From QR Codes To AI: How Technology Is Shaping India’S Megatrend Story

At a typical tea stall today, the reflection of a modernising India is hard to miss: the vendor serves steaming tea while pointing to a laminated QR code on the counter. Digital payments, once novel, have become as natural a part of daily transactions as handing over small change.

That moment tells us why technology is a megatrend. Unlike short-lived fads that fade quickly, megatrends endure – and have a multifaceted impact. They build slowly, reshape economies and societies, and offer potential growth opportunities.

Table of contents

• Key technology enhancements driving the megatrend

Key technology enhancements driving the megatrend

Automation and robotics

Until recently, the idea of “robots” for many in India was associated with films or children’s toys. Today, automation and robotics have become integral to workplaces, from factory floors to hospitals. Robotic arms deliver precision in automobile manufacturing, surgical robots assist doctors, and chatbots streamline customer interactions in service industries.

Increasing use of data analytics

Consider how a food delivery app anticipates a customer’s Friday night craving, or how banks assess the potential creditworthiness of a customer. Farmers now use soil data to guide irrigation, while political campaigns analyse voter sentiment through dashboards. All these examples highlight the growing role of data analytics.

Even streaming platforms now guide viewers toward their next choice. India generates vast volumes of data each day, and when effectively analysed, this information has the potential to address challenges and create solutions on a large scale.

Read Also: What Is a Megatrend & Why It Matters for Investors

The internet of things (IoT) and smart devices

Remember when “smart” meant someone who topped the class? Today, your fridge, watch, and even your light bulb can claim that title. IoT smart devices are our companions —always listening, learning, and sometimes nagging.

In some rural areas, IoT sensors indicate to farmers when crops need water. On highways, logistics firms track trucks in real time, cutting down delays.

Blockchain and cryptos

Bring up blockchain or crypto in a casual conversation, and chances are someone will mention a cryptocurrency that they believe could be “the next Bitcoin.” However, while digital coins often rise and fade with market cycles, the more significant development lies in blockchain technology itself: the underlying digital ledger designed to improve security, enhance transparency, and make records more resistant to tampering.

Blockchain technology offers the potential to enhance transparency and security in areas such as land records, academic certifications, and pharmaceutical supply chains. While cryptocurrencies continue to face regulatory challenges, the broader application of blockchain as a mechanism is gradually being integrated into Indian systems.

E-payments and transfers

One of the most visible technological shifts in everyday life has been the rise of digital payments and transfers. What once required cash transactions is now managed seamlessly through UPI, which processes millions of transactions monthly. This technology has also enhanced inclusivity, with users across diverse professions and backgrounds adopting it with relative ease.

Digitization and platforms

Think back to 2010. Booking a cab meant visiting local taxi stand and hoping a driver would arrive soon. Ordering food meant calling up a restaurant and hoping they offered home delivery. Today, a ride-hailing app brings transport to your doorstep in minutes, and restaurant aggregators enable swift delivery within a wide radius. Fruits, vegetables and home supplies no longer need to take up chunks of the weekend – quick commerce platforms often deliver groceries home in 10-20 minutes.

Today, digital platforms have enhanced convenience, rewired expectations and altered lifestyles, creating new industries in the process.

Read Also: Megatrends in Investing: AI, Climate & Clean Energy

Investor implications

The key advantage of investing in megatrends is the potential for long-term growth. While not without risks, it allows portfolios to align with enduring global shifts, offering potential for sustained growth, diversification, and early participation in emerging themes.

For investors, investing in the technology megatrend extends beyond acquiring shares in prominent tech firms. Opportunities may also lie in less visible participants, such as warehouse operators adopting IoT sensors, banks applying AI-driven analytics, or hospitals digitising patient records. These developments are equally integral to the megatrend as the growth of India’s IT sector.

By focusing on structural shifts that can reshape industries over decades, megatrend investing carries the potential for higher growth than broad market exposure — though this comes with greater risks and uncertainties. That’s why diversification is important.

Allocating across areas such as automation, IoT, e-payments, data analytics, and digital platforms may help capture potential growth opportunities while mitigating some risk. Spreading investments across asset classes and incorporating broad market funds, such as index or diversified equity funds, can provide investors with exposure to the overall market rather than concentrating only on specific themes.

Risks and considerations

Some of the risks are:

• Concentration: Megatrend strategies may focus heavily on a few sectors or themes, which can increase exposure to sector-specific downturns and reduce the benefits of diversification.
• Regulation: Changing policies can significantly impact businesses aligned to certain megatrends. Examples include cryptocurrency crackdowns, stricter data privacy frameworks, or antitrust actions against large digital platforms.
• Global competition: Indian companies operating within megatrends often face competition not only from domestic peers but also from well-capitalised global players, particularly in technology hubs like Silicon Valley and Shenzhen.
• Execution risk: Even within a strong megatrend, not all firms succeed. Factors like management quality, scalability, and ability to adapt to disruption can make a big difference in outcomes.

Read Also: What Makes a Trend a Megatrend? Key Traits & Examples

Note: References to any industry/sector are provided for illustrative purposes only. This should not be construed as a research report or a recommendation to buy or sell any security or sector.

At Bajaj Finserv Asset Management Ltd, we aim to harness the power of megatrends by offering investors access to themes shaping the world’s future — from clean energy to technology, innovation, demographic shifts and more. Many of our funds follow a megatrends investment approach to help you participate in these long-term shifts, with a focus on growth potential and diversification. Build your future-focussed portfolio with Bajaj Finserv AMC.

Mutual Fund investments are subject to market risks, read all scheme related documents carefully.

This document should not be treated as endorsement of the views/opinions or as investment advice. This document should not be construed as a research report or a recommendation to buy or sell any security. This document is for information purpose only and should not be construed as a promise on minimum returns or safeguard of capital. This document alone is not sufficient and should not be used for the development or implementation of an investment strategy. The recipient should note and understand that the information provided above may not contain all the material aspects relevant for making an investment decision. Investors are advised to consult their own investment advisor before making any investment decision in light of their risk appetite, investment goals and horizon. This information is subject to change without any prior notice.

The content herein has been prepared on the basis of publicly available information believed to be reliable. However, Bajaj Finserv Asset Management Ltd. does not guarantee the accuracy of such information, assure its completeness or warrant such information will not be changed. The tax information (if any) in this article is based on current laws and is subject to change. Please consult a tax professional or refer to the latest regulations for up-to-date information.