The Digital Economy

MEANING
The Digital Economy is the worldwide network of economic
activities enabled by information and communications
technologies (ICT). It can also be defined more simply as an
economy based on digital technologies.

The digital economy is the new productivity platform that some

experts regard as the third industrial revolution.

Digital revolution, also known as The Internet Economy or

Internet of Everything (IoE), is expected to generate new
market growth opportunities, jobs and become the biggest
business opportunity of mankind in the next 30 to 40 years.
 There are several key components that enable the digital
economy:

There's the technology infrastructure itself -- the hardware,

software and networks.

There are the digital processes by which business happens, in

other words, the e-business component.

Another key component is e-commerce, the digital transactions

through which customers buy and obtain products and services
from organizations.
Opportunities in Digital Economy
The Internet Economy or Internet of Everything (IoE), this digital
revolution is expected to generate a wealth of new market growth
opportunities and jobs, and become the biggest business opportunity of
mankind in the next 30 to 40 years.

Goldman Sachs predicts that India, which comprises 15 percent of the world
population with a growth rate of 7 to 8 percent, could be the second largest
economy by 2030.

There is no doubt that the leadership of the country sees the digital economy
as a major growth enabler. When Prime Minister Narendra Modi
strategically listed Digital India among the top priorities for the new BJP-
led central government, he delivered a resounding nod to the many
opportunities that exist in the digital economy.
 The Department of Electronics & Information Technology of
India published Internet of Things policy estimating IoT
industry in India grow up to INR 940 billion, by 2020.

Focus areas include agriculture, health, water quality, natural

disasters, transportation, security, automobile, supply chain
management, smart cities, automated metering and monitoring
of utilities, waste management, oil and gas.

Cisco estimates that all IoE pillars - Internet of things, Internet

of people, Internet of data, and Internet of Process for India
have a value at stake (VAS) of INR 31.880 trillion (about half a
trillion U.S. dollars) for the next ten years. From that INR
7.263 trillion is in the public sector and INR 24.616 trillion is
in the private sector during the next decade.
Benefits of Digital Economy
Increased revenue

Reduced costs

Higher employee productivity

Improved safety and security

Improved environment

Enhanced citizen experience

Better health and well being

Digital India a part of Digital
Economy
Digital India is a campaign launched to ensure that
Government services are made available to citizens
electronically.

It was launched on 1 July 2015 by Prime Minister Narendra

Modi.

Digital India consists of three core components. These include:

The creation of digital infrastructure
Delivery of services digitally
Digital literacy
Key areas of Digital India
1. Broadband Highways:
Broadband highways will be routes through which internet
connectivity will reach 2,50,000 gram panchayats by December
2016. Reliance Jio's 4G plans will also figure in this ambitious
programme, which will make for a National Fibre Optic Network
by 2016.

2. Digital Locker:
This online locker will be able to store all documents issued to
you by the government, and will require an Aadhar card as
identification for the first time. After that you will be able to set
your own password and even link it with a Google or Facebook
account. You won't be required to go to a government office with
a folder full of documents.
3. Mobile connectivity:
Over 42,000 villages will have seamless mobile connectivity by
2018. This will require Rs 20,000 crore worth of investment, and
companies such as Airtel, Idea and Reliance will all play a role
along with state-owned BSNL and MTNL.

4. e-Kranti:
This is perhaps the biggest program within Digital India, and
focuses on a mobile-first approach. That means integrating public
programmes on single portals, and using technology for their
implementation and for public grievance system when they don't
work well.
5. Jobs:
Business Process Outsourcing (BPO) centres will be set up in
states that have lagged in development, such as the North-Eastern
states and rural areas. One crore students will be trained in
smaller towns and cities in five years, to develop a skilled
workforce for such BPOs and the IT sector. Telecom service
providers have agreed to train 5 lakh people in smaller towns to
work in their projects.

6. Manufacturing:
Digital India seeks to spur electronics manufacturing to the extent
that there would be net zero imports that is exports will equal
imports by 2020.
7. My Gov:
This website crowd sources ideas from the public for design of
programmes such as better traffic management, using big data for
making cities smarter, and even for the PMO's mobile app among
many others. The idea is to start new programmes in consultation
with informed citizens for better implementation.