“In this digital age, we have an opportunity to transform lives of people in ways that was hard to imagine a couple of decades ago”- Narendra Modi
India has shown promise and proved leadership in the digital technologies over the past decade. It is time India’s new leadership supports and fuels the digital economy to turn it into a major growth enabler. Digital India initiative, an aspiring initiative with a clear vision, the present government is pushing ahead the Digital India program to transform the country into a digitally empowered society and a knowledgeable economy. With the launch of this initiative, the government aims to reach out to the citizens in the remotest of locations and make them a part of India’s growth story. The Internet Economy or Internet of Everything (IoE) is expected to generate new market growth opportunities, jobs and become the biggest business prospect of mankind in the upcoming years. Since technology is a key driver in causing disruptive change, digital tools will empower citizens and prove to be a game-changer.
Prime Minister Shri Narendra Modi Ji’s vision for a Digital India is a strategic call to encirclement of the opportunity for India as one of the leaders in the third industrial revolution and the use of Information and Communication Technologies (ICTs) that has never been greater. Nearly 40 percent of the global value at stake will have new winners and vendors in the next decade. This major opportunity of the digital economy has the power to change the lives of millions of people in India. It could be an important vehicle for change and could provide an opportunity for India to dramatically expand its role and influence in the global economy and become a powerhouse of digital innovation.
The digital economy is the new productivity platform that experts regard as the third industrial revolution. Devised in 1995, digital economy is a term that merely refers to a country’s economy that’s based on digital payment technologies.
At present, after almost a year of government of India’s demonetization drive towards cleansing the system, the country has started to adopt an alternative solution – digital payments. While demonetization came as a shockwave, the bright side is that it shifted our focus on innovation and has created a new conversation around digital payments – with not just fintech startups and the banking sector, but also the government itself is taking steps to onboard the unbanked. Platforms like UPI-integration and products like the BHIM app is a commendable step in this direction. Though many people have been using the digital payment methods even before demonetization, the count has significantly increased in the past year, alongside it has impacted the banking industry with substantial long-term opportunities to scale up operations and strengthen customer services.
With increased internet usage and penetration, the Digital India initiative, facilitating a proper payment infrastructure, will pave the way for a seamless digital economy. The government has outlined its vision in this regard and highlighted three core areas – increased thrust on setting up the required infrastructure as a utility to each and every citizen, provision of services on demand and governance and lastly, digital empowerment of the citizens. The new incentives from the government for people adopting digital payments, the dream of the digital economy in India is not very far.
Alongside, India is also leading the world in payment system evolution with enablers like Jan Dhan, Aadhaar, and mobile penetration to name a few. Demonetization has created favorable conditions for large scale adoption of digital payment systems in India. With mass adoption of digital and biometric systems by 2020, the country is expected to leapfrog plastic payment systems and have the most advanced financial systems in the world.
Digital economy has completely changed the way people have been doing business for years now. India encompasses 15 per cent of the world population, with its 462 million internet users, India is representing a digital economy which has possibly the greatest market potential for global players and can very well become the second largest economy by 2030.
However, India’s current digital economy is still in its early days and needs regulatory approach that helps innovation thrive and allows competition to play out freely, rather than ill-conceived protectionist measures.
About the Author
Amit Rambhia is the Managing Director of Panache DigiLife Limited, a one stop IT hardware hub, specialized in manufacturing, distribution and servicing of high quality products.
Amit has over 20 years of experience and is an innovative and self-driven man. His dedication and hard work is an inspiration to many new entrepreneurs and has instrumented his success in the field of business. He is an accomplished MBA – IIM Indore with Bachelor’s Degree in Computer Science from University of Mumbai. He is passionate about to make Panache DigiLife a world class, competitive and internationally recognized Company.