Tag: DIGITAL ECONOMY

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India Targets $1 Trillion Digital Economy

UPI.

India has become a global example of real-time payments, benefiting from home grown technological innovations like UPI…reports Asian Lite News

With government’s digital initiatives, India’s financial ecosystem has undergone a paradigm shift over the last few years.

A recent report by Ask Capital says with enablers like deep internet penetration efficient and cheap 4G and 5G services along with government digital initiatives India is set to become a USD 1 trillion digital economy by 2028.

India has become a global example of real-time payments, benefiting from home grown technological innovations like UPI. India’s digital transformation will be a game changer for the economic development.

Digitalisation of the Indian economy, along with the increasing use of smartphones in the past few years has propelled cashless transactions and online purchases.

According to the Indian Council for Research on International Economic Relations (ICRIER), India’s score on digital prowess has surpasses that of developed nations such as Japan, the United Kingdom and Germany in the aggregate level of digitalisation.

Government initiatives like Pradhan Mantri Jan Dhan Yojana (PMJDY) and the Direct Benefit Transfer (DBT) schemes have helped in universal access and enhanced financial inclusion in the country.

Increased mobile and broadband penetration will deepen financial inclusion and boost new digital services.

Advanced and new digital lifestyle and life-saving services like digital entertainment, online education, tele-medicine, digital health and disaster response will capitalise on better mobile and internet services.

Affordable data, increasing number of smartphone users and growth in e-commerce are driving India’s digital transformation.

As on March 2024, the Telecom Regulatory Authority of India (TRAI) data suggests nearly 120 crore telecom subscribers in India. Total number of internet subscribers increased from 88.1 crore in March 2023 to 95.4 crore at the end of March 2024, close to half are from rural areas. Over 7.3 crore internet subscribers and over 7.7 crore broadband subscribers were added in last one year.

Driven by adoption of 4G and 5G technologies, total volume of wireless data usage increased from 1,60,054 PB during the year 2022-23 to 1,94,774 PB during the year 2023-24 with yearly growth of 21.69 per cent.

The digital economy, which accounted for 4.5 per cent of India’s GDP in 2014, is expected to contribute 20 per cent of the GDP by 2026.

Between 2017 and 2023, retail digital payments surged 50.8 per cent. Sectors like finance, education, healthcare, food, travel and e-commerce are already undergoing large-scale digital transformation.

As per the report, UPI, is expected to contribute 90 per cent of the total retail digital payments in India by 2027.

The RBI is planning to roll out the Unified Lending Interface (ULI). This will simplify getting credit, especially for small and rural borrowers. ULI will also facilitate digital information, like land records, to flow seamlessly between data providers and lenders, cutting down the time it takes to approve credit.

Sectors like healthcare and education have received great thrust from digital India initiatives. Healthcare schemes like Ayushman Bharat Digital Mission (ABDM) is building backbone to support the integrated digital health infrastructure of the country. e-Hospital have made healthcare facilities more accessible, e-Sanjeevani, the National Telemedicine Service of India is another step towards digital health to achieve Universal Health Coverage.

In education, Covid-19 gave a new direction to school education, saw school classroom lectures shift to digital screens.

The e-commerce sector is expected to be another key driver for growth going ahead, is leading to a surge in digital payment transactions in rural areas.

The report says digital payments in India are about to reach an inflection point and are expected to grow in value to USD 10 trillion by 2026.

Growth of the Indian economy is becoming more inclusive through innovations and the government’s thrust on digitalisation and with a large pool of talents India is expected to propel towards becoming a USD 1 trillion digital economy by 2028. (ANI)

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India News Tech Lite

India’s Digital Economy Booms, Leads Global Revolution

In the digital currency arena, the Reserve Bank is at the forefront with pilot runs of the e-rupee, the central bank digital currency (CBDC)…reports Asian Lite News

India is leading the global digital revolution, emerging as a frontrunner on the back of its robust digital public infrastructure, a vibrant financial technology (FinTech) ecosystem, and a conducive policy environment to emerge as the fastest-growing digital economy in the world, according to the RBI Report on Currency and Finance (2023-24) released on Monday.

Globally, India ranks first in biometric-based identification (Aadhaar) and real-time payments volume, second in telecom subscribers, and third in terms of the startup ecosystem, the report points out.

The flagship Unified Payments Interface (UPI) has revolutionised the retail payment experience for end users, making transactions faster and more convenient.

In the digital currency arena, the Reserve Bank is at the forefront with pilot runs of the e-rupee, the central bank digital currency (CBDC).

The digital lending ecosystem is becoming vibrant with initiatives such as the Open Credit Enablement Network, the Open Network for Digital Commerce, and the Public Tech Platform for Frictionless Credit.

FinTechs are collaborating with banks and non-banking financial companies (NBFCs) as lending service providers. They are also operating platforms to facilitate digital credit.

BigTechs are backing payment apps and lending products as third-party service providers.

Digitalisation in finance is paving the way for next-generation banking, improving access to financial services at affordable costs, and enhancing the impact of direct benefit transfers by the effective targeting of beneficiaries in a cost-efficient manner. Loans in the retail segment are being enabled by online payments and innovative credit assessment models with instant disbursements.

E-commerce is being boosted through embedded finance.

All these innovations are making financial markets more efficient and integrated, the report points out.

On the external front, digitalisation is driving growth in India’s services exports and lowering remittance costs. India’s digital journey is setting a benchmark for peer economies.

The Reserve Bank’s initiatives for internationalisation of home-grown payment modes, cross-border fast payment network linkages, and knowledge and experience sharing with peers are energising the transformation of its digital public infrastructure as a global public good.

At the same time, digital technologies also present challenges related to cybersecurity, data privacy, vendor and third-party risks. Emerging technologies can introduce complex products and business models with risks that users may not fully understand, including the proliferation of fraudulent apps and mis-selling through dark patterns. Balancing financial stability, customer protection, and competition while supporting an environment congenial for innovations is the key policy challenge, the report states.

The report finds empirical support for the positive role of the regulatory framework in increasing the confidence of consumers in digital financial products, boosting operating and technical efficiencies of financial institutions and engendering more liquid and integrated financial markets.

ALSO READ-India’s Digital Economy to Hit 20% GDP by 2026

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Business Economy Tech Lite

India’s Digital Economy to Hit 20% GDP by 2026

The digital economy is expected to contribute more than 20 per cent to India’s GDP by 2026….reports Asian Lite News

Sustainable development, driven by Artificial Intelligence (AI) will require technology deployment across economic and social sectors, Dr Neeraj Mittal, Telecommunications Secretary, has said.

Highlighting that sustainable development will require the deployment of technology across supply chains, economies and social sectors, he said that telecom is an integral part of it.

The digital economy is expected to contribute more than 20 per cent to India’s GDP by 2026.

According to the government, the digital economy progressed from 4-4.5 per cent of the total GDP in 2014 to more than 11 per cent last year.

“I cannot think that it can happen in any other way except when we have a very robust telecom network system,” he said during a round-table discussion organised by the Department of Telecommunications (DoT) here.

Schemes such as Digital Communication Innovation Square (DCIS) and Telecom Technology Development Fund (TTDF) have supported many entrepreneurs who are now using technologies to solve small or bigger problems individually in their spheres.

The 5G rollout in India has been the fastest around the world.

Mittal said that 100 5G use cases labs, established across the country, are providing opportunities associated with 5G technology by encouraging the development of 5G applications.

More than 30 industry leaders, Original Equipment Manufacturers and startups participated in the roundtable discussion on the topic ‘Sustainable Digital Development Driven by AI.’

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Business India News Tech Lite

Amazon’s Initiatives to Turbocharge India’s Digital Economy, Exports

India Post and Amazon also unveiled a commemorative postal stamp that celebrates the partnership between Amazon and India Post in reaching out to customers in 100 per cent serviceable pin codes…reports Asian Lite News

E-commerce giant Amazon on Thursday announced a slew of initiatives to boost India’s digital economy and exports, along with an MoU with India Post for an integrated cross-border logistics solution.

The move will expand the e-commerce exports opportunity to lakhs of micro, small and medium enterprises (MSMEs) across the country.

Additionally, Amazon is engaging with Indian Railways’ Dedicated Freight Corridor Corporation of India (DFC) to enable its sellers deliver faster to their customers across the country.

The company also announced to introduce a generative AI-based personal digital assistant for sellers and opened its logistics and supply chain capabilities to direct-to-consumer (D2C) brands across the country.

“We had recently announced an incremental investment of $15 billion in India across all our businesses by 2030 and will continue to be a partner in India’s growth in the 21st century”, said Amit Agarwal, SVP India and Emerging Markets, Amazon during the ‘Amazon Smbhav Summit’ here.

India Post and Amazon also unveiled a commemorative postal stamp that celebrates the partnership between Amazon and India Post in reaching out to customers in 100 per cent serviceable pin codes.

“I am delighted to know about Amazon’s commitment to digitising 10 million MSMEs, enabling 2 million jobs, and driving $20 billion in e-commerce exports from India by 2025,” said Dr Jitendra Singh, Minister of State (Independent Charge) for Science and Technology.

“For lakhs of small businesses across India, digitisation can offer economic growth, broader customer reach, reduced marketing & distribution expenses, and access to foreign markets” Singh added.

The announcements followed Amazon CEO Andy Jassy’s meeting with Prime Minister Narendra Modi during his state visit to the US in June.

“We are focused on investing long-term in physical and digital infrastructure and building cutting edge technology solutions to serve customers and enable Indian businesses to scale and grow in India and globally, thus contributing to India’s rising digital economy,” said Manish Tiwary, Country Manager India Consumer Business, Amazon India.

ALSO READ-UPI Transactions Surpassing 10 Billion in August

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-Top News Tech Lite UAE News

‘UAE champions future investments with digital principles’

The UAE minister highlighted the significance of the “Digital Readiness” Retreat in shaping the digital future of the UAE…reports Asian Lite News

The UAE has established a solid framework of digital principles aiming to drive future investments, said Omar bin Sultan Al Olama, Minister of State for Artificial Intelligence, Digital Economy, and Remote Work Applications, adding that the country has harnessed technological transformations as a strategic means to foster forthcoming opportunities.

This came during the “Digital Readiness” Retreat organised by the Government Development and the Future Office, an esteemed event that gathered over 250 government officials, leaders, and decision-makers from over 50 federal entities. Al Olama contributed virtually with a speech titled “The Power of Digital Approach: Promoting a Digital-Driven National Economy”.

The minister highlighted the significance of the “Digital Readiness” Retreat in shaping the digital future of the UAE and enhancing government capabilities in the coming phase. Emphasising the UAE government’s pioneering approach, Al Olama affirmed the UAE’s commitment in embracing digital solutions as a fundamental instrument for fostering interaction and promoting business advancement.

Al Olama further said that the UAE’s leading position in Venture capital indicators and the number of digital companies reflects the UAE’s commitment to comprehensive digital transformation. The UAE has solidified this achievement through three key factors such as the UAE’s government belief in technology’s transformative power, proactive utilization of the technological revolution, and dedicated investments in digital infrastructure.

Moreover, the UAE has developed policies and legislative frameworks that enable the adoption of digital foundations, overcoming legislative challenges through strong collaboration between the government and private sectors.

The minister elaborated on achievements within the realm of the digital economy in UAE, shedding light on the UAE’s record of attracting unicorns in a new phase to achieve global leadership. He emphasised the UAE’s commitment to a cooperative approach in sharing success stories and strategies for overcoming challenges.

Al Olama added that the future role of governments worldwide depends on their full awareness and investment in developing secure and effective systems.

Furthermore, he highlighted the forthcoming era’s focal point, which revolves around generative AI and empowering society to leverage AI-based solutions predicting substantial revenues reaching trillions of dollars from this futuristic field, thereby reflecting the positive impact on countries’ digital economies.

Therefore, he stressed the need for comprehensive plans to assess the short and long-term impacts of such initiatives, alongside the continuous adaptation of policies and legislation, ensuring the UAE’s proactive approach within this sector.

He noted to “Falcon”, renowned as one of the highly proficient and accomplished generative AI systems. With an impressive capacity of 40 billion variable factors, this system serves as a catalyst for fostering visions aimed at guaranteeing its secure utilisation. Moreover, it promotes the creation of a robust framework that empowers businesses and serves as a benchmark for countries striving for sustained achievements and advancements.

The “Digital Readiness” Retreat aimed to equip government officials with comprehensive knowledge relating to significant digital transformation initiatives.

The Retreat fostered an environment encouraging the exchange of perspectives, enabling participants to propose projects and initiatives aimed at expediting government digital transformation.

Furthermore, it provided an opportunity for attendees to stay well-informed of the latest emerging trends in global digital transformation, thus facilitating their ability to anticipate and navigate future developments in this field.

ALSO READ: UAE, S. Korea explore strategies for startup growth

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Business

‘India has all ingredients to become a $1 trillion digital economy by 2025’

According to him, India has all the ingredients to become a $1 trillion digital economy by 2025, and Oracle is investing big in the country to help it achieve the goal fast…reports Asian Lite News

As India gets its 100th unicorn, Cloud major Oracle said it is not only nurturing the next breed of startups to expand their footprint but also connecting them with many venture capitalists so that they get the required funding not only in India but globally as well.

Kapil Makhija, Vice President-Technology Cloud, Oracle India, told that the company is already giving startups the much-needed exposure in 170-odd countries where it operates in.

“If you’re going to invest in these startups, they are going to grow and become $1-billion unicorns soon. In the process, our Cloud consumption also grows so it is a win-win situation for both. We are not only giving startups access to our customers but also jointly working with them,” Makhija told.

The company has onboarded thousands of startups in the country, nurturing them from early stages on their journey to the Cloud.

The ‘Oracle for Startups’ programme was first piloted in Bengaluru before it was scaled globally.

According to him, India has all the ingredients to become a $1 trillion digital economy by 2025, and Oracle is investing big in the country to help it achieve the goal fast.

“Oracle is doing its part to help India maintain and sustain its digital growth. We are investing big time in India. We have created a lot of employment opportunities in the country and are hiring big time,” Makhija said.

Oracle, which has consistently clocked high double-digit growth in India over the last 4-5 years, is set to further double down on the country as a key growth market in 2022.

India was one of the first few countries where Oracle opened two local, next-generation cloud regions (Mumbai and Hyderabad) in quick succession.

According to Makhija, the company is also putting a lot of focus on education and the ‘Skill India’ initiative.

“We have trained almost 800,000 people free of cost in the last 12 months just to ensure that the skill gap which exists in the country today gets plugged fast,” he informed.

With Oracle Cloud Infrastructure (OCI), the Indian firms are reporting time savings to the tune of 30 per cent, with faster migration and improved data management, resulting in faster reporting and analytics, particularly for some of the long-running and time-consuming reports/procedures.

Makhija said that Oracle has formed specific teams responsible for empowering startups, not only in India but also in the entire Asia-Pacific region.

“In fact, a separate team responsible for the Japan business and for most of the startups in the APAC region are based out of India. We are putting in a lot of mentoring support and imparting a lot of technical know-how to startups in the country and in the Asia-Pacific region,” he noted.

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