India’s digital economy can reach $4 trillion in 4 years
India’s digital economy has the potential to grow up to US$ 4 trillion in four years, according to India’s tech firms. This outshines the government's expectations to make India a US$ 1 trillion digital economy by 2022.
IT Minister Ravi Shankar Prasad, who chaired a meeting with industry captains to chalk out a growth plan, said the government will formulate a new set of strategies to support growth including a new electronics policy, software product policy and a framework for data security and protection.
"There was unanimity among all the participants that US $ 1 trillion digital economy is an understatement. India has the immense potential to go to US $ 2 to 3 to 4 trillion digital economy potential," Law and IT Minister Ravi Shankar Prasad said.
The meeting was attended by top experts such as Nasscom President R Chandrashekhar, Google India's Rajan Anandan, Wipro's Rishad Premji, Indian Cellular Association National President Pankaj Mohindroo, NIIT Chairman Rajendra Pawar and Hike Messenger CEO Kavin Bharti Mittal, among others.
The government has projected that Indian digital economy will become US $ 1 trillion by 2022 from around US $ 450 billion digital economy at present.
As of now, the Indian electronics market is estimated to be around US $ 100 billion, IT sector US $ 150 billion, telecom US $ 150 billion, e-commerce US $ 30-40 billion and rest is estimated to be size of shared economy such as taxi hailing services, startups.
The Ministry of Electronics and IT has projected IT and ITeS sector to grow to US $ 350 billion by 2025 from US $ 160 billion, while electronics sector is poised to touch US $ 300 billion by the same time (from US $ 100 billion currently).
Telecom and e-commerce are projected to grow to US $ 150 billion each, while sharing economy and digital skilling each presents a US $ 30 billion opportunity.
Digital payments, cyber security and Internet of Things -- all of which are expanding rapidly -- are expected to touch US $ 50 billion, US $ 35 billion and US $ 20 billion, respectively.
It was also projected that the digital economy will generate 30 million employment opportunities by 2024-25, which is double than the current scenario. The ministry has identified digital payments, Make In India, Start-Up India, Skill India among the key drivers of the digital economy.