Big data and AI transform India’s business landscape

Is the buzz phrase of yesteryear, ‘big data’ making a resurgence, or has the concept simply been underappreciated all along?

The rise of AI systems has underscored the vital role data plays in modern businesses, pushing many organisations to finally capitalise on the data they generate daily. Data has always been important, but with AI’s rising significance, businesses are taking a more strategic approach to managing it – particularly in regions such as India.

The push for AI and big data infrastructure in India

India has positioned itself as a contender to become a global leader in artificial intelligence, with major technology companies such as Microsoft and Amazon committing billions to building computing infrastructure in the country. This investment race sees companies seeking dominance of the fast-growing AI industry. The Indian government has also offered incentives to tech companies to set up operations from electronics manufacturing to data storage, with the hope that a thriving domestic market and a competent workforce could elevate the country to the top ranks of AI technology consumers and exporters.

Microsoft, for example, has pledged approximately US$3.7 billion to southern state Telangana. Local officials report that the tech giant has acquired land for data centres which will contributing an additional 660 megawatts of IT capacity – enough electricity to power roughly half a million European homes annually. Meanwhile, Amazon plans to spend US$12.7 billion on cloud infrastructure in India by 2030. The country is emerging as one of the world’s most interesting tech markets.

Interestingly, data itself is no longer regarded as “big” in the conventional sense. Although data volumes have grown, hardware capabilities have advanced even faster. The emphasis has shifted from managing data volume to using it to improve decision-making.

As more companies integrate AI into their operations, data becomes increasingly important for measuring product effectiveness and gaining insights into internal processes. In recent years, India’s big data and AI ecosystem has expanded rapidly, attracting both large and small companies. The country is expected to become one of the world’s leading markets for big data analytics, offering numerous opportunities for data scientists.

According to Mordor Intelligence, India’s big data technology and services market is projected to reach US$2.17 billion by 2024 and grow to US$3.38 billion by 2029; a compound annual growth rate (CAGR) of 7.66%.

Unlocking potential for SMEs

Big data presents a significant opportunity for small and medium-sized enterprises (SMEs) in India to increase efficiency and drive growth. However, this potential is accompanied by challenges that require strategic planning.

SMEs are well-positioned to act as innovation leaders in the supply chain. Their agility allows them to adopt technologies like big data to identify market gaps and streamline their operations, opening the way to rapid growth. Their adaptability and growth will likely strengthens supply chain relationships and promote mutual growth in their vertical.

To fully leverage big data, SMEs should invest in IT infrastructure and improve data systems as first steps to boosting production and stakeholder trust. Advanced data analytics will assist businesses in gaining crucial insights, allowing them make decisions based on empirical data. Alongside the take-up of refreshed approaches to big data and AI, there is an important requirement for clear data governance policies (and adherence to the same) that address security and privacy.

Despite these benefits, SMEs face challenges from lack of comprehensive data policies and tools for extracting meaningful information. Fragmented IT systems create data silos, making it difficult to form the basis for effective decisions. Addressing these difficulties can assist SMEs in unlocking the full potential of big data and achieving long-term growth.

The role of big data across key industries in India

The talent gap in business processes means companies can and should adopt analytics, a facility gaining momentum in industries such as BFSI (Banking, Financial Services, and Insurance), Retail, and Telecom. In Industry 4.0, data analytics is becoming an essential skill for sustainable manufacturing, alongside AI, machine learning, IoT, and automation.

For example, many retailers are dealing with erratic sales and need more resources to identify core problems or effectively forecast sales. Organisations generally lack the resources to establish an in-house data analytics team, so they turn to external analytics providers for answers.

Big data has the capability to transform the in-store retail experience. By analysing customer movement data, retailers can optimise store layouts, improve product placements, and create a more enjoyable shopping environment. Globally, apparel retailers have been leveraging these insights to refine their in-store experiences, and the results speak for themselves.

Revolutionising Indian agriculture with big data

Big data in agriculture is changing the way Indian farmers make decisions. Farmers can now make decisions based on data from ground-based sensors, satellites, weather forecasts, and machines, rather than guesswork. Big data enables them to manage real-time irrigation requirements, monitor soil health, estimate crop yields, and detect early plant disease signs. This transition to ‘smart farming’ is important in India, where optimal resource utilisation may considerably increase productivity and efficiency while lowering waste and environmental impact.

Ultimately, big data is improving agricultural output in India while paving the way for a more sustainable future.

India’s big data technology and services market remains highly competitive and fragmented, yet the country’s robust IT services sector means relatively easy adoption of the latest in technology. In addition to established industry giants, numerous startups and mid-sized businesses are increasingly meeting the growing demand for big data solutions in multiple industries.

Conclusion

As India works to position itself as a global leader in AI and big data, the opportunities are vast. The ability to use data is critical for driving innovation, growth, and sustainability, whether in large tech companies or small and medium-sized enterprises. Big data and its use are redefining how businesses operate and make choices, from supply chain transformation to agricultural revolution. The future appears bright for enterprises of any size that are ready to embrace the ‘big data’ resurgence.

Muhammad Zulhusni

As a tech journalist, Zul focuses on topics including cloud computing, cybersecurity, and disruptive technology in the enterprise industry. He has expertise in moderating webinars and presenting content on video, in addition to having a background in networking technology.

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