The digital technologies are exponentially expanding into all aspects of our life and becoming the fuel of the economic activities we are in or increasingly getting into. Enhanced connectivity, financial inclusion and easy access to almost all kinds of services- all have become possible because of the growing penetration and expansion of the digital technologies. Therefore, when Prime Minister Narendra Modi while addressing the ‘BRICS Business Forum’ says, – India’s digital economy is going to be 1 trillion dollar by 2025 and country’s digital economy + the infrastructure sector has a total potential for 2.5 trillion dollar, it startles very few people.
Digital economy means
In the beginning it is pertinent to understand in short, what the digital economy is all about? Digital economy is a network of economic activities, commercial transactions, professional dealings and others that are supported and enabled by digital technologies or information and communication technologies (ICT) with three main components- supporting infrastructure, electronic business and financial processes and electronic commercial transactions.
Singly most driver of growth
Digital technologies are becoming the single most driver of innovation, growth and job creation and generating benefits and efficiencies by permeating all aspects of society and influencing the way we carry out economic activities. In this way, digital technologies are playing the role of a great equaliser by bringing sociological changes also.
Narrowing the digital divide
India’s inclusive digital model is narrowing the digital divide among people and bringing benefits of technology to all segments of people, as less affluent states leapfrog to catch up with more affluent ones on dimensions such as internet subscriber growth, density of internet infrastructure, and common service centres.
Digital India Programme
Through Digital India Programme, the Government is focusing much on creating a strong foundation of digital infrastructure and expanding digital access to all, creating tremendous economic value and empowerment of citizens as new digital applications permeate sector after sector.
Second fastest digitizing economy
These efforts have made India the second-fastest digitizing economy amongst 17 leading economies of the world and country’s digital economy may generate productivity and output sufficient to support 55 million to 60 million workers in 2025.
New digital ecosystems
Coming back to the prospects, half the potential economic value of one trillion dollar in 2025 is expected to come from new digital ecosystems in diverse sectors, including financial services, agriculture, healthcare, logistics, jobs and skills market, e-governance and others.
Launched in July 2015, the Digital India is a flagship program of the Government that is also helping the country transform into a knowledge economy and digitally enabled society. Building on this foundation, the country now has massive opportunities to scale up its digital economy to newer heights with the passage of time.
A new report by MEITY
A new report by the Government of India’s Ministry for Electronics and Information Technology (MEITY) says- the way internet users are rising rapidly in every part of the country, is going to create a huge market for a host of digital services, platforms, applications, content, and solutions. Overall, India could potentially see a five-fold increase in economic value from digital transformation by 2025, representing an attractive opportunity for global and local businesses, start-ups, and innovators to invest in emerging technologies, like- AI, blockchain, drones and others.