UPSC Mains 2023 · GS III · Q2 · 10 marks · 150 words

What is the status of digitalization in the Indian economy? Examine the problems faced in this regard and suggest improvements.

हिन्दी में

भारतीय अर्थव्यवस्था में डिजिटिकरण की स्थिति क्या है? इस संबंध में आने वाली समस्याओं का परीक्षण कीजिए और सुधार के लिए सुझाव दीजिए।

How a topper answered the closest question

Toppers wrote this one in a test series: “Examine the opportunities and challenges that arise from the process of digitization of the Indian economy. How has the government's Digital India initiative contributed to it?”

ApsaraAIR 192 · CSE 2024 · 195 wordsTheir whole copy

Opening · a definition

Digitization is the process of bringing all the economic activities & governance activities under the ambit of digital technology Eg. Internet.

Body · points

Diagram
[people + Govt + Industry] --(Internet)--> [Digitization] ^(Technology)

Opportunities (1) Faster delivery of services Eg. e-commerce. (2) Timely & efficient, real time monitoring Eg. NTES - Railway tracking. (3) Prevents spill out effect & corruption. Eg: DBT through Aadhar. (4) Ensures greater transparency & accountability Eg: e-RTI portal, e-consumer grievance redressal.

(5) Effective mobilisation of resources Eg: PM SWAMITVA using drone (6) Easy access to credit facility & Financial inclusion Eg: National Digital Health ID, KCC card.

Challenges :

(1) Digital illiteracy. (2) Lack of access to infrastructure facilities in backward areas. (3) Fear of cyber-threat & cyber-hacking Eg. AIIMS server attack. (4) Fear on misuse of personal data for commercial purposes & Right to privacy (5) Fading down of initial enthusiam Eg: Dormant accounts of PM-Jan Dhan Yojana.

Contribution of Govt's Digital India Initiative :

(1) Increased the usage of internet & mobile users in India. (2) Increased acceptance among citizens Eg. MNREGA wages paid by DBT.

(3) Penetration into vulnerable sections

Close

Eg: Access to PDS using smart cards & biometrics.

Thus Digitization helps India to move forward in world economy.

How toppers approach this question, and more on its topic: open the question.

Toppers’ answers to other close questions

Source: UPSC, Civil Services (Main) Examination 2023, General Studies Paper III, Q2. The paper on upsc.gov.in. Themes and links to toppers’ answers are by UPSC Grade, not by UPSC.