India's Digital Economy Transformation and the Role of Monetary Policy
Monetary Policy's Influence on India's Digital Economy
Inflation and monetary policy play crucial roles in driving India's digital economy forward, with substantial government initiatives catalyzing this growth. The digital economy is projected to expand significantly, underpinned by the rise of affordable and fast connectivity through 4G and 5G services.
Government Initiatives and Digital Adoption
The government's initiative, including the Pradhan Mantri Jan Dhan Yojana (PMJDY), is enhancing financial inclusion through expanded access.
- Increased Internet Penetration: More users are getting connected, with over 95.4 crore internet subscribers.
- Rise of Digital Payments: Digital payments surged by 50.8% between 2017-2023, driven by UPI technology.
- Global Benchmark: India's digital capabilities have surpassed those of developed nations.
Future Prospects and Trends
With a focus on cashless transactions and a shift to online economies, the Indian economy is gearing up for a substantial transformation by 2028. The expected growth of digital transactions will push India's contribution to the GDP to 20% by 2026.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.