The Indian market has developed from only Rs. 2.7 lakh crore to Rs 57 lakh
crore which makes it the entire world’s sixth-largest market by GDP and the
third-largest by purchasing power parity (PPP). The nation ranks 141st in per
capita GDP and also 123rd in per capita GDP (PPP) at the time of 20-16. After
1991 Indian market has seen plenty of developments from being relegated into
starting its door for worldwide gambling by allowing LPG(Privatization and
Globalization, Privatization and Globalization) from 1991 under the then Prime
Minister Mr. P. V. Narasimha Rao and also Finance Minister Dr. Manmohan Singh.
India achieved 6 7% moderate GDP growth yearly. Back in FY 2015 to 2017,
India’s market became the world’s most fastest-growing big economy exceeding China.

could be that the mass adoption of connected electronic services with
consumers, businesses, and authorities– is a lot more than the usual
tumultuous wave washing foreign companies. Initially, individuals were
introduced to the usage of pcs, and the automation required every business by
storm now we may observe the digital universe which exists.

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Digital World and Digital India:

World Economic Forum in its own
Global Information Technology Report generated a Networked Readiness Index (NRI)
some 12 years ago, to draw the eye of both decisionmakers and investors
involving the adoption of financial and business plans that could permit them
to grow in the circumstance of a fast-moving but Profession online economy.
From the world wide it report, 20-16 released by World Economic Forum India
Ranked 91st standing in Network Readiness Index one of 139 countries slide down
from two positions in the total ranking. The shift is more marginal, but this
drop is still a sign of the slower speed compared to other nations.


Under the direction of honorable
Prime Minister Mr.Narendra Modi, India gets prepared to bring a head-to-head
conclusion with the remainder of the earth. Together with his vision to produce
an electronic digital India using his tough plan Bharat Net. Because the
majority of the Indian people still have a home in many rural areas where an
online connection can be a fantasy, the federal government is building a
highspeed electronic highway to join all of 2.5 lakh Gram Panchayats of the nation.
This is the planet’s biggest rural broadband connectivity endeavor utilizing
optical fiber. This study will be completed using all the following goals:

To understand the various measures of digitization index.

To analyse the effect of digitization on Indian economic development;2)

To examine different constraints of Digitization.




analysis is qualitative and qualitative in character. The secondary information
will be used for that diagnosis of the issue. Resources for your secondary
statistics will be derived from the numerous sources such as special
investigation team file, paper and Telecom Regulatory Authority of India, World
Economic Forum internet sites.



The Digitization Index

Digitization metrics decide to try
to measure the cumulative influence of adoption and using information and
communication technologies (ICT). We all know that the holistic adoption and
using it contributes to enhanced economic development. There are just six
measures of digitization indicator employed from the analysis.

1.      Affordability:- it has to be sufficiently affordable to allow scalable

2.      Infrastructure Reliability:- it is supported by
telecommunications networks and reaching most population of a national

3.      Network Access:- networks need to be accessed by
multiple fixed and mobile voice and data devices.

4.      Capacity:- Bandwidth is the data rate supported with a network
connection. This is stems from the area of technology where bandwidth reflects
the exact distance between the highest and smallest signs on a communicating
station (ring). Greater bandwidth indicates that a larger capacitynonetheless,
it will not necessarily signify increased performance.

5.      Usage:- networks have to provide sufficient capacity to deliver
vast amounts of information at speeds that do not hinder their effective use.

Human Capital











Residential fixed line cost adjusted for GDP per capita


Residential fixed line tariff (3 minute call to a fixed
line at peak rate) adjusted for GDP per capita


Residential fixed line connection fee adjusted for GDP
per capita


Mobile cellular cost adjusted for GDP per capita


Mobile cellular prepaid tariff (1 minute call off-net at
peak rate) adjusted for GDP/capita


Mobile cellular prepaid one-time connection fee adjusted
for GDP per capita


Fixed broadband Internet access cost adjusted for GDP
per capita


Monthly residential price for a fixed broadband


Infrastructure reliability


Investment in telecommunications per telecom subscriber
(mobile, broadband and fixed)


Mobile investment per capita


Broadband investment per capita


Fixed line investment per capita


Network Access


Network penetration


Fixed Broadband penetration


Mobile Phone penetration


Other penetration metrics and coverage infrastructure


Mobile broadband penetration


PC Population penetration


Mobile cellular network coverage




International Internet bandwidth


International Internet bandwidth (kbps/user)


Broadband speed


Broadband speed (% of connections with download speed
over 2 Mbps)


Human Capital




Engineers as a percentage of total population


Skilled Labor


Labor force with more than a secondary education as a
percentage of the total labor force




Internet retail


Internet retail as percent of total retail




E-government Web measure index


Individuals using the internet


Percentage of individuals using the Internet


Non-voice services as % of wireless ARPU


Non-voice (data, message, VAS) spending as percentage of
wireless ARPU


Social network visitors


Dominant Social Network Unique Visitors per month Per


SMS usage


SMS usage per subscriber










Infrastructure reliability- It’s supported by
telecommunications networks and attaining the maximum people of the federal
land. A Variety of programs Undertaken by Government of India to enhance the
infrastructure would be:-
1.      Broad Band Highways: It insures
three components Broad Band for most broadband, rural for most National and
urban information infrastructures.
2.      Universal use of Mobile
Connectivity: ” It centers on system understanding and filling out the gaps
in connectivity from the nation.
3.      Public Access to the Internet
Programme: To Offer Shared Services Centres (CSCs) and Article Offices as
Multi Service centres.
4.      E governance: Reforming
Authorities through Tech: Government Process Reengineering utilizing it to
simplify and create the us government procedures more effective is essential
for transformation to earn the delivery of government services better across
various government domain and so has to be executed with Ministries/
5.      E-Kranti: Electronic Delivery of
Services: the Federal Government declared the National EGovernance Plan
(NeGP), consisting 3-1 Mission Mode Projects (MMPs) and 8 elements. E-Kranti
is a vital pillar of this Digital India initiative also there are 44 Mission
Mode Projects under e-Kranti, which can be in various phases of execution. (
includes Banking, postoffice, taxation, Land records, Agriculture, Gram
Panchayats etc..)
6.      Advice for many: Internet hosting
of documents & information to ease open and effortless access to
information to taxpayers.
7.      Electronics Manufacturing: ” It
targets boosting electronic in the nation with the aim of net-zero Imports by
2020 because of striking demonstration of aim.
8.      IT for Jobs: ” It targets
providing training to the youth at the skills required for procuring job
chances while in the IT/ITES industry.
9.      Historical Harvest Programmes:
This is composed of these endeavors that should be executed in a brief


Network Access



Internet penetration in India grew
from just 10 per cent in 2011 to 34.08 per cent in 2016, registering a direct
increase of 89 per cent in 2016 over 2007.

Urban India with an estimated population of 444 million
already has 269 million (60 per cent) using the Internet.

Rural India, with an estimated population of 906 million as
per 2011 census, has only 163 million (17 per cent) Internet users. There is
therefore a great opportunity for increasing penetration in the rural areas.

Analysis of ‘Daily Users’ reveal that both in Urban and
Rural India, the younger generations are the most prolific users of internet.

Rising internet penetration is expected to drive ecommerce
growth in India.



Indirect and indirect labor of this
IT-BPM sector in India from the financial year 2009 to 2017 (in millions)

This statistic indicates the number
of people working, either indirectly and directly, by the Indian IT and
business process management (IT-BPM) industry from 2008/9 into 2016/17. Direct
employment from the IT-BPM industry in India reached 3.9 million people from
2016/17. In the last ten years, the IT Industry has been blindsided with the
huge tide of outsourcing out of foreign businesses. In 2014, the infrastructure
outsourcing agency segment accounted for the most significant percentage of IT
outsourcing spending India.




India internet users


E governance

Digitalization and GDP Growth:

Digitization being a vital economic
driver from the world it’s necessary to incorporate the economy by creating
digital economies. Firms, productivity and prices would be the 3 benefits
produced in the economy. It’s seen in huge markets internet is the reason
approximately 3.4 percent of GDP normally together side stable labour creation.
Throughout world wide recession, 6 million jobs were generated worldwide by the
digitization impacts and 94 percent were from emerging markets and 6 percent
out of developed markets. This showcases the possibility of this digitization
in creating job chances. Surveys show growing savings have more chances of
benefiting from digitization compared to the developed markets as growing
markets have a larger range of reducing inefficiencies and boost production.
Back in India, rising net penetration, accelerated technology adoption and
higher selling of gadgets such as tablets tablet computers, and so forth, have
contributed to a appealing internet customer base and unparalleled increase of
e commerce. World Economic Forum (2013) said in its own report which 10% boost
in digitization score of almost any country would contribute 0.75% increase in
its GDP per capita. Other studies concur its impact is 4.7 times greater
compared to the ordinary effect of 0.16 percent over the per capita GDP for
broadband installation (World Economic Forum, 2013). With the rise in online
use e commerce businesses not merely increased their business enterprise into
many advantages but also gave birth to both marketing services and service to
the tiny sellers by enabling them to attain a more world wide industry.

Figure-1 shows the trend line  and regression equation of internet
penetration and GDP. R2 value is 0.9423. It means 94.23% variance in
GDP in explained by increased internet penetration.



With the start of the electronic
age, there’s a gain in the automation process which assists in reduction of
errors and gain in the production speed in addition to decrease the ineffective
moves. Decrease in cost of industry is different from sector to industry and
business to industry.

Street lighting, that today forms 1.5 percent of overall
electricity consumption (in accordance with McKinsey) from India, may be
altered via digitization. Motion-detection lights may save 70 80 percent of
costs and electricity, based on Cisco’s prices.

The Use of Bio Metric apparatus Assist in tracking the ghost
workers and Lower the individual biases towards a particular worker



Creation of jobs

Laying from this broadband system
around 2.5 lakh village panchayats from the nation from 2018 Broad Band street
may need a great deal of work and moving to develop a great deal of tasks for
the reduced area of this society.With that the gain in the penetration of
internet and technology, there is going to undoubtedly be a requirement to keep
the apparatus therefore there is likely to soon be a huge demand of its
maintenance group. To coach people there’ll be demand of educators too.
Figure-2 indicates the trendline and regression equation of online penetration
and lead job creation. R 2 value indicates that 92.04 percent variance in
employment will be clarified by individual changeable i.e. online penetration.



Figure-3 shows the Trend Line and
regression equation of Internet 
Penetration and indirect employment. In this figure R2 value
is 0.4123. it means only 41.23% variance is explained.



Obstacles in the process of Digitalization:

1.      The resistance to change people show
during the emergence of new technology.

2.      Building trust among the people for
change is difficult.

3.      Lack of knowledge about its use and

4.      Infrastructure requirements and
their unavailability also hamper the reaching of these basic facilities to the

5.      The basic hindrance is the lack of
literacy and literacy is not just to be able to write ones name and do the
signature but to have an understanding of the changes going in the technology,
society and the country for their own betterment.




The digitalization brings
innovation, ease of working, new job opportunities and growth in the economy.
It helps to bring transparency to the system and more transparent are the flow
of funds in the economy less is the problem of tax evasion, parallel economy
etc. But with all these benefits available it also makes it necessary for the
people to have the basic financial knowledge and a push towards the importance
of the financial literacy. With the help of which they can protect their money
in situations like inflation, depression, and know about different financial
products and services to save it for their better future. Digitalisation can
also play an important role in the achievement of this goal as it can have a
greater reach to the people. By this, we can reach a conclusion that the new
technology needs to harnessed well and for this, it is not only the
availability but also the knowledge to use it and get benefits from it.


1.      https://www.researchgate.net/profile/Nurul_Mahdzan/publication/275056695_The_Impact_of_Financial_Literacy_on_Individual_Saving_An_Exploratory_Study_in_the_Malaysian_Context/links/553202fd0cf27acb0deaaff9.pdf

2.      https://www.researchgate.net/publication/291349502_Role_of_Digitization_and_E-commerce_in_Indian_Economic_Growth_An_Employment_Generation_Perspective

3.      http://reports.weforum.org/digital-transformation/understanding-the-impact-of-digitalization-on-society/

4.      https://blogs.economictimes.indiatimes.com/et-commentary/digitisation-is-the-key-to-indias-competitiveness/

5.      https://www.zeroerp.com/digital-india-impact-education/

6.      http://reports.weforum.org/global-competitiveness-index-2017-2018/countryeconomy-profiles/#economy=IND

7.      http://www.thehindubusinessline.com/economy/budget/economic-survey-201617-highlights/article9511608.ece

8.      https://www.statista.com/statistics/255135/internet-penetration-in-india/




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