Question 1 · 10 marks · 162 words written
Opening · a figure
Indian economy in financial year 22-23, had 1/10th of all its GVA, through digital services & products (Digital economy) & is expected to reach 1/5th by 2026.
Body · points
- RBI digital economy report.
Factors that have facilitated Digital economy spread
1] focus on financial inclusion ↳ governments focus on financial inclusion (eg PMJDY) more than 55 cr+ accounts
2] Access to Internet
- 2.1 Mobile access → nearly 750 million smartphone users currently
- 2.2 cheapest data rates of the world, nearly 55% internet penetration.
3] JAM trinity → Jan Dhan ↘ Aadhaar → Mobile Focus on direct benefit transfer payments. (UPI)
4] Rise of digital services, startups etc → India 3rd largest startup ecosystem, Fintech startups booming.
However Digitalisation needs to address problems to scale itself up → Rural urban divide → Literacy (financial & cyber) → Cyber security & scam (digital arrest)
Close · a way forward
Thus aforementioned problems can be solved through internalisation of DPI principles, which were India's priority during G20 2023 presidency