'India's Digital economy poised for strong 2023'

New Delhi: India's digital prowess will grow in 2023 and over the next five years, driven by technology, start ups, semiconductors, electronics and computing, Minister of State for Electronics and IT Rajeev Chandrasekhar has said allaying any concerns over tech winter, and predicting spring for the country's booming innovation ecosystem.

The comments by the IT minister are significant given the backdrop of slowdown headwinds in the West, recent spate of layoffs by US tech giants, global market turmoil, and talks of tech winter.

The minister said that global and domestic opportunities for digitisation continue to be "very strong". He exuded confidence that India's trillion dollar digital economy vision is "well within our grasp" and "an absolutely incontrovertible fact".

The momentum of digital economy will continue in 2023, backed by enabling rules and laws that offer catalysing framework for technological growth and innovation, he promised.

It is pertinent to mention here that while India has tightened IT rules for safety of digital and social media users, and work has started on new law for data protection, the norms for online gaming and contours of the draft Digital India Act are expected to be out soon.

"We see no winter...if anything, it is summer and spring for the next five years," Chandrasekhar asserted, citing the tech potential.

Demand for Indian talent, as well as products and technology that are designed in India and Made in India continues to be robust, he pointed out.

"India as a market for consuming digital products and digital services is one of the biggest markets for the next 5-10 years. So all these (factors) point to India continuing its digital economy expansion to reach one trillion dollars in the next 4-5 years," Chandrasekhar said.

According to the minister, innovation and the start up momentum will continue despite certain corrections now and then.

At the same time, companies cannot merely sit and relax, but will have to upskill and brace new business models to be relevant amid market disruptions, the minister noted.

Companies that do not innovate with agility, or adjust to changes will face challenges "created not by the market, but related to their own preparedness for this digital opportunity," he cautioned.

"...that trillion dollar digital economy is well within our grasp, and that we have a very reasonably high opportunity to reach the trillion dollar digital economy, firing on all cylinders, is an absolutely incontrovertible fact," Chandrasekhar said.

Since 2014 when India's digital might meant only IT and IT enabled services, the country had taken rapid strides, diversifying and expanding into new areas.

Now while IT and ITES sector continues to grow at 15-20 per cent per annum, there is also world-class startup and innovation ecosystem.