DIGITALISATION WILL HELP IN VALUE CREATION

As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India

- GAURAV DEEPAK

We will see a strong jump in value creation in India in this decade, an almost 200 percent increase. In the decade of 2001-10, we saw an incremental value creation of about $1 trillion and a similar number in the decade of 2011-20. This created a market cap of around $2.5-2.7 trillion, combining both public and private markets by end of 2020. In my estimate, we will end the current decade at a market capitalisation of $7.5-8 trillion, which implies an incremental value creation of $5 trillion, which is five times the previous two decades.

I believe that this value will be driven by three key forces: Digital, large-scale manufacturing and sustainability.

I want to focus on digital here. I believe that 50 percent of the incremental value creation will be driven by digital and digital business models, which will account for 30 percent of the total value of the market that we will see at the end of this decade. This number stands at approximately 10 percent today.

50 percent of incremental value creation will be driven by digital; it will account for 30 percent of the total value of the market

India does not have the physical infrastructure that is required to provide a standard of living that one would expect in a developed country. While estimates vary, economists believe that $12,000-$15,000 gross domestic product (GDP) per capita is good enough for a high standard of living. By leveraging digital, India would be able to achieve a high standard of living at a much lower GDP per capita. I would be bold enough to say that it may be nearly half of the number suggested by economists.