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

Model Answer


Government has been focusing on digitalisation of Indian economy for accelerated socio-economic development. Government has launched Digital India to accelerate India’s digitalisation.


Status of digitalisation:

  • Access to cheap high speed internet services (4G) through mobile telephony. (Over 84 crores)
  • Aadhar forms the basis unique identity for citizens (over 99% people have)
  • Shareable private space on a public cloud (Citizens can digitally store their documents, certificates etc.)
  • Emergence of Digital Public Infrastructure which enabled access to government services digitally
  • UPI platform for digitally and safe payments among different platforms.
  • OCEN Platform and Account Aggregators platform for easier credit disbursement to citizens and businesses.
  • GST platform for digital assessment and filing of tax returns.
  • UMANG Platform enables citizens to access e-government services of both Central and State governments.
  • ONDC platform has been initiated for democratisation of e-commerce sector.
  • OpenForge platform for open collaborative software development.
  • Concerns with India’s digitalisation
  • Digital divide to the detriment of rural areas, vulnerable language and less educated.
  • Lack of implementation of digital data protection law in India.
  • Concerns with cyber security and cyber frauds
  • Lack of access to broadband
  • Lack of domestic semiconductor industry in India and dependence on imports.


  • Suggestions for boosting India’s digitalisation
  • Invest in expanding digital infrastructure across the country.
  • Implement nationwide digital literacy programs.
  • Strengthen cybersecurity measures and awareness campaigns to protect users from online threats.
  • Encourage the growth of start-ups.
  • Promote digital payment solutions tailored to diverse user groups.
  • Collaborate with private sector companies to drive digitalization initiatives

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