A PROJECT REPORT

ON
Digital India programme and impact of digital payment on Indian economy

Submitted in partial fulfillment of the requirements for the award of BBA degree

Submitted By
Anuj Neupane
BBA
Batch – (2016 – 2019)
Roll No: 160241062

Under the Guidance of

Prof. Chhavi Jain

SCHOOL OF BUSINESS STUDIES

SHARDA UNIVERSITY, GREATER NOIDA-201306
 DECLARATION

I hereby declare that project Titled “Digital India Programme and impact of digital payment on Indian economy” is an

original piece of research work carried out by me under the guidance and supervision of Prof. Chhavi Jain. The

information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of

the requirement of BBA Degree of School of Business Studies, Sharda University.

Anuj Neupane

School of Business Studies

Sharda University

Supervisor

Prof: Chhavi Jain

Sharda University
 ACKNOWLEDGEMENT

I would like to take this opportunity to express my gratitude towards all those who have helped me in various ways in

the completion of this project. I am grateful to Sharda University for initiating the project as the partial fulfillment of

Bachelor of Business Administration that gives the practical experiences of real working environment and the

applications of the theoretical knowledge in the real work life.

I would like to express my gratitude towards Prof. Chhavi Jain, Faculty mentor, Sharda University who has given the

full support in collecting the required information and continuous help during the project. I would like to extend my

heartfelt thanks to all who assisted with their valuable suggestions and ideas while preparing the report.
 PREFACE

The successful completion of this project was a unique experience for me and i achieved a better knowledge about

Digital India Programme and impact of digital payment on Indian economy. The experience which i got by doing this

project was essential to our future. The information in this project contains detailed analysis of the research. The

research provides an opportunity to devote our skills, knowledge and competencies during our knowledge gathering

sessions of marketing management.

 TABLE OF CONTENTS

Chapter Particular(s) Page No.

1. Title Page

2. Certificate from College

3. Student Declaration

4. Acknowledgement

5. Preface

6. Chapter -1 Introduction

 Reason for choosing the topic

 The programme structure

 Adoption of digital payment

7. Chapter-2 Literature Review

 Review of Related Studies

8. Chapter-3 Research Methodology

 Issues and Objectives of the Study

 Hypothesis:

 Type of Research:methodology

9. Chapter-4 Analysis (Tabulation, Graphs, Charts)

10. Chapter-5  Findings

 Suggestions

 Limitations

 Conclusions

 Questionnaire

11. Bibliography
 REASON FOR CHOOSING THIS TOPIC

Marketing being my core interest area, I always wanted to do my dissertation in this field.
As digitalization is one of the backbone of marketing, and hence I decided to do my dissertation in
Digital India programme and its impact on Indian economy.
I wanted to choose current topic, and during my discussion with my Faculty guide, Chhavi Jain, we decided that
This topic would be a good topic to work on.

This topic is of special interest because I wanted to understand what factors are leading to deliver a real improvement in
the quality of life of every citizen through this campaign. The concept that I have undertaken to this research work is to
see how this campaign focuses on digital development of the country by providing the citizens with such facilities and
Services so that they are all connected to each other virtually and electronically.
In this topic I decided to take digital payment and its impact for measuring the economic level of the country. There
were initial reports that the Government of India envisages Digital India to be a programme that will prepare India for a
knowledge future.

This study does contribute to enrichment of prevalent information on this topic in many ways as helps us to provide
information regarding use of technology in various sectors of human life, the focus of the Digital India programme of
Government of India is to make technology central to enabling change. The perspective of the programme is
transformative in nature in as much as it seeks to relies IT (Indian Talent) + IT (Information Technology) = IT (India
Tomorrow the Indian textile industry was gearing up to take advantage of it. Increasing use of internet, mobile
penetration and government initiative such as Digital India are acting as
Catalyst which leads to exponential growth in use of digital payment This study give us clear picture of all these
components and provides us with important information on The impact of this policy which is a big step towards the
modernization and globalization by making the economy cashless which will bring changes and positive impact on
adoption of digital payment in future.

.
CHAPTER 1 INTRODUCTION

Digital India is a Programme to prepare India for a knowledge future. Hon'ble Shri Narender Modi, Prime Minister

of India has laid emphasis on National e- governance plan and has gave its approval for Digital India – A

programme to transform India into digital empowered society and knowledge economy.

Digital India is an ambitious programme of Government of India projected at Rs 1, 1, 13,000 crores. This

will going be for preparing the India for the knowledge based transformation and delivering good

governance to citizens by synchronized and co- ordinated engagement with both Central Government and

State Government.

This programme has been envisaged by Department of Electronics and Information Technology (Deity) and

will impact ministry of communications & IT, ministry of rural development, ministry of human resource

development, ministry of health and others. This programme will also benefit all states and union territories.

The existing/ ongoing e-Governance initiatives would be revamped to align them with the principles of Digital

India. The vision of Digital India is to transform the country into a digitally empowered society and

knowledge economy. It would ensure that government services are available to citizens electronically. It would

also bring in public accountability through mandated delivery of the Indian government’s services
electronically.

Digital infrastructure will focus on providing high speed secure Internet. Governance and services on demand

will stress on integrating services across departments and jurisdictions and making services available in real

time for both online and mobile platform.

Digital empowerment of citizens will going to deliver universal digital literacy and availability of digital

resources/services in Indian languages.. The source of funding for most of the e-Governance projects at

present is through budgetary provisions of respective ministries/departments in the central or state

governments. Requirements of funds for individual project(s) for Digital India will be worked out by

respective nodal ministries/departments but according to government estimate it will cost Rs 113,000 crore.

To implement this government is planning to strengthen National Informatics Center (NIC) by restructuring it to

support all central government departments and state governments.

Building blocks of Digital India: Vision areas (Deloitte, ASSOCHAM, 2015)

S.No. Vision Summary

High Speed Internet
1
Digital Identity
Infrastructure Mobile & Bank Linking
Cloud Storage
Safe Access

Credentials cloud Based

2
Real Time Access
Demand Based Integration
Business Ease
Secure Payments

Digital Literacy
Digital Recourse
3 Empowerment Indian Languages
Digital Platform
Cloud Based
The programme structure:

 Digital India comprises of various initiatives under the single programme each

targeted to prepare India for becoming a knowledge economy and for bringing good

governance to every citizens through synchronized and co-ordinated engagement of the

entire Government.

 This programme has been envisaged and coordinated by the Department of Electronics

and Information Technology (Deity) in collaboration with various Central

Ministries/Departments and State Governments. The Prime Minister as the Chairman

of Monitoring Committee on Digital India, activities under the Digital India initiative

is being carefully monitored. All the existing and ongoing e-Governance initiatives

have which been revamped to align them with the principles of Digital India.

 Digital India is a programme to transform India into digital empowered society and

knowledge economy. The Digital India is transformational in nature and would ensure

that the Government services are available to every citizens electronically. It would also

bring in public accountability through mandated delivery of government’s services

electronically; a Unique ID and e-Pramaan based on the authentic and the standard

based interoperable and integrated government applications and data basis. The

programme will be implemented in phases from the current year till 2018.
Adoption of digital payment, as an alternative to cash for Indian

consumers.

Digital India programme is a flagship programme of the Government of India with a vision to transform

India into a digitally empowered society and knowledge economy. “Faceless, Paperless, Cashless” is

one of professed role of Digital India. As part of government reforms Prime Minister Mr. Narender

Modi demonetized the high value currency of Rs. 500 and 1000 in November 2016 and also launched

the “digital India‟ initiative in 2015.These initiatives have provided extensive boost up to the digital

payment system in the country. Post demonetization is effecting the e-commerce sector that Cash on

Delivery is gradually getting stopped and other modes of payment is replace like Net Banking, Debit

Card, Credit Card etc. As part of promoting cashless transactions and converting India into less-cash

society, various modes of digital payments are available such as Debit / Credit Card, E-WALLET,

USSD, UPI etc. The objective of the campaign is to develop secure and digital infrastructure, delivering

government services digitally and universal digital literacy. While Digital India is trying its way in rural

India but the digital literacy one of the biggest hurdle in making it a great success. Therefore, to make

economy digitalized a joint effort of banks, government, educated youth and telecom industry will be

required to spread the knowledge. They have to gain the trust of the people that their money is safe if

they are doing transaction digitally. There is a requirement of making strict rules regarding cybercrime,

online frauds and strengthen the internet security.

 Nine Pillars of Digital India

S. Pillar Summary

No

 To provide high-speed broadband coverage highways connecting

about 250,000 villages, various government departments,

1 Broadband Highways universities, etc.

 To provide an integrated information infrastructure with

integration of State Wide Area Network (SWAN), National

Knowledge Network (NKN) and National Optical Fibre

Network (NOFN)

2 Universal Access to  To provide mobile connectivity to about 42,300 villages

Phones

Public Internet Access  To make 250,000 CSCs operational at Gram Panchayat level for

3 Programme delivery of government services

 To convert 150,000 post offices into multi-service centres

4 E-Governance  To use business process re-engineering to transform government

Reforming Governance processes and make them simple, automated and efficient

through technology

5 e- Kranti Electronic To use technology for service delivery such as e-education, e-

Delivery of healthcare, technology for

Services planning, farmers, security, financial inclusion, justice, etc.

 To provide open access to government information and

6 Information for documents online

 everyone  To provide two-way communication between citizens and the

government through online platforms and social media

7 Electronic  To target net zero imports by 2020, through various actions in

Manufacturing Target areas such as taxation/incentives, economies of scale, skill

NET ZERO Import development, government procurement, etc

8 IT for Jobs Electronic  To provide necessary skills and training that enable the youth to

Delivery of avail jobs in IT/ITes sector

Services

9 Early Harvest To focus on execution of project within short timelines, such as IT

Programmes platform for messages, e- greetings from the government, biometric

attendance, Wi-Fi in all universities, etc

(Deloitte, ASSOCHAM, 2015)

Some of the key Initiatives of Digital India were:

 Starting a Digital Locker to help Citizens of India store their important govt ids such as PAN

Card, Passport, Voter id card and education mark sheets. All the citizens need to use their locker

is an Adhaar Card.

 MyGov Portal to improve good governance by help from citizen engagement.

 ORS portal to help citizens of the country to handle online appointments, pay online fees of

doctors and govt hospitals.

 Design Framework to allow the w digital signing of documents.

and a few other initiatives were taken to grow the country with the help of latest technology.
The impact of Digital India was expected to:

 Reduce Corruption.

 Increase speed of public sector services rendered to citizens of the country.

 Decrease documentation.

 Provide an easy to manage online storage to store all documents.

 Provide simple and easy to use cloud space on the internet.

Our governments for years have worked towards creating an economy which is more reliant on the

internet and less on the paper-based economy. The incumbent govt provided a single name “Digital

India” to all the digitization, digitalization and other initiatives taken by govt to have a positive impact

on our economy.
Chapter 2 Literature review

Digital India is an initiative of Government of India to integrate the government

departments and the people of India. It aims at ensuring that the government
services are made available to citizens electronically by reducing paperwork. The
initiative also includes plan to connect rural areas with high-speed internet networks.
Digital India has three core components. These include:

 The creation of digital infrastructure

 Delivering services digitally
 Digital literacy

The information is taken by the official website of Digital India project. According to
the team, the project is slated for completion by 2019. A two-way platform will be
created where both the service providers and the consumers stand to benefit. The
scheme will be monitored and controlled by the Digital India Advisory group which
will be chaired by the Ministry of Communications and IT. It will be an inter-
ministerial initiative where all ministries and departments shall offer their own
services to the public Healthcare, Education, Judicial services etc. The Public-
Private-Partnership model shall be adopted selectively. In addition, there are plans to
restructure the National Informatics Centre. This project is one among the top priority
projects of the Modi Administration.

S.K Mohanty in his paper, Digital India: A Study of New-Age e-Entrepreneurship in

India explore Digital India and other initiative like National Digital Literacy Mission
(NDLM) penetration of mobile phone and broadband has raised in significant
number and pattern of users has changed.

New Urban Utopias of Postcolonial India: ‘Entrepreneurial urbanization’ in Dholera

smart city, Gujarat (Datta, 2015)
Datta has explored in depth critical analysis on Dholera smart city to suggested how
state attempt to attract global capital and enhance economic growth through
construction of new town ships.

Developing Smart Cities using Internet of Things: An Empirical Study (Sarin, 2016)
Sarin explained Digital India program, which aims at setting up e- infrastructure in
the nation will enable faster establishment of the IoT industry.

Technological Innovations in Indian Banking Sector: A Trend Analysis (Sarkar,

2016) Sarkar analysis IT & Innovation in banking sector has made it more
competitive and delivering better customer services. It has transform banking from
cash & paper based to cashless & paperless.

Information Centric Services in Smart Cities: (G.Piro, 2014) G. Piro focus on

advance ICT technology support services (i.e. e-government and public
administration, intelligent transportation system, public safety social, health care,
education, building and urban planning, environment and energy and water
management application in Smart cities by upcoming wireless technologies.

Development of Smart Cities in India: Dream to reality (Suresh, 2016) Suresh

explores strategies for planned urbanisation, guideline for smart city development
and explain thoughts to transform urban India.

Indian Banking Sector-Challenges and Opportunities: (Singh, 2016) Singh reviewed

Indian banking sector and analysed the challenges and opportunities in it. Author
put his views that Indian Government needs bigger banks to finance, its social
projects, infrastructure funds like Digital India, Bullet Train etc.
Digital India is Achievable but it has its Setoff Challenges: (Aruna Sundararajan,
2016) Aruna Sundararajan explained on the achievements and concerns around
digital India.

Making Digital India a Reality: (Chowdhary, 2016) Sudhir Chowdhary wrote about
the views of Debjani Ghosh vice president, sales & marketing group & MD, Intel
South about digital India.

Taking IT Skills to the Masses: (Ahaskar, 2016) Abhijit Ahaskar highlights DISHA,
government initiative to impart IT education to more than 50 lakh individuals by
2018.

Digitisation will Change Economic Growth Model: Nilekani (The Hindu, 2016)
Bureau of the Hindu Business Line explains the view of Mr. Nilekani’s that
integration Aadhar, Jan Dhan Yojana and smart phone, among other things are
“tipping point’ of changing the way the economy grows and share other advantage
of digitisation.

Reviewing Digitization in Health Care Services in India: (Joshi, 2016) Joshi an

attempt to understand conceptual understanding and overview with the present
trend in digital health care in India and world. This study also address issues and
challenges in digitization of health care services in India.

A Study on Diffusion of Digital Locker Technology in Vadodara District: (Singh,

2016) Singh focused on the conceptual understanding of digital locker. The
suggested an awareness campaign in this country about digital locked is required &
digital locker is important part of Digital India.

Digital India: Green Tab knowledge café (Bharat Bhagtani, 2016) Bharat analysis
the feasibility of business model of e library through primary research and benefits
of it. Author expects it will reach its breakeven point in two years.

E-Governance-Reforming Government through Technology: (Raghavendra

Kulkarni, 2016) Raghavendra Kulkarni explains and analysis the characterises,
advantages and challenges in the implementation of E-Governance the two main
advantages of E Governance are increased transparency and fast public service
delivery.

E-Kranti: Electronic delivery of Services (Sarkar, 2016) Sarkar highlights features &
services of E-Kranti. Demand of IT hardware will increase with the evaluation of this
program a practical approach based on past experience for Ne GP should be
implemented for the E governance.

VLDB Prerequisite for the Success of Digital India (Deloitte, 2016): Deloitte share
insight into Indian scale data problems & how technology can be utensil in solving
those.

Singapore Payment Roadmaps Enabling the Future of Payments 2020 and Beyond:
(KPMG, 2016) KPMG explores the appraisal of the payment ecosystem forms an
important component to support Singapore achieve the smart nation vision & uphold
its place as the financial heart of Asia.
 E-Governance and Digital India Empowering Indian Citizens through Technology:
(Deloitte, ASSOCHAM, 2015) Deloitte offers a complete assessment of the Digital
India initiative finds gaps and challenges and focus for closing the gaps have been
discussed.

Why IT Firms are Shying Away from Govt. Projects: (BUREAU, 2016) BUREU
highlights even though government spending is expected to grow at 10.5 percent
which is same as domestic market growth IT companies showing lack of
enthusiasm to government projects. The main reasons are payment issues and
litigation. The companies facing challenges because it is observed change in
requirement during implementation of a project, but contact and the system don’t
accommodate such things and it becomes a problem.

 Related Initiatives:

The DI initiative must be read along with the Draft Internet of Things (IoT) Policy of
India. However, the problems, the challenges and the deficiencies in the Indian legal
structure remain the same.
 CHAPTER-3

RESEARCH METHODOLOGY

Objectives of the research project:

This paper offers following objectives.

1. over view of Digital India in the country.

2. To know about the pillars for the implementation of the programme

3. To study the impact of digitalization on various sectors of Indian economy

4. To analyze the impact of digital payment system in India.

5. Review of digital India and the challenges in transforming India in to digital.

Hypothesis: In pursuance of the above objectives, the following hypotheses were formulated for

testing:

H01: There is no significant difference is perceived by respondents for various attributes of digital

payment on the basis of gender of respondents.

H02 There is no significant difference is perceived by respondents for various attributes of digital

payment on the basis of age of respondents.

H03 There is no significant difference is perceived by respondents for various attributes of digital

payment on the basis of education of the respondents.

H04 There is no significant difference is perceived by respondents for various attributes of digital

payment on the basis of profession of the respondents.

H05 There is no significant difference is perceived by respondents for various attributes of digital

payment on the basis of annual income of the respondents.

Hypothesis testing: ANOVA Computation

In order to test the hypothesis ANOVA was carried out. The results are given below.
Table 4 gives the result of ANOVA computation on the basis of gender, education,
profession and annual income of the respondents.
.

Table 4: Computation of ANOVA.

Gender Age Education Professio Annual

Characteristics/Attributes n Income
F Sig. F Sig. F Sig. F Sig. F Sig.
Mobile Payment .199 .656 1.110 .35 13.92 .080 3.7 .006 1.04 .386
Wallet/Digital payment 4 9 41 6
used
Frequency of use digital .002 .963 .821 .51 90.53 .000 5.1 .001 .665 .617
payment to make online 4 6 09
payment for bills and
purchases
Brand Loyalty of Digital .987 .322 .910 .46 216.4 .000 2.2 .066 1.91 .110
Payment mode 0 50 52 9
Convenience in Use of .141 .708 2.131 .08 17.09 .000 1.4 .231 .714 .583
digital payment mode 0 4 18
Secured Transaction 1.914 .169 1.015 .40 13.92 .000 2.2 .063 1.83 .125
2 9 83 6
Time Saving through 8.266 .005 2.572 .04 67.56 .000 2.5 .043 1.08 .365
digital payment mode 0 6 27 7
Acceptance Wallet/digital .446 .505 1.826 .12 22.71 .000 3.3 .011 .550 .700
payment mode 7 3 99
Price of Using digital .122 .727 .461 .76 61.57 .000 1.5 .203 2.08 .086
payment mode (service 4 9 07 1
charges etc.)
Mobile wallets are capable of .987 .322 .910 .46 34.41 .000 2.2 .066 1.91 .110
providing benefits to 0 2 52 9
individual for purchase of
product.
Using the mobile wallet .291 .590 3.705 .00 3.656 .007 1.6 .160 .619 .650
improves the quality of my 7 70
decision making for buying
products.
Believe mobile wallets are .614 .434 3.204 .01 14.13 .000 1.0 .408 .890 .472
useful in buying products 5 8 04
than the traditional
methods.
Think that using online wallets .987 .322 .910 .46 26.59 .000 2.2 .066 1.91 .110
can offer me a wider range of 0 1 52 9
banking services
and Payment options
Interacting with mobile 2.758 .099 1.296 .27 89.37 .000 2.0 .084 .947 .439
wallet is helpful. 5 5 96
Trust the service providers of .446 .505 1.826 .12 13.80 .000 3.3 .011 .550 .700
mobile wallet 7 5 99
 The result of above computation shows that no significant differences are perceived by male and female
respondents for majority of attributes of digital payment mode/digital wallets. Hence we accept the H01.
This indicates that both male and female customer perceive digital payment mode/digital wallets in
similar way.

Similarly we find that above computation shows that no significant differences are perceived by the
respondents on the basis of age, profession and annual income. This leads to acceptance of H02, H04, and
H05. However significant differences are perceived by respondents for majority of attributes of digital
payment mode/digital wallets on the basis of their education. Hence we reject the H03. This indicted that
education play a significant role in acceptance of digital payment mode. Educated person are more
inclined to use the digital payment modes.

Research Methodology

The current study is based on primary data collected from 50 respondents from the different parts of Delhi Ncr as
well as from secondary data from different research papers, reports & government data has been studied and
analyzed. A well-structured questionnaire was designed to collect the information from the respondents the
questionnaire was designed to study perception of customer towards adoption of digital payment mode The
responses have been collected by means of face-to-face interviews.

Type of Research:

The research design that was included in this research study was descriptive research.
Descriptive research as we know is “describe” a situation, subject, behavior, or phenomenon. It
is used to answer questions of who, what, when, where, and how associated with a particular
research question or problem. Description research is used to observe and describe a research
subject or problem without influencing or manipulating the variables in any way. Descriptive
research is all about describing people who take part in the study. There are three ways a
researcher can go about doing a descriptive research project, and they are observational, case
study and survey.
In this research project we are using descriptive research to find out the research objectives.

Type of Data:

The study was carried on the basis of both primary and secondary data. The data was collected through widevariety
of sources like journals on international trade, through different online data sources,web sites, text books, magazines
etc.

Sampling procedure: We adopted face-to-face interview method for collection of primary data, as it is not possible
to take appointment from a large number of respondents. Purpose of this research was told to respondents and
questions were explained to them in case there was any need for understanding any particular question. There had
been no personal bias or distortions were allowed while recording the responses.
(Mr. Lucky Bhati, an Auto rickshaw driver in Noida talked about going cashless by installing mobile wallet paytm

in his three wheeler)

(Deepak, A juice seller says cashless service as being advantageous since he no longer need to worry about loose

change or worrying about dealing with the invalid currency notes. )

(Auto rickshaw driver Asok Sharma displaying his Paytm code)

 CHAPTER – 4

Analysis

3.1. Introduction

This chapter mainly describes the qualitative practice to be used to provide data to examine the issues acknowledged and extend

the understanding of consumer perception regarding digital payment. This typically involves sampling the population,

surveying them and using inferential statistics to analyse the responses. The focus of the analysis is to expect the determining

factors influencing, in this case, what and why consumers purchase online and offline as well, why they switch from one way

to another. The data gathered during the depth interviews were used to identify common questions concerning consumer

behavior as it relates to the pure online and offline buying process. Deepness of the interviews and concentration groups

provide an efficient means of spreading and emerging theoretical concepts to improve the ultimate research design. And are

used in this research to better appreciate what and why consumers use the Internet to shop and in specific why they choose one

channel over another in general. Below defines how this qualitative phase of the research is directed and classifies which of the

research objectives each activity supports for both the depth interviews.

Impact of digitalisation on Indian economy

The division among various sectors, i.e., agriculture, industry and services; regarding contribution to the GDP of
Indian Economy [6], [7], has been as shown in Figures 1-3.

Figure 1. Sectoral real GDP growth

Source: Reserve Bank of India – Annual report, July 2013 – June 2014
 Figure 2. Relative contribution to real GDP growth

Source: Reserve Bank of India – Annual report, July 2013 – June 2014

Figure 3. Sector wise contribution of GDP of India (1950-2014)

Source: Statistics times

2. Agriculture sector

India is an agriculturally dominated country; approximately 49% is engaged in agriculture and allied activities. The
agricultural and allied activities output accounted for approximately 14% in 2014-15, calculated at the prices of 2004-
05. India is placed at 2nd rank in the world in terms of agricultural output [1].

1. Highlights of agriculture sector:

1. World’s largest producer of milk, jute and pulses.
2. Comes 2nd in producing rice, wheat, sugarcane, cotton and groundnuts.
3. Also, number 2 in producing fruits and vegetables.
4. Holds 2nd rank in producing and 1st rank in consumption of silk.
5. Largest exporter of cashew kernels and cashew nut shell liquid in the world.
 Though, more than half of the population is engaged in agricultural activities the share of the sector in GDP is
decreasing continuously. Despite the falling share in GDP, agriculture sector is still very important being the largest
employment provider in the country. For the overall development of the economy, agricultural performance is
needed to be boosted through various measures, like, giving more importance in 5-year plans, improvements in
infrastructure, technological advancements, providing with better quality inputs, agricultural subsidies and credit
schemes, etc.

2. 4. Impact of digitalisation on agriculture sector:

Digitalisation will lead to the improvement of the sector’s performance. Indian economy depends on the
agriculture sector with it being one of the three wheels driving the economy. Automation can help in improving
performance by:
1. Availability of information – Automation of the sector will lead to the availability of timely and accurate
information. Timely and correct information about soil, fertility, seeds, weather conditions, other inputs, expert
opinions, etc. Will help farmers in trading efficiently. Reliable information can be provided to the farmers due to
improved effectiveness of Agricultural research and development [8].
2. Better employment – Digitalisation will lead to better utilisation of human man power in the sector. There is
over employment in agriculture and if the performance of the sector is improved as a whole then the same work
can be done by less people and the remaining manpower can be employed in other productive activities thereby
increasing GDP as a whole is shown in Figures 4-5.

Figure 4. Growth rate of employment (percent)

Source: Reserve Bank of India – Annual report, July 2011 to June 2012

Figure 5. Share in total employment (Percent)

Source: Reserve Bank of India – Annual report, July 2011 to June 2012 [9]

3. Price control and cost cutting – Timely and correct information about prices, inputs as well as outputs, in
different markets, and cutting of costs due to better utilisation of resources, will lead to increased profits in the
sector.
4. Infrastructural development and irrigational facilities – Digitalisation will lead to better infrastructural facilities
like warehouses, green houses, ease in transportation and storage of produce that will increase the life of the
 produce. Indian agriculture depends a lot on monsoon. Digitalisation of the sector will provide farmers with
better irrigation facilities and less dependence on monsoon.
5. Increased returns and investment – Better agricultural facilities will lead to increase agricultural produce there
by increasing the returns of the sector. Good prospects for the sector will lead to increase in investment are
shown in Figure 6.

Figure 6. Share of institutional credit to agriculture

Source: IBEF: Agriculture sector report, August 2013 [10]

6. Agricultural literacy – With the help of automation, farmers have increased access to the information they
require or any knowledge they want to acquire regarding farming. This increases the level of agricultural literacy
in the country thereby improving the future prospects for agriculture.
To increase the contribution of agriculture sector in the economy and to motivate farmers to move towards
better farming skills, Indian government is taking various initiatives like, kissan credit cards, soil health cards scheme,
e-NAM (National Agriculture Market), My Village My Pride scheme, etc [11].
Some mobile applications and web portals have also been developed to help the farmers by automatizing some
services. Like kisan suvidha, pusha krishi, India weather, m-kisan portal, crop insurance portal, e-mandi, etc [12].
The government has also renamed the Department of Agriculture and Cooperation, as the Department of
Agriculture, Cooperation and Farmers Welfare, on Independence Day 2015, to this effect is shown in Figure 7.

Figure 7. Major crops of various states in India

Source: Word press – resources research [13]

3. 5. Industry sector

Industry sector stands for manufacturing sector in India. Industrial sector’s share in GDP has increased from
approx. 15% in 1950-51 to approx. 25% in 2013-14. The sector employs around 22% of the total workforce in the
country [1]. After industrial reforms in 1991 through LPG (Liberalisation, privatisation, Globalisation) movement, the
economic growth of the country accelerated. The new industrial policy improved the scenario and future prospects
for the industrial sector.

4. Highlights of the sector:

1. 6th largest industrial output in the world for manufacturing (on current US Dollar basis).
2. 9th largest industrial output in the world for manufacturing (on inflation adjusted US Dollar basis, constant 2005)
in 2015 is shown in Figure 8 [1].
Figure 8. Growth in the index of 8 core industries

Source: Reserve Bank of India – Annual report, 2014-2015 [14]

5. 6. Impact of digitalisation on industrial sector

The Government of India aims at digitalising the sector to improve sectoral performance, so as to increase the
share of the sector in GDP and also the increasing returns in the sector will lead to increase in the overall growth rate
of GDP and economy itself. As shown in Figure 9, the automation of the sector will lead to:

Figure 9. Industry digitisation index 2012

Source: 2012 Industry digitization study [15]

 1. Ease in purchase and inventory control – The procurement of raw materials will become an easy and effective
process by automation. One can procure the desired quantity and quality of materials at competitive prices.
Systems like JIT (Just In Time) inventory system, ABC, EOQ (Economic Order Quantity) system, as well as
automation of ordering, billing and payment systems, leads to better inventory control, thereby reducing
inventory management costs. The supply chain management will function smoothly.
2. Wider customer base and market reach – Customer base for goods is increasing due to availability of products
through various online sources like online shopping portals, i.e., myntra, jabong, snap deal, or company’s web
pages, i.e., reliance trends, woodland, pantaloons, Adidas etc. Due to the omnipresent nature of internet, the
producers can reach their customers in every nook and corner of the world within seconds, thereby expanding
the markets to no bounds.
3. New product mix and product innovation – The product mix of the industrial sector is undergoing changes as
more preference is being given to the FMCG and technological products. New kind of products will also be
introduced having both physical and digital characteristics. This will lead to a new era of product development
[16].
4. Trade relations and competition– Supplier-producer, producer-customer, labour-management, intermediary
relations as well as all other trade relations become cohesive due to increased transparency in trade. The
competitive structure will change due to increased foreign competition after liberalisation, increased efficiency
due to privatisation and opening of new markets due to globalisation. A healthy competition will result in better
quality products at reasonable prices, benefitting the consumers.
5. Employment variations – The employment scenario will be dual impacted. On one hand, digitalisation will lead
to unemployment because of machines replacing man power. And on the other hand, new jobs will be created as
the sector will move towards growth and expansion. The job requirements and specifications will change with
the changing scenario [17].

6. 7. Service sector

The services sector occupies the largest share in GDP, about 58% in 2013-14, in India. The service sector has
shown the highest rate of growth in India from approx. 34% in 1950-51 to approx. 58% in 2013-14. It provides 27% of
the workforce with employment. IT (Information Technology) and BPO (Business Process Outsourcing) are two of the
fastest growing services in services sector. [1] E-commerce and Banking are also picking pace these days with new
online services and facilities available. Digitalisation of economy throws open huge opportunities for this sector to
grow as this sector benefits the most by digitalisation movement is shown in Figure 10.

7. Highlights of the sector:

1. It holds 7th place in the world when measured on nominal GDP basis.
2. And 3rd position when measured on the basis of Purchasing Power Parity.
3. IT and BPO together are responsible for 33.6% growth rate of revenue from 1997-98 to 2002-03.
4. These two also contributed about 25% in the total exports of the country in 2007-08. [1]

Figure 10. Growth rate of various services in service sector

Source: Reserve Bank of India – Annual report, July 2013 to June 2014 [6]
8. 8. Impact of digitalisation on service sector

Services are invisible in nature. There is no physical product but services are rendered to people. Digitalisation
has the most impact on service sector as digitalisation of services improves their effectiveness to a large extent. It
fastens the processes and activities and leads to better satisfaction among customers due to increased ease in
availing these services. The impact of digitalisation on some of the services in India is:
1. Information Technology and BPOs – IT and BPO are the fastest growing services in the country. It is because of
the increased exports of the services outside India. There are also huge employment opportunities in these. The
automation of various processes increases the efficiency and effectiveness of these services are shown in Figures
11-12 [18].

Figure 11. Growth in export revenue (U$$ Billions)

Source: IBEF – IT and ITeS industry in India, March 2017 [19]

Figure 12. Sector – wise break-up of export revenue

Source: IBEF – IT and ITeS industry in India, March 2017 [19]

2. Aviation – The facilities like online booking of tickets, online passport application through Passport Seva Kendras,
price discounts on advance bookings, FDIs, increased tourism due to online marketing of tour packages, reduced
ticket costs due to increase in competition, etc., has led to an unforeseen growth in aviation sector.
3. Banking and finance – The increased ease in performing banking activities and managing bank accounts due to
numerous digitalised facilities provided by banks like, mobile banking, NEFT, online banking, etc. has improved
the future growth prospects for the banking sector. Getting loans and financial assistance has also become easy
and cost effective due to digitisation of the sector.
4. Retail – Retail is growing after digitalisation of services like online bill payments by card swiping, online shopping
sites and web pages, online marketing, cost discounts on some particular cards etc.
5. Electricity sector – Online bill payment, refunds, automated meter readings, etc. has benefitted the electricity
sector. It’s a relief for citizens to not stand in lines for bill payments.
6. Infrastructure – Infrastructural developments pick up pace with the help of digitalisation. It saves a lot of paper
work, man power, time and cost savings, etc. The infrastructural development of will develop the economy as a
whole.
7. Education – Application of digital methods to education enhances the learning processes for students, teaching
experience and ease for teachers and the overall learning procedures. Ease in availability of information and
knowledge leads to a better educated society and enhances the standard of living in general.
8. Entertainment industry – The availability of all kind of entertainment media files online has on one hand given a
boost to the industry and on the other hampered it by issues like piracy, hacking, leakages, etc.
9. Telecommunications – Telecommunication sector is growing speedily after the introduction of new technologies
in the sector like, smartphones, tablets, i-pads, android systems, windows operated systems, etc., various online
applications, availability of internet connectivity through phones, have enhanced the future opportunities for
growth in the sector.
10. E-commerce – e-commerce sector is growing at a rapid rate as the whole thing is based on digital equipment,
processes and techniques. Digital enhancement is the utmost requirement for e-commerce to grow. Availability
of wide range of products from food to clothing to jewellery to electronics to home furnishing, etc., cash on
delivery, easy returns, etc. has spiked the interest of shoppers in online shopping is shown in Figure 13.

Figure 13. E-Commerce growth per type of product (2013-2015)

Source: Sia partners [20]

11. Insurance – People are becoming more and more aware of the advantages and benefits insurance provides and
hence the sector is growing continuously. Also, digitalisation of services like premium payment, policy
comparisons, availability of important information, etc., has made the process much simpler.
12. Tourism – Tourism is growing by various measures taken by government to make the stay pleasant for the
tourists. Also, digitalisation of economy is resulting in increase in the tourists in the country because of the ease it
brings are shown in Figure 14.
13. Healthcare – Healthcare industry benefits by digitalisation in the form of bill payments, keeping records of
patients, tracking files, discussing cases with other doctors, getting treatments from far away situated doctors,
availability and procurement of medicines online, free consultation services, etc.
The service sector contributes the most in the overall GDP of the country, though the manpower employed in the
sector is quite less compared to other sectors. If more efforts are put in the growth of the sector, the resulting
development of the economy will also be huge, registering the country from the developing economies to
developed economies.
 Figure 14. Travel & tourism’s total contribution to GDP (U$$ Billions)

Source: IBEF – Indian tourism and hospitality industry analysis [21]

Q) Are you aware of Digital India Project?

a) Yes 70

b) No 12

c) Indifference 18
 18%

12%

70%

(Figure: 10.1)

Interpretation:

The above pie chart shows the percentage of awareness of ‘Digital India Project’.

 70 out of 100 (i.e.70%) respondents are aware about the Digital India Project.

 12 out of 100 (i.e12%) respondents have no idea about Digital India Project &

 18 out of 100 (i.e.18%) respondents have just heard the name ‘Digital India Project.’
Q) Do you think digital India Project will uplift the standard of living?

a) Yes 93

b) No 7

7%

93%

(Figure: 10.2)

Interpretation:

The above pie chart shows that ‘Digital India Project’ will uplift the standard of living or not?

 93 out f 100 (i.e.93%) respondents think that ‘Digital India Project’ will uplift the standard of

living &

 7 out of 100 (i.e.7%) respondents think that ‘Digital India Project’ will not able to uplift

the standard of living.

Q) Do you want to live in a digitalized city?

a) Yes 73

b) No 17

c) Indifference 10

10%

17%

73%

(Figure: 10.3)

Interpretation:

The above pie chart shows the percentage between the respondents who want to live in a digitalized, who

don’t want to live in a digitalized city & indifference.

  73 out of 100 (i.e.73%) respondents want to live in a digitalized city.

 17 out of 100 (i.e.17%) respondents don’t want to live in a digitalized city &

10 out of 100 (i.e.10%) respondents are indif

 CHAPTER – 5

Findings, Recommendations, Limitation & Conclusion

Summary of finding:

1. Most of the people are aware of Digital India Project.

2. Digital India Project will going to uplift the standard of living.

3. People want to live in a city where every work is digitalized.

4. Literacy to every other rural people and providing digital education is very
important thing to convert India Digitally.

5. Rural people can able to adopt the digital changes only if they will be given proper
guidance of digital literacy & knowledge.

6. IT sector will get employment opportunity because this project requires people
with fresh IT skills. There is going to be vast change in development in service sector
as well as rural sector.

7. After digitalization, educational institutes will become more convenient as compare

to their current services.

8. Availability of free Wi-Fi at all public places is the idea of Digital India according to
most of the people.

9. According to most of the people, Digital India Project has been rated ‘good.’

10. According to people, Digital India Project will get great success.
 Recommendation :
 Indian government need to start providing digital literacy to every other citizen.

 To create impact of Digital India to be realized, we have to use technology to

solve problems faced by Indians and for that we need a very strong culture of
grounds-up frugal innovation in IT.

 Our recommendation to the government would be to set up PPP forums in

each of these segments to invite industry to participate in areas where they
have the domain expertise and interest.

 The government has set the stage with a strong vision and an equally strong
show of will to make it happen. What we need now is for them to focus on
setting the right policy frameworks and processes that make it easy for
industry to do business in India and encourage us to participate in India’s
journey towards becoming a digital India.

 What is needed now is an unprecedented focus and the will to make it happen
across both government and industry.

 The one area where this kind of a model is needed with a high level of
urgency is in developing the culture of innovation in India.

 The government must encourage open global standards that will enable India
to benefit from the best technology worldwide.

 The government should also focus on sustainable development and basic

facilities of rural area before providing them digital services. These two have
to go hand-in-hand.

 The numbers are mind boggling, but they can be achieved, especially as rapid
pace of innovation is increasingly making technology more favorable for mass
scale adoption, which is a must for the successful realization of Digital India.

 It is recommended that every citizen must realize that such an important and
enormous vision cannot be the government’s job alone. We have to be an
equal partner in this journey.
 Limitation of Research:

The present study is confined to a minimal sample size and may not reflect the opinion
or response of the entire population in general. There was only 100 respondents taken
for the survey. The results of our study are entirely confined to the responses mostly
of the citizens of Delhi Ncr and might deviate in terms of actual population as a whole
recommendation given after the study are entirely dependent on the survey and the
secondary & primary analysis done in the report.
 Conclusion:

Most of the people are aware of Digital India. From the survey, we have concluded
that Digital India Project will definitely uplift the standard of living. People want to live
in a digitalized city as it will provide better lifestyle through digital services. Rural
area people will also be able to adopt the digital changes only if government of India
will provide the proper training and digital literacy. Without a proper digital training, it
will be difficult for the Indians to get comfortable with digital changes in the country.
Digital India will be providing lots of job opportunities and will help in reducing
unemployment from the country. Specially IT people will get a good opportunity to
showcase their technical skills. The job will be mostly white collar job which will raise
the standard of living in the country. Service sector will also undergo vast change as
people will able to get all the work done digitally. The time taken to complete each
task will reduce to minimum. It is possible that after digitalization, there will be Net-
Zero imports in the economy by 2020. GDP of country will also be effected by this
project. This project will definitely bring prosperity & upgradation to country but
certain drawbacks are there as it is fully related to technology. Security may become
the matter of concern. Other than this, the error in the system may be lead to a
serious problem. People have lots of expectations towards this project. Government
of India has to stand upon the expectations.
Questionnaire for “Digital India”

I Anuj Neupane, student of Sharda UniversitySchool of Business Studies. I would

like to take the survey for my project on ‘Digital India and Impact of digital payment
on indian economy”

Thank you for taking the time and effort to respond to this questionnaire. Please give
your most candid and thorough response to the questions below. Rest assured that
the information you share here is confidential.

Name:

Age:

Gender:

Occupation:

If student, please mention your stream:

(Note: Please mark the suitable option according to you.)

Q-1) Are you aware of Digital India Project?

a) Yes

b) No

c) I’ve just heard the name.

Q-2) Do you think digital India Project will uplift the standard of living?

a) Yes

b) No

Q-3) Do you want to live in a digitalized city?

a) Yes

b) No

c) Indifference.
Q-4) According to you, what is the most important thing to convert India digitally?

a) Literacy to rural people.

b) Digital education.

c) Both.

(If any other pleases mention):

Q-5) Do you think rural people can able to adopt the digital change in our country?

a) Yes they can.

b) I don’t think so.

Q-6) According to you, which sector will get developed most after digitalization in
India?

a) IT sector.

b) Educational sector.

c) Service sector.

d) Rural sector.

Q-7) After digitalization, which area will become more convenient to you as compare
to their current services.

a) Reservation.

b) Banking.

c) Electricity/Water facilities.

d) Educational institute.

(If any other pleases mention):

Q-8) What is your idea of ‘Digital India.’?

a) Internet connection in every rural area.

b) Digitalization of all government work.

c) Free Wifi at all public places.

d) Digital literacy.

(If any other please mention):

Q-9) What rating would you give to this ‘Digital India Project.’?

a) Excellent.

b) Good.

c) Fair.

d) Poor.

Q-10) Do you think ‘Digital India Project’ will get success?

a) Agree.

b) Disagree.

c) Indifference
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