New data shows that Indian start-ups raised a record amount of $7.2 billion in the first half of 2021 and the country is closing the gap with China in terms of creating new unicorns. Significantly, Chinese investors have been cut out of the Indian tech market due to regulation that was drafted after rising India-China tensions last year. As such, most foreign capital now comes from European and American investors, from countries that see India as a geopolitical partner in the bid to contain China. Furthermore, an “Indian Stack” is taking shape, driven by large public investments in India’s digital infrastructure, based on its already strong position in the IT sector, and rapid adoption of digital tools by younger generations. Add to this its strong socio-demographics (e.g. soon to be the world’s largest population that is still growing and young) and cultural fundamentals (e.g. its culture and companies having a high willingness to adopt digital tools) and India has all the ingredients to become a digital superpower. As such, the next wave of digital innovation, companies and consumer practices could come from India.
- Could the geopolitical fundamentals of India’s digital power imply that it will further the splintering of the Internet, as interoperability with – at least – Chinese applications and ecosystems could be in jeopardy?
- Does India have a cosmology that fits the demands and technics of digital technology, a digital “cosmotechnics”? (We believe it does.)
- What could be the organizing and governance principles of the Indian Stack? And how would this relate to other Stacks, such as the American, Chinese or European Stack?