In the ever-evolving landscape of digitization, India has firmly positioned itself as the third-largest digital economy globally, a remarkable feat trailing only the United States and China. A recent report by the Indian Council for Research on International Economic Relations sheds light on this rapid transformation, emphasizing India’s ascent in the digital realm.
With an impressive user base of over 70 crore individuals, the integration of smartphones, digital technology, and the internet into our daily lives has been nothing short of revolutionary. The Digital India campaign has played a pivotal role in shaping this landscape, ushering in a new era marked by affordable data rates and the widespread adoption of digital payment systems like UPI.
The establishment of a robust digital public infrastructure under the campaign, incorporating key initiatives such as UPI, Aadhaar, GST numbers, Fastag, and Ayushman Bharat Digital Mission, underscores India’s commitment to embracing the digital wave comprehensively.
Projections indicate a significant leap in the contribution of digital public infrastructure to India’s GDP, ranging from 2.9 to 4.2 percent by 2030, a noteworthy increase from the 0.9 percent recorded in 2022, according to insights from NASSCOM and Arthur D. Little. The vision is ambitious, foreseeing the Indian economy reaching eight trillion dollars by 2030, with a trillion dollars attributed to the digital economy.
Governments, both at the central and state levels, have seamlessly incorporated online services into their schemes and programs. Simultaneously, the private sector actively engages with customers and consumers through digital channels, marking a paradigm shift in service delivery.
As we applaud these achievements, it is crucial to acknowledge existing challenges and disparities in the digital landscape. Despite being the third-largest digital economy, India ranks 12th in individual usage among G-20 nations, highlighting that, despite widespread digitization, there are constraints on average user engagement.
Currently, approximately 52 percent of Indians are connected to the internet, with a gender disparity of 10 percent, surpassing the global average of nine percent. Moreover, a considerable gap of 58 percent in internet connectivity persists between rural and urban India. Addressing these gaps is imperative to ensure the inclusivity and effectiveness of our digital journey.
India’s strides in AI, supercomputers, satellite networks, and positive regulatory measures signal a promising trajectory. However, focusing on these successes should not overshadow the importance of bridging digital divides and enhancing service quality. As we navigate the digital horizon, it is the responsibility of policymakers, businesses, and citizens alike to collaboratively steer India towards a more inclusive and digitally empowered future.
