Role of Digitization and E-commerce in Indian Economic Growth

Megha Narang


The objective of the paper is to investigate the impact of digitization on economic growth and its potential for creating employment opportunities. Digitization being a key economic driver in the present world it is important to integrate the economy by creating digital markets.  It is found in large economies internet accounts for about 3.4% of GDP on average along with stable employment generation. During global downturn 6 million jobs were created worldwide by the digitization effects and 94% were from emerging economies and 6% from North America and Western Europe. In India, increasing internet penetration, rapid technology adoption and high sale of technical gadgets like smartphones, tablets, etc, have led to an attractive online customer base and unprecedented growth of e-commerce. Domestic policies regarding telecommunication, financial services and distribution and delivery would provide inputs for e-commerce trade related negotiations. Studies show that 2.6 jobs are created by internet for every job lost for internet. The paper discusses the different countries’ digital contribution and the employment created with the e-commerce growth.


digitization, economic growth, e-commerce, employment

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