Digital Economy of INDIA

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Digital India a way forward for the Digital Economy

Because of the changing world order, the digital economy is emerging as the main driving force of economic growth globally. The digital economy is proving very productive in facing global challenges, related to the environment, inequality, and energy. Internet users are increasing at an incredible pace.

According to a survey conducted in 2018, India had almost 560 million internet users. The download almost 12.3 billion apps and spend 17 hours on the internet. The digital economy of India is considered as one of the fastest-growing markets for digital customers. India comes in 4th number in terms of its rapidly growing digital economy.

Read more about Digital Economy of Pakistan

Digital India

Both private and public sector is playing a very important role in the sector of innovation. By providing access to internet-based services and online usage more reachable. Because of the innovation in the information and communication technology sector(ICT), people, small businesses and even the government are using digital technology to make goods, decisions and for the quick delivery of services.technology is revolutionizing businesses and transforming all aspects of society. The digital economy is a term related to activities like selling and buying and access to all the services through internet-connected devices. The e-commerce industry in China is well established.

Digital India has laid the foundation for digital transformation. By introducing programs like Aadhaar,e-locker, design, JAMtrinity, and BHIM.These programs are helping India to achieve its goal to expand its horizon in terms of the digital economy.

Aadhaar

One of the successful initiatives of digital India is Aadhaar. This has provided an identity to more than a million Indian citizens. Aadhaar is a national biometric system which is providing biometric identity to Indians. The Aadhaar enabled payment system is connecting and empowering Indian society. Aadhaar was first introduced in 2009. It is playing a major role in the digital economy of India. There are almost 1.2 billion people are enrolled in this program, which is making it the biggest identity program.

This unique digital identity system is combining the best technologies to develop a system that generates unique numbers based on biometric information conducted from people through iris scan and fingerprints they submit. This biometric identity system has provided the identity to many peoples as well as access to banking systems to the millions of people who were excluded from the formal economy.

Rapidly growing e-commerce Industry

The e-commerce industry of India is rapidly growing because of the innovation in the ICT sector. The e-commerce industry is directly effecting all kinds of business ranging from small to medium-sized businesses. The expected growth of the e-commerce Indian e-commerce industry is US$ by 2026. The rapidly growing e-commerce industry is providing people with more job opportunities and helping millions of business to flourish. Because the e-commerce industry is helping to reduce gaps between manufacturers and customers.

Top eCommerce Websites of India

These are seven top e-commerce sites which are active in India

  1. Amazon
  2. Flipkart
  3. Myntra
  4. Jabong
  5. Shopclues
  6. Snap deal
  7. Paytm mall

There are two big players of the Indian e-commerce industry which are Amazon and Flipkart. The Paytm has made an entrance to this space with its Paytm mall but it has not reached the level of Amazon and Flipkart.

Two main concepts of the Indian e-commerce industry

There are two main concepts of the Indian e-commerce industry

Multi-product e-commerce: Some e-commerce platforms provide all kinds of products and services. They are targeting customers of all kinds of products and services. These products range from accessories for men and women to health beauty fitness, magazines, books entertainment and business.

Single-product e-commerce: This sector is related to the buying and selling of automobiles. The stock and share market also offer to share their services through these types of online portals.

Major drivers of growth of the e-commerce industry in India

  1. One of the main drivers of the e-commerce industry is the availability of fast internet and e-commerce applications. It is not surprising that people are coming to these sites.
  2. As there are many festivals in India, Indian e-commerce companies can sell year-round.
  3. Foreign investors are investing their money in e-commerce companies; they are investing in large office and front office setups.
  4. These foreign investments are making e-commerce a deep pocket, this means they can offer discounts without short term incurring losses.

Government initiatives

The government of India has announced several initiatives, namely Digital India, Make in India, Startup India, Skill India, and Innovation Fund for bringing innovation in the technology sector.

Is e-commerce good for India?

The e-commerce industry of India has greatly increased economic growth. India is still on its way to becoming a digitally advanced country. It is good for India in many ways. E-commerce is improving the technology sector of India. By providing quick and easy services. The e-commerce industry has brought innovation to many areas.

But still, there is a strong demand for technology experts from all fields like web developers, analytics experts, software coders, content writers, graphic designers and digital marketers among other specialized tech areas. The technological advancements will create a boom in the e-commerce sector. But it will require more creative and innovative thinkers and better technology.

Challenges India facing in expanding its digital economy

The e-commerce industry in India is facing many challenges. One of which is the lack of skilled people. Because all of the Indian people don’t have access to the internet. Despite a larger number of mobile and internet users, India’s dependence on cash is slowing down the progress in the e-commerce and digital sector. It became the major hurdle.

Concluding remarks

The e-commerce industry of India is affecting small, medium and large business enterprises. By providing them the means for financing, technology, and training. The e-commerce industry of India is moving forward with growth. The growth in the e-commerce industry will increase employment opportunities and also provide the best products and services. This is also attracting a lot of foreign investors. But in the field of technology, India still has to make progress.

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