The study is titled ‘Estimation and Measurement of India’s Digital Economy’ and released by the Ministry of Electronics & Information Technology (MEITY).
- It utilizes the Organisation for Economic Co-operation and Development (OECD) and Asian Development Bank (ADB) approach for measurement of digital economy.
Key Observations: (see infographic)
- Sectoral Prospects: Beyond ICT sectors, digital intermediaries and platforms are promoting digital diffusion and access.
- Growth prospects: India’s digital economy is expected to grow twice as fast as the overall economy.
- India’s digital economy is likely to rise to 13.42% by 2024-25.
- Digitization of traditional sectors: There is lack of uniformity in digitization.
- E.g. In the Banking, Financial Services, and Insurance (BFSI) sector, over 95% payment transactions are digital but other financial services like loans are less digitized.
Recommendations:
- Digital literacy and skilling: Adopt collaborative efforts like Pradhan Mantri Gramin Digital Saksharta Abhiyaan (PMGDISHA)
- Minimise regulatory uncertainty: Formulation of policies and fill the data gap to ensure evidence-based interventions.
- Enhance cybersecurity and trust: Increase cybersecurity awareness, build cross-country collaboration, invest in R&D etc.
- Make high-quality broadband universal: Combine supply-side efforts with demand-side interventions to ensure the affordability of devices and data services.