Digitization in India and its Economic Growth

-- Mohammad Tameem, IX-C, Indian Central School

Tuesday, January 9, 2024

India, the birthplace of diverse culture, is also rapidly embracing the digital revolution. From chaotic cities to remote villages, digitization is changing lives and boosting economic growth.

The business sector, the people, and—most importantly—government actions to develop a strong infrastructure and offer universal education to all citizens have propelled the digital revolution. For instance, India has seen tremendous changes because of the IT Revolution, which was done by large expenditures in technology infrastructure and education. It has brought about the rise of enormous malls and sophisticated commercial complexes. India's economic landscape is still being shaped by this transformation, which has also made the nation a significant player in the global technology sector. Other programs, including Bharat Net and Digital India, are reducing the digital gap by increasing internet accessibility and building out large fibre optic networks, particularly in rural regions. This increased connectivity helped millions to access online education, healthcare, and financial services, previously out of reach. Indian government has launched several digital platforms and applications to provide various services to its citizens, such as e-governance, e-education, e-health, e-commerce, and e-finance.

For example, myGov.in launched in 2015, is a platform where citizens can share their ideas, suggestions, and feedback on the current governance; UPI (unified payment interface) is an application which facilitates quick and easy transactions; DIKSHA, A platform where teachers and students can access quality study materials etc.

Further, Data prices in India are among the lowest in the world because of intense competition and innovation in the telecom sector. Low data prices have boosted the adoption of digital technologies in many sectors, such as agriculture, education, healthcare, finance, and e-commerce and allowed millions of Indians to access several digital services and platforms.

Though COVID-19 had a negative impact on the world, The pandemic pushed us to explore online tools and services to stay connected, work remotely, and access essentials. This accelerated the adoption of technologies like video conferencing, e-commerce, and telemedicine.

Young entrepreneurs are leveraging the available technology to develop innovative and cost-effective solutions in sectors like healthcare, education, and agriculture. It creates new job opportunities and helps to nurture economic growth.

E-commerce giants like Flipkart and Amazon have transformed the retail landscape, especially after the pandemic. Consumers all over India now enjoy the convenience of doorstep delivery products at competitive prices. This helps the shopper to access a wide array of products as well as create a flourishing ecosystem for up-and-coming entrepreneurs.

The IT industry had a revenue of $227 billion USD in 2022. The Indian e-commerce and digital platform market reached a total revenue of between $130 billion and $150 billion USD in 2022.Both industries are continuing to grow rapidly. They collectively account for a significant portion of the GDP and their share in the GDP is growing as days go on.

Despite the enormous advancements, difficulties still exist. It is important for us to concentrate on extending digitization to remote places, guaranteeing data privacy and cybersecurity, and equipping people with the digital skills they need. Public-private partnerships, community-driven initiatives, and government funding will all be necessary to address these difficulties.

Digitization is a revolutionary force that is reshaping India's economic destiny, not merely a passing fad in technology. India can exploit the opportunities given by the "digital wave" to build a more internationally competitive economy by embracing its potential and tackling its obstacles.

Mohammad Tameem, IX-C, Indian Central School