What is the Digital Economy?
Digital economy refers to an economy that is a based on digital technologies .It is also known as the internet economy, the new economy, or web economy.
Importance of Digital Economy in India
Indian is moving towards creating a digital economy that will benefit the people and the government in various ways. Following points explain the Importance of Digital Economy in India:
- Increase in Revenues
- Removal of Black Economy
- Empowerment to people
- Creation of New Jobs
- Paves the Way to e-Governance
Increase in Revenues
When the transactions are digitized, monitoring sales and taxes becomes convenient. Since each transaction is recorded, the customers will get a bil for their purchase, and the merchants are bound to pay the sales tax to the government. This, in turn, increase the revenue of the government- thus resulting in growth of the overall financial status of the country.
Removal of Black Economy
When the transactions are made digitally, they can be easily monitored, Any payment made by any customer to any merchant will be recorded .This way, there will be no means for illegal transactions to occur. By restricting the cash-based transactions can efficiently expel the black economy.
Empowerment to People
One of the biggest advantages of moving towards digital economy is that it gives an empowerment to the citizens. When the payments move digital, each and every individual is bound to have a bank account, a mobile phone, etc. This way, the government can easily transfer the subsidies directly to Aadhaar-linked bank accounts of people. People no longer have to wait to receive the incentives and subsidies that they are bound to receive from the government. For example, the LPG subsidy that government gives to the common people. This subsidy payment is done via bank transfers.
Creation of New Jobs
The digital economy has a lot of potential to enhance job opportunities in new market as well as increasing employment opportunities in some of the existing occupations in the government. This way, the unemployment rate in the country is bound to decrease.
Paves the Way to e-Governance
The quicker, safe, and more efficient alternative traditional governance, e-governance will be the ultimate outcome of the digital economy. From birth certificate death certificate, everything is available online, Thus ,it is convenient for people to access the information they need on the go. Digital economy will definitely pave way to e-governance ,where delivery of all government services would be done electronically.