According to a report by NASSCOM, large-scale adoption of cloud has the potential to contribute $380 billion to India’s gross domestic product (GDP) and create 14 million direct and indirect employment opportunities by 2026.
As per the report, the Indian cloud market has outpaced the global market in terms of growth rate, with a compound annual growth rate (CAGR) of 44 per cent, driven by a growing digital population, inflow of investments, digitisation of enterprises and favourable government policies.
However, the report warns that India may lose $118 billion in GDP contribution and five million job opportunities by 2026 if cloud adoption is delayed by businesses and the government. With global players heading towards new systems such as 3D printing, internet of things (IoT), and robotic automation, slow or low adoption in cloud may result in Indian industries losing a competitive edge and losing attractiveness among investors and businesses.
Further, the report asserts that the shift to cloud in India is playing a pivotal role in enabling Indian businesses and government to accelerate their digital transformation journey through infrastructure, platform, and software solutions. Large-scale cloud adoption can fundamentally improve citizen services and drive digital inclusion in areas of healthcare, access to financial services and democratise education for all. Cloud-based initiatives such as MyGov Saathi, Curfew ePass, Covid-19 repository, Aarogya Setu and CoWIN are a few examples of the role of cloud in enabling the timely launch of services by the government. Cloud adoption can also stimulate innovation and contribute to India’s Global Innovation Index.
The report suggests that an all-around effort can result in sustained growth of 25-30 per cent of cloud spending over the next five years.
