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IT Minister Forecasts India's Meteoric Rise to a $1 Trillion Digital Economy by FY28

India's digital economy is on an impressive trajectory, expanding at an annual rate of 2.8 percent and projected to reach a staggering USD 1 trillion by 2027–28, as stated by Minister of State for Electronics and IT, Rajeev Chandrasekhar, during an outreach programme. Highlighting the nation's ambitious digital advancements, Chandrasekhar also announced a significant boost to the IndiaAI mission, with its value set to double from Rs 10,000 crore to Rs 20,000 crore. 


Minister of state for electronics and IT Rajeev Chandrasekhar. (Image: X)  LINK 



India's ambitious pursuit of a $1 trillion digital economy by the financial year 2028 encounters a slight detour, as the government revises its timeline by a year, citing a medley of factors including the lingering effects of the COVID-19 pandemic. This pivotal announcement emerged from the esteemed corridors of Union Minister Hardeep Singh Puri's official residence during the "Vishesh Sampark Abhiyan," a high-profile gathering that drew approximately 300 luminaries from the realms of IT, startups, and technology. It was here that IT Minister Chandrasekhar unveiled a roadmap for the nation's digital ascent, bolstered by a momentous decision from the Prime Minister's office: a resounding approval of Rs 1 lakh crore as seed funding for research and development endeavors, with a significant chunk earmarked for propelling the India AI mission—a transformative initiative valued at a staggering Rs 20,000 crore.


While the cabinet greenlights an initial Rs 10,000 crore allocation for the India AI mission, Chandrasekhar underscores the mission's broader financial horizon, hinting at undisclosed additional factors that elevate its total worth to Rs 20,000 crore. Against the backdrop of this strategic recalibration, the minister amplifies the industry's call for sustained developmental momentum, echoing the resounding vision of Digital India—an epochal initiative launched in 2015 by the Prime Minister himself.


Comments by Rajeev Chandrasekhar

The government earlier expected India to reach the USD 1 trillion mark by 2026–27, but the target has been moved by a year due to various reasons, including the COVID-19 pandemic, he said.
"The digital economy is growing at a rate of 2.8 percent because of the vision of Prime Minister Narendra Modi. His vision laid down in 2015 has played out well. We are already the fastest-growing digital economy in the world. We are aiming to have a USD 1 trillion digital economy by 2027–28," Chandrasekhar said.
"One of the big things that he (the prime minister) has done is to take these young Indians and make them globally competitive and become globally talented entrepreneurs that the world today respects," he said.
"There are many, many more things to be done to continue this growth, including access to capital, a lower cost of capital, issues of customs, and duties for manufacturing. These are all things on the government's radar.
"We are very determined to make sure that the momentum continues. The Indian innovation ecosystem continues to grow and will become one of the leading innovation ecosystems in the world," Chandrasekhar said.

Vishesh Sampark Abhiyan

In a dynamic convergence of minds, the 'Vishesh Sampark Abhiyan' event illuminated Monday evening as luminaries from India's tech sphere congregated at Union Minister Hardeep Singh Puri's residence. This exclusive gathering served as a nexus for prominent IT professionals, innovators, startup leaders, and intellectual stalwarts from every corner of the nation, igniting dialogues that promised to shape India's digital destiny.


Amidst the vibrant discourse, Rikant Pitti, the astute co-founder of EaseMyTrip, unveiled a staggering testament to India's entrepreneurial spirit. With zeal, he revealed a meteoric rise in registered startups, soaring from a mere 450 in 2018 to an astounding 100,000 today. Pitti attributed this exponential growth to the transformative waves of internet penetration, buoyed by flagship initiatives like Digital India and the BharatNet scheme, heralding connectivity to over 250,000 Gram Panchayats and rural hinterlands.


Echoing Pitti's sentiments, MoS Rajeev Chandrasekhar heralded the triumphant surge of India's digital economy, a realm that has burgeoned by 2.8 times. His optimism reverberated through the room as he envisioned India's ascent to 'Viksit Bharat' status before 2047, underscoring the robust edifice of the nation's digital public infrastructure, swiftly evolving to meet the demands of a burgeoning digital populace.


Meanwhile, Rakesh Verma, the visionary CEO and co-founder of Vervesemi Microelectronics, illuminated the transformative potential of India's semiconductor industry. With a keen eye on statistics, he charted the industry's trajectory, highlighting a staggering leap in import value from $24 billion to a formidable $100 billion, buoyed by the auspicious tailwinds of government policies that catalyzed their company's inception in 2017.


Pankaj Mohindroo, the esteemed Chairman of the Indian Cellular Association, underscored the electrifying growth trajectory of India's electronics sector, particularly the mobile phone industry, which has witnessed an unprecedented surge of approximately 2100% since 2014. A resounding testament to India's industrial prowess, this exponential growth is mirrored by a 400% overall surge in the electronics sector.


Rajan Anandan, the illustrious MD of Peak XV Partners, took the stage to herald the seismic shift in India's digital ecosystem. His words painted a vivid tableau of transformation, spotlighting the meteoric rise of active mobile phone data users, soaring to a staggering 800 million following the transformative reforms of 2014.


Closing the evening's proceedings on a note of appreciation, Union Minister Hardeep Singh Puri lauded the indomitable spirit of the young professionals present, recognizing their pivotal role in steering India's technological odyssey towards unprecedented horizons.


Digital Initiatives of the Indian Government

BharatNet Project: Bridging the Digital Divide, Connecting Every Village by 2023

This BharatNet Project, a government initiative aimed at providing high-speed broadband connectivity to all villages in India by the year 2023. The project is crucial for bridging the digital divide between urban and rural areas, facilitating access to digital services and opportunities for all citizens.


Startup India Program: Igniting Entrepreneurship, Fostering Innovation in India's Start-Up Ecosystem

This Startup India Program is designed to nurture and support entrepreneurship in India. By fostering innovation and providing a conducive ecosystem for startups to thrive, the program aims to drive economic growth and job creation, positioning India as a global hub for innovation and entrepreneurship.


DISHA Program: Empowering Every Household, Transforming India into a Digital Literacy Hub

The Digital Saksharta Abhiyan (DISHA) Program, aims to make at least one member of every household in India digitally literate. By empowering citizens with digital skills, the program seeks to transform India into a digitally literate nation, enabling greater participation in the digital economy.


E-Rupee & Conditional Transfers: Pioneering Digital Vouchers, Revolutionizing Business & Governance

The emerging trend of e-rupee and conditional transfers are expected to revolutionize business and governance. By introducing digital vouchers and conditional transfers to sectors like MSMEs (Micro, Small, and Medium Enterprises), these initiatives have the potential to drive economic growth and efficiency.


Financial Inclusion Drive: Propelling India's Economic Growth through Digital Banking Access

This underscores the importance of financial inclusion in India's economic growth story. With around 85% of adults having access to formal banking services, the adoption of digital banking technologies is poised to unlock new avenues for savings, spending, and borrowing, driving macroeconomic growth and stability.


Make in India & Digital India: Powering the Digital Revolution, Fueling Economic Growth

This emphasizes the synergistic relationship between the Make in India and Digital India programs. While Make in India promotes domestic manufacturing, Digital India focuses on digital adoption and infrastructure development. Together, these initiatives drive India's digital revolution, fueling economic growth and prosperity.


Significance of Digital Economy

  1. Demographic Advantage: India's burgeoning digital economy finds its strength in the country's demographic dividend—a youthful population proficient in English and technology. This vast pool of talent has seamlessly embraced digital innovations like the UPI (Unified Payments Interface) and DBT (Direct Benefit Transfer), unleashing a wave of positive economic impact. Embracing vernacular languages for digital content and services further enhances inclusivity, ensuring that a larger segment of the population can partake in the digital economy's benefits.

  2. Extension of Various Services: The digital economy serves as a catalyst for reimagining and expanding service sectors, both domestically and globally. Traditionally cautious about liberalizing services, many developed nations, including G20 members, now see the potential in digital platforms to extend essential services like healthcare and education. The UMANG mobile app, pioneered by the Government of India, epitomizes this ethos—a versatile, secure platform offering a plethora of services, accessible to all.

  3. Cross-border Provision of Services: In the digital age, geographical boundaries blur as qualified professionals leverage digital platforms to offer services globally. This transformative potential of the digital economy reshapes the services sector, breaking down traditional barriers and ushering in unprecedented benefits for providers and recipients alike. The G20's role in fostering openness and dismantling barriers is pivotal, paving the way for a more interconnected and efficient global marketplace.




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