Speaking at the TiE Delhi- NCR and Lufthansa organized Startup Expo, Amitabh Kant, CEO, Niti Aayog in his vibrant speech said that in an increasing digitised world, the brick-and-mortar business in India may cease to exist in the current form by 2023. He also said that brick-and-mortar business will move towards eCommerce and will largely be driven by technology.
India is the only country with more than a billion mobile phones and biometrics. In the last 6 months, India has added more than 25 crore bank accounts and in the last 45 years we have given license to 19 banks. But when compared to the online horizon, in mere 9 months time, license to more than 20 payment banks have been approved and many of them are telecom companies including Airtel and Paytm. The brick-and-mortar businesses will go dead, believes Kant.
According to him, products and services are shifting online and the world is getting connected. This will drive the offline world to digital. eCommerce is just close to touch $19 billion and take it from me we will be a $300 billion market by 2023, he added.
Kant continued with his thoughts explaining that similarly the traditional banking sector in the form of brick and mortar presence banking will face a decline. India will move towards mobile, telephonic banking why because today there are around 350 million internet users in the country but by 2023 the number will jump to 1 billion. Similarly, internet penetration with 1 billion people accessing it will radically alter the whole world, he said.
Kant added that even manufacturing world is getting digitised and the small and medium enterprises must understand that it is digitisation of manufacturing process which will lead to higher level of productivity.
Across the world, whether you look at trends in Japan, US or Germany, everywhere is getting digitised. It is inevitable, he concluded.