November 22, 2017

Digital Economy: The great Indian leapfrog

g_101105_digital_280x210.jpg... The digital economy, with its ultra-low start-up costs, immediate access to a massive consumer market, and ability to test and fail cheaply has allowed firms to bypass the hurdles that traditional businesses have faced in India. If moving from farming to factories provided massive productivity gains for countries like China, the leap from agriculture to apps promises even greater dividends.

... digital transformations of entire industries has meant that the lowest cost providers do not necessarily come out ahead, nor is low cost a necessary condition for success. Convenience, innovativeness and emotional connections are often stronger drivers of success in this era. Creating valuable and relevant brands is no longer the purview of wealthy multinationals alone, but also possible for maverick upstarts who may better understand the digital realities and millennial consumer preferences.

The mobile revolution in India, which has seen the sector add a billion subscribers in a dozen years (2005-2017) has created the baseline digital infrastructure needed for this leapfrog. Already, two thirds of the country’s internet traffic passes through mobile devices.


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