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Post pandemic, it is time to relook at the digital opportunity in India.
We are on the cusp of a once-in-a-lifetime transformation of our Nation.
A thread from my conversation with @NandanNilekani on @FoundingF
We are on the cusp of a once-in-a-lifetime transformation of our Nation.
A thread from my conversation with @NandanNilekani on @FoundingF
2/n The digital *consumption* economy (YouTube, Netflix, Facebook) in India will get dwarfed by the digital *transaction* economy (payments, shopping, digital services).
The change is happening as we speak.
The change is happening as we speak.
3/n Why?
The digital infrastructure in the West was built on advertising. Over 200B$ flows through their digital economy via ads.
In contrast, Indiaâs ad spend is small.
(Digital 3B$. Total 10 B$). Digital consumption, while growing rapidly cannot power the ecosystem.
The digital infrastructure in the West was built on advertising. Over 200B$ flows through their digital economy via ads.
In contrast, Indiaâs ad spend is small.
(Digital 3B$. Total 10 B$). Digital consumption, while growing rapidly cannot power the ecosystem.
4/n Indiaâs future will be led by the transaction-led boom (low-cost, high-volume, small ticket size transactions).
Covid has brought this digital infrastructure to the fore and now itâs ready for phase2 with auto-debit & embedded lending
Covid has brought this digital infrastructure to the fore and now itâs ready for phase2 with auto-debit & embedded lending
5/n Indiaâs telecom boom kicked off on the back of creating pre-paid transactions.
The Telcos went into the nooks & corners of the country and activated customers.
This was pre-Aadhaar, with limited trust & lending history, we had no choice but to ask people to pay first.
The Telcos went into the nooks & corners of the country and activated customers.
This was pre-Aadhaar, with limited trust & lending history, we had no choice but to ask people to pay first.
6/n Now we are ready to become a post-paid economy.
Trust, Identity and payment layers have been built and digital transaction infrastructure is processing billions of transactions a month.
Trust, Identity and payment layers have been built and digital transaction infrastructure is processing billions of transactions a month.
7/n With the UPI + Identity rails it will be possible to create âembedded lendingâ and this will be transformational.
This will drive a huge cycle of consumption and growth - credit will be frictionless and accessible to everyone.
This will drive a huge cycle of consumption and growth - credit will be frictionless and accessible to everyone.
8/n A small business will be able to send its GST data to a lender for diligence.
People would be able to offer their own transaction data through RBIâs account aggregator to access credit facilities.
People would be able to offer their own transaction data through RBIâs account aggregator to access credit facilities.
9/n The opportunity is not just within India.
Thereâs an âIndia for the Worldâ opportunity too.
We are already seeing what Indian SaaS companies are doing. Sitting out of India, coding for the world - we have a huge talent & cost arbitrage.
Thereâs an âIndia for the Worldâ opportunity too.
We are already seeing what Indian SaaS companies are doing. Sitting out of India, coding for the world - we have a huge talent & cost arbitrage.
10/n India can be an agent for digital transformation for the world
The question is how to make most of it? What should CEOs of large firms do? What should entrepreneurs do? What should the Government do?
The question is how to make most of it? What should CEOs of large firms do? What should entrepreneurs do? What should the Government do?
11/n Large incumbent firms: Now is the time to realise its Digital or Die.
Digital canât be a side project for you anymore. It has to be THE PROJECT.
Digital canât be a side project for you anymore. It has to be THE PROJECT.
12/n The companies that did well during the pandemic had âoptionality in strategyâ.
They had multiple ways to reach & serve the customer.
Restaurants were closed. But McDonalds was still booming. Because they had a drive-thru and home-delivery.
They had multiple ways to reach & serve the customer.
Restaurants were closed. But McDonalds was still booming. Because they had a drive-thru and home-delivery.
13/n Big names in retail went into bankruptcy.
But others like Walmart, Target, and Home Depot did well.
They had figured out various forms of reaching the customerâecommerce, delivery at home, kerbside pickup, in store pickup, etc.
But others like Walmart, Target, and Home Depot did well.
They had figured out various forms of reaching the customerâecommerce, delivery at home, kerbside pickup, in store pickup, etc.
14/n Contrast this with those who only relied on proximity business or in-office working. They struggled.
Companies which had a WFH home policy found it much easier.
Lesson: Donât be a single trick pony.
Digital is no longer an âoptionâ; digital gives you âoptionalityâ.
Companies which had a WFH home policy found it much easier.
Lesson: Donât be a single trick pony.
Digital is no longer an âoptionâ; digital gives you âoptionalityâ.
15/n This change will not be easy.
Thereâs 60 years of muscle memory for large firms. And building the digital backbone will need DNA change.
You will have to hire smart entrepreneurs and rethink the entire business model
Thereâs 60 years of muscle memory for large firms. And building the digital backbone will need DNA change.
You will have to hire smart entrepreneurs and rethink the entire business model
16/n There are four models of the internet in the world:
American - laissez faire, free, open
Chinese - firewalled with domestic champions like Alibaba, Tencent
European - Heavily regulated, small markets
Indian - Open, Large and Inclusive with the India Stack
American - laissez faire, free, open
Chinese - firewalled with domestic champions like Alibaba, Tencent
European - Heavily regulated, small markets
Indian - Open, Large and Inclusive with the India Stack
17/n Itâs important to realise our investments in 2010 have paid off.
India already looks like it's more digital savvy than most nations.
The India Stack proved its potential during Covid.
India already looks like it's more digital savvy than most nations.
The India Stack proved its potential during Covid.
18/n Initiatives like Fastag have also taken off. Rs 24,000 crore annual toll collections.
Earlier the collections had leakage and delays.
This makes roads easier to finance and build.
Earlier the collections had leakage and delays.
This makes roads easier to finance and build.
19/n We are starting to see the penetration of AI and across our legacy infrastructure & institutions.
Supreme Court is using AI and neural machine translation to convert legal documents from one language to another.
GST is using AI-driven analytics to identify fake invoices.
Supreme Court is using AI and neural machine translation to convert legal documents from one language to another.
GST is using AI-driven analytics to identify fake invoices.
20/n The thing that can set India apart: how inclusive our internet can truly be.
It shouldnât be an âEnglishâ internet for premium smartphones.
We have to find ways to serve India 1 & 2 and a large portion of Next Billion Users in their language on their feature phones.
It shouldnât be an âEnglishâ internet for premium smartphones.
We have to find ways to serve India 1 & 2 and a large portion of Next Billion Users in their language on their feature phones.
21/n The vaccine program can be a huge demonstration of Indiaâs digital arsenal.
We are already the vaccine capital of the world.
With Apps like CoWin, we can give a QR-coded digital certificate that youâve been vaccinated.
We are already the vaccine capital of the world.
With Apps like CoWin, we can give a QR-coded digital certificate that youâve been vaccinated.
22/n You can show the vaccine certificate on the appâat the airport, at the station, at a restaurant, to your office.
This will make economic recovery faster.
This will make economic recovery faster.
23/n The lesson is clear around what works.
Govt. has to build the fundamental digital rails - the backboneâinclusively - and let companies use APIs to build on top of that.
Let the companies/startups do the innovation.
Govt. has to build the fundamental digital rails - the backboneâinclusively - and let companies use APIs to build on top of that.
Let the companies/startups do the innovation.
24/n This is a Y2K-like moment.
âMake in Indiaâ should become âCode in Indiaâ
Now that the haze (brought by the pandemic) is clearing, it is time to relook at the India opportunity.
We are the only young country in an ageing world, perhaps one of its kind in the world.
âMake in Indiaâ should become âCode in Indiaâ
Now that the haze (brought by the pandemic) is clearing, it is time to relook at the India opportunity.
We are the only young country in an ageing world, perhaps one of its kind in the world.
25/n
Catch my full conversation with Nandan here: https://www.facebook.com/foundingfuel/videos/1260239007683024/
Catch my full conversation with Nandan here: https://www.facebook.com/foundingfuel/videos/1260239007683024/
26/26
ICYMI: hereâs my Annual Trendspotting piece where I discussed the implications of Indiaâs Digital Reset. https://www.foundingfuel.com/article/trendspotting-2021-inside-indias-great-digital-reset/
ICYMI: hereâs my Annual Trendspotting piece where I discussed the implications of Indiaâs Digital Reset. https://www.foundingfuel.com/article/trendspotting-2021-inside-indias-great-digital-reset/
