India ties with China as second most disruptive tech market
India has emerged as the second most promising market globally for digital disruption, according to a new KPMG report. The country is tied in second with China, with both markets tailing the US by a distance.
The position represents a considerable climb for India, brought about by the emergence of a number of factors conducive to innovation.
In the eyes of KPMG's Technology Innovation Hub report, based on the views of more than 800 tech experts and industry leaders across the globe, Bengaluru has over the last year broken into the world’s top ten tech innovation hubs outside of Silicon Valley. The city is now placed 9th globally, jumping from 18th last year, joining the likes of Singapore, London, Tel Aviv and Tokyo in the top ten.
The city is likely to rise further in the rankings. The volume of startup activity and investment flowing into Bengaluru has led some experts to tout it as a future tech innovation hub of Silicon Valley calibre.
This perspective aligns with KPMG's findings, as tech experts across the globe have been found to view India as the second most promising market for disruptive technology in the world.
India and China have long been neck and neck when it comes to Industry 4.0 advances, although this is the first time India has leveled with China in KPMG’s ranking. The US stretched ahead, with 28% of the survey respondents positioning it as a disruption leader, while India and China trailed with 13%.
The significant gap between the US and China is explained by the new tariffs being imposed on China by the US, which will push China to develop a domestic tech landscape. The authors however predict that this will take time. India, meanwhile, arrives in second place on an upward trajectory, driven partly by the vibrant startup environment, and partly by the young and rapidly urbanising population in the country.
“India’s climb to the second position lends credence to how we as a country are committed towards setting up strong innovation ecosystems. Bengaluru’s entry in the top 10 rankings, is another sign that the city is doing well in the areas of modern infrastructure, attracting skilled talent and investment funding,” said Satya Easwaran, Head of Markets Enablement & Technology, Media & Telecom at KPMG India.
“With the country seeing tremendous evolution across various spheres, the coming years will be crucial to overcoming hurdles which exist. This would be imperative for India to gradually and slowly move towards becoming one of the world’s leading economies in innovation,” he added.
In a broader in depth study of innovation, the Global Innovation Index by INSEAD and the World Intellectual Property Organization, India has jumped from position 81 to 52 between 2015 and 2019.
