2025: India's Tech Transformation Year

In 2025, India will reach two key milestones—becoming a $4 trillion economy and surpassing Japan to become the fourth-largest globally.

- AJAY KUMAR

Its future progress towards becoming the third-largest economy will depend on effectively harnessing emerging technologies, with McKinsey’s 2024 report identifying 18 tech-areas that could add $29 trillion to $48 trillion globally by 2040.

The economic potential of new technologies can be maximized in two key areas: Production and usage. Producing technologies fosters innovation, creates jobs, and reduces dependency on imports. In a connected world, where network effects are significant, innovation leads to global dominance and huge economic gains, as exemplified by the dominance of a few players in sectors like semiconductors and e-commerce.

This year should be a watershed year, transforming India into a “Product Nation,” with ₹1 trillion allocated for Research & Development to the private sector. Finalizing its governance and implementation modalities would be of foremost importance. Other policy reforms include: Opening up of R&D across all sectors, including defense, atomic energy, and deep-water technologies while removing hurdles from legacy institutions; government procurement policy to foster innovations; greater priority to creating bigger skilled workforce in emerging technologies viz., quantum, cyber-security and space; global branding and export of indigenous industry products through bilateral and multilateral initiatives; reforming standard-making so that it is industry-led and supported by a legislative framework.