India to become a trillion dollar digital economy by 2028
New Delhi| With the digital initiatives of the government, India’s financial ecosystem has undergone a major transformation over the years. A recent report by Ask Capital states that India is set to become a US$1 trillion digital economy by 2028, with deep internet access, efficient and affordable 4 G and 5 G services, and government initiatives in the digital sector.
India has become a global example in terms of real-time payments (Digital Payment), benefiting from domestic technological innovations like UPI. India’s digital transformation will prove to be a game changer for economic growth. The digitalization of the Indian economy as well as the increasing use of smartphones over the years has led to cashless transactions and online shopping.
According to the Indian Council for International Economic Relations Research (ICRIER), India’s score on digital skills has overtaken developed countries like Japan, the United Kingdom and Germany in the overall level of digitalization. Government initiatives like Pradhan Mantri Jan Dhan Yojana (PMJDY) and Direct Benefit Transfer (DBT) have helped in enhancing universal access and financial inclusion in the country. Increasing mobile and broadband penetration will further deepen financial inclusion and promote new digital services.
Digital entertainment, online education, tele-medicine, digital health, disaster response and life-saving services are taking advantage of better mobile and internet services in India. Affordable data, increasing number of smartphone users and growth in e-commerce are driving India’s digital transformation. As of March 2024, Telecom Regulatory Authority of India (TRAI) data shows that there are around 120 crore telecom subscribers in India. The total number of internet subscribers increased from 88.1 crore in March 2023 to 95.4 crore by the end of March 2024, of which almost half are from rural areas. Over 73 million Internet subscribers and over 77 million broadband subscribers have been added in the past year.
