Unit 2 Digital India

A. E-commerce , m –commerce, online banking E-Commerce

B. Pros & cons of digitalization in Indian Scenario

C. Training & familiarization of digitalization

A. E-Commerce AND M-Commerce

E-Commerce or Electronics Commerce is a methodology of modern business, which
addresses the need of business organizations, vendors and customers to reduce cost and
improve the quality of goods and services while increasing the speed of delivery. E-
commerce refers to the paperless exchange of business information using the following
ways:

● Electronic Data Exchange (EDI)

● Electronic Mail (e-mail)
● Electronic Bulletin Boards
● Electronic Fund Transfer (EFT)
● Other Network-based technologies
 Features

E-Commerce provides the following features:

Non-Cash Payment: E-Commerce enables the use of credit cards, debit cards,
smart cards, electronic fund transfer via bank's website, and other modes of
electronics payment.

24x7 Service availability: E-commerce automates the business of enterprises and

the way they provide services to their customers. It is available anytime,
anywhere.

Advertising/Marketing: E-commerce increases the reach of advertising of

products and services of businesses. It helps in better marketing management of
products/services.
Improved Sales: Using e-commerce, orders for the products can be generated
anytime, anywhere without any human intervention. It gives a big boost to
existing sales volumes.

Support: E-commerce provides various ways to provide pre-sales and post-sales

assistance to provide better services to customers.

Inventory Management: E-commerce automates inventory management.

Reports get generated instantly when required. Product inventory management
becomes very efficient and easy to maintain.

Communication improvement: E-commerce provides ways for faster, efficient,

reliable communication with customers and partners.

Traditional Commerce v/s E-Commerce

Traditional Commerce E-
Commerce
Information sharing is made easy via
Heavy dependency on electronic communication channels
information exchange from making a little dependency on
person to person. person to person information
exchange.
Communication/transactions
Communication or transactions can
are done in synchronous way.
be done in asynchronous way. The
Manual intervention is required
whole process is completely
for each communication or
automated.
transaction.
It is difficult to establish and
A uniform strategy can be easily
maintain standard practices in
established and maintained in e-
traditional commerce.
commerce.
Communications of business In e-commerce, there is no human
depends upon individual skills. intervention.

Unavailability of a uniform E-commerce websites provide the

platform, as traditional user a platform where all the
commerce depends heavily information is available at one place.
on personal communication.
No uniform platform for E-commerce provides a universal
information sharing, as it platform to support
depends heavily on personal commercial/business activities across
communication. the globe.
 E-Commerce

The advantages of e-commerce can be broadly classified into three major

categories:
1. Advantages to Organizations
a. Using e-commerce, organizations can expand their market
to national and international markets with minimum capital
investment. An organization can easily
b. locate more customers, best suppliers, and suitable
business partners across the globe.
c. E-commerce helps organizations to reduce the cost to create
process, distribute, retrieve and manage the paper based
information by digitizing the information.
d. E-commerce improves the brand image of the company.
e. E-commerce helps organizations to provide better customer service.
f. E-commerce helps to simplify the business processes and
makes them faster and efficient.
g. E-commerce reduces the paper work.
h. E-commerce increases the productivity of organizations. It
supports "pull" type supply management. In "pull" type
supply management, a business process starts when a
request comes from a customer and it uses just-in-time
manufacturing way.
●

2. Advantages to Consumers
a. It provides 24x7 support. Customers can enquire about a
product or service and place orders anytime, anywhere from
any location.
b. E-commerce application provides users with more options
and quicker delivery of products.
c. E-commerce application provides users with more options
to compare and select the cheaper and better options.
d. A customer can put review comments about a product and
can see what others are buying, or see the review comments
of other customers before making a final purchase.
e. E-commerce provides options of virtual auctions.
 f. It provides readily available information. A customer can see
the relevant detailed information within seconds, rather
than waiting for days or weeks.
g. E-Commerce increases the competition among
organizations and as a result, organizations provides
substantial discounts to customers.

3. Advantages to Society
a. Customers need not travel to shop a product, thus less
traffic on road and low air pollution.
b. E-commerce helps in reducing the cost of products, so less
affluent people can also afford the products.
c. E-commerce has enabled rural areas to access services and
products, which are otherwise not available to them.
d. E-commerce helps the government to deliver public
services such as healthcare, education, social services at a
reduced cost and in an improved manner.

The disadvantages of e-commerce can be broadly classified into two

major categories:

Technical Disadvantages
There can be lack of system security, reliability
or standards owing to poor implementation of
e-commerce.
● The software development industry is still evolving and
keeps changing rapidly.
● In many countries, network bandwidth might cause an
issue.
● Special types of web servers or other software
might be required by the vendor, setting the e-
commerce environment apart from network
servers.
● Sometimes, it becomes difficult to integrate an
 e-commerce software or website with existing
applications or databases.
● There could be software/hardware compatibility
issues, as some e-commerce software may be
incompatible with some operating system or
any other component.

Non-Technical Disadvantages

● Initial cost: The cost of creating/building an e-

commerce application in-house may be very
high. There could be delays in launching an e-
Commerce application due to mistakes, and lack
of experience.
● User resistance: Users may not trust the site
being an unknown faceless seller. Such mistrust
makes it difficult to convince traditional users to
switch from physical stores to online/virtual
stores.
● Security/ Privacy: It is difficult to ensure the security or
privacy on online transactions.
● Lack of touch or feel of products during online shopping is
a drawback.
● E-commerce applications are still evolving and changing
rapidly.
● Internet access is still not cheaper and is
inconvenient to use for many potential
customers, for example, those living in remote
villages.

E-commerce business models can generally be categorized into the

following categories.
Business - to - Business (B2B)

Business - to - Consumer (B2C)

Consumer - to - Consumer (C2C)

 Consumer - to - Business (C2B)

Business - to - Business
A website following the B2B business model sells its products to an
intermediate buyer who then sells the product to the final customer. As an
example, a wholesaler places an order from a company's website and after
receiving the consignment, sells the end-product to the final customer who
comes to buy the product at one of its retail outlets.

Business - to - Consumer

A website following the B2C business model sells its products

directly to a customer. A customer can view the products shown
on the website. The customer can choose a product and order the
same. The website will then send a notification to the business
organization via email and the organization will dispatch the
product/goods to the customer.

Consumer - to - Consumer

A website following the C2C business model helps consumers to

sell their assets like residential property, cars, motorcycles, etc.,
or rent a room by publishing their information on the website.
Website may or may not charge the consumer for its services.
Another consumer may opt to buy the product of the first
customer by viewing the post/advertisement on the website.
Mobile Commerce:
Mobile Commerce is also known as M-Commerce. M-Commerce is the buying and
selling of goods and services through wireless handheld devices. M-Commerce is the
process of paying for services using a mobile phone or personal organizer

Mobile Commerce Services were first delivered in 1997, when the first two mobile-phone
enabled Coca Cola vending machines were installed in the Helsinki area in Finland. The
M-Commerce server developed in late 1997 by Kevin Duffey at Logica. Since the launch
of the iPhone, mobile Commerce has moved away from SMS systems and into actual
applications. Mobile Commerce from the Customer‘ s point of view : The customer wants
to access information, goods and services any time and in any place on his mobile device.
He can use his mobile device to purchase tickets for events or public transport, pay for
parking, download content and even order books and CDs. He should be offered
appropriate payment methods. Mobile Commerce from the Provider`s point of view :The
future development of the mobile telecommunication sector is heading more and more
towards value-added services. Analysts forecast that soon half of mobile operators‘
revenue will be earned through mobile Commerce. Innovative service scenarios will be
needed that meet the customer‘s expectations and business models that satisfy all
partners involved

Services and Applications

1. Mobile ticketing
2. Mobile Money Transfer
3. Content purchase and delivery
4. Information services
5. Mobile banking
6. Mobile Browsing
7. Mobile Purchase
8. Mobile marketing and advertising

A. Mobile Ticketing
Mobile Ticketing is the process where the customers can order, pay for, obtain and
validate tickets from any location and at any time using Mobile phones . Tickets can be
booked and cancelled on the mobile device with the help of simple application
downloads. Delivery of tickets to mobile phones can be done in the form of a SMS or by
a MMS

Mobile Tickets can be purchased in a variety of ways including online, via text messaging
or in a secure mobile application. Mobile Ticketing is used in many applications like:

1. Airline ticketing

2. Cinema ticketing

3. Railway & Bus ticketing

4. Concert/Event ticketing

5. Consumer voucher distribution

Benefits to the ticket buyer

1. Instant delivery of mobile tickets at the time of purchase.

2. Individual mobile tickets can be forwarded to a friend. Quicker
entry with no waiting in lines.

Benefits to the Event organizer

1. Reduced will call lines and staffing.

2. Guaranteed security, only one entry per barcode. Event is
'greener' with reduced paper waste.

B. Mobile Money Transfer

Mobile Money Transfer refers to payment services which are performed by using a
mobile phone. By using this service we can transfer money from one person to other by
using a mobile phone. Ex: ICICI bank has started IMPS - Interbank Mobile Payment
Service. It is an interbank electronic instant mobile money transfer service through
mobile phones.

C. Content purchase and delivery

Mobile content purchase and delivery mainly consists of the sale of ring-tones,
wallpapers, and games for mobile phones. The convergence of mobile phones, portable
audio players, and video players into a single device is increasing the purchase and
delivery of full-length music tracks and video.

D. Information services
A wide variety of information services can be delivered to mobile phone users in much
the same way as it is delivered to PCs. These services include: News, Stock quotes Sports
scores and Traffic reporting

e. Mobile banking
Banks and other financial institutions use mobile Commerce to allow their customers to
access account information and make transactions, such as purchasing stocks, remitting
money, receive notifications, transfer money to other banks.Mobile Banking Services are:
1. Mini-statements and checking of account history

2. Checking the balance

3. Recent transactions

4. PIN provision, Change of PIN and reminder over the Internet

5. Cash-in, cash-out transactions on an ATM

F. Location-based services

The location of the mobile phone user is an important piece of information used during
Mobile Commerce or M-Commerce transactions. Knowing the location of the user allows
for location based services such as:

1. Local discount offers

2. Tracking and monitoring of people

G. Mobile purchase

Some merchants provide mobile websites that are customized for the smaller screen
and limited user interface of a mobile device.

H. Mobile Marketing and Advertising

Mobile marketing is highly responsive sort of marketing campaign, especially from

brands’ experience point of view. Corporations are now using M-Commerce to expand
everything from services to marketing and advertisement.

Types of M-marketing and advertising: • Mobile Web Poster • SMS advertising • MMS
advertising • Mobile games • Mobile videos • Audio Advertisements

Mobile vouchers, coupons and loyalty cards:

The voucher, coupon, or loyalty card is represented by a virtual token that is sent to the
mobile phone. Presenting a mobile phone with one of these tokens at the point of sale
allows the customer to receive the same benefits as another customer who has a loyalty
card or other paper coupon/voucher.
Payment Methods :Consumers can use many forms of payment in mobile Commerce.
They are:

1. Premium Rate Telephone Numbers

2. Direct Mobile Billing

3. Macro payment and Micro payment Services

4. Mobile Wallet

Premium Rate Telephone Numbers

Premium-rate telephone numbers are telephone numbers for telephone calls during
which certain services are provided, and for which prices higher than normal are charged.
Unlike a normal call, part of the call charge is paid to the service provider, thus enabling
businesses to be funded via the calls. These telephone numbers are easily distinguished
with other numbers.

The services that use Premium Rate Numbers are: • Directory Enquiries • Weather
Forecasts • Competition and Voting

Direct Mobile Billing

Direct mobile billing, also called direct to bill, is a method of paying for merchandise by
charging the purchase to a mobile phone account. At the time of checkout, the customer
selects the mobile billing option on a smart phone and follows a two-factor authentication
procedure.

After the authentication, which usually involves a PIN(personal identification number)

and onetime password, the consumer's mobile account is charged for the amount of the
purchase, plus applicable taxes and, in some cases, a processing fee. Direct mobile billing
does not require any previous registration, and it does not involve any other sources of
funding such as credit cards or bank accounts.

Macro payments: This kind of payments is used by traditional electronic Commerce and
they usually involve amounts more than US $10.00. Payments by credit cards are the
most common method for Macro payments.
Micro Payments :These usually involve amounts less than US $10.00, which are too
small to be economically processed by credit cards. ⎫The amounts are usually charged
to user’s phone bills

Mobile Wallets :A mobile wallet based payment strategy deals with how, where and
when the payments can be accepted and processed using the user’s wallet accounts. A
mobile wallet payment option includes the following: • Prepaid – Here the users top up
their mobile wallet accounts upfront and such mobile wallet accounts are used to make
the payments in context of the mobile sales transactions.

Post-paid – In this case, a user’s mobile wallet account is linked to his or her carrier billing
account. The mobile sales transactions are paid with the user’s mobile wallet account,
which in turn is charged to the associated mobile billing account that is usually paid on a
monthly or quarterly basis. • Card linked mobile wallets – In this mobile wallet strategy,
the mobile wallet accounts are linked to user’s debit or credit cards. In a mobile sales
transaction, with card linked mobile wallet payment, the final payment is made from the
wallet account that is linked to user’s cards.

Advantages of M-Commerce are: • Portability • Instant connectivity • Mobility •

Personalization • Localization

Disadvantages

1. Small screens of most devices still limit types of file and data transfer (i.e. streaming
videos, etc.)

2. Use of graphics limited

3. User interface is often difficult to learn how to use

4. Speed Limited storage capacity of devices

Conclusion :The core of M-Commerce is the use of a terminal(telephone, PDA, PC device)

and public mobile network to access information and conduct transactions that result in
the transfer of value in exchange of information, services or goods. Mobile commerce
refers to any transaction with monetary value that is conducted via a mobile
communications network.
Internet Banking –
Internet is a vast network of individual computers and computer networks connected to
and communicate with each other using the same communication protocol – TCP/IP
(Transmission Control Protocol / Internet Protocol). When two or more computers are
connected a network is created; connecting two or more networks create ‘internetwork’
or Internet. The Internet, as commonly understood, is the largest example of such a
system. Internet is often and aptly described as ‘Information Superhighway’, a means to
reach innumerable potential destinations. The destination can be any one of the
connected networks and host computers.

It has become possible for innumerable computers operating on different platforms to

communicate with each other over Internet because they adopt the same communication
protocol, viz, TCP/IP. The latter, which stands for ‘Transmission Control Protocol / Internet
Protocol’, is a set of rules which define how computers communicate with each other. In
order to access Internet one must have an account in9 a host computer, set up by any
one of the ISPs (Internet Service Providers).

e-mail: The most common and basic use of Internet is the exchange of e-mail (electronic
mail). It is an extremely powerful and revolutionary result of Internet, which has
facilitated almost instantaneous communication with people in any part of the globe.
With enhancements like attachment of documents, audio, video and voice mail, this
segment of Internet is fast expanding as the most used communication medium for the
whole world. Many websites offer e-mail as a free facility to individuals. Many corporates
have interfaced their private networks with Internet in order to make their email
accessible from outside their corporate network.

E-Commerce:

Even though started as network primarily for use by researchers in defence and scientific
community, with the introduction of WWW in early 1990s, use of Internet for commerce
has grown tremendously. E-commerce involves individuals and business organizations
exchanging business information and instructions over electronic media using computers,
telephones and other telecommunication equipments. Such form of doing business has
been in existence ever since electronic mode of data / information exchange was
developed, but its scope was limited only as a medium of exchange of information
between entities with a pre-established contractual relationship. However, Internet has
changed the approach to e-commerce; it is no longer the same business with an additional
channel for information exchange, but one with new strategy and models

There are two types of e-commerce ventures in operation: the old brick and mortar
companies, who have adopted electronic medium, particularly Internet, to enhance their
existing products and services, and / or to offer new products and services and the pure
e-ventures who have no visible physical presence. This difference has wider ramifications
than mere visibility when it comes to issues like customer’s trust, brand equity, ability to
service the customers, adopting new business culture and cost. These aspects of e-
commerce will be touched upon in the following discussions

Opportunities:

Internet provides an ever-growing market both in terms of number of potential

customers and geographical reach. Technological development has made access to
Internet both cheaper and faster. More and more people across the globe are accessing
the net either through PCs or other devices. The purchasing power and need for quality
service of this segment of consumers are considerable. Anybody accessing Internet is a
potential customer irrespective of his or her location. Thus, any business targeting final
consumers cannot ignore the business potential of Internet.

Internet offers a unique opportunity to register business presence in a global market. Its
effectiveness in disseminating information about one’s business at a relatively cost
effective manner is tremendous. Time sensitive information can be updated faster than
any other media. A properly designed website can convey a more accurate and focussed
image of a product or service than any other media. Use of multimedia capabilities, i.e.,
sound, picture, movies etc., has made Internet as an ideal medium for information
dissemination. However, help of other media is necessary to draw the potential
customers to the web site.

The quality of service is a key feature of any e-commerce venture. The ability to sell one’s
product at anytime and anywhere to the satisfaction of customers is essential for e-
business to succeed. Internet offers such opportunity, since the business presence is not
restricted by time zone and geographical limitations. Replying to customers’ queries
through e-mail, setting up (Frequently Asked Questions) FAQ pages for anticipated
queries, offering interactive help line, accepting customers’ complaints online 24 hours a
day and attending to the same, etc. are some of the features of ebusiness which enhance
the quality of service to the customers.

Cost is an important issue in an e-venture. It is generally accepted that the cost of

overhead, servicing and distribution, etc. through Internet is less compared to the
traditional way of doing business. Although the magnitude of difference varies depending
on the type of business and the estimates made, but there is unanimity that Internet
provides a substantial cost advantage and this, in fact, is one of the major driving forces
for more number of traditional business adopting to e-commerce and pure e-commerce
firms to sprout. Cost of communication through WWW is the least compared to any other
medium. Many a time one’s presence in the web may bring in international enquiries,
which the business might not have targeted. The business should have proper plans to
address such opportunities.

Concerns: There are a number of obstacles, which an e-commerce venture needs to

overcome. Trust of customers in a web venture is an important concern. Many customers
hesitate to deal with a web venture as they are not sure of the type of products and
services they will receive. This is particularly true in a B2C venture like e-shop, e-mall or
eauction site. Traditional business with well established brands and goodwill and having
a physical presence face less resistance from customers in this regard than a pure
eventure.

Many B2C ventures have ultimately to deliver a product or service in physical form to the
customer for a deal contracted through Internet. This needs proper logistics, an efficient
distribution network, and control over quality of product or service delivered. These
issues are not technology related and any let off in this area can drive the customer away
to the competitor or from e-commerce

The privacy of information on the customer’s preferences, credit card and bank account
details etc. and customers’ faith in a system where such privacy is stated to be ensured
are important issues to be addressed. These are mainly technological issues, but human
factor is important both at the business and at the customers’ end and also in building
the trust in the system

Internet Banking is a product of e-commerce in the field of banking and financial

services. In what can be described as B2C domain for banking industry, Internet Banking
offers different online services like balance enquiry, requests for cheque books, recording
stop-payment instructions, balance transfer instructions, account opening and other
forms of traditional banking services. Mostly, these are traditional services offered
through Internet as a new delivery channel. Banks are also offering payment services on
behalf of their customers who shop in different e-shops, emalls etc. Further, different
banks have different levels of such services offered.

At present, the total Internet users in the country are estimated at 9 lakh. However, this
is expected to grow exponentially to 90 lakh by 2003. Only about 1% of Internet users did
banking online in 1998. This increased to 16.7% in March 2000. The facility of accessing
their accounts from anywhere in the world by using a home computer with Internet
connection, is particularly fascinating to Non-Resident Indians and High Networth
Individuals having multiple bank accounts

B. Pros & cons of digitalization in Indian Scenario

https://www.digitalindia.gov.in/

https://www.youtube.com/watch?v=rMdKmwwFXHU

Digital India (DI) is a scheme launched by Government of India. The main objective of this
scheme is to make India digitally empowered in technology. It is also ensure that
government services are accessible by the citizens electronically by improving online
infrastructure as well as internet connectivity. The vision of digital India is the
development in the field of including electronics services, products, manufacturing and
job oriented schemes etc. Digital technologies including mobile application and cloud
computing is causes an important role in rapid development for economic growth and
digitally empowered Indian citizen across the world

It really focusses on making the government administration accessible to every citizens

electronically by reducing paper work. This programme aims to remove the gap between
the rural and urban people. This initiative consists of plans to connect rural areas with
high speed internet networks. The Digital India programme covers agricultural, industrial,
service sectors which constitutes the growth of the economy. It focusses on three core
areas: digital infrastructure a utility to every citizen, digital empowerment of citizens,
governance and services on demand. The project purposes to connect the 2.5 lakh villages
across India through broadband highways, public internet access, universal access to
mobile connectivity, e‐governance, e‐kranti, information services for all, a sturdy
electronic manufacturing regime, early harvest programs, and IT for jobs—conferred as
the nine pillars of Digital India.This big initiative came up with big investments in the
technology sector with Rs 1.13 lakh crore which help in creating a participative,
transparent and responsive government .

Digital India Mission is mainly focused on three areas:

1. Providing digital infrastructure as a source of utility to every citizen.

2. Governance and services on demand.
3. To look after the digital empowerment of every citizen.

Digital India was established with a vision of inclusive growth in areas of electronic
services, products, manufacturing, and job opportunities.

Objectives of Digital India

The motto of the Digital India Mission is ‘Power to Empower’. There are three core
components to the Digital India initiative. They are digital infrastructure creation, digital
delivery of services, and digital literacy.
The major objectives of this initiative are listed below:

1. To provide high-speed internet in all gram panchayats.

2. To provide easy access to Common Service Centre (CSC) in all the locality.
3. Digital India is an initiative that combines a large number of ideas and thoughts
into a single, comprehensive vision so that each of them is seen as part of a larger
goal.
4. The Digital India Programme also focuses on restructuring many existing schemes
that can be implemented in a synchronized manner.

https://www.youtube.com/watch?v=Qn4UEgoWJr8&list=PLGqF2Eq4iV79xahE5n
S4HMD906j_yTEiv&index=16
Advantages of Digital India Mission
Digital India Mission is an initiative that encompasses plans to connect the rural areas of
the country with high-speed internet networks. On the platform of digital adoption, India
ranks amongst the top 2 countries globally and the digital economy of India is likely to
cross $1 trillion by the year 2022.
Some of the advantages of Digital India are:

1. There is an increase in electronic transactions related to e-governance.

2. An optical fiber network of 2, 74,246 km has connected over 1.15 lakh Gram
Panchayats under the Bharat Net programme.
3. A Common Service Center (CSC) is created under the National e-Governance
Project of the Indian government which provides access for information and
communication technology (ICT). Through computer and Internet access, the CSCs
provide multimedia content related to e-governance, education, health,
telemedicine, entertainment, and other government and private services.

https://www.youtube.com/watch?v=g3L21kqGAYk

4. Establishment of digital villages along with well-equipped facilities such as solar

lighting, LED assembly unit, sanitary napkin production unit, and Wi-Fi choupal.
5. Internet data is used as a major tool for the delivery of the services and the urban
internet penetration has reached 64%.
6. Removing of black economy
7. All the online transaction can be monitored easily and every payment made by any
customer to any merchant will be recorded, this way there won’t be any illegal
transactions and it’ll be impossible for people to hide their money. By restricting
the cash-based transactions and using only digital payments, the government can
efficiently expel the black economy.
8. Increase in Revenues: Another big advantage of digital India is that as the
transactions get digitized, monitoring the sales and taxes becomes much more
convenient, as the transactions are recorded, customers will now get a bill for
every purchase that they make and merchants can now no longer escape from
paying tax to the government, this results in increases of revenue of the
government – thus resulting in growth of the overall financial status of the country
9. Creation of new jobs: With the initiative of Digital India, there have been numerous
ways to enhance job opportunities in new markets as well as increasing
employment opportunities in existing markets, new markets have started hiring
people, thus increasing the employment rate.
 10. https://www.youtube.com/watch?time_continue=57&v=zIwCliQxWEQ&feature=
emb_title
11. https://www.youtube.com/watch?time_continue=6&v=051oT9J8paw&feature=e
mb_title
12.

Challenges of Digital India

The government of India has taken an initiative through the Digital India Mission to
connect the rural areas of the country with high-speed internet networks. Apart from the
various initiatives taken by Digital India, there are several challenges faced by it.
Some of the challenges and drawbacks of Digital Mission are mentioned below:

1. The daily internet speed, as well as the Wi-Fi hotspots, are slow as compared to
other developed nations.
2. Most of the small and medium scale industry has to struggle a lot for adapting to
the new modern technology.
3. Limited capability of entry-level smartphones for smooth internet access.
4. Lack of skilled manpower in the field of digital technology.
5. To look for about one million cybersecurity experts to check and monitor the
growing menace of digital crime.
6. Lack of user education.
7. Less co-ordination among various departments: As we know it is very large project
that consist of many departments. So, timely and strong support of departments
is very important for properly and timely completion of the projects
8. Implementation Cost is very high: As shown above still very high amount is
required to implement the Digital India plan.
9. Infrastructure: Robust and large data centre (used to store large data of entire
country) are other supportive infrastructure require for National Optic Fibre
Network (NOFN) project. It is planned to build for high speed broadband highway.

Impact of Digital India Campaign

Since its launch in 2015, the Digital India campaign has left its impact in various fields:

● Around 12000 post office branches in the rural areas have been linked
electronically.
● The Make in India initiative has improved the electronic manufacturing sector in
India
● Digital India plan could boost GDP up to $1 trillion by 2025
● Healthcare and education sector has also seen a boost
 ● Improvement in online infrastructure will enhance the economy of the country

C. DIGITAL INDIA INITIAVES (Training & familiarization of digitalization)

Prime Minister Narendra Modi’s Digital India encompasses bolstering digital

infrastructure, digital literacy, and the digital delivery of services to Indian citizens,
through a number of initiatives envisioned by the Modi administration, some of which
have charted more success than others.

https://www.digitalindia.gov.in/ebook/dot/page1.php

One such initiative is BharatNet, also called Bharat Broadband Network Limited
(BBNL), aims to expand the scope of broadband connectivity to all 250,000 gram
panchayats (a model of self-governance, gram panchayats are the lowest division of
democratic set-ups at the village level in India) through an extensive optic fibre
network. While ambitiously set to be completed by March 2019, only 150,000 gram
panchayats have been connected with optical fiber cables as of March 6, 2020. This
delay has been attributed to a number of factors including delayed commencement,
right of way issues, the utilization of the state model for implementing the project in
8 states, and more recently, Covid-19.

Another flagship initiative within Digital India is the establishment of Common

Service Centers (CSCs)(https://www.youtube.com/watch?v=Gsc0tp9_t44,

https://www.gstsuvidhakendra.org/everything-you-need-to-know-about-
common-service-centers-csc/) in every gram panchayat in India, which function as
access points for the delivery of essential utility services, social welfare schemes,
healthcare, financial, education, and agriculture services, primarily in rural areas.
However, the overwhelming majority of CSCs remains underdeveloped; by one
statistic, just 800 of 546,246 CSCs offer Wi-Fi. Despite these hurdles, given the Indian
government’s efforts towards transforming India into a fully digital economy, there is
hope for the success of Digital India in the foreseeable future.

Digitalization and the Indian Financial Sector

The financial sector in India has been one of the most important targets, and indeed
one of the biggest beneficiaries, for digitalization. After PM Modi took the
controversial decision in November 2016 to demonetize all ₹500 and ₹1000 notes,
effectively rendering 86% of the economy’s cash valueless, many Indians had no
choice but to embrace digital payment systems, and India operated with USD 45
Billion less cash than it did prior to demonetization. A second stride to India’s “Digital
First” economy came from its tax reform, which streamlined 17 different taxes with
a single Goods and Services Tax (GST). The policy change saw over 10 million
businesses file and pay their taxes online, in order to improve the efficiency of tax
collection and reduce the likelihood of tax evasion. In recent times, the digitalization
of payment systems has most directly been furthered by the JAM trinity, The three
components are Jan Dhan bank accounts, Aadhaar unique identity numbers,
and mobile phone connections. The synergistic effects of combining these three
initiatives is the implementation of large-scale, real-time, technology-enabled Direct
Benefit Transfers (DBTs) in India, especially in rural areas where financial literacy
and affordable access to financial services such as bank accounts, remittances,
insurance, and pensions to the poor is low. By the end of 2018, over 350 million Jan-
Dhan bank accounts had been opened, granting the impoverished access to banking
and credit facilities, including a RuPay debit card in order to incentivize people to
participate in the formal banking system rather than in the shadow economy.

Aadhaar, meaning “foundation” or “base,” was the world’s first public sector
system to break the 1-billion-user threshold. Adopted in 2009, Aadhaar is an
open-technology digital system that utilizes applicants’ biometric information,
in order to generate a 12-digit unique identification (UID) number. Aadhaar
UIDs are linked to bank accounts created under the Jan Dhan program in order to
digitally verify the bank account holder. The latest government figures show that
88.6% of the Indian population is registered with an Aadhar card. The conjunction of
the Jan Dhan bank account and Aadhaar card, gives all Indian residents effortless
access to an efficient digital payment system and to the provision of credit, which also
enables businesses to expand and better manage their cash flow. Most importantly,
the system brings India’s poor into the formal economy, granting them access to a
gamut of welfare schemes from the Indian government via DBTs, which are deposited
straight into their Jan Dhan bank accounts.

The last layer of JAM trinity is the use of mobile phones to make transactions. Mobile
phone penetration in the Indian market has been very successful, with over 1.2
billion people owning a mobile phone at the end of 2018, almost 90% of the
population. The provision of mobile phones and mobile networks has predominantly
been driven by the private sector, with Reliance Jio spearheading the latter. Jio’s
market share has staunchly risen in previous years because of its ability to identify
and cater to the rural population, a largely underserved market. Schemes such as
these also incentivized India’s youth to consume copious amounts of data, shifting
more of their life to digital.

The digital effect can be seen even in traditional sectors such as agriculture which
employs 45% of India’s workforce, yet only contributes to 18% of its GDP. There is
immense scope for this gap to be mitigated via digital methods. Digital financial
platforms, such as the existing Electronic National Agriculture Market (eNAM),
(https://enam.gov.in/web/elearning/id/58)Internet of Things (IoT)
monitoring devices, and greater access to a combination of meteorological data
from the Indian Meteorological Department and farm data from satellite
images have the potential to raise farm productivity, thereby driving future GDP
growth in India’s agriculture sector. e-NAM, a government funded pan-India online
trading platform for agricultural commodities, established in April 2016, covered 585
regulated wholesale agricultural market yards in March 2018. e-NAM aims to
mitigate information asymmetry among farmers and traders by creating
transparency during the auctioning process and provide farmers with up to 15%
price increases for their produce due to their access to a much larger market.

The next stage in digitalizing India is the provision of digital literacy to every Indian.
The introduction of coding at the primary school level in the recent National
Education Policy of 2020 is a welcome first step. Should India want to remain a
globally competitive economy in the future, it is no longer sufficient for every Indian
to own a smartphone and/or computer; they must be knowledgeable about its
functionalities, how to use it responsibly, and to keep their data secure at all times.

DIGIDHAN ABHIYAAN

The initiative plans to enable citizens and merchants to undertake real time digital
transactions through the DIGIDHAN Bazaar.Through organising DigiDhan Mela’s across
the country, it aims to handhold users in downloading, installing and using various digital
payment systems for carrying out digital transactions.

MYGOV
MyGov platform is a unique path breaking initiative which was launched by the Hon’ble
Prime Minister of India, Shri Narendra Modi. It is a unique first-of-its-kind participatory
governance initiative involving the common citizen at large. The idea of MyGov brings the
government closer to the common man by the use of online platform creating an
interface for healthy exchange of ideas and views involving the common citizen and
experts with the ultimate goal to contribute to the social and economic transformation of
India.

NATIONAL MISSION ON EDUCATION USING ICT

The National Mission on Education through Information and Communication Technology

(NMEICT) has been envisaged as a Centrally Sponsored Scheme to leverage the potential
of ICT, in teaching and learning process for the benefit of all the learners in Higher
Education Institutions in any time any where mode. It is a landmark initiative of the
Ministry of Human Resource Development to address all the education and learning
related needs of students, teachers and lifelong learners

NORTH EAST BPO PROMOTION SCHEME (NEBPS)

The North East BPO Promotion Scheme (NEBPS) has been approved under Digital India
Programme, to incentivize BPO/ITES Operations in North East Region (NER) for creation
of employment opportunities for the youths and growth of IT-ITES Industry. The
objectives of NEBPS are as under: (i) Creation of employment opportunities for the local
youth in NER, by promoting the IT/ITES Industry particularly by setting up the BPO/ITES
operations. (ii) Promotion of investment in IT/ITES Sector in NER in order to expand the
base of IT Industry and secure balanced regional growth

NREGA-SOFT

NREGA soft envisions implementing e-Governance across State, District and three tiers of
Panchayati Raj Institutions. It empowers the common man using the information
technology as a facilitator. NREGAsoft provides information to citizen in compliance with
the right to information Act (RTI Act). It makes available all the documents like Muster
Rolls, registration application register, job card/employment register/muster roll issue
register, muster roll receipt register which are hidden from public

PAYGOV INDIA

A National Payment Service platform has been envisaged for a common e-Governance
infrastructure that will offer end-to-end transactional experience for a citizen which
includes accessing various services through internet with payment gateway interface for
online payments. Ministry of Electronics and Information Technology along with NSDL
Database Management Ltd (NDML) created a common infrastructure that can be used by
Center/States/Departments to offer various services through their National / State
portals with a facility to make online payment using net banking, credit cards and debit
cards.

Bharat Interface for Money (BHIM)

It is an app that makes payment transactions simple, easy and quick using Unified
Payments Interface (UPI). It enables direct bank to bank payments instantly and collect
money using a Mobile number or Payment address. Bharat Interface for Money app is
currently available on Android and it is downloadable from Google Playstore, for smart
phones

in sum, digitalization in India has gained significant traction in recent years, largely
thanks to the heavy government focus towards achieving a USD 1 Trillion digital
economy by 2025, a target which ground reality suggests may be overly optimistic.
Having said that, the last few years have shown substantial progress in digitalization
efforts, in particular, the provision of high quality e-services to citizens, digital
literacy, and the implementation of adequate digital infrastructure throughout the
nation. The ongoing pandemic has given the much-needed fillip to these efforts and
accelerated digital activity, with citizens and businesses being nudged to truly
embrace digitalization in order to continue adding value to the economy.