‘India to lose $118bn in GDP, 5mn jobs by 2026 if it lags in cloud adoption’

India might stand to lose $118 billion in GDP contribution and 5 million job alternatives by 2026, if companies and authorities are late to cloud adoption, stated business physique Nasscom in a latest report.

The newly launched report titled: “Future of Cloud and Its Economic Impact: Opportunity for India”, said that limited understanding of cloud features and benefits, integration issues with legacy systems and lack of in-house capability to drive transformation across industries, are posing serious threats to cloud adoption.

Further, with global players heading towards new cloud-based systems like 3D printing, IoT, Robotic automation, slow or low adoption, and more, may result in Indian industries losing competitive edge and in turn India losing its attractiveness among investors, expats and new businesses.

If they can overcome these challenges, there’s a huge potential ahead, aid Nasscom. Large scale Cloud adoption can contribute $380 billion to India’s GDP and add 14 million direct and indirect employment opportunities by 2026, it said.

Nasscom leaders also stressed that a concerted all-round effort can result in a sustained growth of 25%-30% of cloud spending over the next five years to reach $18.5 billion. Moreover, with increased digital transformation initiatives across enterprises, governments and SMBs today, adoption of Cloud has the potential to account for over 8% of India’s GDP in the next five years.

On the positive side, the Indian cloud market has outpaced global market in terms of growth rate. Factors such as growing digital population, inflow of investments, digitization of enterprises and favourable government policies, are accelerating India’s cloud growth.

“Cloud adoption brings immense potential across multiple facets like economic growth, digital inclusion, employment, and global technology edge,” stated Debjani Ghosh, President Nasscom.

However, she added that to make sure massive scale adoption of cloud and cloud-based companies, multi-stakeholder collaboration to deal with mindset challenges and perceptions in cloud adoption are important.

Ghosh additionally pressured on “incentivising SMBs to transition to cloud, quickly scaling expertise by means of re-skilling and up-skilling applications and amending cloud associated insurance policies to ease cloud deployments” for India to realize a aggressive edge in cloud.

The report additional advisable that for India to place itself as a worldwide hub for cloud companies and cloud expertise, stakeholders have to take main initiatives throughout cloud adoption, expertise constructing and regulatory assist.

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