Indian Digital Economy to Contribute Nearly One-Fifth of National Income by 2029-30: Study

Indian Digital Economy to Contribute Nearly One-Fifth of National Income by 2029-30: Study

A study titled ‘Estimation and Measurement of India’s Digital Economy’, released by the Ministry of Electronics and Information Technology (MEITY), forecasts that India's digital economy will contribute nearly 20% of the national income by 2029-30. The study follows measurement methods developed by the Organisation for Economic Co-operation and Development (OECD) and the Asian Development Bank (ADB).

Key Observations:

• Sectoral Prospects: Beyond ICT sectors, digital intermediaries and platforms are driving digital access and spreading digital adoption.
• Growth Prospects: India’s digital economy is projected to grow at twice the rate of the overall economy.
• Projected Growth: The digital economy is expected to reach 13.42% of the national GDP by 2024-25.
• Digitization of Traditional Sectors: While some sectors are digitizing rapidly, others are lagging behind. For instance, in the Banking, Financial Services, and Insurance (BFSI) sector, over 95% of payment transactions are digital, but other financial services like loans remain less digitized.

Recommendations:

• Digital Literacy and Skill Development: Promote collaborative efforts like the Pradhan Mantri Gramin Digital Saksharta Abhiyaan (PMGDISHA) to increase digital literacy.
• Minimize Regulatory Uncertainty: Develop clear policies and fill the data gaps to support evidence-based interventions.
• Enhance Cybersecurity and Trust: Boost cybersecurity awareness, foster international collaboration, and invest in research and development.
• Make High-Quality Broadband Universal: Combine supply-side initiatives with demand-side strategies to ensure that devices and data services are affordable for all.

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