Technology can help add $1 trillion to Indian GDP in 10 years: Noshir Kaka

Technology is changing at a pace never seen before in India and is intricately linked with the new wave of entrepreneurship sweeping across the country. And if channelled properly, technology can help unleash the true potential of the Indian economy, according to Noshir Kaka, MD of McKinsey India.  

Speaking at the 2015 Forbes India Leadership Awards on Wednesday evening, Kaka said McKinsey estimates incremental GDP growth of between $550 billion and $1 trillion in the Indian economy over the next 10 years if technology can be leveraged properly. “That is the single largest growth opportunity facing this business generation and it is enabled by technology,” Kaka said.  

“The incremental GDP growth possible (through use of technology) is equivalent to the share of the manufacturing sector in the Indian economy at present,” Kaka said. “It could be the creator of 10 million new, low-skilled jobs in the country.”  

Kaka pointed out that around 40 percent of all capital spent by businesses in the US was directed towards technology and that had, in turn, helped in more efficient use of capital. He cited the example of taxi-hailing application Uber and how the digital service had helped replace nine self-driven cars in the US for every Uber cab on the streets. This, according to Kaka, is an example of how technology helps in the creation of efficient capital.  

Financial services, education, health care, energy and agriculture are some of the areas where technology can help in creating additional economic value going forward, Kaka said.