India’s core digital sectors could double by 2025: UN

India’s core digital sectors could double in size by 2025: UN

India’s core digital sectors such as IT and business process management, digital communication services, and electronics manufacturing could double in size by 2025, according to a UN estimate.

The estimate produced in a UN report said India’s fast-growing telecom and digital space, in particular, could see a faster rebound as global venture capital firms and technology companies continue to show interest in India’s market through acquisitions.

Facebook and Google’s investments worth $5.7 billion and $4.5 billion respectively in Jio Platforms in 2020, are a testament to this trend.

It said India’s economy could prove the most resilient in the sub-region over the long term. FDI inflows have been steadily increasing, albeit lower economic growth after the pandemic and India’s large market will continue to attract market-seeking investment, the report titled ‘Foreign Direct Investment Trends And Outlook In Asia And The Pacific 2020/2021’ compiled by United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) said.

It said the investment to India has evolved from information technology services for Multinational enterprises (MNEs) to the thriving local digital ecosystem where many domestic players, especially in e-commerce, have attracted considerable international investment.

It also acknowledged India’s number of noteworthy investment policies and measures since 2019 that include the relaxation of limits to FDI in the insurance sector, which abolished ownership ceilings for FDI insurance intermediaries, liberalisation of FDI rules that ended equity caps in several sectors including coal and lignite mining, contract manufacturing and single-brand retail trading.