THE IMPACT OF DIGITALIZATION ON THE INDIAN ECONOMY: AN ANALYSIS

Abstract

A dynamic strategic endeavor, digitalization was started with the goal of making India a knowledge-based, digitally enabled economy. These days, any nation's economic and social change depends heavily on digitization. Millions of Indians' lives could be changed by digitalization, which has spurred efficiency, innovation, and growth across a range of industries. Digital technologies are changing industries and opening up new opportunities in a number of disciplines. These include digital payments, artificial intelligence (AI), blockchain, 5G connectivity, big data, and the Internet of Things (IoTs) are restructuring industries and creating new opportunities in various fields. The money circulation and velocity of money are increasing due to the high density of digital transactions, leading to a multiplier effect on the Indian economy This paper analyze the impact of digitalization on the Indian economy, mainly concentrating on the impacts of digitalization on finance, industries, health care and agriculture, and also discusses the challenges faced by the digital system. Moreover, the study analyzes the key components of the digital economy in India. Digitalization in India presents challenges, including job displacement from automation, the digital divide, and cybersecurity risks.