India: The Fastest-Growing

G20 Economy 2017-2020

Smartphones Nominal GDP Internet Users GDP based on PPP

5th
2010
2nd
2016
13th
2000
7th
2016
5th
2010
2nd
2016
6th
2000
3rd
2016

Rate of GDP Increase (OECD)

2018 2025

7.5

5.8 5.9 5.9

5.0
4.0
2.8 3.6 2.8 2.8
2.6
2.5 2.4

% Brazil China India Russia USA

Indian International Cables 1

Next Landing(s) Abbreviation Name

Pakistan < > Myanmar AAE-1 Asia Africa Europe Gateway
Sri Lanka BLCS Bharat Lanka Cable System
Fujairah < > Sri Lanka BBG Bay of Bengal Gateway Cable System
Landing Station
Mumbai UAE > EIG Europe India Gateway
(West Coast) UAE > < Malaysia FLAG FEA FLAG Europe Asia
Landing Station
> Pakistan I_ME-WE India – Middle East – Western Europe
Chennai
(Mid-East Coast) > Singapore i2i India – Singapore
Landing Station Mauritius > < Malaysia SAFE South Africa – Far East
Cochin Landing Station Kenya > < Europe SEACOM
(South West Coast) Tuticorine > Singapore TIC/TIISCS Tata Indicom Cable
(South Coast)
Pakistan < > Malaysia SEA-ME-WE 3 & 4 South East Asia – Middle East – Western Europe

Nominal GDP = total productive output; GDP based on PPP (Purchasing Power Parity) = quantity of goods dcd.events
and services than unit of money can purchase in different countries weighted by exchange rates.
 India’s changing Drivers: Demographic Drivers: Consumption (2017)
economic profile • A low median age of around 25 years. More than half the population are
aged less than that and 65% are aged under 35 years.
100%
• India’s population will overtake that of China some time between 2022
and 2030 (estimates vary).
12.6
90% 14.1 • Around one in three Indian live in metropolitan areas and it is projected
that more than 11 million people will move into urban areas each year to
80%
17.4
2050.

• GDP per capita has risen by over 5% per annum over the past 20 years,
300m.
smartphone users
1.06bn.
Mobile subscriptions
18.5 and regional inequality in GDP per capita is now lower than the largest
70% markets of Latin America, Russia and Indonesia.

• On the basis of GDP per capita India has moved from 163rd place in
60% 18.9 2000 to 126th in 2016.

• It should be noted that the population in India’s middle classes in 2016
21.1
50%
is larger than the total population of Indonesia. By 2020 it will be larger

330m. 240m.
9.5 than the population of the USA.

40% 2.3 7.7 Internet users Facebook users

2.5
Specific investment drivers (25% population)

30% 17.6 • Strong growth in urban middle classes.

16.6
•Demand for data center facilities and services outstrips supply - move
20% 3.2 away from very high reliance on overseas data centers.
2.2

42m. 38m.
• Government commitment and planning to encourage economy
10%
18.5 17.3 towards services and digitalisation (for example, State Data Centers).

• Legislation will mean more data on Indian LinkedIn members Instagram users
citizens and businesses stays within the
country.
2011 2016
• Key Business Outsourcing Sector will
increasingly rely on digitalisation to
Agriculture
remain compeititve.

27m. 300m.
Mining • Cloud will continue to gather pace in
Manufacturing
India as key providers look for suitable
space and/or sites. This will account Twitter users WhatsApp users
Utilities for a considerable proportion of take monthly
up of space and will drive colocation
Construction
sector so long as they can cater for
Finance & Commercial services highly-networked and variable loads.

Other services • Colocation/telco providers in transition

away from facility provision towards
Public services services & cloud.
200m.
Monthly active
YouTube users
Nominal GDP = total productive output; GDP based on PPP (Purchasing Power Parity) = quantity of goods dcd.events
and services than unit of money can purchase in different countries weighted by exchange rates.
 Asset Growth: Data Center Power capacity:
India 2016>2021 (MW)

Service DCs Enterprise DCs Enterprise server room etc

800

700

90
600 95 90
95
85 90 170
500
205 195 180
225
400 235
425
380
300 355
325
200 280
245
100

2016 2017 2018 2019 2020 2021

Source: DCD Research

Data Center Investment Growth:

India: 2016-2021 (USD m)
Facility build & upkeep IT outsourcing

6000

5000 4900
4600
4100 4350
4000 3900
3750

3000 2900
2450 2600
2300
2050 2150
2000

1000

2016 2017 2018 2019 2020 2021

Source: DCD Research

dcd.events
Projections to 2022
• Service data center base will double between 2016 and 2020 – this will
compensate slow decline in end-user facility assets.
• More major global service providers to site locally as latency becomes
more critical.
• India to open up to edge networks.
• Continuing development of specialist local supply sector and skills base.
• Continuation of digitalization will reach further into service economy and
Government.
• Power provision will evolve towards renewables and towards local grids
possibly around suitable ‘smart’ campus developments and ‘trusted’ sites.
Challenges towards 2022
• Resource provision – power, connectivity, water, investment
to develop both IT/data and resource infrastructure.
• Skills also an issue, perhaps ironically as India is one of very
few countries which is a net exporter of IT skills.
• Developing business model to enable necessary investment
into networks, power grid and renewable energy sources.
• Developing governance framework to improve decision
making and inward private investment.
• Inconsistent data governance and protection.
• Build and operational standards.

Gain further insight at:

>Focus On | Hyderabad 2 nd

Annual >Webscale | Bangalore 8 th

Annual >Enterprise | Mumbai 7

Annual
th

April 26 2018 // The Westin Hyderabad Mindspace July 18-19 2018 // Sheraton Grand Bangalore Hotel October 25 2018 // The St. Regis Mumbai

For enquiries on speaking, attending or sponsoring contact vikrant.joglekar@dcd-group.com

Nominal GDP = total productive output; GDP based on PPP (Purchasing Power Parity) = quantity of goods dcd.events
and services than unit of money can purchase in different countries weighted by exchange rates.