The massive digital India campaign launched by the Modi government in the year 2015 is a big step towards making India cashless and increase digital literacy amongst the citizens. The campaign has gain wide recognition worldwide and has been able to create several positive impacts on the Indian economy too. With many schemes being launched by the government to digitally literate people and make them aware about the benefits of cashless economy, the dream of making India fully digital may become a reality in the coming few years.
However, the real scenario now is quite different from ideal. India is a country with more than 60 percent people living in rural areas that are not tech savvy and are digitally illiterate. The economy is still highly dependent on cash, as more than 80 percent of the transaction in the country takes place in cash only. That was the major reason that the economy suffered a huge setback when the government decided to demonetize the higher denomination currency notes of Rs.500 and Rs.1000. However we all cannot deny the positive impact that increasing digital penetration is causing in India. With the startup and entrepreneurship culture being flourished and promoted in the country, having a digitally literate population will be an added advantage.
Most of the startups that are coming up will focus on utilizing the digital space for the growth of their businesses. The growing popularity of digital marketing, ecommerce, and internet based apps and softwares etc. would attract more and more brands to adopt them as the core functionality of their businesses. On the top of this it would require a customer base that is tech savvy, being able to use those online available services for better delivery and performance. It would lead to better customer satisfaction, high growth and lesser hassles for startups to flourish. Digital India will promote more institutions building in the country that would cater the needs of the startups as it aligns with the goals of the government. It would attract more individuals to take up career in entrepreneurship, thereby increasing the innovation, research and development and creativity of the citizens. It would help to harness the youth potential of India to a large extent and would also help by providing a well informed and well aware customer base as market for the startups to grow continuously in the country.