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India is undergoing a digital revolution with initiatives like Digital India and Startup India, along with advances in e-commerce, AI, and telemedicine. In an interview with Business Today, Misiek Piskorski, Dean of Executive Education and Professor of Digital Strategy, Analytics, and Innovation at the International Institute for Management and Development (IMD), Switzerland, discussed the challenges faced by Indian businesses in adopting digital, disparity between them. digital maturity, and potential policy changes from Trump’s second presidency. Edited text:
BT: What challenges do Indian businesses face in their digital adoption, and how are healthcare and manufacturing responding differently?
MP: As Indian businesses accelerate their migration into the digital age, they are grappling with two major challenges: closing adoption gaps and preparing for global changes that will redefine their strategies. On the one hand, managers need to coordinate digital efforts in industries with very different levels of maturity – such as health care and manufacturing – and combine change and sustainability. On the other hand, they must be alert to geopolitical changes, especially if Donald Trump returns to the US presidency and revises international trade and technology laws.
Digital adoption in India is unparalleled. Healthcare provides reliable examples. Telemedicine platforms, now common in large medical chains like Apollo, spread as the pandemic forced patients online. AI-powered analytics and digital analytics are growing. However in design, old habits die hard. Auto giants like Mahindra & Mahindra adopt IoT systems for predictive maintenance, but many small workshops in places like Ludhiana or Tiruppur still rely on manual labor. Cost reductions, a lack of workforce skills, and long-term old-fashioned setups are slowing down, leaving a large talent pool across the country.
Small and medium enterprises (SMEs) feel these pressures. In many cases, run-of-the-mill, cash-conscious families need tangible benefits before they can accept change. However, success stories are emerging. Tiruppur’s apparel retailer, for example, uses cloud-based inventory management and digital payments through India’s fintech ecosystem. Government-backed incubators and low-cost digital tools support the transition, replacing static spreadsheets and mobile-first solutions. As more SMEs see how technology can help streamline supply chains, improve customer service, and improve operational efficiency, they gain the confidence to invest more.
BT: How are AI and sustainability driving India’s digital transformation, and how are businesses integrating it all and future-proofing it?
MP: Among the technologies that enable change, AI is the most prominent. In all aspects, it is no longer a fun thing for the future but a tool for today. E-commerce giants like Flipkart deploy AI-powered chatbots to serve customers. Agri-tech startups use machine learning to predict yields and help farmers plan better. Healthcare providers analyze patient data to anticipate outbreaks, while manufacturers rely on AI to reduce downtime and improve production. As these tools grow, sectors ranging from finance to transportation can see faster decision-making, reduced waste, and better user experience.
Stability is another key factor in a highly competitive market like India. Digital transformation provides the tools to achieve environmental goals: AI reduces energy consumption in the middle of data, digital platforms reduce food waste by connecting farmers directly to consumers, and analytics help companies like Tata Power improve energy efficiency.
More and more, CEOs are realizing that digital transformation is not just about new technology – it’s also about managing the environment for the long term. By putting sustainability at the center of their strategy, Indian companies can prove their worth and differentiate themselves in a global market that favors sustainable growth.
BT: What should Indian CEOs look for when driving digital transformation?
MP: First, they must see change as the first thing people choose. Technology costs only when employees understand and accept them. Improving employee skills, fostering a culture of experimentation, and creating diverse work teams can make the difference between stagnant and successful innovation.
Collaboration is equally important. Large manufacturers can partner with nimble fintech startups for payment solutions, while healthcare providers connect with analytics companies for patient data. CEOs who promote networking across multiple industries can accelerate their digital agendas. In the meantime, keeping up with legal changes – from domestic data protection laws to international standards – is essential. Flexibility and foresight can help companies avoid pitfalls and take advantage of new opportunities.
Flexibility is important. Digital trends move quickly, and the ability to pivot—to change product lines, target new customer segments, or create new partnerships—separates the leaders from the laggards. Indian authorities should learn from global tech giants and each other’s best practices. Sharing what has been done can keep everyone interested and help build a strong national digital system.
BT: How can Indian businesses prepare for policy changes and Trump’s return to the US presidency?
MP: India’s digital ambitions are not happening in isolation. The policies that emerged from Trump’s first administration – tougher trade barriers, tougher visa regulations, foreign investment screening – taught Indian businesses the importance of resilience. IT companies that rely on US customers have had to adapt to the market, while e-commerce companies have struggled with data translation requirements. These changes highlighted the importance of event planning, follow-up measures, and reducing dependence on single markets.
In Trump’s second presidency, Indian companies will also have to change. Software exporters may appear aggressively in Europe or Southeast Asia. Data-driven companies must prepare for potential cross-border restrictions. By looking at how US businesses have evolved in the past – focusing on compliance, supply chains, and developing proprietary technologies – Indian companies can adopt new regulatory strategies.
Meanwhile, Indian policy makers and industry bodies can strengthen the digital environment to protect it from external influences. Strong data governance practices, robust cyber security measures, and sustainable trade partnerships will all help ensure that Indian companies remain competitive, regardless of international changes.
