Connected future: Digital to spearhead India’s $5 trillion economy ambition

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Published: October 16, 2019 1:14 AM

Digital technologies have the potential to create $1 trillion economic value, says EY

India 5 trillion economy, india economy, cashless transactions india, UPI payment, digital payments india, digital infrastructure india, sharing economy india, start up ecosystems india, electronics manufacturing india, Digital India, Make in India, $5 trillion economy,y 2025, digital technologies are expected to generate $1 trillion in economic value.

The government has set a target of making India a $5 trillion economy by 2025, from $2.7 trillion in 2018-19 at a growth rate of close to 7%. According to consulting firm EY, digital technologies across sectors such as retail, financial services, healthcare, energy, manufacturing and infrastructure will be fuelling this growth resulting in employment generation, increased local and regional entrepreneurship and facilitate equitable socio-economic growth.

By 2025, digital technologies are expected to generate $1 trillion in economic value. Digital economy has the potential to sustain 60-65 million employment opportunities for women, differently abled people, skilled and semi-skilled workers across digitally enabled businesses in urban, semi-urban, and rural areas. This transformation is expected to create a thriving market for digital services, content, solutions, platforms and applications.

Prashant Singhal, emerging markets TMT leader, EY, said, “India is at an inflection point—digital has changed the way people communicate, socialise, create, sell, shop and work. ‘What comes next’ will be determined by the continued focus on fostering innovation, developing unique service offerings and enabling the digital infrastructure in the country which will help us achieve or even exceed the $1 trillion target. India is poised to be a game-changer in the world digital economy by empowering its citizens and revolutionising businesses.”

Over the last five years, India has achieved significant milestones in its digital journey across digital payments, digital infrastructure, sharing economy, start-up ecosystems and electronics manufacturing under the Digital India and Make in India initiatives. Access to internet is the primary enabler of digital economy, resulting in the re-invention of business models across industries and service delivery. Currently, internet user base in India is expected to reach 627 million by the end of 2019—second only to China, which is expected to reach about 850 million by 2025.

The Indian e-commerce and consumer internet sectors are expected to reach $200 billion by 2027 and is a significant avenue to provide employment and build entrepreneurship in the country.

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