Elaborate the role of digitization of Indian Economy through apps like UPI, Bhim, G pay ete in consolidation and growth of Indian economy. [150 Words] (10)
In recent years, digital payment apps like UPI, BHIM, and GPay have helped digitize the Indian economy. These apps have simplified online payments and increased financial inclusion.
Role in Economic Consolidation
- The transition to digital payments has brought much of the informal sector into the formal system, improving transparency and tax income.
- Digital payment systems are interoperable, enabling seamless transactions across platforms and lowering transaction costs.
- Digital payments enable small businesses to accept payments electronically, extending their customer base and improving cash flow management.
- Digital payment methods reduce cash-based transaction risk and boost consumer confidence.
- Digital payment data helps firms understand consumer behavior and market trends.
Role in Economic growth
- Digital payment apps have given unbanked people access to credit, allowing them to establish enterprises, buy assets, and improve their lives.
- Digital apps make it easy to make and receive payments, encouraging micro-entrepreneurship and grassroots economic growth.
- Financial inclusion has raised savings and investment among the unbanked, mobilising capital for economic development.
Digital payment apps will become even more important in India’s economic future as it digitizes.