Digitalization has become a driving force in India's economy, transforming sectors like finance, governance, and services. Despite significant progress, challenges such as digital infrastructure gaps and cybersecurity concerns persist.

Q.2 What is the status of digitalization in the Indian economy? Examine the problems faced in this regard and suggest improvements.

Model Answer:

Introduction

Digitalization refers to the integration of digital technologies into everyday life by the digitization of everything that can be digitised. In the Indian economy, digitalization has seen significant progress, especially with initiatives like Digital India, which aims to transform India into a digitally empowered society and knowledge economy.

Body

• Status of Digitalization:
  • As of 2023, India has over 700 million internet users, making it the second-largest online market globally.
  • The Unified Payments Interface (UPI) has revolutionised digital payments, with over 8 billion transactions per month as of June 2024.
  • The Aadhaar system has provided a digital identity to over 1.3 billion Indians, facilitating access to various services.
• Problems Faced:
  • Digital Divide: There is a significant gap between urban and rural areas in terms of internet access. Only about 35% of rural households have internet access compared to 70% in urban areas.
  • Cybersecurity: India witnessed over 1.16 million cyberattacks in 2023, highlighting vulnerabilities in digital infrastructure.
  • Digital Literacy: Despite progress, digital literacy remains low, with only 38% of the population being digitally literate.
• Government Measures:
  • BharatNet Project: Aims to provide high-speed broadband to all 250,000 Gram Panchayats in the country.
  • PMGDISHA (Pradhan Mantri Gramin Digital Saksharta Abhiyan): Targets to make 60 million rural households digitally literate.
  • National Cyber Security Policy 2023: Focuses on creating a secure cyber ecosystem and strengthening the regulatory framework.
• Way Forward:
  • Bridging the Digital Divide: Expanding internet infrastructure in rural areas and providing affordable internet services.
  • Enhancing Cybersecurity: Implementing robust cybersecurity measures and promoting awareness about cyber threats.
  • Improving Digital Literacy: Integrating digital literacy programs into the education system and community centre.

Conclusion

In conclusion, while India has made significant strides in digitalization, challenges such as the digital divide, cybersecurity, and digital literacy need to be addressed. By focusing on these areas, India can further enhance its digital economy and ensure inclusive growth.

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