Effect of Digitization on Indian Economy

1. DIGITAL INDIA ECONOMY

2. DIGITAL REVOLUTION IN INDIA
With nearly 46 Million internet users and a growth rate of 7-8 per
cent, India represents a digital economy, which has biggest market
potential for global players. This digital revolution, also known as
'the Internet economy', is expected to generate new market growth
opportunities, jobs and become the biggest business opportunity
for businesses in the next 30 to 40 years. China has the largest
number of internet users, followed by the United States, with India,
Japan,and Brazil filling out the top five. The world viewed from the
perspective of the number of internet users looks more equal than
when scaled by income

3. Digital revolution in India is significant as it promises to bring a multi-
dimensional metamorphosis in almost all sectors of the society. From
digitization in governance to better health care and educational
services, cashless economy and digital transactions, transparency in
bureaucracy, fair and quick distribution of welfare schemes all seem
achievable with the digital India initiative of the present Government. A
look at Government initiatives in various sectors in past three years
show how digital revolution in India is not only changing the way
society functions but also bridging the gap between the haves and the
Technology can be transformational.

4. AADHAR
A digital identification system such as India’s Aadhaar, by
overcoming complex information problems, helps willing
governments to promote the inclusion of disadvantaged.
McKinsey estimated in 2010 that digital payments could save the
government of India US$22 billion per year. A large part of these
savings comes from lower leakages and reduced fraud.
Electronic payments create a clear digital record and can be
traced, so the likelihood of funds not reaching the beneficiary or
of duplicate payments or payments to “ghost” recipients who do
not exist will be lower. Evidence from India also shows that using
smart cards rather than cash for social security payments halved
the Incidence of demands for bribes.

5. EXAMPLES
As Robert Jensen’s classic 2007 study of sardine fishermen and
wholesalers in Kerala, India, found, the introduction of mobile
phone service dramatically reduced price dispersion and waste in
the sardine catch, increasing welfare for producers and
consumers.
The government of the Indian state of Kerala set up the
Kudumbashree project to outsource information technology
services to cooperatives of women from poor families; 90 percent
of the women had not previously worked outside the home.

6. GOVERNMENT INITITAIVES

7. EFFECT ON EDUCATION
There is sharp increase in awareness of importance of education in
India thanks to initiative taken by various governments as well as
shifting of population from rural to urban areas. But still we are short
of no. of universities as well as proper qualified teachers as shown
in picture. But with advancement of digitalisation in education
system, this higher ratio of students per teacher can be managed
with proper management of digital reach to more and more students.

9. EMPLOYMENT DEVELOPMENT IN
GENDER RATIO
There had been lack of opportunities of employment to female
workers due to most of the jobs having more weightage to
physical work in employment. As India continues to adopt more
and more digitalisation, there has been more and more
participation of females in the work force, as shown in the
picture and this helped in more development to the
undeveloped sector i.e. female.

10. GENDER RATIO IN INDIAN WORKERS

11. COST BENEFITS OF DIGITALISATION
Digitalisation has helped in reducing the cost of almost all fields
of economy, but taking point of corporate world, we can see
many fields e.g. advertisement, marketing , which helped in
lowering cost of production and helping profit growth without
any major investments.

13. Importance of digitalisation has been realized by corporate
world not only in lower posts but as well as in higher posts.
Indian market has less penetration in rural areas as compared
to developed world , so need was to take more initiatives
towards digitalisation to ensure more development in
corporate growth.

14. IMPORTANCE OF DIGITALISATION IN
INDIAN CORPORATES

15. JOBS CREATION IN NEW FIELDS
As development of digitalisation progress, we find new jobs in
new skill and new field. Some point out that digitalisation has
caused loss to jobs, but the same time a new era of jobs have
emerged and new fields are created, in which skilled workers
are benefitted but somewhat on cost of unskilled workers.

16. EMERGANCE OF NEW JOBS IN
DIGITAL INDIA

17. EMERGANCE OF NEW JOBS IN
DIGITAL INDIA

18. DIGITAL PAYMENTS

19. INFRASTRUCTURE OF
DIGITALISATION
Infrastructure of digitalisation has to be made in such a way
that cost is minimal but outreach of benefits reach most of the
people without any restrictions and at affordable costs. This is
possible with proper planning and proper participation of
government as well as private sector.

20. SPREADING THE BENEFITS OF
DIGITALISATION

21. STEPS TO DIGITALISATION

22. FUTURE OF DIGITAL INDIA

23. GROWTH OF DIGITAL SPENDING IN
INDIA

24. DIGITAL PATH

25. EFFECT OF DIGITAL TECHNOLOGY

26. LACK OF PENETRATION OF LIFE
INSURANCE IN INDIA