By Mr. Sachin Bhalla – VP & Country GM, Secure Power, Schneider Electric India and SAARC
In the last few years, India has made significant strides towards becoming a digital economy. Not only have common people turned into a tech-savvy generation, but companies functioning across sectors have also embraced digital technologies to augment operations and enhance consumer experiences. While the fast penetration of the internet and affordable smartphones enabled people to avail digital technologies, cutting-edge tech solutions empowered businesses to enhance their capabilities, optimise resources, and reduce input costs.
Thanks to its outstanding tech prowess, India developed a host of IT solutions, including software, hardware, networks, and propelled IT infrastructure development. They have created the foundation upon which digital technologies and applications are built and operate. The country has empowered businesses with the requisite IT services to run their operations seamlessly.
Most importantly, the rapid growth of data centres has fuelled the growth of Indian businesses while allowing them to utilise the immense potential of digital technologies. The segment has grown tremendously in the last few years, occupying 11 million square feet (msqft) in 2023 as compared to 2.7 msqft in 2017. They have enabled businesses to store, assemble, process and distribute a humongous amount of data and harness their capabilities. These are the reasons why companies have shown increased interest in employing digital technologies.
As a result, a major chunk of Indian companies has emphasised the implementation of digital technologies. According to the International Data Corporation (IDC), around 69% of the companies recognised themselves as digital businesses that possess a well-developed digital infrastructure and are pursuing advanced technologies. The same report also highlights that another 9% of the companies have been running their operations digitally since their inception. These numbers are indeed encouraging; however, we need to augment our actions to turn more companies into digitally operated businesses in order to swiftly march towards the ambitious targets of India@100.
Industries contributions to boosting IT infrastructure
The success India has achieved in advancing IT infrastructure until today is because of the significant contributions of various industries and their consistent emphasis on research and innovation. For instance, the telecommunication sector has tremendously improved digital connectivity and efficiency and made access to digital services for millions easier. People are today availing the benefits of online services offered by various sectors, such as education and healthcare.
The software industry has also facilitated the expansion of digital services with their path-breaking solutions. It has designed advanced software for banking, e-commerce, gaming, and other industries and allowed them to reach to a huge consumer base. This has empowered businesses to provide services to consumers digitally and quickly, resulting in enhanced ease, comfort, and trust of consumers.
Most critically, the data centre sector has played an instrumental role in improving the infrastructure. The vast amount of data generated by businesses every day holds immense potential to drive business expansion. The sector has augmented its efforts. As of November 2023, the number of data centres in India was 151. This has served many industries; however, the sector needs to grow much more. The sector has also emphasised sustainability while developing data centres, which is commendable as India strives to attain higher energy efficiency and accomplish the goal of net zero by 2070.
Challenges ahead
Despite the progress made until today, significant challenges persist in the path of digital infrastructure. Inadequate connectivity in rural areas presents a formidable challenge. Companies are unable to tap markets in these regions, while consumers are unable to reap the benefits of digitalisation. Moreover, the increasing incidence of cyber threats discourages people and businesses from availing opportunities present in the digital space. Additionally, a widening digital divide and intensifying socio-economic inequalities create obstacles in the path of digital transition.
It is important to address these challenges to drive growth. The stakeholders must focus on fostering accessible, secure, and sustainable IT solutions. The actions are being taken in this regard. India is fast bridging connectivity gaps, developing robust cybersecurity measures, and promoting digital literacy. We just need to intensify our efforts. Moreover, we also need to integrate sustainability into every strategy in order to achieve higher energy efficiency. Besides, responsible e-waste management and reducing the carbon footprint associated with digitalisation should also be placed in our priorities. This approach will help us utilise the true potential of technologies and thrive while safeguarding our environment.
Conclusion
Today, when India strives to achieve several developmental and environmental targets, the role of IT infrastructure becomes crucial, demanding concerted actions towards creating a robust ecosystem. It requires huge investments to develop technology and ensure efficient operations. India must focus on harnessing its vast renewable energy potential to power data centres and hardware manufacturing units. Moreover, it will have to identify the challenges of industries and come up with customised solutions. It is time for stakeholders to come together and make collective efforts towards realising the full potential of technologies to propel sustainable development.
