Digital economy grows by 2.4x between 2014-19: RBI

About 62.4 million jobs were generated during the period

December 22, 2022

India’s digital economy reached US$ 222.5 billion in 2019 from US$ 104.7 billion in 2014

The digitally dependent economy was around 22.4% of the overall economy in 2019

India's core digital economy increased from 5.4% of Gross Value Added (GVA) in 2014 to 8.5% in 2019

The core digital economy prominently acts as a supplier of value-added to the non-digital sectors

India’s digital economy grew 2.4 times faster between 2014 and 2019 generating about 62.4 million jobs during the period, according to a report from the Reserve Bank of India (RBI).

In absolute terms, the economy grew US$ 222.5 billion in 2019 from US$ 104.7 billion in 2014. According to the report, India’s digital economy has witnessed a Compound Annual Growth Rate (CAGR) of 15.62% between 2014 and 2019, while India’s Gross Value Added (GVA) increased annually at a compound rate of 6.59%. 

According to media reports, the core digital economy prominently acts as a supplier of value-added to the non-digital sectors because the forward linkages are stronger than the backward linkages. The digitally dependent economy was around 22.4% of the overall economy in 2019.

Media reports also said that India’s core digital economy (hardware, software publishing, web publishing, telecommunication services, and specialised and support services) increased from 5.4% of GVA in 2014 to 8.5% in 2019. 

Construction, renting of machinery & equipment, food beverages & tobacco, textiles & textile products, and electrical & optical equipment are the industries with the highest forward linkages from the aggregate core digital economy in 2019. 

With growing activities in e-commerce, online transactions and numerous internet services, India’s digital economy will experience further growth in the coming years.


Source: Economic Times

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