India can create up to $1 trillion of economic value from the digital economy in 2025, stated the India’s Trillion Dollar Digital Opportunity Report, released on Wednesday.
This would be created with about half of the opportunity originating in new digital ecosystems that can spring up in diverse sectors of the economy.
According to the report, India’s current digital economy generates about $200 billion of economic value add.
India is the second-fastest digitising economy amongst 17 leading economies of the world, the report’s Country Digital Index said.
The index is based on 30 metrics to measure digital adoption in 17 mature and emerging digital economies, including Brazil, China, Indonesia, Russia, South Korea, Sweden, and the United States.
India’s digital index score, measured on digital foundation, digital reach and digital value, moved from 17 in 2014 to 32 in 2017 (on a scale of 0 to 100), the second-fastest rise after Indonesia.
The report also found that India is among the top three global economies on the basis of number of digital consumers.
Also the Aadhaar, India’s unique digital identity programme, covers more than 1.2 billion people, the largest system of its type globally.
Production, Empower And Output
With a strong foundation of digital infrastructure and expanded digital access through Digital India Programme of the Government, India is now poised for the next phase of growth.
This challenge is the creation of tremendous economic value and empowerment of citizens as new digital applications permeate sector after sector.
India’s digital economy of the future could generate productivity and output sufficient to support 55 million to 60 million workers in 2025.
Thirty digital themes can be scaled up nationally to accelerate progress in nine priority areas.
These nine strategic areas are-
- 21stcentury IT infrastructure and software capabilities
- Quality education
- Energy for all
- Doubling farmers’ income
- Make in India, Make for India and Make for the world
- Next generation financial services
- Jobs and skills of the future
These themes can help create up to $1 trillion of economic value in 2025, and empower millions of workers, entrepreneurs, small and large businesses, and consumers in rural and urban parts of the country.
Increasing Internet Users
The Trillion Dollar Digital Opportunity report stated that India has the second-largest number of instant messaging service users worldwide, behind China, and the most social media users.
45% of the 293 million new internet subscribers over the last four years came from the states with per capita GDP lower than India’s.
Releasing the report, Union Minister for Electronics and Information Technology Ravi Shankar Prasad said that India has nearly half a billion internet users and their number is rising rapidly in every part of the country.
This will create a huge market for a host of digital services, platforms, applications, content, and solutions.
The Minister also stated that the country could potentially see a five-fold increase in economic value from digital transformation by 2025, representing an attractive opportunity for global and local businesses, start-ups, and innovators to invest in emerging technologies (like AI, blockchain, or drones) in ways that are customized to India’s needs.
India’s Trillion Dollar Digital Opportunity Report
The report was released by the Government of India’s Ministry for Electronics and Information Technology (MEITY) in Mumbai, Maharashtra yesterday.
The report on India’s Trillion Dollar Digital Opportunity takes stock of the massive digitally-enabled change that is underway and lays out a vision and roadmap for the coming years.
The fact-based report is a collaborative effort, with data and inputs from a wide range of government, business and civil society entities, undertaken over the past year.
Digital India Program
Launched in July 2015, the Digital India program is a flagship program of the Government of India that is transforming the country into a digitally empowered society and knowledge economy.
The program has now moved from the planning phase towards execution and significant progress has been made in implementation of the various initiatives.