India's Tech-Driven Journey to Global Leadership by 2047

India's aspiration to become a developed economy by 2047 rests crucially on its advancements in artificial intelligence (AI), quantum technology, and digital manufacturing. A recent report by Nasscom and Bain & Company details how these emerging technologies, alongside robust improvements in electronics and service sectors, could position the nation as a global technology leader.

Key Sectors Fueling Growth

• AI and Cloud Computing: The report highlights that AI-powered processes and generative AI, bolstered by cloud computing, are set to transform India's IT ecosystem. Customized and efficient AI-driven systems are anticipated to streamline service delivery and boost overall productivity.

• Electronics Expansion: Projections suggest that India’s electronics market could surge from $100 billion in 2023 to between $3 and $3.5 trillion by 2047, creating 20-22 million jobs. With electronics poised to contribute 8-10% to GDP by 2047 (up from 3% in 2023) and exports increasing significantly, the country could capture over 20% of global electronics production.

• Transforming Tech Services: AI, blockchain, and quantum technology are expected to extend beyond traditional outsourcing models, transforming global capability centres (GCCs) into hubs of innovation. The service sector—which includes energy, automotives, and chemicals—remains a fundamental pillar, likely accounting for 60% of GDP by 2047.

Strategic Imperatives and Workforce Dynamics

The report underscores the necessity for a multi-pronged approach:

• Innovation and Infrastructure: Enhanced domestic production, integration into the global value chain, and the creation of new clusters are essential. Investments in digital and transport infrastructure, coupled with collaborative R&D, are pivotal for sustainable growth.

• Skilling and Talent Development: With the demand for AI expertise predicted to more than double from 600,000 in 2024 to over 1.25 million by 2027, bridging the skill gap remains a critical priority. Workforce productivity, currently lagging behind benchmarks such as the US (where productivity is 17 times higher), must be elevated through strategic automation and upskilling initiatives.

• Adapting to Geopolitical Shifts: The rise of protectionism due to geopolitical tensions may necessitate a shift from conventional service exports toward integrated, innovative service delivery models focused on emerging markets and domestic consumption.

The Path Forward

Senior executives like Sangeeta Gupta from Nasscom and Lokesh Payik of Bain & Company argue that India's transformation into a high-income nation with a projected GDP of $23-$35 trillion by 2047 depends on a sectoral overhaul bolstered by technology and global partnerships. This transformation involves:

• Strengthening infrastructure and closing the skill gap
• Fostering innovation through sustained investments and international collaborations
• Enabling a smooth transition from being a net importer to a competitive, export-driven economy

By embracing these strategic imperatives, India aims to drive inclusive and sustainable growth, while simultaneously cementing its reputation as a pioneer in future technologies on the global stage.