As India sets its sights on becoming a developed economy by 2047 in line with its Viksit Bharat vision, a report by Bain & Company and NASSCOM offers several suggestions on how the country can achieve this ambition.
The report, titled India @2047: Transforming India into a Tech-Driven Economy, outlines a strategic roadmap focusing on the electronics and services sectors. This initiative is part of India’s broader ambition to achieve a GDP of $23-35 trillion and create a tech-driven economy.
Electronics sector
The report identifies three key phases for the evolution of the electronics sector:
- Near term (next five years): A geopolitical shift in supply chains is anticipated, alongside advancements in smart manufacturing and Industry 4.0 technologies. The report states, “AI-enabled chip design and production will become pivotal, with a declining cost of AI access facilitating broader adoption.”
- Medium term (5–15 years): The focus will shift towards post-silicon electronics and touchless fabrication. The report emphasises, “Next-generation batteries and the development of resilient electronics will be critical for sustainability and circularity.”
- Long term (15+ years): Innovations in additive manufacturing and high-tech materials, as well as human-machine interfacing (HMI) and neuromorphic chip design, are expected to redefine the industry. The report notes, “Next-gen connectivity will enable smart use cases, enhancing multi-device continuity.”
Key technology advancements
The report highlights several technology advancements that will shape the future of the electronics sector:
- AI-enabled R&D and fab design.
- Low-power electronics.
- Biodegradable components.
- Flexible and transparent displays.
- Touchless fabrication.
These advancements are crucial for positioning India as a global leader in electronics manufacturing, the report states.
Challenges and growth strategies
Despite the promising outlook, the report also identifies several challenges:
- Supply chain disruptions and component shortages.
- Inadequate infrastructure and manufacturing capabilities.
- Dependence on imports.
- Regulatory and compliance challenges.
To address these, the report suggests potential levers such as smart factories and generative AI (GenAI) for infrastructure development. “Accelerating domestic production and increasing participation in the global value chain are essential for growth,” it states.
Services sector
The services sector is projected to contribute significantly to India’s GDP, with growth driven by:
- Favourable infrastructure.
- Technological advancements and innovation.
- Availability of a skilled workforce.
- Rising contributions from MSMEs (micro, small, and medium enterprises).
Technological advancements in BFSI
In the banking, financial services, and insurance (BFSI) sector, the report outlines several advancements:
- Explainable AI-led core processing.
- Virtual AI agent-led open banking.
- Data-based flexible insurance and claims pricing.
- Blockchain-enabled transactions.
- Quantum encryption for advanced cybersecurity.
Potential levers for BFSI
The report emphasises the importance of embedding AI for process automation and improving financial inclusion through GenAI. It states, “Flexible risk-based insurance premiums and enhanced cybersecurity measures are critical for future growth.”
Retail and healthcare
For the retail sector, advancements such as hyper-personalised shopping experiences using GenAI and autonomous delivery systems are highlighted. The report notes that “integrating on-demand production into supply chains will streamline operations and improve efficiency.”
In healthcare, innovations like wearable health monitoring devices and AI-based predictive healthcare mechanisms are set to revolutionise patient care. The report suggests, “Expanding remote care and integrating genomics into precision medicine are essential for inclusivity and effectiveness.” CNBCTV18