24th January 2025 (12 Topics)
1
Jan
2
Jan
3
Jan
4
Jan
6
Jan
7
Jan
8
Jan
9
Jan
10
Jan
11
Jan
13
Jan
14
Jan
15
Jan
16
Jan
17
Jan
18
Jan
20
Jan
21
Jan
22
Jan
23
Jan
24
Jan
25
Jan
27
Jan
28
Jan
29
Jan
30
Jan
31
Jan
India's Digital Economy Growth (2024–2030)
Context
India’s digital economy is expected to grow almost twice as fast as the overall economy, contributing nearly one-fifth of national income or gross domestic product (GDP) by 2030, according to the ministry of electronics and information technology (MeitY).
Key-highlights
- Current Situation (2022–2023)
- Share in National Income: India’s digital economy constituted 74% of the national income in 2022–2023.
- Gross Value Added (GVA): The digital economy in 2022–2023 was valued at approximately Rs 28.94 lakh crore (~USD 368 billion).
- GDP Contribution: It contributed around Rs 31.64 lakh crore (~USD 402 billion) to India’s GDP.
- Forecast for 2024–2025: The digital economy is expected to grow twice as fast as the rest of the national economy. It will rise to 13.42% of India’s national income by the end of 2024–2025, up from 11.74% in 2022–2023.
- Projection for 2030: By 2030, India’s digital economy will account for nearly 20% of the country’s overall GDP.
- Key Digital Economy Sectors
- ICT Sector: Information & Communications Technology (ICT) firms, telecom, and electronics manufacturing contribute the largest portion, making up 83% of national GVA.
- Big Tech & Online Intermediaries: These contribute 2% of national GVA.
- BFSI, Trade, & Education: Collectively, these sectors also contribute 2% to national GVA.
- E-Commerce and Digital-Only Services: E-Commerce and digital-only firms contribute a limited share of the digital economy:
- E-tailers contribute about 3% to GVA.
- However, BFSI digital activities contribute four times that amount.
Challenges to Digital India
While Digital India has made significant strides, it faces several key challenges:
- Digital Divide: Internet penetration is only 5%, leaving 675 million people unconnected, especially in rural areas. Additionally, 53% of rural households and 75% of urban households are dissatisfied with broadband speed.
- Digital Literacy: Around 40% of people aged 15+ haven't accessed the internet in the past year due to lack of awareness and affordability. This limits the ability of many citizens to benefit from digital services.
- Trade Barriers: Issues like data localization, restrictions on foreign satellite services, import curbs on IT hardware, and domestic production requirements pose barriers for foreign companies.
- Tariffs & Market Access: India applies high customs duties on ICT goods and has some of the highest tariffs within the G20, affecting competitiveness. Additionally, India’s public procurement policies prioritize local suppliers.
- Privacy and Data Security: As digital usage grows, concerns around data privacy and cybersecurity Despite the Personal Data Protection Bill, fears of data breaches and insufficient protection persist.
- Rising Cyber Threats:The integration of generative AI into various sectors has led to a surge in cyberattacks, with phishing incidents and credential phishing witnessing exponential increases since 2022, highlighting the growing sophistication of cyber threats.
Key Aspects of India's Digital Infrastructure
|
Courses
Study
Notes
Home
Resources
More
