Digitalization in India and Its Economic Growth

-- Zikra Sajid, 7-A, Indian Central School

Thursday, January 11, 2024

What is “Digitalization”? Digitalization is the use of technologies to change a business model and provide new revenue and value producing opportunities. The Digital India programme launched by the Government of India focuses on improving access to technology and digital services. The programme was launched on 1 July 2015 by Hon Prime Minister Shri Narendra Modi. It has opened up tremendous opportunities for economic growth in various sectors of the economy.

Digitalization has enabled people to save time and money by avoiding long queues at bank and ATM’s and has made it easier for them to manage their finances. India has become the second fastest growing digital economy in the world. India has around 560 million connected internet users who downloaded 12.3 billion apps in 2018. The digital economy’s contribution to India’s GDP (Gross Domestic Product) has increased from 4 – 4.5 % of the GDP in 2014 to 11% and is expected to cross 20% by 2026.

There are many benefits of digitalization like it saves paper usage which slows down the cutting of trees, increased efficiency which saves money on labor , material and other costs, easier collaboration and of course employee productivity rates go up. As employers start working together more and collaboratively it results in increased productivity. India’s internet economy is set to grow six – fold (6X) in the next seven years to reach 1 $ trillion by 2030 from approximately $ 175 billion. Last but not the least we must integrate next generation technologies such as data analytics, cloud platforms and solutions, AI/ML, metaverse, cyber security and automation to make India have the fastest economic growth.

Zikra Sajid, 7-A, Indian Central School