The Digital Transition: Assessing the Impact of ICT Adoption on India’s Sectoral GDP Growth and Financial Inclusion
Author(s): Dr. Abdul Rahman
Publication #: 2604027
Date of Publication: 08.01.2018
Country: India
Pages: 1-9
Published In: Volume 4 Issue 1 January-2018
DOI: https://doi.org/10.62970/IJIRCT.v4.i1.2604027
Abstract
The adoption of ICT by India to enter the digital age is certainly one of the most extensive structural changes that have occurred within the developmental path of a developing nation in contemporary times. The emergence of ICT since the beginning of the new millennium until December 2017 through mobile telephony, internet access, digital IDs, and financial transactions has led to a transformation in terms of market operations, governance capacity, financial dealings, and modes of production across various sectors. The present research explores the link between ICT penetration and growth of sectoral GDP as well as financial inclusiveness in India. ICT adoption helped boost productivity of service activities, increased collaboration in manufacturing enterprises, expanded market reach in agriculture, and facilitated quick proliferation of formal finances among disadvantaged groups. Nonetheless, the impacts varied across geographies, industries, and demographics owing to issues related to infrastructure deficits, digital illiteracy, bureaucratic constraints, and inadequate access to technological tools. The paper analyzes the findings regarding the digital revolution in India using a systematic approach derived from growth theory and finance and technology literatures. The analysis further presents a conceptual framework that depicts the relationship between the level of information communication technologies (ICT) adoption and economic output growth. According to the results, it is evident that while the impact of ICT on India’s growth process was positive, it was also divergent. Digitalization will not spur development unless accompanied by investments in infrastructure, human capability, regulation and institution building, says the author.
Keywords: ICT, India, digital transition, sectoral GDP, financial inclusion, digital payments, productivity, development
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