India Being A Digital Economy

What is Digital Economy?

Named in 1995, digital economy is a term that refers to a country’s economy that’s based on digital payment technologies. Digital economy fully and absolutely modify the way people have been doing business for years now. With the evolution of the internet in the past 2-3 decades, digital economy has been growing across various countries. The digital economy expects to create new market growth opportunities and jobs and also to make transactions and payments much easier. Some experts anticipate that the digital economy willbecome the most significant business opportunity in the next few years.

Ways in which Government benefits from digital payment

Removal of Black Economy:

Transactions can be easily monitored when made digitally. Any payment made by any customer will be recorded. Thus will eliminate the illegal transactions from happening. By restricting the cash-based transactions and using only digital payments, the government can efficiently remove the black economy.

Increased revenues

One of the most common and obvious believes of digital economy is increased revenues. When the transactions are made digitally, monitoring sales and taxes becomes comfortable and conductive. As each online transaction is recorded, the customers get a bill for their purchase, and the merchants are obligated to pay the sales tax to the government. This increases the revenue of the government, as tax is the sole revenue of the government – thus resulting in growth of the overall status of the country.

New Jobs

The digital economy has a lot of probabilities to raise job opportunities in new markets as well as increasing employment opportunities in some of the already existing occupations in the government. This way, the unemployment rate in the country is expected to fall.

Disadvantages of Digital Economy

Data Security

Digital Technology enables collection and storage of vast amounts of information, that cab be private to individuals and organisations. This information can go into the hands of criminals, terrorists, enemies and foreign institutions.

Complex

The process of online payments and transactions is complex and with a large illiterate population in India, it is sometimes hard or impossible to carry on the procedure. Digitalisation can even be tricky for literates.

Job Insecurity

Earlier, being physically present at the job used to be necessary but overtime, the internet and technology has taken over jobs as well. Now, people work online sitting at home. It creates job insecurity as you migtht not know the actual position and status of your job. Also, technology enables machines to do much of the work which decreases jobs in few areas.