Digitalization

Digitalization has broadly impacted three sections of society:

  • The poor, who are largely outside the digital economy;
  • The less affluent, who are becoming part of the digital economy who have been covered under Jan Dhan Accounts and RuPay cards; and
  • The affluent, are fully conversant with digital transactions.

Why Digitization is the need of the hour:

  • Corruption today is the biggest problem in developing countries. In fact, corruption is a problem we have faced for ages.
  • It is said, a parallel economy flourishes side by side with our main economy. This economy is run by those who avoid paying taxes to the Government.
  • One of the prominent reasons for the parallel economy is the dependency on cash-based businesses.
  • The culprits running the parallel economy do not feel like having bank accounts and other business books, which simply means no tax payment to Govt.
  • With Digitalisation Initiatives like Taxation being bought online and steps like Demonetisation, the government is trying to weed out corruption from our system which is expected to lead to a positive impact on Indian Economy.