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Digital India plan could boost GDP up to $1 trillion by 2025: McKinsey

The Economic Times:  December 17, 2014

New Delhi: Research firm McKinsey has said that the adoption of key technologies across sectors spurred by the Digital India initiative could help boost India's GDP by $550-billion to $ 1-trillion by 2025.

The New York-based company sees an opportunity in digital technologies and smart physical systems, and said that government's ambitious Digital India initiative would have significant impact on technology adoption.

"PM Narendra Modi's ambitious Digital India plan will give priority to technology trends and help the country with 20-30% incremental GDP by 2025," Noshir Kaka, managing director at McKinsey & Company India told reporters.

"There will be an additional impact of $550 billion to $ 1 trillion on the India economy annually by 2025 with the adoption of significant technologies across financial services, healthcare, agriculture, energy, infrastructure and education sectors.

McKinsey is bullish over adoption of mobile Internet, cloud technology, digital payments, digital identity, Internet of Things, intelligent transportation, advanced geographic information system and next generation genomics.

The painpoints, according to McKinsey, include affordability of devices, availability of infrastructure, digital literacy and local content.

In November, McKinsey Chief Executive Dominic Barton said that India has come back on the priority list of most of the corporate decision makers after Narendra Modi came to power.

The whiteshoe consulting firm projects India's mobile Internet users to reach somewhere between 700 to 900 million with almost equal number of smartphone owners.

"Some gaps such as infrastructure and standards need to be fixed besides last-mile connectivity to boost the digital economy," R Chandrashekhar, Nasscom president and former telecom secretary, said.

Chandrashekhar stressed upon the need for appropriate legislation and regulatory environment and incentivizing digital initiatives to facilitate the sector.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.