Mckinsey has come out with a report on the impact of digital transformation on China.
Internet is not merely a tool for automation and efficiency; it also expands markets rapidly. Greater adoption of web technologies in China could lead to the introduction of entirely new products and services if government and industry take the right steps to maximize the potential.
The Internet’s impact on productivity and growth could fuel some 7 to 22 percent of China’s incremental GDP growth through 2025, depending on the rate of adoption. That translates into 4 trillion to 14 trillion renminbi in annual GDP in 2025.
Same contribution is possible in India. Digital India programme spread over many years, can contribute to 20% of India's incremental GDP. Indian GDP currently about $2 trillion can reach up to $7 trillion. This means, digital India can contribute up to $1 to 1.25 trillion by 2025. Digital India requires that new products are produced, new skills are learned by Indian engineers and graduates and many new innovations take place.
Internet of thins is an important new development in this regard. It is expected to contribute $11 trillion by 2025 to global economy.How much of it will be produced in India is an important question.