India Surpasses China as Most Populous Country: Economic and IT Implications

India has achieved a historic milestone by surpassing China as the world's most populous country recently. India's population is 1.4286 billion while China now stands at 1.4257 billion, as per United Nations Population Fund’s (UNFPA) "State of World Population Report" for year 2023. Around mid-year, China and India's population difference will be approximately 3 million.

This demographic shift has significant economic implications for both Asian giants, which have more than 1.42 billion residents each. China, which has been the world's second-largest economy for over a decade, is facing challenges of slowing growth, aging population and shrinking labor force. India, on the other hand, has the opportunity to leverage its young and growing workforce to boost its economic development and technological innovation.

India is home to nearly a fifth of humanity and half of its population is under the age of 30. It is set to be the world's fastest-growing major economy in the coming years, with an average annual growth rate of 7.5% projected by the International Monetary Fund for 2023-2027. India also has a large and diverse market, with a rising middle class and increasing consumer demand.

However, India also faces many challenges in harnessing its demographic dividend. It needs to create enough jobs for the millions of people entering the workforce every year, improve its education and skill development system, invest in infrastructure and health care, and foster a conducive environment for innovation and entrepreneurship.

One of the key sectors that can help India achieve its economic potential and technological advancement is information technology (IT). India has already established itself as a global leader in IT services, with a strong presence in outsourcing, software development, business process management and digital transformation. India's IT sector employs over 4 million people and contributes about 8% to its GDP.

But India can also aspire to become a leader in IT products, especially in emerging fields such as artificial intelligence (AI), cloud computing, internet of things (IoT), blockchain, cybersecurity and data analytics. These technologies have the potential to transform various industries and sectors, such as agriculture, health care, education, manufacturing, retail and finance.

India has some advantages in developing its IT product ecosystem, such as a large pool of talent, a vibrant startup culture, a supportive government policy and a growing domestic market. India has over 1.2 billion internet users, second only to China, and over 800 million smartphone users, third after China and the US. India also has over 50,000 startups, including more than 50 unicorns (startups valued at over $1 billion).

However, India also faces some challenges in scaling up its IT product innovation, such as a lack of adequate funding, infrastructure, research and development (R&D), intellectual property (IP) protection and quality standards. India also needs to bridge the digital divide between urban and rural areas, as well as between different socio-economic groups.

India's population surpassing China's is not just a statistical event. It is an opportunity for India to leverage its human capital to become a global leader in technology and innovation. It is also a responsibility for India to ensure that its population growth is sustainable and inclusive, and that its technology development is ethical and beneficial for all.