The recent G20 Leaders’ Summit brought the world to India. Having the opportunity to host the globe’s leading governments as they outlined how to approach 21st century technology policy challenges and grow the modern global economy was a critical opportunity for India. Now that the global leaders have returned home, India must show that it can keep its commitment to reaching its potential as a technology and trade hub.
India recently demonstrated the reach of its technological leadership. I had the privilege of witnessing the country’s successful moon landing while in New Delhi. The significance of this national achievement and the sense of pride made clear that India is capable of leadership and innovation on the world stage. Should this type of dedication and commitment be applied to India’s tech policy landscape, India will undoubtedly meet or exceed its goals.
During my time in New Delhi for the Business 20 (B20) Summit and in meetings with senior Government of India officials, India’s crucial role in shaping the tech landscape was clear. India is a leader in the technology policy space, including recently passing the landmark Digital Personal Data Protection Act – a feat that few other economies have achieved. India has also addressed certain barriers to market access, including streamlining duplicative regulatory regimes. However, it will be up to India’s leaders to further consolidate the regulatory landscape to attract more investment and reach India’s stated goals of become a $1 trillion export-driven economy.
India can greatly enhance ease of doing business and attract foreign investment by following good regulatory practices, including early and transparent notifications, incorporation of international standards and acceptance of international testing and conformity assessments, adequate transition times, and avoidance of unjustified impediments that affect trade, manufacturing and supply chain operations. This work within India will also better position the country to address and remove trade and investment barriers in other countries.
The tech industry is an essential partner in India’s drive to become a $1 trillion digital economy, and we want to help. Working to grow the digital economy by unlocking trade opportunities for businesses operating within the Indian market will benefit the entire economy and help India with other important goals such as increasing manufacturing. But trade isn’t just about goods – digital trade and services contribute trillions of dollars to the global economy as well. Global services exports totaled more than $7 trillion last year, with more than half of that from exports of digitally-deliverable services. India can leverage this economic reality by including the components of digital trade and services – such as software development and engineering – in programs like the Production Linked Incentive Scheme (PLI) and the Make in India campaign. This will also help India capitalize on its prodigious workforce with skills and abilities that reach beyond manufacturing.
Relatedly, India must take a risk-based approach with respect to imports and recognize that no single country can manufacture everything at home. Trusted multinational companies understand national security concerns and should be afforded the flexibility to source products and components from global supply chains, which they have developed and vetted over years if not decades.
Finally, it is paramount that India coordinate and consult with industry and all concerned stakeholders. Last month, India abruptly announced a new import restriction policy which would require a new licensing regime for imports of tablets, laptops, and other technology devices without any formal stakeholder engagement. Such policies will unnecessarily impede business and harm consumers and firms within India if implemented without extensive revisions, demonstrating the importance of ensuring the tech industry has a voice at the table. Stakeholder consultation can help shape effective and appropriately targeted policies to advance India’s objectives, facilitate foreign investment, and comply with international trade obligations and norms. India’s willingness to address these regulatory and policy issues head-on and embrace a more flexible approach will determine whether the Government of India is truly ready to attain its stated goals.
The global technology industry recognizes India’s potential to be a game-changing market for innovation and a tech policy leader - and now India must build off the momentum of the G20 Summit to show it.