Digital economy
Topic: Sectors of the Indian Economy · NCERT: Beyond NCERT
Meaning
The digital economy is economic activity that arises from digital technologies. It includes e-commerce, digital services, online platforms, digital payments and businesses built on data. It is not a separate fourth sector. It cuts across agriculture, industry and services. India's model rests on digital public infrastructure (DPI), meaning shared digital systems built by the state that anyone can build on, such as UPI, Aadhaar, DigiLocker and ONDC.
Example
A MeitY-ICRIER estimate put India's digital economy at about 11.7% of GDP in 2022-23. It projected the share to reach about one-fifth of GDP by 2029-30. A kirana shop taking UPI payments and selling through ONDC is part of it.
Don't confuse with
- Platform economy: only the part of the digital economy that works through apps matching two sides, such as buyers and sellers. The digital economy is wider.