The pivotal technological developments of 2021 to be taken into account
Technology has made its presence in various sectors in today’s digital landscape. With an increasing number of companies from a wide range of industries and sectors moving from manual work processes to digital work processes such as communication and IT, IndustryTransportation, defense and space technologies are some of the important sectors that have integrated modern technology in various aspects of their development and operation.
Technology is no longer an alternative but a prerequisite to stay afloat. India is just one of the latest countries to get involved. Let’s look at some of the important developments in India-2021.
Hiranandani puts up Rs 30,000 crore for data center unit
The data center industry in India is experiencing a significant boom, and it will continue to increase in the years to come. “A report has indicated that the capacity of the Indian data center industry will double by 2023”, and the major cloud players are strengthening their presence in the second largest user market in the world. At the same time, the advent of the pandemic has resulted in a faster transition to colocation compared to traditional captive IT infrastructure.
Real estate actor Hiranandani Group is set to double its investment plans for its Yotta Data Center unit. The two-year-old company not only built India’s first Tier IV data center in less than a year in Mumbai, but is already starting to repeat the initial success in other cities as well.
Sunil Gupta, CEO of Yotta, said: “The demand has been overwhelming for our first data center in Mumbai. Being the only Tier IV certified data center also played an important role. It gives us more confidence to grow at an even faster rate. pace, “An installation costs around Rs 1200 crore. The Hiranandani group does five in Mumbai, six in Noida, six in Chennai, three in Pune, three in Calcutta and one in Gujarat. Overall, the investment could reach Rs 30,000. crore over the next five years.
Some of Yotta’s biggest customers are hyperscalers who are considering not just a few racks or a floor, but entire data center buildings at one go, Gupta added.
India’s e-commerce market expected to grow to $ 140 billion by FY26
Technology is changing the world in ways that would have been considered incredible ten years ago. This year has been a turning point for the Indian online retail market, forcing a 12-month acceleration in online retail penetration. This growth was further accentuated in the top eight metropolitan cities, where online shopping is more familiar: one in three people have made online purchases at least once in the top eight metropolitan cities. India’s $ 810 billion retail markets are evolving rapidly to retain a large e-commerce component.
India has the third largest online buyer base of 140 million, just behind China and the United States. Nonetheless, the market is still largely untapped and there is an immediate possibility of reaching the large internet user base in India of around 625-675 million people.
According to a Bain & Company 2021 report, India’s retail industry is one of the fastest growing in the world, and is expected to reach $ 1.3 trillion by fiscal 26. E-commerce share is expected to grow. grow from 6% of the overall market in FY21 to nearly 11% by FY26. However, traditional commerce, which was very resilient during the pandemic, will remain relevant for a long time. The market share of traditional commerce increased slightly from 87.1% to 88.8% despite the headwinds in the economy.
Traditional retailers and kiranas are the backbone of Indian retailing, contributing around 80% of total retail trade and 11% of GDP. Many small retailers have adapted to digital platforms to keep supply chains and operations running. They have tasted the success of technology and want to take an omnichannel approach for their end customers. A report from Deloitte-FICCI echoes this fact, highlighting how digitization empowers them and opens up new growth opportunities for the FMCG sector.
UPI-based apps break all records in October 2021
The month of October was marked by rapid growth in terms of both transactions and volume. From September 2020 to the 21st, the country’s digital payments ecosystem continued to grow with monthly UPI transactions of 1.8 billion to 3.6 billion. The number reached a record high of 4.21 billion. Among the largest and best performing UPI apps, the value of customer transactions increased only slightly, signaling relief to larger market shareholders like PhonePe and Google Pay.
According to a notification released by the NPCI in November, as of January 2021, third-party application providers (TPAPs) would not be allowed to process more than 30% of the total volume of transactions made through their individual UPIs. The guidelines aim to prevent oligopoly and the risk of overloading UPI infrastructures.
While PhonePe and Google Pay now hold 47% and 34% of the market share, respectively, they were allowed until December 2023 to reduce their market capitalization below 30%. Thus, it would be useful for digital payment applications to lose some dependence on customers, given the transaction caps imposed by the NPCI.
On the same day as the NPCI notification for the 30% cap, WhatsApp got the go-ahead to establish its WhatsApp Pay digital payment platform with a user cap of 20 million. The move prevents WhatsApp from using its large-scale operations in India, with more than 400 million users.
India and Singapore launch project to link UPI and PayNow for immediate money transfer
The Reserve Bank of India (RBI) and the Monetary Authority of Singapore (MAS) have developed a new project related to high-speed payment systems. India and Singapore will merge their respective high-speed payment systems and allow users to perform instant and low-cost remittances. The partnership aims to be operational by July 2022.
This will further establish the flow of trade, travel and remittances between the two countries. This initiative is also in line with RBI’s vision to determine the corridors and fees for inbound cross-border remittances, as outlined in the 2019-21 Payments Systems Vision document.
Here, UPI is a mobile-based high-speed payment system that allows you to make instant payments around the clock using a customer-created Virtual Payment Address (VPA). UPI supports person-to-person (P2P) and person-to-merchant (P2M) payments, allowing users to send or receive money. This eliminates the risk of the sender sharing bank details.
Revolution in Indian Ed-Tech companies
After reaping a boon from the pandemic-fueled online education boom in its home country, India’s fourth-largest online higher education company, upGrad, consolidated its leadership position as a player Asia’s most integrated in higher education and Byju’s has stepped up its push into international markets by renaming the coding course unit Byju’s Future School.
STEM-based Ed-tech companies and government programs are working together to build a technologically more innovative nation. STEM education is a way to integrate a theory-based curriculum into a real world scenario. It gained a lot of momentum after the active role of the central government in creating platforms and programs to support researchers, teachers and schools offering STEM education and robotics, which helps young minds to be more creative and innovative in the technological paradigm and to help the government fully realize their “Atma Nirbhar Bharat” campaign, even private actors and companies are helping to spread the word.