India’s potential to become a tech-driven economy in 2025

Source: The post India’s potential to become a tech-driven economy in 2025 has been created, based on the article “2025: India’s tech transformation year” published in “Business Standard” on 10th January 2025

UPSC Syllabus Topic: GS Paper3-Science and Technology- developments and their applications and effects in everyday life. Achievements of Indians in science & technology

Context: The article discusses India’s potential to become a tech-driven economy in 2025. It emphasizes policy reforms, R&D funding, and key areas like AI, cybersecurity, quantum tech, data monetization, semiconductors, space, and air mobility to boost innovation and economic growth.

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What are India’s Economic Goals for 2025?

1. India aims to become a $4 trillion economy by 2025 and exceed Japan as the fourth-largest global economy.
2. The country’s progression toward becoming the third-largest economy relies on effective use of emerging technologies.

What Are the Key Policy Reforms for 2025?

1. India plans to invest ₹1 trillion in private sector R&D and open up R&D in critical sectors like defense and energy.
2. Other reforms include improving government procurement policies, emphasizing skill development in technologies like quantum computing and cybersecurity, and promoting global trade of local products.

How Will Emerging Technologies Boost India’s Economy?

1. Global Contribution Potential: Emerging technologies could add $29-$48 trillion globally by 2040, presenting a huge economic opportunity for India.
2. Innovation and Jobs: Producing technologies fosters innovation, creates jobs, and reduces import reliance. Example: Dominance in semiconductors and e-commerce by key global players.
3. Multiplier Effects: Technology adoption improves efficiency, boosts productivity, and stimulates innovation across sectors.
4. Geospatial Data Utilization: Initiatives like PM Gati Shakti and drone policies support infrastructure and project planning.
5. Cloud Market Potential: Capturing 5% of the global cloud market by 2030 could create a $100 billion industry.

What Specific Technologies Will India Focus On in 2025?

1. Artificial Intelligence (AI): India plans to accelerate AI adoption in healthcare, education, and agriculture. It will prioritize subsidized AI models for these sectors and expedite empanelment of vendors for 10,000 GPUs. The focus will also include building localized AI models using API-based access to India’s data assets.
2. Cybersecurity: India will enact stringent cybersecurity regulations for critical sectors like power, transportation, and healthcare. Early implementation of the DPDP Act 2023 and promoting digital forensics with indigenous tools will be critical.
3. Quantum Technologies: A nodal ministry will oversee quantum technologies in defense, healthcare, and finance. Plans include adopting quantum key distribution and post-quantum cryptography solutions, along with quantum-safe satellite communications.
4. Geospatial Data: India will complete nationwide geospatial data compilation and expand the PM Gati Shakti plan to all projects.
5. Semiconductors: Steps include operationalizing fab projects, incentivizing supply ecosystems.
6. India is set to advance in the drone industry, including setting up vertiports and enhancing air mobility management.
7. In space, steps include finalizing satellite spectrum allocation and promoting private industry participation in satellite services.

Question for practice:

Examine how India’s focus on emerging technologies and policy reforms is expected to drive its economic growth and global competitiveness by 2025.