Geeti Mehra, International Journal of Research in Management, Economics and Commerce,ISSN2250-057X,
Impact Factor: 6.384, Volume 07 Issue 09, September 2017, Page 84-89
Era of Digitalisation & Indian Economy
Geeti Mehra
(Assistant Professor Economics, Khalsa College for Women, Ludhiana, Punjab, India)
Abstract: In India, expanding web diffusion, fast innovation endorsement and high trading of specialized
contraptions like cell phones, tablets, and so forth, have prompted an appealing on the web client base and
exceptional development of internet business. Household strategies with respect to media transmission, money
related administrations and circulation and conveyance would give contributions to online business exchange
related transactions. Studies demonstrate that 2.6 employments are made by web for each occupation lost for
web. Impact of internet is evaluated around two components: consumption and expenditure and supply. The
consumption and expenditure is the usage by individuals, companies and government. The supply side includes
the industries like telecommunication, hardware manufacturers, software and services that shape the internet
world. The use of internet in business showed profitability is increased by 10% on an average across countries.
Internet related business contributes 3.2% towards Indian GDP. (Alpesh Shah, 2015) .The trade balance
component contributes maximum to this share. In order to take advantage of e-commerce business, there has to
be a proper business model as well as other strategies so that the business is sustainable and provides economic
growth. This paper features the idea of digitalization alongside the social, financial and environmental
advantages of digitization on learning techniques and data maintenance. Also it studies the impact and
incidence of steps taken by government in this direction so far.
Keywords: Digitalization, Heritage, Indian Economy, Transparency, e- governance, GDP, Network
I. METHODOLOGY
Secondary data analysis is utilized for interpreting vision and impact of digitization in India. Digital
India Programme which has PAN India scope is covered under this paper. Just auxiliary information from some
credible government sources and research papers of prominent scientists are utilized.
II. INTRODUCTION
The influxes of acquisition and use of ICTs (Information and Communication Technologies) have
changed radically our reality by presenting particular technology– empowered administrations in each circle of
our lives. There is different utilization of ICT, digitalization is one of them. The digitalization substantiate its
affects on economy and society by reducing joblessness, enhancing personal satisfaction, and boosting access to
learning and other open administrations. The procedure of digitization is set apart by cost adequacy to cut the
cost that brought about in different learning hones identified with the generation, association and
correspondence of data that makes long haul monetary development. The procedure of digitization encourages
to safeguard, access, and offer a unique record to the general population worldwide that may just be accessible
prior to the individuals who visit its physical area various measures are taking in the field everywhere
throughout the world and in India, to ration and save the learning of the over a wide span of time for the up and
coming eras. In this highly competitive world it is extensively important for an economy and society at large to
be a part of Digitalization. There are studies demonstrating that organizations that are more develop in their
reception of advanced registering innovations have better execution in income, benefit, and market
capitalization. A significantly more extreme ramification is that whole enterprises may be upset since industry
limits are getting obscured or advanced industry that are digitally active retains different ventures (Prause,
2016). India took a more extensive measurement for E-administration activities in the mid 1990s with citizencentric services and vast sector by sector applications. Railway Computerization, Land Record Computerization,
etc. are some major projects which are predominantly concentrated for the development of information systems
in India. Later on, many states began e-administration ventures focused at giving electronic administrations to
residents.
In spite of the fact that these e-administration ventures were subject driven, they could make not as
much as the coveted effect because of their restricted highlights. The secluded and less intuitive frameworks
have uncovered significant holes that were impeding the fruitful reception of e-administration along the whole
range of administration. They unmistakably pointed towards the requirement for a more far reaching
arrangement and usage for the framework required to be set up, interoperability issues to be tended to, and so on
to set up a more associated government. Right data at the ideal time to a right person has been the point of data
experts. (Ministry of Electronics & Information Technology)
A computerized retail producer paradigm has been proposed which suggests for specialization of
specific sectors and talks about the trade-offs from the same as far as employment creation and fruitfulness is
concerned. Further on this extent building necessity are clarified alongside the part of the administration and
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Geeti Mehra, International Journal of Research in Management, Economics and Commerce,ISSN2250-057X,
Impact Factor: 6.384, Volume 07 Issue 09, September 2017, Page 84-89
private areas. At long last significance of execution and surveillance of advanced development has additionally
been talked about. The estimation of the web business demonstrates that it would be contributing 4.6% of GDP
by 2018. The advancement of SMEs would be real wellspring of work and critical benefactor for web business.
The digitization would enable India to contend with the developed economies, to produce business and have an
unfaltering increment in GDP giving boost to overall financial development of the country. (Alpesh Shah, 2015)
Digitization Vs. Digitalisation
Digitization is the way toward changing over data into a computerized set up. In this configuration,
data is composed into discrete units of information (called bit s) that can be independently approached (for the
most part in different piece bunches called byte s). This is a data in binary format that PCs and numerous
gadgets with capacity to reckon, (for example, advanced camera s and computerized listening device s) can
process. Content and pictures can be digitized likewise: a scanner catches a picture (which might be a picture of
content) and changes over it to a picture record, for example, a bitmap. Digitizing makes it facile to safeguard,
access, and dispense data. For instance, a unique verifiable archive may just be open to individuals who visit its
physical area; however in the event that the record content is digitized, it can be made accessible to individuals
around the world. There is a developing pattern towards digitization of verifiably and socially huge information.
(Rouse, 2007).
Digitisation is concerned with optimisation of internal processes of business however it don’t affect the
business model of any economy as a whole. But with changing scenario as techonology has become intrinsic
part of everybody’s everyday life, customers have become more active and interact with companies through
various technology means like social media.Accordingly, Digitalisation is a customer- centric approach. Uber,
Olla, flipkart, various search engines like google etc. are example of various means which being a part of
digitalisation provide customers with a wide base of choices and information. (Prause, 2016)
Causes Impeling Digitalisation
Young generation of India are as of now completely adjusted to the computerized world and have
natural expectations of always being in contact with rest of the world,current scenario, fashion trends
etc.
Industries are deploying low cost smart devices and by expanding economic availability of broadband,
technology has been outreached to vast potential consumers. The huge data preparing and cloud
computing apparatus it requires, is growing quickly.
Higher level of competition in the market has urged the need for investing huge amount of capital in
new digitisation technologies and capture benefits by taking early steps for same. General markets
remunerate early movers with uncommon valuations.
Implications of Digitalisation
Primary goal of digitization is conservation of national heritage yet additionally offers chances of
recreating and dispersing the legacy. Pave the way for better understanding of past, reinforce national
pride and personality and educate both the far-flung diasporas and the eras to come. National heritage
covers manuscripts, early printed books, paintings, music, documents related to the freedom struggle,
letters and diaries of statesmen etc.
The Internet and the Web based advancements have acquired noteworthy changes the ways the data is
created, appropriated, accessed and utilized.
One of the critical utilization of IT is the digitization of learning i.e., to change over the printed data in
the computerized shape and made accessible for use with the assistance of PC systems. This has
changed the entire situation of data world.
Digitization of government records, policy documents, announcements etc. leads to easy access of
government data thereby enhancing transparency and prompting citizen to participate actively in the
democratic process leading to better governance.
Being a worldwide idea, digitization has conspicuous effect on monetary development and work of any
country. (parekh, 2016)
Prerequisites of Digitalisation
Guaranteeing economical access through pervasive system reach and economical information
empowered gadgets/Internet designs;
Enabling advanced digital exchanges and simplifying remittances, conceivably through new
instruments, for instance digital wallets;
Developing an administrative structure which will encourage content advancement and not obstruct the
development of the business, particularly, inspecting the IT Act, the Copyright Act (to secure
specialists on the web) and the e- learning directions;
Creating an Internet administration system that empowers all partners to work successfully;
Enabling entrepreneurial ventures through simplicity of financing, mentorship projects and building up
a solid computerized work-drive;
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Impact Factor: 6.384, Volume 07 Issue 09, September 2017, Page 84-89
Digital instruction and enablement of small and medium undertakings (SMEs) to push Internet
utilization; and
Creation of a native dialect web to tap capability of level II/III /IV urban areas and towns. (Alpesh
Shah, 2015)
III. PILLARS OF DIGITAL INDIA PROGRAMME
(Digital India: power to empower, 2017)
On the path of Advanced India Digital India is an umbrella programme that covers different
Government Ministries and Departments. It intertwine together substantial presumptions and perceptions into a
solitary, extensive vision so each of them can be actualized as an aspect of a bigger objective. Every individual
component has its own objectives and importance, but at the same time they all together are also contributing to
major objective. Implementation of Digital India is the duty of all Governments at centre as well as at state
level, with general coordination being invigilated by the Department of Electronics and Information Technology
(DeitY). Digital India plans to give the truly necessary push to the nine mainstays of development regions.
These nine pillars are:
1. Broadband Highways – The propounded initiative discusses filling the holes of digital segregation in
the country through Broadband Highways. It covers three main components which are Broadband for
all – rural, Broadband for all – urban and National Information Infrastructure. Department of
telecommunications is the nodal department for this undertaking. 250000 village panchayats were
proposed to be covered under the National Optical Fiber Network.
2. Universal Access to Mobile Connectivity – Mobile compatibility has changed the social and fiscal
life over the rural and semi-urban districts by traversing the propelled division. Disregarding the fast
advancement of Mobile correspondence framework, nation Mobi-frequency in India continues falling
far behind urban rates. Changing the world into an overall server farm where everyone has induction to
information eager for advancement a go at associating the propelled partition, bringing unmistakable
money related points of interest and engaging social focal points through improved correspondence.
The plan of universal access to mobile connectivity was initiated providing mobile coverage to
uncovered regions, as a step towards development of north-east regions of the country.
3. Public Internet Access Programme – Public internet access has been identified by government as one
of the nine pillars of Digital India programme. With the aim of reshaping India into a digitally
accredited economy, the administration intends to expand the number of towns with Common Service
Centers. Additionally plans to change over 150,000 million post offices into multi-benefit hub. (jain,
2015).
4. E-Governance: Reforming Government through Technology - e-Governance Pillar: Reforming
Government through Technology has the vision for mechanization of work processes inside
government divisions and organizations to empower productive government procedures and
furthermore to enable perceivability of these procedures to the natives. Keeping in mind the end goal to
satisfy the Digital India Vision, Central/State government divisions require Business Process Redesigning utilizing IT to enhance exchanges which are most vital for evolution throughout the
government and therefore should be executed by all departments as well as central/state government
offices.
5. E-Kranti - Electronic Delivery of Services – Considering the basic requirement for changing eGovernance and advance versatile Governance and Good Governance in the nation, the approach and
key segments of e-Kranti have been endorsed by the Union Cabinet on 25.03.2015 with the vision of
"Changing e-Governance for Transforming Governance".15 central, 17 state and 12 integrated mission
mode projects is covered under e-Kranti programme. They traverse e-learning, all schools to get
broadband and free Wi-Fi. In addition enormous online open courses, e-medicinal services and
innovation for farm management, security, budgetary incorporation, integrity, arrangement and digital
security.
6. Information for All – This initiative is a move towards making all necessary information easily
accessible to the citizens. It will promote two way communications between government and citizens
as administration will prudently participate through social media and internet. The present BJP drove
government has been broadly praised for its online networking astute and its utilization of
computerized outreach apparatuses. (Pandey, 2015)
7. Electronics Manufacturing - In India, the current structure needs reinforcing keeping in mind the end
goal to help electronic assembling; the objective being 'NET ZERO Imports' in this sphere in the days
to come. This would be an aspiring objective which would require composed activity on many fronts
like tax assessment, impetuses, economies of scale, and abolishing cost hindrances. The regions under
concentration would incorporate things like FABS, Fab-less outline, Set top boxes, VSATs, Mobiles,
Consumer and Medical Electronics, Smart Energy meters, Smart cards and smaller scale ATMs. At
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Impact Factor: 6.384, Volume 07 Issue 09, September 2017, Page 84-89
display, there are numerous continuous projects in the space of electronic assembling which will be
calibrated with measures, for example, advancement of hatcheries, groups, and concentrate on aptitude
improvement alongside measures, for example, Government acquirement. ‘MAKE IN INDIA’
campaign is the biggest push in this direction. (DeitY)
8. IT for Jobs – Aim of this initiative is to give training to 1 Cr students from smaller towns & villages
for IT sector jobs over a period of 5 years. DeitY has been chosen as the nodal department for this
scheme. Further BPOs are planned to be set up in each north-eastern state to encourage ICT
empowered development in these states. 3 lakh benefit conveyance specialists would be prepared as a
feature of aptitude improvement to run suitable organizations conveying IT administrations. 5 lakh
country workforces would be prepared by the Telecom Service Providers (TSPs) to take into account
their own particular needs. Branch of Telecom (DoT) would be the nodal division for this plan. (digital
india, 2015)
9. Early Harvest Programmes –
Under this programme, DeitY has developed A Mass Messaging Application which is aimed
at covering elected representatives and all Government employees. 1.36 Cr mobiles and 22
Lakh emails form part of the database.
A Basket of government greeting which are e-Greetings templates have been made available.
Crowd sourcing of e-Greetings through MyGov platform has been guaranteed.
Biometric attendance has been initiated which will cover all Central Govt. Offices in Delhi
and as of now in use in DeitY and has also been started in the Department of Urban
Development. On-boarding has likewise begun in different divisions.
Ministry of HRD has been given responsibility of ensuring Wi-Fi in All Universities. All
universities on the National Knowledge Network (NKN) shall be covered under this scheme.
Secure Email would be principal mode of communication within Government
DeitY’s Mobile Seva Platform is prepared for enabling SMS based weather information &
disaster alerts. MoES (IMD) / MHA (NDMA) would be the nodal associations for executing
this plan.
For encouraging ongoing data assembling and sharing information on the lost and found
children. Also, to keep a check on crime, National portal for lost and found children has been
launched. (digital india, 2015)
Steps taken by Government so far
(Ministry of Electronics & Information Technology)
Throughout the years, Central Ministries and various State Governments have undertaken a substantial
number of activities for introducing an era of digitalization in governance. Perpetual endeavors have been made
at different levels to enhance the conveyance of open administrations and disentangle the way toward getting to
them.
E-Governance in India has consistently developed from digitization of Government Departments to
activities that cocoon the better purposes of Governance. Lessons from past e-Governance activities have
assumed a vital part in molding the dynamic e-Governance methodology of the nation. Due awareness has been
taken of the idea that to accelerate e-Governance usage over the different arms of Government at National,
State, and Local levels, a program approach should be embraced, guided by regular vision and system. This
approach has the capability of empowering tremendous investment funds in costs through sharing of center and
bolster framework, empowering interoperability through principles, and of displaying a consistent perspective of
Government to natives.
1. On May 18, 2006 government approved National e-Governance plan. It comprised of 31 Mission Mode
Projects and 8 components. These cover wide areas of agriculture, land records, health, education,
passports, police, courts, municipalities, commercial taxes, treasuries etc.
2. For improving public distribution system in India, government recommended implementation of Smart
ration shops. Accordingly all ration cards will be digitalized.
3. On December 8, 2016 government made following announcements for promoting digitalization:
On use of credit/ debit card, e-wallets or mobile wallets while paying for petrol/ diesel a discount
of 0.75 percent will be rendered.
On buying new life insurance or while paying premium for the same through PSUs website, 10
percent and 8 percent discount will be rendered respectively.
No service tax will be charged on transactions up to Rs. 2000 done from credit/debit card.
RupaY kisan cards will be issued to 4.32 crore kisan credit card holders by government through
NABARD
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Impact Factor: 6.384, Volume 07 Issue 09, September 2017, Page 84-89
4.
5.
6.
2 POS machines (swipe machines) will be provided to 1 lakh villages each with population below
10000. These POS machines are planned to be given free of cost supported through financial
inclusion fund.
Passengers will get Rs. 10 lakh accidental insurance on online booking of railway tickets.
Discount of 5 percent on paying through digital mode for railway catering, accommodation,
retiring room etc.
PSBs are exhorted that vendors ought not to be required to pay more than Rs 100 as month to
month rental for PoS terminals/Micro ATMs/portable PoS. (Govt’s digital push: 11 incentives to
promote cashless transactions, 2016)
For advancement of computerized installments at check posts and toll plaza, the Ministry of Road
transport and Highways had exhorted car makers to ensure that every new vehicle have an Electronics
Product Code Global Incorporated (EPCG)- consistent Radio-Frequency Identification (RFID) office
so it would be simple for individuals to make installments carefully at such places without any need of
waiting in long lines. (S, 2016)
It has been advised to all public sector units and government agencies an Exclusive Use of digital
payments, Internet banking, Unified Payment Interface (UPI) and Aadhar-enabled payments for all the
payments to employees.
In instances of exchanges with private contractual workers or organizations, it has been made
compulsory for government and its offices to give digital payments as a choice rather than payments
just through check or demand draft. NPCI authorities said all PSUs now have an UPI application that
individuals can make utilization of to advance computerized exchanges. The RBI has additionally
declared measures to support payments through e-wallets or prepaid payment instruments.
IV. IMPACT OF DIGITALISATION
Effect of digitalization on a nation can be evaluated on the premise of its effect on the legislature, on
the economy and the general public. We have seen a noteworthy change in each area with the
development of digitalization. The digitalization has made new openings for work, have prompted
development in exceptionally every part and furthermore prompted the development of the economy
i.e. have helped in the GDP development of the nation. The legislature has accentuated on the
digitalization as it brings straightforwardness, better control and better openings for work. It also
improves their standard of living.
Digitalization is fabricating a vigorous, secure and solid foundation leading to advancement of skills
and innovation in economy.
It will help in strengthening the foundation of foreign exchange reserves by increasing the flow of
foreign direct investment in country which will further leads to a more stable economy.
As per the World Bank report, a 10% expansion in portable infiltration expands the per capita GDP by
0.81% and a similar increment in broadband diffusion will raise the per capita GDP by 1.38%. Digital
India venture is relied upon to build the broadband diffusion crosswise over India by half ( which is as
of now at 7%) and portable infiltration in rural India by 30% ( which is right now 45%) in next 2 years,
the parallel increment in GDP could be 9% i.e. around $180 billion. (sharma & agarwal, 2015)
V. CONCLUSION
A digitally updated and connected population can change the entire economy. The mechanization of
the financial parts will prompt better execution and development of the segments, which thereof affect the
development rate of the economy. Digitalization will prompt cost funds, expanded yield, better business,
improved efficiency and education, and so on. In the agrarian division and in Industrial segment, digitalization
will help in improvement of the considerable number of procedures, be it, buying, selling, stock control,
exchange relations, business, innovation and improvement, and so forth. Computerization of Service Sector will
help in development of the division by expanding the straightforwardness in access to and rendering of the
administrations. More extensive client reach and customization of administrations as per client's necessities
additionally support the interest for administrations. A carefully enabled economy grows significantly,
successfully and productively because of better use of its capital and in addition HR. What's more, India being a
nation with such gigantic labor assets, if used legitimately, can accomplish phenomenal development rate and
put the nation in top position alongside the created economies.
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Impact Factor: 6.384, Volume 07 Issue 09, September 2017, Page 84-89
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