These technologies, used together, could account for 20-30 percent of India’s GDP growth between 2012 and 2025 and help millions achieve a better quality of life, says McKinsey report.
New research by the McKinsey analyses twelve technologies, ranging from the mobile Internet to cloud computing to advanced genomics that could have a profound impact on growth and social progress and add $550 billion to a trillion dollars a year of economic value in India by 2025.
Technologies that digitize life and work: the mobile Internet, the cloud, the automation of knowledge work, digital payments, and verifiable digital identity.
Smart physical systems: the Internet of Things, intelligent transportation and distribution systems, advanced geographic information systems (GIS), and next- generation genomics.
Technologies for rethinking energy: unconventional oil and gas (horizontal drilling and hydraulic fracturing), renewable energy, and advanced energy storage.
“The spread of digital technologies, as well as advances in energy and genomics, can be one of the most dominant drivers of productivity in India, redefine how basic services are delivered, and contribute to higher living standards for millions of Indians by raising education levels and improving healthcare outcomes,” says Noshir Kaka, MD of McKinsey & Company in India.
To assess the potential impact of the 12 technologies on the economy of India and the lives of its people, MGI sized more than 40 applications in six sectors of the economy: financial services, education and skills, healthcare, agriculture and food, energy, and infrastructure.
“The combined economic impact of the 12 technologies in 2025 could be up to six times the current economic value of the Indian IT industry. They can contribute as high a share of the national economy as the entire manufacturing sector does today,” says Anu Madgavkar, a senior fellow at the McKinsey Global Institute based in Mumbai.
Financial services. Disruptive technologies offer an opportunity to address persistent challenges such as lack of financial inclusion; just 36 percent of Indians have a bank account. Technology applications such as mobile payments can help as many as 300 million Indians gain access to banking services and could raise their incomes by 5 to 30 percent due to better access to credit and the ability to save and make remittances.
Education and skills. School performance can be improved through e-administration, digital identity-based attendance systems, and online teacher certification and training. Blended learning with MOOCs (massive open online courses) can bring high-quality courses to students, and learning simulations can boosthands-on training in nursing and other disciplines.
Health care. Disruptive technologies could transform delivery of public health services by 2025. Using Internet of Things tracking systems to curb counterfeit drugs could be worth as much as $15 billion per year. The total value of empowering technologies in health care could be $25 billion to $65 billion per year in 2025.
Agriculture and food. Hybrid and genetically modified crops, precision farming (using sensors and GIS-based soil, weather, and water data to guide farming decisions), and mobile Internet-based farm extension and market information services can help create more than half the $45 billion to $80 billion per year in additional value the sector could realize in 2025.
Energy. Globally disruptive energy technologies can help India diversify its energy supply. These include unconventional oil and gas, solar technology, and both grid and off-grid and offshore renewable energy sources like wind, solar, and seaweed bio-fuels. Advanced metering infrastructure, low-cost energy storage devices, and conservation technologies can capture efficiencies along the value chain.
Infrastructure. Use of RFID tags and other tracking technologies can automate terminal and warehouse management, raising efficiency by 50 percent. Using sensors, leakage in water systems can cut by 15 to 20 percent, helping reduce water shortages. Project-management systems and next-generation building technologies (extensive use of factory-made prefabricated parts, for example) can help India deliver ten million affordable homes by 2025. Together these infrastructure technologies can contribute $30 billion to $45 billion per year in value in 2025.