Digitalization - A Step Towards Cashless Economy
Digitalization - A Step Towards Cashless Economy
Digitalization - A Step Towards Cashless Economy
ABSTRACT
The recent policy decision by the government of India aspects like combat with corruption, black money,
to tackle the quicker economic progress is the counterfeiting currency and funding for terrorism
promotion of money less economy or cash less activities in the economy. Now in the present era
economy or digital economy, which creates a platform drastically changed information and communication
to maintain accountability for every transaction which technology leads to make a positive impact on the
helps to control corruption. The Recent policy economy. Digital economy refers to an economy that
initiative by the government of India is termination of is based on digital integrated technologies. The digital
five hundred and thousand denominations from economy can also be called as Internet Economy or
circulation in the country. This enables the Web Economy. The Internet economy has impacted
transparency in the governance system by all the sectors in the economy of a country. The
encouraging the non cash payments or digital creation of digital infrastructure is to promote digital
payments. The fundamental base for cash less activities in the economy. The promotion of cashless
economy is the demonetization. Digital India is the economy enables to maintain transparency and
flagship programme of the government to integrate all accountability. The digitization has impacted on
activities in a digital manner. The present paper employment generation, improving the standard of
intends to analyze the impact of digitalizing Indian living and it encourages the government to operate
economy and understand challenges and opportunities with greater transparency and accountability. The
of digitalization. The methodology of the study government has implemented a major change in the
includes reviewing the existing literature, reports economic environment by demonetizing the high
published by the government of India. The present value currency notes – of five hundred and thousand
study is based on secondary data which available in denomination. The reason is to undermine or
the different books, articles, journals, research papers eliminate the “black economy” (Dr.Kavita Rao & et
and internet source also. al 2016).The digitization impacts on reducing
unemployment, improving quality of life, and
Keywords: Digitalization, Digital Economy, Digital boosting citizens, access to public services.
Payments, Digital India, Digital population Digitization allows governments to operate with
greater transparency and efficiency, and it has a
INTRODUCTION dramatic effect on economic growth, but not all at
once (Saima Khan & et al 2015).The digital
The government of India has enforced a major change economy is the result of the transformational effects
in the in the economy by terminating the five hundred of new General-Purpose Technologies (GPT) in the
and thousand denominations on November 8, fields of information and communication. It has
2016.The demonetization is one of the significant impacted all the sectors of the economy and social
measures to tackle the quicker economic progress of activities, for instance: retail, transports, financial
our country. The demonetization has four different services, manufacturing, education, healthcare, media
@ IJTSRD | Available Online @ www.ijtsrd.com | Volume – 2 | Issue – 2 | Jan-Feb 2018 Page: 913
International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
and so on (European Commission 2014). Digital METHODOLOGY OF THE STUDY
India provides the intensified impetus for further
momentum and progress for this initiative and this Methodology means the way of study which consists
would promote inclusive growth that covers electronic different sources means both primary and secondary
services, products, services, manufacturing and job sources. The present study includes only the
opportunities (Aditya Sharma & et al 2015). secondary data collected through books, journals,
articles, papers, reports and internet source also. The
OBJECTIVES OF THE STUDY present study mainly focuses on the digital economy
and its challenges and opportunities. This study
To analyze the impact of digitalization on Indian intends to analyze the impact of digitalization on
economy. Indian economy.
To analyze the current status of the digital
population in India.
2017 20059 Debit card 15 17 2015 93.4 Mobile internet users 442.7
2018 25076 Credit card 11 13 2016 130.1 Social media users 191
2019 31123 Online bank 9 10 2017 180.1 Mobile social media users 167
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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
Graph-1.2 Retail E-commerce sales
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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
Source: Reserve Bank of India
CONCEPTUAL FRAMEWORK
Digital India: The digital India programme is a economy. The Technopedia defines the digital
flagship programme of the government of India with a economy is a term for all of those economic
vision to transform India into digitally empowered processes, transactions, interactions, and activities that
society and knowledge economy. The faceless, are based on digital technologies.
paperless, and cashless are the professed roles of
digital India [7], in order to promote the digital Impact of Digitalizing on Indian Economy:
payments or non cash transactions, various modes or Digital India is the dream project of Government of
methods of payments are available such methods like India to make Indian economy as a knowledge
banking cards, USSD, Mobile Wallets, Banks Pre- economy. The transformation takes place by replacing
paid Cards, Internet Banking, Mobile Banking etc. the conventional methods with new techniques. The
Digitalization of Indian economy leads to increase
Digitalization and Digital economy: Digital
employment opportunities, improvement in the
economy refers to an economic system of a country
standard of living, reduction in risk and uncertainty
which is based on digital computing technologies. It
and also it helps to increase the literacy in using new
can also be called as Internet Economy or Web
technological operates.
Now in the present world, the digital economy acts as opportunities etc. The adoption of technological
key force or determinant which will impact on advancement in different sectors like Education,
creating digital markets, creating employment Infrastructure, Financial Services, Healthcare,
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International Journal of Trend in Scientific Research and Development (IJTSRD) ISSN: 2456-6470
Agriculture, and Energy is very essential to enjoy the REFERENCES
cost effective goods and services by both consumers
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The present study reviews the existing literature 6. European Commission, Directorate General
relating digitalization of economy, By reviewing the Taxation and Customs Union Expert Group on
literature it is clear that the integration of technology Taxation of The Digital Economy,2014
into our day to day life by digitizing everything will
make ensure about greater transparency and 7. www.cashlessindia.gov.in/digital_payment_metho
accountability. The digitalization helps to increase the d.html
employment opportunities .improving the standard of 8. www.businessdictionay.com
living and especially it helps increase the e – literacy.
9. https://en.wikipedia.org/wiki/Digital_economy
SUGGESTIONS 10. www.statista.com/statistics/309866/india-digital-
population
The present study investigates the impact of
digitalization on Indian economy. The study suggests
that the greater transparency, accountability and the
security measures are the key determinants which are
going to influence on the success of dream project of
the government i.e. Digital India. So the government
has the greater responsibility to make ensure about
these key determinants in order encourage the
successful promotion and implementation of digital
India.
CONCLUSION
The present study intends to investigate the impact of
digitization on Indian economy. The digital
programme initiated by the government of India with
a desire to promote the cash less, the faceless
economy can also be called as internet economy or
digital economy. The advancement of information and
communication technology plays a significant role in
the faster growth of the economy. The recent measure
to withdraw the five hundred and thousand
denomination i.e. demonetization is the fundamental
motivation to approach the digital mode especially in
the business field we can see the online marketing,
online financial services, and online trading activities.
So finally we have some merits and some limitation in
digital transactions.
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