HOW IS TECHNOLOGY IMPROVING THE INDIAN ECONOMY?
Yeah, technology is a powerful equalizer. It takes on the same platform the wealthy and the poor both. Banking is (or had been) a method of low volume, high fees. Telecommunications is a low fee method with high volume. Digitization puts together those two structures for the common man’s benefit. Research shows that the more structured and coordinated a workforce is, the better the development criteria are for the region. Much of India’s economy, however, is still informal and unorganized.
Payment digitization not only formalizes and organizes the workforce of a country; it also reduces the cost of operating a cash economy. One specific study has shown that if India moves into a cashless (or minimal cash) economy, it can save thousands of crores. All the saved money can be allocated to social sectors to enhance the quality of life of the masses. Technology enables the realization of such a scenario. One such technology is the Unified Payments Interface (UPI).
UPI is a system that features payment in a single mobile app. As a result of Reserve Bank of India’s (RBI) vision of moving towards a ‘less-cash’ and more digital world, it was launched by India’s National Payments Corp. You can use UPI to:
• Particular mobile application to access multiple bank accounts
• Immediate money transfer via any mobile phone at any time of the day.
• Operating without entering details such as account number, card no, IFSC, etc.
• Bill sharing.
• Merchant payments.
• Paying utility bills.
• Raising complaints directly through the mobile app.
If blockchain technology becomes the foundation for money transactions, then there will be a paradigm change. You would be able to legally loan money at a reasonable interest rate to your neighbor (or any person thousands of miles away). You can also get loans directly from other people at very low-interest rates. That is not feasible right now. Nowadays, banks are the economic go-betweens that bind the government to the citizens. But the government can economically communicate with the people directly by introducing blockchain technology. They would have Blockchain Wallets instead of bank accounts. And the blockchain network (instead of actually the banks) conducts record keeping.
The Government must include the blockchain network (using the K-Y Protocol for this purpose). That puts economic freedom entirely in people’s hands. At the same time, the government will regulate the economy and direct it towards growth. In the days ahead, we may see a rapid transformation of our lives. And the change will come about through innovations the aim to ease our lives and boost our economy.
How will technology benefit the Indian economy?
Here are some of the technology benefits that will affect the Indian economy:
1. Business innovation:
More than 95 percent of companies in OECD countries have an online presence. The Internet offers them new ways to reach out to clients and fight for market share. Social media has proven itself as a potent marketing tool over the past few years. The TECHNOLOGY tools used within organizations help streamline business processes and increase productivity. The ongoing worldwide proliferation of connected devices has created new ways for companies to serve their customers.
2. Contribution to GDP growth:
Findings from diverse countries confirm technology’s positive impact on development. For example, an increase in broadband penetration of 10 percent is correlated with an increase in GDP growth of 1.4 percent in emerging markets. This number can exceed 2.5 percent in China. Doubling the use of mobile data induced by rising 3 G connexions is improving the global GDP per capita growth rate by 0.5 percent. In certain countries, the Internet accounts for 3.4 percent of total GDP. Most of this influence is caused by e-commerce-people who advertise and sell online products.
3. Direct job creation:
The TECHNOLOGY sector is one of the biggest employers and is expected to stay. Computer and IT jobs are projected to rise by 22 percent in the US alone by 2020, generating 758,800 new jobs. Building and operating the new super-fast National Broadband Network in Australia would create 25,000 jobs per annum. Of course, there’s uneven development in various segments. In the US, five additional jobs are generated in other industries, on average, for each job in the high-tech sector. The global tech industry will rise by 8 percent in 2013, generating jobs, incomes, and a growing range of services and goods.
4. The emergence of new services and industries:
Many public services are available online and via cell phones. One of the main developments in modernization is the transition to cloud computing. Moldova’s government is one of the first countries in Eastern Europe and Central Asia to move its government IT infrastructure into the cloud and launch people and businesses with mobile and e-services. TECHNOLOGY caused a whole new sector to emerge: the app industry. Research shows that in 2011, Facebook apps alone generated more than 182,000 jobs, and the overall value of the Facebook app economy is more than $12 billion.
5. Workforce transformation:
New “microwork” systems, created by companies such as oDesk, Amazon, and Samasource, help divide tasks into small components that can then be outsourced to contract staff. Often the contractors are located in developing economies. Microwork platforms allow entrepreneurs to cut costs considerably and access to a skilled team. In 2012 alone, oDesk had more than 3 million licensed contractors conducting 1.5 million tasks. This pattern had implications for other sectors, such as online payment systems. TECHNOLOGY has also helped to improve entrepreneurship, making it much easier for self-starters to access best practices, legal and regulatory knowledge, marketing, and in-house knowledge.
Must Read: How Education Apps Are Tracking Users And Sharing Data To Advertisers
Conclusion:
Many countries are searching for policies that will boost development and generate new employment at a time of sluggish growth and increasing instability. Digital communication technology (ICT) is not only one of the fastest-growing sectors — generating millions of jobs directly — but it is also an important innovation and growth enabler.
