As the world recovers from the Covid-19 pandemic, India has become a bright spot on the economic horizon. During the present and the following few years, India will continue to be the largest economy with the quickest rate of growth.

1. Know How Digital India Is Enabling Growth For
Indian Economy

2. POST HIGHLIGHT...
India wants to become a $1 trillion economy By 2025, the digital
economy will be more visible because of the pandemic condition that is
currently affecting the ecosystem and its effects. The demand curve will
change as a result of investments in digital technology, and enterprises
will grow tremendously.
The infrastructure, the way business is done, and the method for selling
goods online make up the three primary components of the digital
economy.
Consumer behavior has changed as a result of digitization, which has
also created potential to serve underserved or unserved markets,
increase supply chain efficiency, create economies of scale, and reduce
prices.
All of this has been made possible by the improvements made over the
last ten years, including the expansion of digital infrastructure, a sharp
decline in data prices, and a surge in the use of smartphones.
India is predicted to have 900 million active internet users by 2025, with
a penetration rate of 45% as of January 2021. Only behind China and the
US, India has the third-largest online consumer base (140 million).
According to a 2021 Bain-Flipkart analysis, the e-retail sector is predicted
to reach $120-140 billion by FY26, growing at a rate of about 25–30
percent annually over the following five years.
In the light of above facts, it is important to Know How Digital India Is
Enabling Growth For the Indian Economy.

3. CONTINUE READING...
As the world recovers from the Covid-19 pandemic, India has become a bright spot on the
economic horizon. During the present and the following few years, India will continue to be
the largest economy with the quickest rate of growth.
The GDP is anticipated to expand by 7% in FY23 whereas the World Bank's most recent
prediction for FY24 is 6.6%. In contrast, only 1.7% growth in the global economy is predicted for
2023. For the first time in many years, India would be the world's largest economy, despite the
fact that most of the other major economies are experiencing a considerable slowdown in
economic growth. The fast-expanding digital economy in India is one of the main forces
influencing this economic revolution.
Know How Digital India Is Enabling Growth For Indian Economy
The Digital India program has substantially benefited the digital economy, which is anticipated
to grow from its current level of around $300 billion to $1 trillion by FY27, boosting its
proportion in the GDP from about 9% to about 20% over this time.
As a result, the digital economy would play a significant role in our country's total economic
growth. How did the country's broader economy come to rely so heavily on the digital
economy?
Aim To Digitize All Services
Across the board, digitalization is spurring innovation and releasing significant gains in
productivity and efficiency in the public and private sectors.

4. Aadhaar for digital identity, Unified Payments Interface (UPI) for online
payments, Government e-Marketplace (GeM) for public procurement,
Goods and Services Tax Network (GSTN) for indirect taxation and
GatiShakti for logistics are just a few of the major national public digital
platforms that the government has developed that have completely
changed how businesses and government agencies conduct business.
These platforms have made it possible for the government to
completely digitize all services aimed at citizens and businesses, as well
as enabling enterprises to digitalize their operations and receive
payments and tax refunds immediately.
Through consent-based online data exchange, fully online Account
Aggregators are now readily providing credit to people and MSMEs
without any paperwork. These are significantly enhancing the flow of
credit and maximizing the use of resources throughout the entire
economy.
The government has heavily digitized practically every aspect of
governance, which has improved both the ease of doing business and
the quality of life for citizens.
In order to digitalize their services, the majority of government agencies
at the central, state, and local levels have engaged in extensive process re-
engineering. This has helped to make the entire approval process and
service delivery time-bound and predictable. Despite the majority of the
legislation governing these sectors remaining the same, this has been
accomplished.

5. What is the primary force behind India's digital transformation?
India has a young population, with 840 million or so internet users, and smartphone adoption is
increasing quickly, even in rural areas. More and more individuals are going online thanks to the
availability of fast 4G networks and the most affordable data rates in the world. During the
epidemic, digital tools were increasingly used for both personal and professional purposes.
The rapidly growing 5G network and increasing optical fiber penetration in BharatNet-assisted
villages will help in soon connecting the last 40% of our population to the internet.
Startups may now build innovative enterprises and compete globally due to the economy's
massive digitalization. Today, roughly 80,000 startups with a combined capitalization of about
$450 billion are overwhelmingly tech-focused. The Indian startup ecosystem is the third largest
in the world, with over 100 unicorns. Emerging technologies like artificial intelligence,
blockchain, augmented and virtual reality, the Internet of Things, metaverse, Industry 4.0, etc.
are predicted to accelerate the contribution of the digital economy to India's economic growth.
These are, however, also anticipated to present new difficulties, particularly in addressing online
user harms, cybersecurity, and privacy and personal data protection.
India would need to concentrate on developing a world-class digital infrastructure, including
new-age data centers, becoming a global hub for electronics and semiconductor
manufacturing, creating world-leading public digital platforms in domains like healthcare,
agriculture, education, logistics, etc., ensuring cybersecurity, driving innovation through the
emerging technologies, bringing new legal and regulatory frameworks, and more in order to
enable the digital economy to drive the next phase of growth in the broader economy.

6. Within this decade, India will become the world leader in the digital economy if this vision for
the next phase of Digital India is realized.
Also Read: How To Use DigiLocker As A Digital Governance Tool
India's digital revolution
India's government launched the Digital India program in July 2015 with the goal of
transforming the country into a knowledge-based economy with strong digital capabilities. This
was the beginning of the country's digital revolution. The purpose of the Digital India program,
according to Prime Minister Mr. Narendra Modi, is to enhance the lives of common people. It
sought to provide the populace of the nation with "accessible, affordable, and useful"
technology. The initiative was broken down into several components: governance, on-demand
services, digital citizen empowerment, and digital infrastructure as a utility for all citizens. After
six years of work, the nation has strengthened its digital infrastructure and increased internet
access across the board. As new digital applications permeate and transform a variety of
activities and types of work on a national scale, India is set for the next phase of growth, the
production of enormous economic value and the empowerment of millions of Indians.
India's digital revolution benefits
The digital revolution in India has greatly helped the nation. The government has used its digital
environment to better the lives of its residents during the past six years. Through Direct Benefit
Transfer (DBT) initiatives, India has transferred a total of Rs. 22 lakh crore (US$ 300 billion)
through the JAM ecosystem. The method of electronic payments has also been revolutionized
by the government.

7. With 48 billion transactions in 2021, India will have the most real-time transactions globally. This
is 6.5 times larger than the combined populations of the US, Canada, France, and Germany, and
it is approximately three times larger than China, which has 18 billion people. The measures
taken by the Indian government go beyond transaction standardization. Through the GST, the
government was able to integrate more than 63 million MSMEs into the formal economy in
2019. As a result of this formalization, businesses are now required to use technology for tax
filing and other purposes, which is assisting India's expanding internet adoption.
Indian government's most recent digital revolution initiatives
With its "Digital India" initiative to advance e-governance, give people access to government
entities, build out digital infrastructure nationwide, and connect Indians' internet, the
government of India has been at the forefront of digitization since 2015. Since then, India has
completed a number of initiatives to strengthen its digital ecosystem. The government has
promised additional reforms, including plans to increase semiconductor manufacturing,
electronic manufacturing, and drone manufacturing, in order to maintain the momentum of
India's digital revolution. Several important changes that will accelerate India's digital
transformation include:
Open Network for Digital Commerce (ONDC)
The Open Network for Digital Commerce (ONDC) in India is referred to as the country's
equivalent of the Unified Payments Interface (UPI).

8. The government insists that the Open Network for Digital Commerce (ONDC) will digitize the
entire value chain, standardize operations, encourage supplier participation, boost logistical
effectiveness, and raise customer value. In India's digital economy, this network will offer open
networks for all facets of exchanging products and services. 17 banks and financial institutions
have contributed a total of Rs. 157.5 crore (US$ 20.30 million) to the ONDC platform for the
project's first phase.
Aim to provide high-quality internet
To deliver accessible and high-quality Internet, the Indian government has made a number of
initiatives. The BharatNet Fiber project and investments in the creation of 5G and 6G
infrastructure are among these investments. The 5G ecosystem in India is anticipated to
contribute US$ 450 billion to the Indian economy over the next 15 years, according to a
statement from Mr. Piyush Goyal, the Union Minister of Commerce and Industry, Consumer
Affairs, Food and Public Distribution, and Textiles.
Reforms in India's Digital Payments
The 5G ecosystem in India is anticipated to contribute US$ 450 billion to the Indian economy
over the next 15 years, according to a statement from Mr. Piyush Goyal, the Union Minister of
Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles.
India's digital payment ecosystem would be significantly improved, according to the Indian
government. In order to serve rural India, the government has pushed for UPI to be made
available on feature phones.

9. UPI has been developed to a worldwide level by NPCI International Payments Ltd (NIPL), with
countries including the UAE and Nepal actively engaging in the UPI ecosystem. India's digital
transformation will be accelerated and would benefit the entire world. A Digital Rupee has also
been proposed by the government, according to the Union Budget for 2022–2023,
Push for Data Centers
The Indian government has announced intentions to encourage investments in the construction
of data centers in order to promote India's digital transformation. By 2024, the nation's data
center capacity will have grown by 34%, to 1.3 GW. By 2024, Mumbai and Chennai are
anticipated to have 68% of the nation's capacity.
Conclusion
The digital revolution in India will result in a paradigm shift for the country and its economy.
India may become the country with the fastest-growing digital economy with the aid of public
and private partnerships, favorable government policies, creative reforms, a demographic
advantage, rising incomes, and the expansion of the startup culture in India. The digital
revolution in India is predicted to present a $1 trillion potential. The Indian economy has already
benefited from the digital revolution by being more adaptable to the times. Future projections
indicate that India's digital economy will help the country reach its target of a $5 trillion GDP.

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