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Do You Know That China Is Powering India's Digital Growth?

14 Apr, 2017
Do You Know That China Is Powering India Digital Growth

China’s growth in almost every field imaginable has been the talk on almost every street everywhere in the world, for a few decades now – first for their manugacturing prowess, then for for their smartphones, and soon… it’ll be for their cutting edge support services.

From mobile payments to artificial intelligence, China is leading the way in developing the underpinnings and technology – and is now sharing its expertise with its neighbouring nations, Girish Ramchandran, TCS’s Asia-Pacific president, reported.

In fact, China’s fast-growing digital technologies have apparently helped the Indian sub-continent digitise its economy as well, says TCS’ report. And China’s nowhere near done yet.

The report says that China will introduce some of its world-class technologies to other economies along the trading routes – “The initiative is a great opportunity for global trade, and to build connectivity“, per Ramachandran.

Chinese technologies are descending in India – starting with the export of Ant Financial Services Group’s wireless payment solutions to Paytm.
The duo signed an agreement back in 2015, to design an Alipay duplicate in India.

And it was an insightful step – given that India does not have a rich credit card dependent culture, and so, with the help of correct technologies and business structures, making a transition from cash to mobile payments would not have been difficult at all.

Paytm today counts for an unbelievable 150 million users in India!
The use of this payment app has helped people transact everywhere, in lieu of cash. It’s even enabled Indians with an access to small loans, via a mere scan of their phones. Now that is progress in the true sense!

The demonetisation accords with the Indian government’s push to combat the black market, increase transparency and digitise the economy. Clearly China has played a significant role in this“, Ramachandran said.

And it’s not just financial enablement that we’re getting from China. From apps like WeChat to some of most grass-root-enabling artificial intelligence from budding start-ups in China, Ramachandran finds China showing humongous intent towards India.

Tencent Cloud, the cloud services division of Tencent Holdings Limited, has set up an overseas services node in India as well as a data centre in Singapore to ensure “secure and cost efficient” IT infrastructure.

The UCWeb Inc., a secondary company of the Alibaba Group, has announced the launch of a We-Media Reward Plan 2.0 in India to stimulate and sponsor self-publishers and content distributors through the internet.

Thing is, similar to how China entered and steadily conquered the manufacturing industry – making everything from pins and needles upto complex electronics – China won’t stop at India; it clearly has designs on becoming a supra-major in the global high-tech race.

Ramachandran believes that it is about time that China brands it’s technologies efficiently and makes them available for the rest of the world.
Most of the apps, technologies and services are being used in China only. Turning them into world-renowned brands would pave the way for China’s next phase of growth“, he added.

Thing is, Ramachandran’s not understood one basic tenet of Chinese strategy – which comes from eons of wisdom – China always, always, builds and tests every product in it’s home market, on it’s more forgiving (and more predictable) denizens.

Only when the products (or services) have been tested, refined, retested, improved some more, and irrefutably proven to be market ready, does China export them outside of it’s shores. Not before, and no matter the loss of opportunity in the interim.

I think their maxim is – prestige before profit.

So, it is going to be rather interesting for us to watch if the upcoming China-supported digital growth in India is accepted or rejected by the common mass, and if any other changes will prove to be as revolutionary as Paytm turned out to be.

Time will tell.