Digital Economy of the country will play a major role in India’s Growth accounting for 20% of GDP by 2030

The President and Country Head of Bank of America for India, Kaku Nakhate, is optimistic that the digital economy will play a significant role in India's growth, accounting for nearly 20% of the country's GDP by 2030, up from about 8% at the moment.

The term "digital economy" describes the economic activity resulting from the use of digital technology to link people, companies, devices, data, and operations. It includes all online interactions and transactions involving a variety of industries and technological platforms, including big data, mobile, internet, and information and communications technology.

We think the digital economy will significantly impact our economic landscape as we prepare for an incredible decade in India," Nakhate stated, noting that this signifies a fundamental change in our economic system.

Nakhate's remarks are consistent with the government's recent claims—highlighted in the finance ministry's monthly economic report dated September 22—that digitalization will play a pivotal role in India's growth narrative in the twenty-first century.

The GDP of India has benefited from the digital economy more recently. It was between 4.5 and 5.5 % of GDP in 2014, and according to a Hindustan Times story that cited a finance ministry report, it will surpass 20 % by 2026.

In addition, Nakhate emphasized the benefits of higher government capital spending on the economy, saying, "I think India is headed toward a path of multifaceted, sustained growth. The government's investment in public infrastructure is one of the main factors contributing to this growth."

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Capital expenditures by the private sector have started to follow government programs; just last year, they increased by 8%, to nearly 59% of the total. Nakhate sees a significant development in the convergence of the public and private sectors, with capacity utilization at about 80%.

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