Digitization in India and Its Economic Growth

-- Shaik Abdul Azeez, IX-B, Kuwait Indian School

Sunday, January 14, 2024

India’s digital transformation has been remarkable in recent years with the rapid adoption of smartphones, increased internet connectivity, and the government’s push towards a digital economy. The digital economy’s contribution to India's GDP has increased from 4-45% of the GDP in 2014 To 11% and is expected to cross 20% by 2026. The fast-paced digitalization has significantly impacted the country's economic growth, with tremendous opportunities for continued growth in the digital economy.

E-Commerce has truly experienced tremendous growth in recent years, driven by the increasing number of Indians with internet access. This sector has tremendous potential for continued growth.

In many ways, digitalization has significantly impacted the financial sector facilitating online transactions and bringing more people into the formal banking sector. Aadhar, E-KYC, and UPI have already significantly aided India’s financial-inclusion progress.

Also, India's micro, small and medium enterprises (MSME) sector face a significant credit gap, and digitalization could be a game-changer for economic development. The digital transformation could turbocharge the process of formalizing the economy and providing credit access to MSMEs.

The digitalization of India's economy provides India with a unique competitive advantage by not only reducing the cost of doing business but also formalizing the economy, supporting financial inclusion, and creating new business opportunities.

While the impact of digital star of India's economic growth has been positive, there are still challenges to address, such as data privacy and security issues by addressing their challenges and investing in digital technologies, India continues to drive growth and improve citizen welfare. The digital transformation of India's economy is expected to play a major role in promoting the country's economic growth in the 21st century.






Shaik Abdul Azeez, IX-B, Kuwait Indian School



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