Charting India’s Digital Transformation and Sustainability Path: An Interview with KPMG India CEO on India’s Journey, Aadhaar’s Impact, and Emerging Technologies
CXOToday has engaged in an exclusive interview with Yezdi Nagporewalla, CEO, KPMG in India
- How do you perceive India’s digital transformation journey? How far do you think we have come and what does the future look like?
In my view, Digital Transformation is not just about technology rather it is about a journey to operate digital-first with the necessary speed and nimbleness to adapt to changes and ever-growing technology landscape. India’s digital transformation journey has made remarkable progress in last decade driven by a confluence of factors such as its capacity to innovate, rate of technology adoption due to large young population base, penetration of mobile internet and central government’s drive towards digital transformation through initiatives such as Aadhar, DigiLocker, Digital Village, Arogya Setu etc. This is augmented by the rise of Fintech sector which has accelerated financial inclusion through digital means.
Further, India’s economy continues to display commendable resilience, GDP sustaining growth at a rate of 7-8 percent with a potential to triple to $9 trillion by 2030. This has laid a robust foundation for digital ecosystems to thrive and re-innovate at unprecedented rates. Artificial Intelligence is already disrupting the market and is going to exponentially increase the pace of digital transformation for consumers, investors, businesses and governments.
Overall, India has leapfrogged on the digital transformation journey and software and services industries continue to grow at a steady pace however, there is still a lot of scope to leverage digital for manufacturing and present to the world an alternate manufacturing hub catering to global value chains. Recently concluded G20 presidency of India also focused on this area in addition to showcasing to the world India’s digital prowess. I remain bullish about India’s future and wish for relentless pursuits towards an ‘Atma Nirbhar Digital India’.
- Given the significant role of Aadhaar and the digital identity system in India’s transformation, how do you see this unique digital public infrastructure model contributing to economic growth?
India’s unique digital identity infrastructure has been a transformative force in the country’s journey towards economic growth. JAM (Jan-Dhan, Aadhar and Mobile Trinity) has helped bring marginalized sections of society to be financially included through schemes such as PAHAL, MGNREGS, Direct subsidies to bank in addition to other schemes which have directly benefited the citizenry.
The recent recognition of Digital Public Infrastructure (DPI) by the G20 and India’s efforts in this regard further highlights the role of Aadhaar and similar digital identity systems in facilitating economic growth. DPI serves as a foundational component of digital infrastructure to deliver public services efficiently. India’s DPI model, with its emphasis on interoperability, has the potential to add around 60-100 basis points to the country’s potential GDP growth rate. This is achieved through services like e-KYC, which enables remote authentication, resulting in cost savings and increased financial inclusion. DPI is also serving as the backbone of many fintech startups and will continue to do so especially enabling biometric payment systems in the future.
The key takeaway from India’s experience is the importance of leveraging digital tools to bridge societal gaps, increase inclusiveness and drive economic growth. The Aadhaar system, for instance, has revolutionized digital identity and financial inclusion, providing a template for countries striving to empower their citizens economically.
- In the context of environmental sustainability, how can emerging technologies like AI and blockchain be effectively harnessed to accelerate progress towards low carbon manufacturing and a greener economy in India and beyond?
Emerging technologies, such as Artificial Intelligence (AI) and blockchain, stand as formidable allies in the quest for environmental sustainability and the transformation of manufacturing into a low-carbon powerhouse, not just in India but globally. AI’s potential is also being leveraged in energy optimization, supply chain transparency, predictive maintenance, emissions monitoring, and waste reduction. It empowers businesses to enhance efficiency, reduce carbon footprints, and make data-driven decisions for eco-friendly production and allows consumers to verify green claims and promotes responsible manufacturing.
Additionally, these technologies aid in transitioning to a circular economy by encouraging recycling and resource management. While AI optimizes the use of renewable energy, leading to cleaner operations, blockchain is ensuring secure renewable energy trading. This partnership also helps with complying with regulations, improving skills, and engaging environmentally conscious consumers. It’s imperative to harness these technologies ethically, ensuring a profound and lasting impact on our planet.
- In what ways is KPMG leveraging these emerging technology advancements, and how does this adaptation impact the company’s technology vertical strategy?
KPMG in India is making significant investments to transform our capabilities in delivering multi-disciplinary, digitally driven solutions to the market. The goal is to enable everyone to become technologists in some capacity, capable of assisting with today’s complex problems and leading informed conversations with our clients and other stakeholders.
KPMG Innovation Kaleidoscope is a case in point. The experiential centre at our Mumbai office serves as a collaborative space for the creation and development of innovative solutions and focuses on fostering industry-specific ideation and innovation. Leveraging our open innovation platform (OIP) and startup ecosystem, the center conducts comprehensive digital maturity assessments and identifies key strategic interventions, with a sharp focus on roadmap development and achieving tangible outcomes. This is where we test the potential and applications of emerging technologies such as cloud computing, AI, intelligent automation, blockchain and other such technologies which have a potential to disrupt business operations and also place customers at the center of our innovation and design thinking approaches so we can create the frameworks to measure trust in the emerging technologies which is going to be key in adoption of any new technology going forward.
Our investments in talent development, innovation centers, strategic partnerships, and thought leadership underscore our commitment to shaping a tech-driven future for our clients and advancing our technology vertical strategy. Our transformative value propositions have elicited an astounding response in the market, prompting us to expand our workforce to support the execution of large-scale transformation projects for our clients across sectors. As a result, we intend to hire several thousand professionals in the coming years to meet the growing demand and the expanding scope of these engagements. The selection process places paramount importance on a candidate’s demonstrated capabilities and their eagerness to engage in continuous learning, essential for our journey into the future with emerging technologies.
