The report says that India’s digital economy will exceed $1 trillion by 2028

A new report from Ask Capital predicts that India’s digital economy will cross the $1 trillion mark by 2028, driven by factors such as widespread access to 4G and 5G networks, deepening mobile connectivity and homegrown innovations such as the Unified Payments Interface (UPI). ).

The country’s push for financial inclusion has reportedly been a game-changer. Government programs such as Pradhan Mantri Jan Dhan Yojana (PMJDY) and Direct Benefit Transfer (DBT) have accelerated universal access to financial services, especially in rural regions. These initiatives, coupled with the rise in smartphone use and affordable internet, have pushed India towards a cashless economy.

According to the Indian Council for Research on International Economic Relations (ICRIER), India’s digital capabilities now exceed those of several developed countries, including Japan, the UK and Germany.

The main driver of this change is the rapid development of mobile networks. Data from the Telecom Regulatory Authority of India (TRAI) shows that by March 2024, India had 120 billion telecom subscribers, almost half of them in rural areas. Last year alone, the country added over 7 crore internet and broadband subscribers. This expansion is not only driving everyday transactions, but is also enabling growth in sectors such as healthcare, education and e-commerce, all of which have been accelerated by digital advances.

The growth in digital payments is nothing short of extraordinary, with digital retail transactions expected to grow to $10 trillion by 2026. UPI alone is expected to handle 90% of these payments by 2027, transforming the way Indians interact with financial services. The Reserve Bank of India’s upcoming Unified Lending Interface (ULI) aims to simplify access to credit for rural and small-scale borrowers, further contributing to financial inclusion.

India’s financial landscape is reportedly undergoing a seismic transformation, driven by a combination of robust government initiatives, technological innovation and growing internet penetration.

A new report from Ask Capital predicts that India’s digital economy will cross the $1 trillion mark by 2028, driven by factors such as widespread access to 4G and 5G networks, deepening mobile connectivity and homegrown innovations such as the Unified Payments Interface (UPI). ).

The country’s push for financial inclusion has reportedly been a game-changer. Government programs such as Pradhan Mantri Jan Dhan Yojana (PMJDY) and Direct Benefit Transfer (DBT) have accelerated universal access to financial services, especially in rural regions. These initiatives, coupled with the rise in smartphone use and affordable internet, have pushed India towards a cashless economy.

According to the Indian Council for Research on International Economic Relations (ICRIER), India’s digital capabilities now exceed those of several developed countries, including Japan, the UK and Germany.

The main driver of this change is the rapid development of mobile networks. Data from the Telecom Regulatory Authority of India (TRAI) shows that by March 2024, India had 120 billion telecom subscribers, almost half of them in rural areas. Last year alone, the country added over 7 crore internet and broadband subscribers. This expansion is not only driving everyday transactions, but is also enabling growth in sectors such as healthcare, education and e-commerce, all of which have been accelerated by digital advances.

The growth in digital payments is nothing short of extraordinary, with digital retail transactions expected to grow to $10 trillion by 2026. UPI alone is expected to handle 90% of these payments by 2027, transforming the way Indians interact with financial services. The Reserve Bank of India’s upcoming Unified Lending Interface (ULI) aims to simplify access to credit for rural and small-scale borrowers, further contributing to financial inclusion.|#+|

Digital services such as telemedicine, online education and e-commerce have also seen rapid growth. The government’s Ayushman Bharat Digital Mission and e-Sanjeevani telemedicine platform are expanding access to healthcare, while digital classrooms and e-learning platforms are revolutionizing education.

With increasing adoption of 4G and 5G technologies and the government’s focus on digitizing services, India is poised to not only improve its financial ecosystem but also become a global leader in digital innovation by 2028.

(With inputs from ANI)

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Posted: October 2, 2024 11:14 PM EST