. Consequently, this has created new opportunities in the designing, engineering, consumption and servicing of products through contactless systems of functioning, intelligence and analytics and software-led systems.

Given the fact that India is home to over 1,000 global companies having centres in India for product R&D across diverse sectors, the Engineering, Research & Development (ER&D) sector generates over US$ 31 billion in revenue. Additionally, India is headquarters to 12 of the leading 50 Engineering Service Providers, 44 out of the top 50 service providers have ER&D operations in India, and over 70 % of the 50 most innovative global companies have an R&D centre in India.

The minister stressed that in order to fulfill its Sustainable Development Goals and prevent the next pandemic, India must come up with innovative solutions for the world. He added that India’s Production-Linked Incentive (PLI) schemes were received remarkably and that the proposals approved for electronic hardware are set to generate production of US$ 22 billion over the next four years. Extending across sectors such as textile, auto etc, the PLI scheme and the Make in India vision is drawing global as well as Indian companies to set up manufacturing units in the country. The minister expressed confidence in India’s potential in becoming an integrated manufacturing, design, and engineering partner, with other countries. He also drew attention to the measures that were being taken for the industry in accelerating the building of employable skills through the spectrum of digital technologies and soft skills to ensure that India could become the global digital talent hub for the world.