Digitalisation and Development in India

Abstract

The chapter provides an overview of the range of activities undergoing digital transformation in India and evaluates the digital revolution from the point of view of development as structural transformation. Digital technology has become pervasive in different aspects of economic and social life and shows potential for further growth. There is a concerted push by the state which seeks to promote and foster a ‘Digital India’ with the objective of creating digital infrastructure for every citizen and empowering them. The efforts towards digitalisation build on the gains made from the previous ICT revolution and try to bridge the digital divide and promote inclusive economic growth. The present chapter evaluates the impact of ICT and digital technology on the economy and the role of the state in this regard. It focuses on two areas that have received considerable attention from the state, namely, the digitalisation of services and digital payments as examples of a development strategy that increasingly relies on digital technology and financial inclusion. It is argued that in a structurally retrogressive and informal economy like India, the push towards digitalisation in services and financial inclusion as the sole means of achieving structural transformation is inadequate and represents a continuation of the regime of jobless growth. To fully reap the benefits of digitalisation that can lead to a sustained increase in productivity and gainful employment, the state has to provide the necessary auxiliary infrastructure to create complementarities in the production and consumption of new technology.