Digital transformation to contribute $154 bn to India's GDP by 2021: Report

Digital transformation is expected to contribute about $154 billion to India's gross domestic product (GDP) by 2021, according to a report.

"In 2017, about 4% of India's GDP was derived from digital products and services created directly through the use of digital technologies like mobility, cloud, internet of things (IoT), and artificial intelligence (AI),” Microsoft India president Anant Maheshwari said while releasing the findings of a study by Microsoft and IDC.

By 2021, 60% of India’s GDP will be driven by digital transformation trends.

"India is clearly on the digital transformation fast track. Organisations are increasingly deploying emerging technologies such as AI, and that will accelerate digital transformation-led growth even further," he said.

Besides, digital transformation is expected to add 1% compound annual growth rate (CAGR) GDP growth annually by 2021.

“Digital transformation has increased productivity, customer advocacy,cost reduction, revenue from new products and services as well as profit margin.These benefits will also improve by atleast 40% in three years,” according to the report 'Unlocking the economic impact of digital transformation in Asia Pacific'.

There has been a dramatic acceleration in the pace of digital transformation across India and Asia-Pacific economies.

The study was conducted with 1,560 respondents from mid and large-sized organisations across 15 economies.The digital transformation efforts for organisations range between 11 per cent and 14%, according to the report. It said 90% of organisations in India are in the midst of their digital transformation journey.