Assessing the Impact of Digital Transformation on the Indian Economy: Opportunities and Challenges

Abstract

The Indian banking sector faces several challenges, particularly as the digital shift transforms corporate competitiveness and the global economy increasingly relies on digital platforms. This trend underscores the necessity for both public and private sectors to continually innovate and adapt to remain competitive in the internet age. To fully harness India's potential for digital transformation, it is crucial to recognize the diverse applications and benefits of digital technology across various industries and to develop strategic policies accordingly. The report highlights the disruptive impact of Industry 4.0 on Indian SMMEs by examining these key areas: IIoT, Cloud Computing, Digital Simulation, CPS, Autonomous Robots, Big Data Analytics, Additive Manufacturing, and Augmented Reality. Digitization has promoted leaner processes, sustainability, new employment opportunities, skill development, and more efficient farming practices. India aims to become a knowledge economy and digitally empowered society through the Digital India program. Achieving equitable growth necessitates bridging the digital divide. The primary factors driving change include government support, legislation, the business environment, human resources, infrastructure, innovation, technological advancements, cybersecurity, and digital awareness.