Jaipur
India has seen a significant increase in the use of digital transfers for public services, with a 56% rise in daily electronic transactions this year, according to RBI Deputy Governor Michael Patra. Speaking at the conference on Digital Technology, Productivity, and Economic Growth in India on Wednesday, Patra highlighted that digital Direct Benefit Transfers (DBT) under 314 schemes have processed a massive ₹6.9 lakh crore, benefiting 176 crore individuals in 2023-24 alone.
Patra noted that DBTs have led to ₹3.5 lakh crore in cumulative cost savings as of March 2023. India’s digital infrastructure, coupled with a strong IT sector and a young workforce, positions the nation for continued economic growth, with forecasts indicating that generative AI could add up to $438 billion to India’s GDP by 2030.
India’s commitment to digitalization extends to a ₹1.25 trillion investment in semiconductor industry development. The “India Stack” framework is accelerating financial inclusion, enhancing banking, and supporting public finance management.
Patra added that the digital economy now represents 10% of India’s GDP, projected to grow to 20% by 2026. Notably, digitalization is improving bank productivity, reducing customer wait times, and saving substantial resources, such as 84 tons of paper and four lakh liters of fuel.
While optimistic, Patra warned of potential challenges, including disruptions in traditional jobs, cyber threats, and privacy issues, underscoring the need for careful management as India advances in its digital journey.
