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Digitalization and Indian Economy

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The Indian market has developed from only Rs. 2.7 lakh crore to Rs 57 lakh crore which makes it the entire world’s sixth-largest market by GDP and the third-largest by purchasing power parity (PPP). The nation ranks 141st in per capita GDP and also 123rd in per capita GDP (PPP) at the time of 20-16. After 1991 Indian market has seen plenty of developments from being relegated into starting its door for worldwide gambling by allowing LPG(Privatization and Globalization, Privatization and Globalization) from 1991 under the then Prime Minister Mr. P. V. Narasimha Rao and also Finance Minister Dr. Manmohan Singh. India achieved 6 7% moderate GDP growth yearly. Back in FY 2015 to 2017, India’s market became the world’s most fastest-growing big economy exceeding China.

Digitization could be that the mass adoption of connected electronic services with consumers, businesses, and authorities– is a lot more than the usual tumultuous wave washing foreign companies. Initially, individuals were introduced to the usage of pcs, and the automation required every business by storm now we may observe the digital universe which exists.

Digital World and Digital India:

World Economic Forum in its own Global Information Technology Report generated a Networked Readiness Index (NRI) some 12 years ago, to draw the eye of both decisionmakers and investors involving the adoption of financial and business plans that could permit them to grow in the circumstance of a fast-moving but Profession online economy. From the worldwide, it report, 20-16 released by World Economic Forum India Ranked 91st standing in Network Readiness Index one of 139 countries slide down from two positions in the total ranking. The shift is more marginal, but this drop is still a sign of the slower speed compared to other nations.

Under the direction of honorable Prime Minister Mr.Narendra Modi, India gets prepared to bring a head-to-head conclusion with the remainder of the earth. Together with his vision to produce an electronic digital India using his tough plan Bharat Net. Because the majority of the Indian people still have a home in many rural areas where an online connection can be a fantasy, the federal government is building a highspeed electronic highway to join all of 2.5 lakh Gram Panchayats of the nation. This is the planet’s biggest rural broadband connectivity endeavor utilizing optical fiber. This study will be completed using all the following goals:

1) To understand the various measures of digitization index.

2) To analyze the effect of digitization on Indian economic development;2)

3) To examine different constraints of Digitization.

The analysis is qualitative and qualitative in character. The secondary information will be used for that diagnosis of the issue. Resources for your secondary statistics will be derived from the numerous sources such as special investigation team file, paper and Telecom Regulatory Authority of India, World Economic Forum internet sites.

The Digitization Index

Digitization metrics decide to try to measure the cumulative influence of adoption and using information and communication technologies (ICT). We all know that the holistic adoption and using it contributes to enhanced economic development. There are just six measures of digitization indicator employed from the analysis.

1. Affordability:- it has to be sufficiently affordable to allow scalable impact.

2. Infrastructure Reliability:- it is supported by telecommunications networks and reaching the most population of a national territory.

3. Network Access:- networks need to be accessed by multiple fixed and mobile voice and data devices.

4. Capacity:- Bandwidth is the data rate supported with a network connection. This is stems from the area of technology where bandwidth reflects the exact distance between the highest and smallest signs on a communicating station (ring). Greater bandwidth indicates that a larger capacity nonetheless, it will not necessarily signify increased performance.

5. Usage:- networks have to provide sufficient capacity to deliver vast amounts of information at speeds that do not hinder their effective use.

6. Human Capital

Infrastructure reliability- It’s supported by telecommunications networks and attaining the maximum people of the federal land. A Variety of programs Undertaken by Government of India to enhance the infrastructure would be:-

1. Broad Band Highways: It ensures three components Broad Band for most broadband, rural for most National and urban information infrastructures.

2. Universal use of Mobile Connectivity: ” It centers on system understanding and filling out the gaps in connectivity from the nation.

3. Public Access to the Internet Programme: To Offer Shared Services Centres (CSCs) and Article Offices as Multi-Service centers.

4. E-governance: Reforming Authorities through Tech: Government Process Reengineering utilizing it to simplify and create us government procedures more effective is essential for transformation to earn the delivery of government services better across various government domain and so has to be executed with Ministries/ Departments.

5. E-Kranti: Electronic Delivery of Services: the Federal Government declared the National EGovernance Plan (NeGP), consisting 3-1 Mission Mode Projects (MMPs) and 8 elements. E-Kranti is a vital pillar of this Digital India initiative also there are 44 Mission Mode Projects under e-Kranti, which can be in various phases of execution. ( includes Banking, post office, taxation, Land records, Agriculture, Gram Panchayats etc..)

6. Advice for many: Internet hosting of documents & information to ease open and effortless access to information to taxpayers.

7. Electronics Manufacturing: ” It targets boosting electronic in the nation with the aim of net-zero Imports by 2020 because of striking demonstration of aim.

8. IT for Jobs: ” It targets providing training to the youth at the skills required for procuring job chances while in the IT/ITES industry.

9. Historical Harvest Programmes: This is composed of these endeavors that should be executed in a brief timeline.

Network Access

Internet penetration in India grew from just 10 percent in 2011 to 34.08 percent in 2016, registering a direct increase of 89 percent in 2016 over 2007.

• Urban India with an estimated population of 444 million already has 269 million (60 percent) using the Internet.

• Rural India, with an estimated population of 906 million as per 2011 census, has only 163 million (17 percent) Internet users. There is, therefore, a great opportunity for increasing penetration in the rural areas.

• Analysis of ‘Daily Users’ reveals that both in Urban and Rural India, the younger generations are the most prolific users of the internet.

• Rising internet penetration is expected to drive e-commerce growth in India.

Indirect and indirect labor of this IT-BPM sector in India from the financial year 2009 to 2017 (in millions)

This statistic indicates the number of people working, either indirectly and directly, by the Indian IT and business process management (IT-BPM) industry from 2008/9 into 2016/17. Direct employment from the IT-BPM industry in India reached 3.9 million people from 2016/17. In the last ten years, the IT Industry has been blindsided by the huge tide of outsourcing out of foreign businesses. In 2014, the infrastructure outsourcing agency segment accounted for the most significant percentage of IT outsourcing spending in India.

Digitalization and GDP Growth:

Digitization being a vital economic driver from the world it’s necessary to incorporate the economy by creating digital economies. Firms, productivity, and prices would be the 3 benefits produced by the economy. It’s seen in huge markets internet is the reason approximately 3.4 percent of GDP normally together side stable labor creation. Throughout the worldwide recession, 6 million jobs were generated worldwide by the digitization impacts and 94 percent were from emerging markets and 6 percent out of developed markets. This showcases the possibility of this digitization in creating job chances. Surveys show growing savings have more chances of benefiting from digitization compared to the developed markets as growing markets have a larger range of reducing inefficiencies and boost production. Back in India, rising net penetration accelerated technology adoption and higher selling of gadgets such as tablets tablet computers, and so forth, have contributed to an appealing internet customer base and an unparalleled increase of e-commerce. World Economic Forum (2013) said in its own report which 10% boost in digitization score of almost any country would contribute 0.75% increase in its GDP per capita. Other studies concur its impact is 4.7 times greater compared to the ordinary effect of 0.16 percent over the per capita GDP for broadband installation (World Economic Forum, 2013). With the rise in online use e-commerce businesses not merely increased their business enterprise into many advantages but also gave birth to both marketing services and service to the tiny sellers by enabling them to attain a more worldwide industry.

With the start of the electronic age, there’s again in the automation process which assists in the reduction of errors and gains in the production speed in addition to decreasing the ineffective moves. The decrease in cost of the industry is different from sector to industry and business to the industry.

• Street lighting, that today forms 1.5 percent of overall electricity consumption (in accordance with McKinsey) from India, may be altered via digitization. Motion-detection lights may save 70 80 percent of costs and electricity, based on Cisco’s prices.

• The Use of Bio-Metric apparatus Assist in tracking the ghost workers and Lower the individual biases towards a particular worker

Creation of jobs

Laying from this broadband system around 2.5 lakh village panchayats from the nation from 2018 Broad Band street may need a great deal of work and moving to develop a lot of tasks for the reduced area of this society. With that the gain in the penetration of internet and technology, there is going to undoubtedly be a requirement to keep the apparatus, therefore, there is likely to soon be a huge demand of its maintenance group. To coach people, there’ll be the demand of educators too. Figure-2 indicates the trendline and regression equation of online penetration and lead job creation. R 2 value indicates that 92.04 percent variance in employment will be clarified by individual changeable i.e. online penetration.

Obstacles in the process of Digitalization:

1. The resistance to change people show during the emergence of new technology.

2. Building trust among the people for change is difficult.

3. Lack of knowledge about its use and benefits.

4. Infrastructure requirements and their unavailability also hamper the reaching of these basic facilities to the people.

5. The basic hindrance is the lack of literacy and literacy is not just to be able to write one’s name and do the signature but to have an understanding of the changes going in the technology, society and the country for their own betterment.

The digitalization brings innovation, ease of working, new job opportunities and growth in the economy. It helps to bring transparency to the system and more transparent are the flow of funds in the economy less is the problem of tax evasion, parallel economy etc. But with all these benefits available it also makes it necessary for the people to have the basic financial knowledge and a push towards the importance of the financial literacy. With the help of which they can protect their money in situations like inflation, depression, and know about different financial products and services to save it for their better future. Digitalisation can also play an important role in the achievement of this goal as it can have a greater reach to the people. By this, we can reach a conclusion that the new technology needs to harnessed well and for this, it is not only the availability but also the knowledge to use it and get benefits from it.

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