For the last 20 years or so, Information Technology services were creating multiplier effect and acting as growth drivers in the economy. Now that growth in IT is slowing down, a substitute is needed urgently.
Mr. Tarun Malaviya, CEO and Co-founder, Mithi Software Technologies, writes for Swarajya Magazine, talking about the lack of a primary engine to drive economical growth and the in depth work that is necessary to build our competitiveness in the world’s markets.
Excerpts from the article are below:
Prime Minister Narendra Modi continues with many micro-economic initiatives that he hopes will aggregate to a big enough positive impact overall on the economy.
On the list are a number of initiatives in the railways, power, connectivity, roads, irrigation, digitisation, urban mass transportation etc. Several big and small measures like direct benefit transfer (DBT), demonetisation, goods and services tax (GST) etc are either in place or are underway to plug the leaks and wastage in the system and to mobilise resources for creating assets for common use and improving underlying efficiencies.
The economy today lacks a primary engine that can drive growth. For much of the last 20 plus years, IT services export acted as one of the primary drivers for growth. There seems to be no such growth driver in play at the moment with IT services growth slowing down considerably as it enters a huge restructuring phase. Replicating the success of IT services into other service areas had limited success.
New opportunities have appeared in the form of the world moving to greener options for transportation and energy, digitisation of the economy, robotics, greener lifestyles etc, and we cannot afford to miss them.
If the government can create a vibrant market for the private enterprise to participate in initiatives such as smart cities, bullet train, digital India etc. it will be providing one of the most critical elements for seeding the creation of huge future market opportunities for the Indian enterprise.
Read the full article here.