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Special Content


Issue no 37, 14 - 20 December 2024

India’s Network Readiness Indicates a Thriving Digital Era Ritesh Kumar The Network Readiness Index (NRI) 2024 report, where India has ascended eleven ranks to secure the 49th position globally, is a significant milestone in the country's digital and economic journey. Independently published by the Portulans Institute, the report evaluates the technological, social, and governance frameworks of 133 economies, making India's advancement to 49th position from its 61st position in 2023 a noteworthy achievement. India's progress is particularly evident in its technology sector, where it ranks 34th globally-boosted by robust international internet bandwidth and a leadership position in AI scientific publications. This rise signals the success of India's digital transformation initiatives, driven by an increasing number of innovative startups and enhanced government support for emerging technologies. NETWORK READINESS INDEX 2024 Category India's Rank Details/Comments Overall Rank (2024 Net- 49th out of 133 India has climbed 11 positions from work Readiness Index) 61st in 2023 to 49th in 2024. Key Areas Where India Leads AI Scientific Publications 1st globally India is the global leader in AI scientific publications. International Internet 2nd globally India ranks second globally in inter- Bandwidth national internet bandwidth. Public Cloud 11th globally India is 11th in the global public cloud Computing Market computing market. FTTH/Building Internet 2nd globally India ranks second globally, show- Subscriptions casing advanced infrastructure efforts in Fiber-to-the-Home (FTTH) and buil- ding internet subscriptions. Mobile Broadband 2nd globally India ranks second for mobile broad- Traffic band internet traffic, highlighting its robust mobile internet connectivity. Key Challenges (Lags) Governance 88th India faces significant challenges in governance, regulatory frameworks, and digital inclusion. Future Technologies 52nd India ranks 52nd, indicating the need for a stronger focus on emerging technologies. Online Financial Access 119th India ranks poorly in online financial access, reflecting limited access to digital financial services and a high gender gap in internet use (105th). Comparison with Other Economies Developing Economies India (49th) is closely followed by Vietnam (45th) and the Philippines (63rd). Upper-Middle-Income India faces significant competition from China (17th) and Peers Malaysia (36th), which showcase more advanced digital frameworks and policies. Key Factors Contribu- India's rise is driven by advancements in AI, bandwidth, ting to India's Rise mobile broadband, and infrastructure. These improve- ments highlight significant advancements in technology, digital infrastructure, and education in ICT, enabling a stronger digital economy. Analysing India's Strengths in NRI 2024 The country's strengths span multiple dimensions, underlining its growing influence in the global digital landscape. Robust AI Ecosystem: India is a powerhouse in Artificial Intelligence (AI), ranking 1st globally in AI scientific publications and AI talent concentration. This remarkable achievement signals a thriving research and development environment in AI, positioning India as a leader in the field. India also excels in international internet bandwidth (2nd globally) and Fiber to the Home (FTTH)/building internet subscriptions (2nd globally), demonstrating its robust infrastructure and the expansion of high-speed internet services. These factors not only strengthen the country's digital backbone but also pave the way for faster digital transformations. Market Scale: India's domestic market scale ranks 3rd, highlighting its massive consumer base, which drives a thriving digital economy. This extensive market supports a wide array of digital services, ranging from e-commerce platforms to fintech innovations, making it one of the largest and most dynamic digital markets in the world. The expansive market also attracts significant foreign investment, fueling further technological growth. Digital Services: India stands 1st globally in ICT services exports, reflecting its strong presence in the global information and communication technology ecosystem. The country's talent pool, alongside its technical capabilities, allows India to dominate the outsourcing space, offering services such as software development, IT support, and digital consulting to businesses worldwide. This leadership in ICT services is a testament to India's growing influence in the global digital economy. Public Cloud Computing: India ranks 11th globally in public cloud computing, signaling the country's growing prowess in cloud infrastructure. The rise of cloud computing is a game-changer for businesses across sectors, enabling them to scale operations, store data efficiently, and enhance service delivery. India's strong position in this sector highlights the increasing adoption of cloud technologies, particularly as businesses seek digital transformation solutions. Individuals and Businesses: The 'People' pillar of the NRI places India at 29th, with significant strengths in business digitisation (36th) and the availability of digitally skilled individuals (17th). India is rapidly equipping its workforce with the necessary digital skills, which is essential for supporting the digital economy. The country's growth in business digitisation indicates a robust shift towards more digital and technology-driven business models. Government Support: Government of India has actively fostered an environment conducive to innovation, ranking 42nd in the NRI's government support category. Policies supporting the adoption of emerging technologies, such as AI, blockchain, and 5G, underscore the government's commitment to accelerating digital growth. Initiatives such as Digital India and Startup India have further empowered digital startups, creating a thriving ecosystem for innovation and technological advancement. Driving Factors Behind India's Digital Advancement India's improvement in the Network Readiness Index (NRI) is a direct outcome of visionary policies and strategic infrastructure investments. Key driving factors include: 1. Spectrum Reforms and Ease of Doing Business: Reforms concerning spectrum pricing, allocation, and management have significantly enhanced investor confidence. By creating a clearer regulatory framework, these reforms have encouraged competition among telecom providers. This competition is a catalyst for innovation, driving companies to develop new services and technologies that improve connectivity and user experiences, thus creating a more vibrant digital ecosystem. 2. Expansion of Rural Connectivity: Initiatives under the Digital India programme, particularly BharatNet, have made substantial strides in bridging the rural-urban digital divide. Over the past decade, the number of internet subscribers has dramatically increased from 25.1 crore to an impressive 94.4 crore. This expansion has empowered rural populations by providing access to online education, e-governance services, and economic opportunities, thereby fostering inclusive growth and digital literacy in underserved areas. 3. 5G and Bharat 6G Vision: The rapid adoption of 5G technology has catapulted India to a leading position in global rankings for mobile broadband speeds, improving from 118th to 15th place. This milestone not only enhances user experiences with faster and more reliable internet but also lays the groundwork for advanced applications in various sectors, including smart cities and telemedicine. Furthermore, the ambitious Bharat 6G Vision aims to position India at the forefront of the next technological revolution, focussing on developing next-generation communication technologies that can support evolving digital needs. 4. Focus on Emerging Technologies: The Government of India and private sector are making significant investments in emerging technologies such as the Internet of Things (IoT), blockchain, and Artificial Intelligence (AI). These investments are key to equipping India to innovate solutions for pressing global challenges, including climate change, rapid urbanisation, and public health crises. By harnessing these technologies, India not only addresses domestic issues but also positions itself as a contributor to global technological advancements, emphasising sustainable development and resilience in the face of future challenges. These driving factors collectively contribute to India's robust digital transformation, fostering an environment ripe for innovation, competition, and sustainable growth. Economic Implications of Improved Network Readiness Attracting Investments: India's rise in the NRI signals its readiness to attract international investment in telecom, IT, and AI-driven industries. It aligns with the government's push for Make in India and Startup India initiatives, enhancing its position as a global manufacturing and innovation hub. Boosting Employment: The emphasis on ICT services, AI, and telecom innovation is generating high-skill jobs, particularly in emerging fields like data analytics, cloud computing, and AI development, helping meet India's demographic dividend. Facilitating Financial Inclusion: Increased mobile broadband penetration and affordable internet have empowered underserved communities, driving the adoption of digital payments and fostering entrepreneurial activity in rural areas. Enhancing Global Competitiveness: India's leadership in ICT exports and AI innovation reinforces its status as a critical player in the global technology ecosystem, enabling greater participation in global value chains. What This Augurs for India's Development Agenda India's continued digital evolution offers immense potential not only in bolstering its economic growth but also in directly contributing to the United Nations' Sustainable Development Goals (SDGs). The integration of AI and digital technologies into sectors such as agriculture, healthcare, and urban planning will help create inclusive growth, empower communities, and reduce disparities across regions. By continuing its focus on infrastructure development, digital inclusion, and innovation-driven growth, India is poised to become a global leader in using technology to achieve sustainable and equitable development. By leveraging its strengths in ICT and AI, India can address critical challenges like unemployment, education inequality, and healthcare access. The country's growing digital infrastructure and leadership in AI can play a transformative role in creating solutions that directly impact key areas of development. This development aligns seamlessly with India's broader goals under its Amritkaal (India@100) vision. It reaffirms the nation's focus on creating a digitally empowered society and knowledge economy, as envisioned in initiatives like Digital India and Atmanirbhar Bharat. Using AI and Data Analytics for Precision Agriculture: India's agricultural sector employs around 50% of the country's workforce, but productivity remains relatively low compared to global standards. Leveraging AI, machine learning, and data analytics can improve agricultural productivity by offering precision farming tools. These technologies can optimise irrigation, soil management, and pest control. According to a report by the International Food Policy Research Institute (IFPRI), AI-powered agriculture in India could boost crop yield by 15-25%, while increasing farmers' incomes by up to 30%. Additionally, with 60% of India's farmers depending on monsoon rainfall, AI can help forecast weather patterns more accurately, reducing crop failure risks. Expanding Telemedicine Initiatives to Deliver Affordable Healthcare: Healthcare accessibility in India, particularly in rural areas, is a persistent challenge, with only 1.3 doctors for every 1,000 people. The Telemedicine Society of India estimates that the telemedicine market in India could grow to $5.5 billion by 2025, thanks to advancements in digital connectivity and AI-based diagnostics. With more than 500 million people in rural regions, telemedicine can bridge this gap by offering remote consultations, healthcare monitoring, and diagnostics, thus lowering healthcare costs and improving treatment reach. The government's Ayushman Bharat Digital Mission aims to create a unified digital health infrastructure, which could revolutionise healthcare delivery across the nation. Enhancing Smart City Projects with Cutting-Edge IoT and Broadband Solutions: India's urbanisation is expected to accelerate, with urban populations projected to reach 600 million by 2031, according to UN Habitat. The expansion of smart cities, powered by IoT and high-speed broadband connectivity, is crucial to improving urban living standards. Initiatives like the Smart Cities Mission are already transforming 100 cities across India, with a focus on sustainable infrastructure, intelligent traffic systems, and efficient public services. With over $10 billion allocated for smart cities development, these projects aim to reduce traffic congestion, improve waste management, and provide better water supply and sanitation, leading to enhanced living conditions and a boost to local economies. A study by the Asian Development Bank (ADB) projects that smart city investments could create over 10 million jobs by 2030, enhancing both the economy and quality of life in urban areas. Challenges and Opportunities Ahead Challenge Opportunity Bridging the Last-Mile Despite impressive strides in expanding digital infra- Connectivity Gap structure, gaps persist, especially in rural and remote areas. Nearly 30% of the rural population lacks reliable internet access, limiting participation in the digital eco- nomy. BharatNet Project aims to connect over 2.5 lakh gram panchayats with high-speed broadband. Over 94.4 crore internet users in India could benefit from improved access to digital services, e-governance, and e-learning, fostering growth and bridging the rural-urban divide. This also offers opportunities for entrepreneurship and market expansion in underserved communities. Cybersecurity and Data With rising digital connectivity, the threat of cyberattacks Privacy is increasing. These vulnerabilities need urgent attention. India's cybersecurity market is expected to reach $3.6 billion by 2025. Government initiatives like the National Cyber Security Strategy 2020 and the Personal Data Protection Bill aim to strengthen security. The demand for cybersecurity professionals will rise, offering job and training opportunities. Skilling and Reskilling Emerging technologies like AI, blockchain, and 5G the Workforce require a digitally skilled workforce. Over 60% of India's workforce lacks digital skills, creating a gap between demand and supply for tech talent. India's National Education Policy (NEP) 2020 targets equipping 100 million youth with digital skills by 2030. The National Skill Development Mission (NSDM) and private-sector programmes, including coding bootcamps, are addressing this need. Growing focus on fields like AI, data science, and cloud computing offers employ- ment and entrepreneurial opportunities. Regulatory Framework India's governance is ranked 88th globally on the NRI and Governance 2024, with fragmented policies and regulations for emerging technologies like blockchain and AI, hindering innovation and digital adoption. There are many legislative and policy reforms in the pipeline that aim to create a favorable environment for innovation while ensuring data privacy and security. Regulatory sandboxes for fintech and AI are encouraging experimentation, fostering more agile policy responses. Clearer frameworks will boost foreign investment and support startup growth. Conclusion India's rise in the Network Readiness Index is a result of its comprehensive approach to digital transformation, though challenges remain in areas like connectivity, cybersecurity, and workforce skills. With the right policies, investments in infrastructure, and a focus on governance, these challenges can be turned into opportunities for sustainable growth and a more inclusive digital economy. Through continued collaboration between the government, industry, and citizens, India can not only overcome these hurdles but also solidify its position as a global leader in the digital space. (The author is correspondent of an international multimedia platform. Feedback on this article can be sent to feedback.employmentnews@gmail.com) Views expressed are personal.