India's Digital Thrust continues to accelerate GovTech with ‘Cybersecurity’ and ‘AI for Bharat’ as Key Themes in 2024

2024 has proven to be a pivotal year for India's ongoing technological progress, marked by significant advancements in GovTech coupled with a heightened focus on cybersecurity, and the explosive growth of AI and Generative AI.

There’s great momentum in the way organizations are accelerating tech intensity in a bid to realize India’s vision to become a truly Digital+ economy. This year scaled the groundwork for future innovation while simultaneously highlighting the challenges that lie ahead.

GovTech takes center stage

The GovTech sector witnessed remarkable growth in 2024, driven by a global push for digital first modern governance and increased citizen engagement. Projects and Startups focusing on Citizen Engagement Tech Stack and Sovereign Digital Infrastructure attracted substantial funding, reflecting the sector's growing importance.

The market is projected to exceed $1197.2 billion by 2033 (Spherical Insights), fueled by both public and private investment. Key areas driving this growth include cybersecurity, data protection, and the integration of Trusted AI into public services.

Public-Private Partnerships (PPPs) emerged as a key driver of change, enabling governments to leverage private sector expertise for enhanced service delivery. India's rise to 49th place in the Network Readiness Index (NRI) 2024, up from 60th in 2023, further underscores its commitment to digital transformation.

The launch of the $1.2 billion IndiaAI Mission in March 2024 solidified the nation's focus on developing indigenous AI capabilities.

However, challenges such as data security risks, the complexity of technology adoption, and bridging the digital divide remain key concerns.

Cybersecurity: A growing Imperative

2024 saw a dramatic increase in cyberattacks targeting Indian organizations, with a 46% surge in Q2 compared to the previous year (Check Point Research). The education and research sector faced the highest number of attacks globally, followed by government and military, and healthcare.

The 2024 Indian General Elections also brought cybersecurity risks to the forefront, including mis-information campaigns, phishing attacks, and database vulnerabilities. In response, the government allocated ₹400 crore to cybersecurity initiatives in the 2024 Union Budget, and partnerships like those formed during the DefSAT 2024 conference emphasized collaboration between the public and private sectors.

India's Unified Payments Interface (UPI) has significantly increased digital payment adoption, but its real-time nature also creates vulnerabilities to fraud. As of the end of 2023, there were 84 billion UPI transactions volume valuing INR 139 trillion. However, the growth of UPI has also led to more sophisticated digital fraud, allowing scammers to exploit trust and conduct large-scale targeted attacks. Through initiatives like the Sanchar Saathi portal, which empowers users to block unauthorized SIMs and report fraud, India is charting an aggressive defense strategy. But to effectively combat AI-driven digital fraud, India must strengthen its cybersecurity frameworks while continuing to foster technological innovation.

On the other hand, we also witnessed a growing demand for cybersecurity experts skilled in cloud security, compliance, threat vulnerability management, and cyber forensics surged, highlighting the need for a robust cybersecurity workforce.

AI and GenAI: A Period of Exponential Growth

Undeniably, the groundbreaking technology of 2024 has been generative AI with its ability to amplify human creativity, productivity and supercharge the products and services we use & deliver every day. McKinsey forecasts that the economic benefits of GenerativeAI can reach $4.4 trillion globally. India's Generative AI sector experienced explosive growth in Q2 FY25, with investments increasing sixfold and total funding growing 3.4 times year-on-year. B2B platforms and enterprise applications drove this surge, with early-stage investments dominating.

Over the past year, we have seen major investments towards strengthening the AI infrastructure of India by developing India’s own large language models trained on diverse languages that can further serve up data-rich applications for end-users. AI has emerged as New Electricity for Industry 4.0 world.

Another key trend that surfaced in 2024 was the shift from basic AI literacy to advanced skills in platform integration and agentic AI, reflecting the industry's maturation. India's strong innovation ecosystem, funding influx, and talent development initiatives placed it 6th globally in the GenAI landscape.

Looking Ahead

2024 has set the stage for continued growth and innovation across GovTech, cybersecurity, and AI in India. While challenges remain, the progress made this year positions the nation to become a global leader in these critical areas. The focus on addressing existing challenges and fostering a robust talent pool will be crucial for realizing the full potential of these technological advancements in tune with Viksit Bharat by 2047 mission.