Cloud-Enabled SMEs Can Unlock INR 1.6 Trillion, Generate 45.9 Million Jobs By 2030

India’s small businesses could unlock up to INR 1.6 trillion in annual productivity gains and generate around 45.9 million jobs in the fields of education, healthcare, and agriculture by 2030. This can be achieved by leveraging cloud-enabled services, a report has claimed.

Approximately 28 per cent of businesses across India currently incorporate basic cloud technology into their operations, including office tools and storage. However, the adoption of more advanced tools like artificial intelligence (AI) and big data analytics is anticipated to remain relatively low, said the report by the Amazon Web Service.

The successful transition to a cloud-enabled economy holds significant potential for small businesses operating in the healthcare, education, and agriculture sectors in the country. By 2030, it is projected that these sectors could generate an annual revenue of INR 1.6 trillion, marking a substantial 152 per cent increase from the current INR 0.6 trillion. This shift towards cloud technology adoption could potentially create employment opportunities for approximately 45.9 million individuals in these industries, constituting 9 per cent of the total jobs in India, a notable increase from the current 3 per cent level.

As per the report, cloud technology spending as a proportion of GDP in mature markets like the United States and Singapore is four to five times higher than India. Though the adoption of cloud-based services is still at a nascent stage compared to mature markets, India's cloud expenditure and adoption are experiencing rapid growth, with the public cloud market growing at 44 per cent, which is almost double the global average of 26 per cent, the report observed.

Realizing the country’s potential significant growth by enabling cloud technology, the report suggested some ways by which the government can support businesses. These are, prioritizing cloud technology education across all levels, investing in digital infrastructure to ensure innovation can continue unimpeded, and leading by example through promoting cloud adoption across all levels and divisions of government.

NASSCOM, in its report, also underscored the importance of technology adoption, particularly cloud computing, for small and medium-sized enterprises (SMEs) to attain global competitiveness. Cloud technology provides SMEs with the tools to tap into advanced technologies, harness data analytics, and bolster their online presence, equipping them to compete on an equal footing with larger corporations. Embracing the cloud allows SMEs to boost productivity, expedite innovation, and broaden their market outreach.

Some of the major global cloud service providers are Amazon Web Service (AWS), ServerSpace, Microsoft Azure, Google Cloud Platform, IBM Cloud Services, Adobe Creative Cloud, Kamatera, VMware, Rackspace, Red Hat, Salesforce, Oracle Cloud, etc.

Fear Of Forfeiting Ability To Compete

The report highlights the growing importance of small businesses enhancing their cloud capabilities in response to the global shift towards digitalization. Small enterprises that do not harness the scalability offered by cloud solutions may miss out on several advantages. These include the ability to compete effectively while reducing fixed IT expenses, access to advanced data analysis tools, improved security for digital assets, simplified compliance with international regulations, and the utilization of cutting-edge technology applications. To remain competitive in a dynamic, cloud-driven economy, small businesses must continuously evolve and tailor their adoption of cloud technology to meet their specific requirements.

Adoption Of Generative AI

There are various advanced cloud-based technologies such as artificial intelligence (AI), generative AI, machine learning (ML), internet of things (IoT), quantum computing, and edge computing. Of these technologies, generative AI is experiencing the most rapid and dramatic growth.

According to the report, there is an anticipated annual growth rate of 27 per cent for generative AI over the next decade. While this technology has only recently gained broader adoption, businesses and individuals are already exploring its capabilities. They are using generative AI to generate content that aids various tasks, including text and code writing as well as image generation.