India is undergoing a digital transformation with initiatives such as 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 Indian companies face in terms of digital adoption, the difference in digital maturity and potential political changes that could arise from a second Trump presidency. Edited excerpts:

BT: What challenges do Indian companies face in terms of digital adoption, and how are healthcare and manufacturing responding differently?

PM: As Indian companies accelerate their transition to the digital age, they are grappling with two major challenges: bridging large internal adoption gaps and preparing for global political changes that could redefine their strategies. On the one hand, managers must tailor digital efforts to industries with very different levels of maturity—such as healthcare and manufacturing—and align transformation with sustainability. On the other hand, they must remain alert to geopolitical changes, especially if Donald Trump returns to the US presidency and reshapes international trade and technology rules.

India’s digital adoption is far from uniform. Healthcare offers promising examples. Telemedicine platforms, now common in large hospital chains like Apollo, became widespread as the pandemic drove patients online. AI-powered diagnostics and electronic medical records are gaining ground. Still, old habits die hard in manufacturing. Auto giants like Mahindra & Mahindra are leveraging IoT-based systems for predictive maintenance, but many smaller workshops in places like Ludhiana or Tiruppur still rely on manual processes. Cost concerns, workforce skills gaps and outdated infrastructure are slowing rollout, leaving a patchwork of capacity across the country.

Small and medium-sized enterprises (SMEs) feel this pressure acutely. Often family-owned and wary of heavy investment, they need tangible benefits before embracing change. Nevertheless, success stories are emerging. For example, Tiruppur’s garment exporters use cloud-based inventory management and digital payments through India’s booming fintech ecosystem. Government-backed incubators and affordable digital tools ease the transition, replacing clunky spreadsheets with mobile-first solutions. As more SMEs see how technology can streamline supply chains, improve customer reach and increase efficiency, they gain the confidence to invest further.

BT: How are AI and sustainability driving digital transformation in India, and how are companies integrating both to future-proof their operations?

PM: Of the technologies fueling change, AI stands out. Across sectors, it is no longer a futuristic luxury but a contemporary enabler. E-commerce giants like Flipkart are deploying AI-powered chatbots for customer service. Agri-tech startups use machine learning to predict yields and help farmers plan better. Healthcare providers analyze patient data to predict outbreaks, while manufacturers rely on AI to reduce downtime and optimize production. As these tools mature, sectors from finance to logistics could see faster decision-making, reduced waste and better user experiences.

Sustainability is another priority in a resource sensitive market like India. Digital transformation offers tools to meet environmental goals: AI reduces data center energy use, digital platforms minimize food waste by connecting farmers directly to consumers, and analytics help companies like Tata Power fine-tune energy consumption.

Increasingly, CEOs are realizing that digital transformation is not just about new technology – it’s also about long-term environmental stewardship. By placing sustainability at the heart of their strategies, Indian companies can future-proof their operations and differentiate themselves in a global market that increasingly values ​​responsible growth.

BT: What should Indian CEOs focus on as they drive digital change?

PM: First, they must see transformation as a pursuit of people. Technology investments only pay off when employees understand and embrace them. Upskilling workers, nurturing a culture of experimentation and building cross-functional teams can make the difference between stagnation and successful innovation.

Collaboration is just as important. Large manufacturers can partner with nimble fintech startups for payment solutions, while healthcare providers partner with analytics firms for patient data insights. CEOs who foster networking across industries can accelerate their digital agendas. At the same time, it is crucial to stay abreast of regulatory changes – from domestic data protection laws to international standards. Flexibility and foresight can help companies avoid political pitfalls and take advantage of new opportunities.

Adaptability is key. The digital landscape moves quickly, and the ability to pivot—to change product lines, target new customer segments, or create new partnerships—separates leaders from laggards. Indian CEOs should learn not only from global tech giants but also from each other’s best practices. Sharing experiences can raise the bar for everyone and help build a robust national digital ecosystem.

BT: How can Indian companies prepare for political changes with Trump’s return to the US presidency?

PM: India’s digital ambitions are not evolving in isolation. The policies that emerged during Trump’s first administration — tougher trade barriers, stricter visa rules, increased scrutiny of foreign investment — taught Indian companies the importance of resilience. IT companies dependent on US customers had to diversify markets, while e-commerce companies grappled with data localization requirements. These changes highlighted the need for scenario planning, compliance strategies and reduced reliance on internal markets.

Under Trump’s second presidency, Indian companies will have to adapt again. Exporters of software services may look more aggressively at Europe or Southeast Asia. Data-driven businesses must prepare for potential cross-border data flow restrictions. By examining how US companies have adapted in the past – focusing on compliance, securing supply chains and developing proprietary technology – Indian companies can better prepare for new regulations.

In the meantime, Indian policymakers and industry associations can strengthen local digital ecosystems to cushion external shocks. Stronger data governance frameworks, robust cyber security measures and balanced trade partnerships will all help ensure that Indian companies remain competitive, regardless of geopolitical changes.