Digital India and Economic Growth- An Overview

Dr. B. Mahammad Rafee

Assistant Professor, PG & Research Department of Economics (Shift-II), The New College, Chennai-14.

Email:mdrafee@thenewcollege.edu.in

ABSTRACT: According to the RBI, the core digital economy of India's economy grew 8.5% of GVA in 2019 compared to 5.4% in 2014. India's digital economy expanded by 15.6% in US dollars between 2014 and 2019, which was 2.4 times faster than the nation's overall economic growth. Its digitalization increased at a rate of 11% between 2011 and 2019, matching China's rate. India's digitalization has been making steady progress, first affecting major urban regions, then smaller urban areas, and finally rural areas. Its digital growth is currently gaining more momentum and is expected to play a significant role in supporting India's long-term growth story. The present study is to assess the growth of digital economy accelerating the GDP growth in the country.

Keywords: Digital India, GDP Growth, PMGDisha, Digital Payments (NPCI), Artificial Intelligence (AI)

I.              INTRODUCTION

The Government of India has initiated the "Digital India" campaign to ensure that its services are made electronically accessible to its population through improved online infrastructure, increased Internet connectivity, or the empowerment of the nation in the digital sphere. Plans for connecting rural areas to high-speed internet networks are part of the effort. The creation of a secure and reliable digital infrastructure, the provision of public services online, and widespread digital literacy make up its three main parts.

Prime Minister of India launched it on July 1, 2015, and it is both a beneficiary and an enabler of several significant Government of India programs, including BharatNet, Make in India, Startup India, Standup India, industrial corridors, and Bharatmala and Sagarmala. India's population was 130 crore (1.3 billion) as of December 31, 2018, and the country had 150 crore (1.5 billion) mobile phones, 100.6 crore (446 million) smartphones, 130 crore (1.3 billion) internet users, up from 481 million (80% of the total population) in December 2017, and a 71% increase in e-commerce.

The goal of the Digital India program, which was introduced on July 1,2015 by Indian Prime Minister is to improve digital literacy and connect rural areas to high-speed Internet networks. The program's vision is inclusive growth in the areas of electronic services, products, manufacturing, and job opportunities. It is focused on three key areas: digital infrastructure as a utility for every citizen, governance and services on demand, and digital employment.

I.A. Recent Digital Initiatives: The National Scholarship Portal, Bharat, digital locker, e-education, e-health, e-sign, and e-shopping are a few of the services that will be made available through this program. The Indian government intended to introduce Botnet cleanup facilities as part of Digital India. All front-end government services were to be made available online under the National e-Governance Plan.MyGov.in provides a forum for discussing suggestions and ideas related to governance and policy. It serves as a forum for citizen participation in governance using the "Discuss," "Do," and "Disseminate" paradigm.

AADHAAR, DigiLocker, Bharat Bill Payment System, PAN EPFO services, PMKVY services, AICTE, CBSE, tax information, and over 1,200 other central and state government services are all accessible through the freeware mobile app UMANG (Unified Mobile Application for New-age Governance), which is available for Android, iOS, Windows, and USSD (feature phones).

I.B. Facilities to empower citizens digitally

The availability of a digital locker will make it easier for citizens to digitally keep their critical papers, including passports, PAN cards, mark sheets, and diplomas. Government-issued documents will have safe access through Digital Locker. It utilizes the Aadhaar authenticity services. It aims to do away with the need of paper papers and makes it possible for government entities to share authenticated electronic records. Citizen, Issuer, and Requester are the three main parties involved with DigiLocker. In addition to setting up at least one Common Service Centre in each of the state's gram panchayats, the government intends to generate 28,000 BPO seats across many states.

I.C. E-Sampark Email in the local language: Only 2% of the 10% of English-speaking Indians live in rural areas. Rest certain that everyone relies on their native tongue to get by in everyday life. Email addresses, however, may only currently be generated in English. The Government of India forced major email service providers including Gmail, Office, and Rediff to offer the email address in regional languages in order to integrate rural India with Digital India. The email service providers have demonstrated success and are continuing with their current procedures. The world's first free multilingual email account, known as "DATAMAIL," was introduced by an Indian firm called Data Xgen Technologies Pvt Ltd. It allows users to create email addresses in eight Indian languages, English, and three other languages: Arabic, Russian, and Chinese.

I.D. Government Initiative towards Digital Literacy: An effort under the Digital India program, Pradhan Mantri Gramin Digital Saksharta Abhiyan is being carried out by PMGDisha with an outlay of Rs 2,351.38 crore with the goal of making 6 crore rural households digitally literate by March 2020. The Pradhan Mantri Gramin Digital Saksharta Abhiyan's major goal is to digitally literate 6 crore people living in rural areas of India, reaching about 40% of rural households by providing coverage to one member from each eligible home.

There is a digital India corporation which bring together the other streams like Education, Agriculture , Health Care and Handloom & Handicraft provisioning Disability too in its forum. It is also associated with National e-governance division, My Gov,Technology development and deployment division, Meity Starup Hub,India Semi-conductor mission, Digital India Bhashini division etc.,

I.E. Digital Payments: Digital payments in India have increased in value and volume rapidly in recent months, including the months affected by COVID-19, which encompass the period from November 2019 to January 2023.By January 2023, there were 1,052 crores in digital transactions, a more than threefold rise from 300 crores in November 2019.

II.            LITERATURE SURVEY

Since smartphones and 4G streaming have become ubiquitous in urban regions as well as in rural areas, India has been experiencing a digital revolution. In 2019, there are 550 million internet customers and more than 200 million smartphone users in India. Important rural-to-urban movements are advancing this trend as poor peasants look for possibilities in India's modern metropolis. The Indian government has actively participated in bringing about digitalization since 2014 through a variety of actions. Demonetization is one such instance, and introduction of GST the other, which has drawn attention on a worldwide scale and been linked to temporary job losses and economic slowdowns. It also demonstrates conformity with the government's leadership in driving India's digital transformation, though. Zeeshan Quazi and Sarita Dhawale's (2022) research looked at the impact of digital business on the expansion of the Indian economy. The research found that, E-commerce is essential to India's social and economic development. This youthful Indian population has a very high standard of living and meets all of their fundamental needs. In total, India has fourteen crore internet users, but only 2.5 crore of those use the internet to do business. On the other hand, 18 crores of Chinese people utilize the internet. the act of purchasing several things. Although everyone in India has decreased the idea of carrying cash, However, it is still necessary to encourage digitalization among Indians in order to deal with internet purchases. The government must take the initiative to educate the public and businesspeople about the benefits of commerce. India will soon begin to develop aggressively with the aid of socioeconomic development. The fundamental idea of spending money needs to be targeted to all Indians in order to rekindle the growth of the Indian economy. Digitization will advance in the upcoming years and completely replace paper work in internet enterprises. As Electronic India has empowered its people and its government is supporting digitalization across the nation. Services for all citizens. What is Digital India all about? fostering growth and generating opportunities for the new India in all areas, including jobs, technology, and openness via digitalization. Every Indian citizen's worldview has been completely altered by the concept of "Digital India" enhancing all aspects of the social and economic growth.

Ashutosh D. Gaur and  Jasmin Padiya (2021) examined Impact of ‘Digital India ‘in ‘Make in India’ Program in IT & BPM Sector. Cities are becoming smart cities, the economy is converting to a digital economy, and government is transitioning to electronic governance. It will increase demand for computer hardware. Digital literacy was highlighted in the most recent union budget as a digital transformation. The Indian government has stated that it intends to import no more IT gear than necessary by the year 2020. We might observe a spike in consumer purchases of IT hardware as a result of the rise in cashless transactions. The study conculuded that, Large land clusters have been allotted under Make in India for the production of IT hardware and electronic goods in states like Andhra Pradesh, Tamil Nadu, etc. If Indian businesses meet local market demand, the country's economy will likewise excel. Last but not least, the Make in India program for its hardware and software would be significantly impacted by Digital India. electronics products because it will establish the ideal environment for their demand. On the other hand, Dukhabandhu Sahoo et al (2021) examined India and the People's Republic of China are two fast-growing Asian economies. Digitalization and economic performance. The results show that internet and mobile density, projected years of schooling, and foreign direct investment are all indicators of digitalization and telecommunication infrastructure, as well as digitalization and human capital. power consumption per person, gross capital formation, and investment inflow for power infrastructure), spending on R&D, and the cost to consumers would have a favourable effect on both India and the PRC's per capita GDP. Moreover, the research demonstrates that the PRC benefits more than India does from these growth-promoting variables likely showing improved allocative effectiveness. The findings suggest a need to improve the Both economies are moving toward digitization, which is turning to convert human resources the population. so that the greater investment in R&D can have the maximum impact favourably impacts economic performance. Therefore, Reeta Malhotra and Aakansha Sharma (2017) studied digital India and emerging economy. The study concluded that, one of the most interesting projects in the nation is Digital India. The program focuses on electronic government initiatives that employ technology to enhance the way the government engages with the populace. It ensures advantages especially in the fields of electronic and broadband growth production and electronic governance. But there are several. Digitization has difficulties. among them is a lack of Lack of adequate infrastructure, illiteracy, and internet access etc., the government is working to eliminate these investments in digital infrastructure's limitations, offering online services and enhancing digital literacy to people. International tech juggernauts are willing to contribute actively to this ideal campaign. In a word, the success of this program benefits every citizen and will provide India more digital empowerment. and pioneer in the use of IT for the provision of services connected to several fields, including digital marketing, health, banking, agriculture, education, etc. Look at each other forward to this project's successful completion for a more luminous and successful India. Hence, Jinzhu Zhang et al (2022) studied the impact of the internet economy on post-COVID-19 economic development and growth initiatives. The findings demonstrate that although there is a clear geographical imbalance in the development of the digital economy in the "Belt and Road" countries, the digital economy has a very favourable impact on their economic growth. The primary impact mechanism is through encouraging improvements in industrial structure, overall employment, and employment restructuring. Additionally, COVID-19 has increased demand for the digital industries generally, and the influence on the demand side is significant larger than that from the supply side. Specifically, the digital industries in Armenia, Israel, Latvia and Estonia have shown great growth potential during the epidemic. On the contrast, COVID-19 has brought adverse impacts to the digital industries in Ukraine, Egypt, Turkey, and the Philippines. The development strategies are proposed to bridge the “digital divide” of countries along the “Belt and Road,” and to strengthen the driving effect of the digital economy on industrial upgrading, employment and trade in the post-COVID-19 era. Henceforth, Sujata Nanasaheb Tayade (2022) studied the digitalization brings innovation, ease of working, new job opportunities and growth in the economy. It helps to bring transparency in the system and more transparent are the flow of funds in the economy less is the problem of tax evasion, parallel economy etc. By this we can reach on 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. It is a vision to transform India into a digitally empowered society and knowledge economy. It is a good effort to develop India. Although, digital India program is facing some barriers, yet it has a great impact on India to make the best future of every citizen. We Indians and others should work together to shape the knowledge economy. Digital India campaign is a welcome step in shaping India of the 21st century powered by connectivity and the technological opportunity. Moreover, Giridhari Mohanta et al (2017) India will have a substantial and potent digital infrastructure thanks to the impending "Digital India" initiative. Wi-Fi access, job creation, and a universal phone are the results of Digital India. connectivity, fast internet, e-services, e-governance, digitally oriented individuals, Digital Lockers System, the National Scholarship Portal, India is a pioneer in e-health and e-education. IT use is a remedy. There will be more employment opportunities for the youth who will strengthen the economy of the country. And The aforementioned initiatives, some of which are phases of implementation that could call for some Refinements, transformational process reengineering, and to adjust for successful execution in order to intended results. The success of this dream project depends not just on the government, but also on widespread support from all stakeholders, including the general public. owners of the country. Nevertheless, digital India program has a huge potential yet several obstacles. influence India to provide the finest future for each citizen. We Indians, together with others, should collaborate to create knowledge-based economy. Let's all consider the future and join forces to make this implementation a success. project for a more successful and brighter India.

II.A. Objectives:

1.     To examine and evaluate India's economic development and the idea of digital India

2.     To offer constructive suggestions

II.B. Limitations

1.     It’s a theoretic perspective confined to describe the digital India movement only

2.     The study is based on secondary data no primary data is collected.

III.         INDIA’S DIGITAL VISION

In India, where the IT and digital industries are at the forefront of enabling seamless digitization, the digital revolution is well under way, and the nation is quickly establishing itself as a significant player in the digital economy. The switch from antiquated to modern digitalized processes has resulted in a major expansion of the sector. The Indian IT sector has pushed the envelope and pulled off amazing exploits over the years. It increased from $196 billion to $225 billion in 2022 at a CAGR of more than 15%. By 2027, the IT industry will be worth about $394 billion if present growth rates continue.

However, substantial additional effort will be needed if India is to become a $1 trillion digital economy. In order to help India, become a $687 billion IT powerhouse by 2027 and get us closer to our objective of becoming a $1 trillion digital economy within this decade, we urgently need to invest in digital transformation and achieve a 25% CAGR. However, substantial additional effort will be needed if India is to become a $1 trillion digital economy. The urgent requirement is to invest in digital transformation and attain a 25% CAGR, which will advance India's objective of becoming a $1 trillion economy and help it become a $687 billion IT powerhouse by 2027. This objective, however it may seem high to some, requires a strategic rethink and a dedication to a multifaceted strategy to create a "Digital Padmanabhan Bharat."The IT sector will need a lot of highly skilled tech people, including developers, network engineers, coders, data scientists, 3D, AR/VR professionals, and others, as digital transformation becomes the norm across all businesses. When faced with unheard-of economic, social, and environmental changes, a staff with the appropriate skills may take on new tasks and help organizations expand by raising the value quotient.

By 2024, occupations in AI and data science alone are expected to demand almost one million competent workers. The country's IT sector currently employs over five million people and earns about $225 billion in sales, according to a rapid analysis of the situation. According to this estimate, India needs 10 million more skilled people in order to reach the $453 billion threshold and 15 million more in order to reach the $687 billion threshold. Over the next five years, we will therefore need to hire an additional 10 million IT workers. A nationwide network of IT talent development and education is needed to make this happen.

III.A. Findings

1.Government operations and services are being digitized as a result of Digital India, making them more open, effective, and customer-focused. This has led to enhanced accountability, decreased corruption, and better governance, making the government more open and transparent.

2. digital India is committed to bridging the digital divide by bringing digital infrastructure and internet access to isolated and underserved regions of the nation. As a result, people in India's most rural regions may access online information, education, and services, giving them access to opportunities and knowledge.

3. Various government services are now available to citizens online through Digital India, making them more accessible, convenient, and effective. Digital services save time and effort and cut down on bureaucracy, making life easier for citizens on everything from passport applications to tax payments.

III. B. Suggestions

1.     Despite efforts to close the digital divide, some segments of society may still not have access to digital technologies for a variety of reasons, such as a lack of infrastructure, an inability to afford them, or a lack of digital competence. A digital divide could develop from this, when some people are left out of the digital revolution. Majority of the population are not having awareness on how to use digital tools awareness is need to be done.

2.     The risk of cyberthreats like hacking, data breaches, and online fraud also rises with the increased usage of digital technologies. The security and privacy of people's personal information may be compromised as a result, increasing the likelihood of data exploitation or abuse. So, the government is also having to spend more on cyber security.

IV.          CONCLUSION

The concept of a digital India is amazing. It represents a real step toward creating a country where the people are truly empowered. It is intended to change citizen access to multimedia information, content, and services if it is successful. The motto, though, is still a ways off because eight of the nine digital. There are significant implementation hurdles for the India mission. It is crucial that each and every person receives focused, sustained attention. Every pillar to prevent the downfall of this program. Actually, what Here, an attitude of acceptance of the changes that are likely to to take place after this program is effective, and only then then, Prime Minister ambition will be realized.

References

1.      D. K. Srivastava. (2023, april 25). Digitalization of India’s economy. Retrieved from EY: https://www.ey.com/en_in/tax/economy-watch/how-digital-transformation-will-help-india-accelerate-its-growth-in-the-coming-years#:~:text=Size%20of%20digital%20economy%20in,growth%20of%20the%20Indian%20economy.

2.      Rajatkumar Dani. (2022, september 24). Digital India is a global success story. Retrieved from times of india: https://timesofindia.indiatimes.com/blogs/thedanispost/digital-india-is-a-global-success-story/

3.      Ashutosh D. Gaur and jasmin Padiya . (2016). A Study Impact of ‘Digital India ‘in ‘Make in India’ Program in IT & BPM Sector. Fourteenth AIMS International Conference on Management, 325-331.

4.      Dukhabandhu Sahoo et al. (2021). DIGITALIZATION AND ECONOMIC PERFORMANCE OF TWO FAST-GROWING ASIAN ECONOMIES: INDIA AND THE PEOPLE’S REPUBLIC OF CHINA. ADBI Working Paper Series, 1-37.

5.      Jagdish Mitra. (2023, march 19). Digital transformation: Supercharging the Indian economy and powering an Aatmanirbhar Bharat. Retrieved from economic times: https://economictimes.indiatimes.com/news/economy/policy/digital-transformation-supercharging-the-indian-economy-and-powering-an-aatmanirbhar-bharat/articleshow/98772846.cms?from=mdr

6.      Jinzhu Zhang et al. (2022). The impact of digital economy on economic growth post covid-19 era. Frontiers in public health, 1-17.

7.      Reeta Malhotra and Aakansha Sharma. (2017). Digital India: An Emerging Economy. International Journal of Engineering Research & Technology, 1-3.

8.      Sarita Dhawale and ZeeshanQuazi. ((2020), ). A STUDY OF DIGITAL BUSINESS IN INDIA AND ITS IMPACT ON A STUDY OF DIGITAL BUSINESS IN INDIA AND ITS IMPACT ON . Turkish Journal of Computer and Mathematics Education, 1661-1666.

9.      Sujata Nanasaheb Tayade. (2022). An Analytical Study of Digitalization in India and Its Impact on Growth in Indian Economy. INTERNATIONAL JOURNAL OF INNOVATIVE RESEARCH IN TECHNOLOGY, 668-671.

10.   wikipedia. (2023, september 8). digital india. Retrieved from wikipedia: https://en.wikipedia.org/wiki/Digital_India