All major economies have been under distress due to the Ukraine war, stress in supply chains, post-COVID pressures, and banking crises in the US and Europe. Notwithstanding these challenges, the Indian economy will grow between 6.5–7.0% in the next 12 months. This means that India will retain its tag of the fastest-growing large economy in the world.
The Indian government has taken steps to ensure that these macroeconomic factors do not have a negative impact on the Indian economy by announcing a slew of measures. It has launched initiatives such as the Digital Public Infrastructure for Agriculture, Sahakar Se Samriddhi, National Digital Library, and a national financial information registry to ensure growth across different sectors of the economy.
It is taking specific initiatives to push digitalization efforts in the country, which include finalizing a National Data Governance Framework Policy, establishing a Center of Excellence for AI, and a DigiLocker for micro, small, and medium-size enterprises. Initiatives such as the ONDC (Open Network for Digital Commerce), CBDC (central bank digital currency), and UPI (Unified Payments Interface) are set to revolutionize the retail and banking sectors in India.
These macroinitiatives, along with digitalization, user experience improvement, platform modernization, AI adoption, tech debt reduction, and an increase in software-as-a-service adoption at the business and IT levels, will significantly impact tech spending in India.
India is also seeing an increase in cloud adoption, technology-driven business innovation, a focus on improving employee experiences, and a drive to use technology as a tool to remain competitive in the market.
Read my latest report, India Tech Market Outlook For 2023 And 2024, to know the impact of these macro- and microeconomic factors on tech spending in India.