India gears up to become the next silicon valley of the world
The Indian tech environment is fast evolving to compete on the global stage and collaborate with various global players.
Recent announcements by tech giant Microsoft that they will continue to grow and invest in the Indian success story, despite all the global challenges that the pandemic has brought upon businesses, only goes to bolster the theory that ‘if it is India, it is possible’.
Microsoft intends to hire and make fresh financial investments in India and this has been brought about by a very strong swing upstream by the pace of digitalisation and strong growth in the usage of cloud, communication and collaboration platform MS Teams. The Microsoft statement highlights that their investments will continue to create digital and technological capabilities and innovation.
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Microsoft is not alone in recognising India’s potential in the field of technology. Reliance Jio is already showing the way by notching up some fantastic numbers – the more recent one being an $847 million investment by TPG, who have brands like Air BnB, Uber and Spotify in their stables.
The Indian tech environment is becoming a game-changer of sorts. It is showing a willingness to compete on the global stage and collaborate with other entities in countless areas.
There is a bottom line to this argument – while the global economy is reeling, due to the pandemic, tech giants like Amazon, Apple, Facebook, Google and Microsoft are looking to get even bigger. This, conversely, should be good news for the Indian economy and Indian tech start-ups.
While the number of start-up deals in India fell by only 15 per cent (down 27 per cent globally and in Asia) last year, funding in value terms in startups rose by 18 per cent (compared to a 22 perc ent decline globally and 56 per cent fall in Asia). Investments in Indian tech-enabled startups grew 18 per cent to $14 billion. Currently, despite the pandemic, the Reliance Group has sold over 22 per cent of its Jio Platform to investors securing 10 deals worth $13.72 billion in eight weeks.
These are not knee-jerk investments. Other Indian entities have also recorded investor interest. In the recent past, science and technology have made a tremendous contribution towards the settlement of industries in India. Starting from the micro and macro level, research and development in the field of technology has created an ideal niche for the overall growth of the economic condition of the country.
India has become the global voice to the extent that technology has become the key to raising productivity. Tech is not just growing in the period of the pandemic rather, it is being seen as a suitable weapon in the fight against the pandemic itself. A post-corona world will see tech as a tool which is closely intertwined with our everyday lives.
The signs are there for all to see – India can rebrand itself from being a destination for outsourcing to being a centre for technological innovation – in short, the next Silicon Valley. The pandemic has given the government the perfect opportunity to encourage Indian entities to reinvent themselves. There is a robust attitude towards start-ups and innovation and the country has improved its standing considerably towards risks posed to foreign investments, thanks to the efforts by the government.
In order to continue to turn the curve India needs to ensure that government regulations are periodically reviewed and streamlined to encourage support for technological innovation, train the best talent available, and offer appropriate incentives towards attracting foreign and domestic investments alike.
If arguments can be clinched by numbers then the world must sit back in awe while considering this simple but absolute fact: India’s population has jumped onto the technological bandwagon from barely any connectivity in 2014 to being the second most connected nation in the world.
The current pandemic has provided India with an opportunity for change, both qualitatively and quantitatively. The big-ticket tech investments that are currently being recorded in the markets are only the tip of the iceberg.