India needs to accept tech advancement as the new form of evolution

By Dr Ritesh Malik

The '2020 Depression' was caused not only due to just Covid-19 but also by the world leaders' inability to contain the virus and a lack of foresight.

While the personal loss suffered by the victims and their loved ones is incalculable, the damage to the global economy has not been anything shy of disastrous either.

During the pandemic, the entire value-chain that is the backbone of an economy was disrupted, the labour force was drastically cut down and as the developed countries faced an economic downturn, a domino effect, combined with a vicious cycle that continuously shrank economic output, led to a global depression.

The tech industry, however, didn't just endure this affair, but thrived. With an urgent need to maintain distance for consumers and businesses alike, a need to adapt to the network and be a part of the IoT emerged.

For businesses, having to reconsider and invest in technology was nothing short of an ultimatum against their very survival.

The second half of 2021 saw a boom for tech industry entrepreneurs to aid in the movement of conventional businesses to integrate technology into their business in the form of communication, manufacturing and distribution development. These immense opportunities for tech founders and unicorn companies do, however, come with accompanying execution pressure.

In India, profitability is still a far-fetched goal for most startups despite witnessing decent growth in revenue. It is essential not to let the desire for short-term profitability and a quick payout hinder the development of what could prove to be the pioneers of the next industrial revolution.

It is essential during this period that founders and investors look towards long-term profitability. Very few Indian unicorns have touched $100 million revenue and there will be immense pressure on these companies to perform. We have all seen that private markets & public markets treat valuations differently.

IPOs will likely prove to be a truly vital element of investment and long-term growth for private institutions. As the need for capital increases, so too, will the demand for short-term negative cash flow to ensure maximum utilisation of finances.

As 2022 approaches, we are experiencing more and more need for new talent and unorthodox approaches towards development. This will also require the government to alleviate the restrictions for the business industry.

The government holds a responsibility to its citizens to ensure that they opt to create and add value to goods and services in India only, instead of migrating to and working for other countries they believe will recognise their talents better.

With the second-biggest network of web users with over 680 million subscribers, India will prove to be extremely friendly to creative and talented founders, provided that we, as a country, start accepting technological advancements as the new form of evolution, and ethically work as a community to nurture creativity and intelligence.

Also, large businesses will need to be agile and adopt/acquire the DNA of what we call the 'RESPONSIVE OS' to ensure they sustain else we'll have massive loss of value in conventional businesses.

In my opinion, by 2030, 40 per cent of Nifty 50 would be young dynamic technology startups, displacing conventional companies.

(Dr Ritesh Malik is a famous doctor-turned-entrepreneur, investor, storyteller and philanthropist. He can be reached at info@drriteshmalik.com. The views expressed are personal)

Source: IANS