Digitization - The Emerging Trend

Digitization – The Emerging Trend Evolving in India over the past few years

If we talk about digitization, then we can say that it can be defined as the economic transformation that has happened due to the adoption of many technologies. Digitization has happened in many countries including India in the past decades. Because digitization in an economy provides high economic growth along with numerous job opportunities. As per reports, it’s found that if there is a 10% increase in the digitization of any economy, then the country will have 0.75% growth in the GDP rate. However, in India digitization has occurred 2 decades ago when companies have started using the internet and received great value from the government and citizens. When individuals started trusting .com-based websites blindly, the digitization in India has fully taken away the economy.

Therefore, afterward, India has become one of the popular IT hubs in the world. Hence, the government has launched the Digital India program in 2015 and it resulted in boosting the digital transformation of the country. According to the expert’s predictions, by the year 2025, the process of digitization is set to grow massively because middle age and young age Indian citizens are feeling engaged more towards digital technologies. In the year 2020, India's internet population was around 749 million and out of which 744 million of the citizens are accessing the internet through their mobile phones. Therefore, the digital India program is launched with an initiative to make India a knowledge economy. With digitization, India's digital payment system in the year 2019, has seen an increase of 46.5% in total volume.

Moreover, it’s also found that by the year 2025, 66% of the internet population will be contributed by the middle-aged population and the elder population. Hence, their shares will be equal and put an equal impact on fintech firms. This change will put a direct impact on the fintech firms that result in the increase of the middle age and elder population on digital technologies. As per reports forecasted, it’s found that the shares of the young internet generation will continue to decline as compared to the middle-aged internet population. Soon, in India Fintech industry will start providing online education and training which will result in 11% middle-aged generation and 14% young generation will start using the fintech industry consistently or frequently.

Therefore, there is no doubt in saying that India will soon become the fintech hub just like an IT hub and there will be more up gradation and advancement in the digitization of India.