'Digital Tech To Contribute To India's $5 Trillion Economy Target'

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According to consultancy firm EY, Digital technologies are expected to generate $1 trillion in economic value, accounting for 20 per cent of India's target

Written By Tech Desk | Mumbai | Updated On:
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According to consultancy firm EY, Digital technologies are expected to generate $1 trillion in economic value, accounting for 20 per cent of India's target to achieve $5 trillion economy ambition, by 2025.

"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," EY said in a statement that coincided with the ongoing India Mobile Congress 2019.

Digital technologies have the potential to create $1 trillion economic value, contributing 20 per cent to India's nominal GDP, the statement added.

'5 trillion dollar economy'

Factors such as the availability of increased disposable income, in addition to cheaper smartphones, declining data tariffs and increased digital literacy are together helping India achieve inclusive growth, EY said. Together, those factors make products and services more accessible, thus fuelling the digital economy, EY added.

India poised to become 5 trillion Dollar economy by 2024: Reliance Jio

By 2025, India is expected to have 90 per cent internet penetration with 850 million users, as rural base growing 2.5 times compared to the urban base, it noted. Also, e-commerce and consumer internet sectors are expected to reach USD 200 billion by 2027.

"India is at an inflection point  digital has changed the way people communicate, socialize, 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 USD 1 trillion target," EY Emerging Markets TMT Leader Prashant Singhal said.

India is poised to be a game-changer in the world of digital economy by empowering its citizens and revolutionising businesses, he added.

Earlier this week, Reliance Jio's Director on Board Mahendra Nahata said India is poised to become a 5 trillion dollar economy by 2024. Nahata said Jio covers more than 96 per cent of 'Indian population.' He also said Jio is moving towards 99 per cent of population coverage by the end of this fiscal year including 'in far-flung ranges of the Himalayas and difficult areas of North East.'

(With PTI inputs)

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