The Prime Minister has set a new goal of India becoming a 5 trillion-dollar economy by the year 2025, and the ‘Digital India’ program will play a critical role in realizing this ambition. The role of modern technology becomes crucial – one that enables digital scale, security, and performance, along with optimizing cost savings. These will help realize the country’s $5 trillion economy target. India is entering into Industry 4.0 the fourth industrial revolution the next phase of India’s prosperity will be driven by digitalization with next-generation technologies. A robust digital economy will also help India be better prepared for the global market. Digital technology helps India realize the ambition of creating a just and equitable society. It can help propel India to the front rank of nations, particularly leveraging the energies of the country’s youthful population, with its propensity for quick adaptation and frugal innovation.
The ‘Digital India’ initiative was launched by Prime Minister Narendra Modi on 1 July 2015, and in the 4th year of the program, we can agree that the program has been successful at a very large scale. The 3 major factors which Digitalization includes are: in the creation of pervasive national digital infrastructure, in the electronic delivery of public services and financial support to citizens, and in enhancing digital awareness and literacy. With the future prospects of the nation’s growing digital economy keeping in mind, the government of India introduced the National Policy on Electronics (NPE) and the National Policy on Software Products (NPSP) earlier this year. These policies aim to build a comprehensive digital manufacturing and research and development (R&D) ecosystem.
The government’s Direct Benefit Transfer [DBT] scheme now caters to around 350 million Indians, liberating them from corruption and various hassles which used to prevail before, while ensuring that process leakage are a thing of the past. Instantaneous and safe financial transactions are now within reach of all, with the Unified Payments Interface has grown in three years from a mere 100,000 to 800 million transactions in March 2019.
Digitalization has already helped disburse over $86.4 billion directly to the bank accounts of beneficiaries spanning over 430 government schemes since 2015 hence saving around $15.3 in the inefficiency process. India’s digital consumer base is second-largest in the world, as well as the second-fastest growing among 17 major economies. And this base is core to the creation of future economic value and societal empowerment as digital solutions. The government in its Union Budget for FY 2019-20, called for additional investments in boosting the digital economy, while also making digital transactions more attractive and giving some relaxations for the people to use digital transactions. Therefore, it is estimated that the digital economy in India is predicted to reach a value of nearly $1 trillion by 2025, a fivefold increase from the current $200 billion.
However, to conclude it can be said that thought the digital economy will contribute a lot in the future for becoming a 5 trillion-dollar nation but India’s regulatory approach should also focus on regulating this type of economy. This can be done by drafting new laws and articulated outcome-based regulations.
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