The Indian Consumer Technology Industry: Revolutionising the Global Market with Innovation and Growth
By Mr. Rajeev Singh, Managing Director, BenQ India and South Asia
In recent years, India’s consumer technology industry has experienced rapid growth, reaching a market value of over $250 billion. Several interconnecting factors have catalysed this industry’s ascent, revolutionising India’s economic landscape and causing ripples across the global tech market.
Foremost among these growth drivers is the exponential spread of smartphone and internet connectivity. With over 500 million smartphone users and cheap mobile data plans, digital services have exploded as more Indians come online every day. Simultaneously, the rise of e-commerce has opened new channels for consumers to purchase goods and services. Led by increasing consumer demand, e-commerce majors like Flipkart and Amazon have achieved meteoric growth in India.
These trends have attracted significant venture capital investments. In 2020 alone, over $8 billion poured into India’s consumer internet and e-commerce companies from investors eager to tap into this high-growth market. The funds have created a burgeoning roster of Indian “unicorns” across spaces like fintech, hyperlocal delivery, and B2C e-commerce.
Beyond fat valuations, this industry holds meaningful socio-economic influence. As a job-creation engine, consumer tech drives employment for millions, especially young Indians. Experts also predict the industry’s contribution to India’s GDP will touch $800 billion by 2030, signalling its macroeconomic heft.
However, some challenges continue to temper the industry’s promise. Fierce competition creates thin margins, while constant regulatory interventions add uncertainty for consumer tech firms. To sustain growth trajectories, companies need to foster relentless innovation in business models and user experiences. By providing unique solutions, they can outcompete rivals in this dynamic battlefield.
Globally, India’s consumer tech ascent recasts the innovation map. The sector’s scale is inspiring international businesses to access the Indian market through partnerships. At the same time, made in India apps and services are finding ready adopters in emerging markets across Southeast Asia, Africa, and even some developed economies.
Domestically, the industry’s spill-over effects are uplifting broader socio-economic progress. Job creation, skilling programs, and productivity gains build up as the industry matures. Its emergence inspires young Indians to innovate and unlock their enterprising spirits. These positive externalities will compound over time, affirming the promise of Indian consumer technology companies.
With over 1.4 billion potential customers, India boasts unparalleled scale advantages. Coupled with rapid digitisation, globally competitive talent, and an enabling funding ecosystem, the ingredients are in place for consumer technology firms to penetrate overseas fronts. Already Indian companies are expanding beyond the domestic market with solutions targeted at international audiences.
India’s consumer technology industry has been a breakout act with impressive growth. Its valuation and funding allure, in tandem with its encroaching global influence, affirms its future growth prospects. As innovation and accessibility propel adoption, India’s consumer-tech engine looks set to enter a sustained period of ascendancy.