nasscom ilf 2013: impact of technology on india vf

Download NASSCOM ILF 2013: Impact of Technology on India VF

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  • 1. Indias next $200B in GDPDocument for discussionFebruary, 2013CONFIDENTIAL AND PROPRIETARYAny use of this material without specific permission of McKinsey & Company is strictly prohibited
  • 2. Executive summary India domestic opportunity in technology (~$200B GDP 1 incremental impact by 2017) as large as the technology export market ($225B revenue by 2020) Working Draft - Last Modified 14/02/2013 11:32:12 Bulk of this opportunity will come from technology for society (e.g., water, smart meters) and technology for 2 consumers (e.g., e-commerce) Printed 11/02/2013 11:14:40 4 opportunities highlight this potential smart meters, e-commerce, digital cash transfer for subsidies and 3 Alibaba for SME McKinsey & Company |
  • 3. 1 Technology investments can increase Indias GDP by USD 200 Bn Technology can add USD 200 Bn to Indias GDP (2017) India nominal GDP US$ billion 2% of additional GDP Working Draft - Last Modified 14/02/2013 11:32:12 Global growth examples 2,600 Macro economic 200 regression analysis Printed 11/02/2013 11:14:40 700 Academic 1,700 research 2012 Normal Impact of 2017 growth1 technology1 Expected growth rates projections ranged between 7- 8% by analysts. Downward revision done to 6-7% given recent macroeconomic circumstances. McKinsey & Company |
  • 4. 2 There are four large areas of technology-led opportunities in India Technology for society Increased consumer consumption Working Draft - Last Modified 14/02/2013 11:32:12 A B USD 200 billion impact Printed 11/02/2013 11:14:40 C D Improved efficiency and Moving unorganized to productivity for enterprises organized in the economy McKinsey & Company |
  • 5. 3 We have a set of 12 ideas with potential GDP impact of $90B+ GDP billion Impact USD billionTheme1 Idea Examples 1 Digital cash transfers 4Unorganized 2 E-governance 0.5to organized Working Draft - Last Modified 14/02/2013 11:32:12 3 Tech. for Agriculture 4IncreasingIncreasingconsumptionconsumption 4 E-commerce 14 5 Mobile money 9 6 Smart Meter 23Technologyfor society 7 Education technology 11 Printed 11/02/2013 11:14:40 8 Remote healthcare 0.5 9 SME B2B marketplaces 3Enterprise 10 SME Cloud solutions 9productivity 11 Digital selling 1 12 Digital supply chain 121 The theme Global innovation and product development has been deprioritized McKinsey & Company |
  • 6. 3 4 high-impact ideas quick snap-shot Idea Examples Potential impact in 2017 Digital cash $4B GDP3 impact Unorganized transfers for1 subsidies USD 21 Bn lower leakage to organized USD 1 Bn cost savings Working Draft - Last Modified 14/02/2013 11:32:12 E-commerce $22B GDP impact Increasing2 consumption USD 80-100B industry 100-120 M e-commerce users Smart meters $23B GDP impact Printed 11/02/2013 11:14:40 Tech. for3 85 TWh power saving society 50% reduction in accumulated losses of DISCOMs1 SME B2B $3B GDP impact Enterprise marketplaces4 productivity McKinsey & Company |
  • 7. Why Now? Some of the fundamental enablers falling in place. . . Largest # of incremental internet users added by 2015: 350M-450M Working Draft - Last Modified 14/02/2013 11:32:12 Sub-$100 smart devices in 1-2 yrs 50M incremental digital literates by 2020 Printed 11/02/2013 11:14:40 30%+ of Internet users will be online shoppers in 2-3 yrs McKinsey & Company |
  • 8. TECH FOR INCREASED CONSUMPTION xx Numbers in 2017E-commerce in India could be upto ~$100 billion in 5 xx Numbers in 2012years FROM (2012) TO (2017) Working Draft - Last Modified 14/02/2013 11:32:12 Size of industry $10 billion $80- 100 billion Users 17 million 100- 120 million1 Printed 11/02/2013 11:14:40 Social impact Transaction volume

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