- 34.8% of the total population who uses the internet in the country.
- In 2015, online payment accounted for 14% of the total transactions mainly due to e-commerce websites.
- 80% of the employment is mainly in unorganised sectors.
On November 8, Prime Minister Narendra Modi demonetised 86% currency note in circulation that almost left many paralysed since high-value denominated notes were their medium of financial transactions.
It has been three weeks ever since then, and many of us have adopted the digital way of life. We, the tech savvy population of India have adjusted to the fact that card swiping is necessary and apps are the new windows to this new digital India.
In fact, to give a push to digital transactions, the Finance Ministry have also come up with various measures that will reap you benefits till December 31.
The digital people:
The digital people are the ones who work in organised sectors, have bank accounts, own credit and debit cards, own smartphones and know how to use various service providing apps, and also own membership cards of shopping centres.
Interestingly, most of us had our first bank accounts when we got our first real job, and many educated homemakers still do not own their own bank accounts.
Most of the financial transaction by us are done through digital mediums using the internet.
Now we, digital people constitute 34.8% of the total population who uses the internet in the country, and in 2015, online payment accounted for 14% of the total transactions mainly due to e-commerce websites.
The non-digital people:
India is a country of $1.8 trillion GDP and 20% of it, and 80% of the employment is mainly in unorganised sectors without bank accounts or any other mean of transaction apart from cash transactions.
In fact, half the population of this country do not own bank accounts making electronic payment an alien concept for many.
The digital people of India can also feel the impact of demonetisation on the unorganised sectors once we try to hire local services like plumbing, home renovation, electrician and buy products from stores that do not offer membership cards.
The sudden demonetisation has left many questions unanswered including the GDP growth rate of India.
Rating agency Flinch recently revised their India growth forecasts for the fourth quarter and mentioned that supply chains have been disrupted due to inability to pay for purchases, also that the time spent by people in queues post ₹500 and ₹1000 ban has affected general productivity in India.
Various other agencies have also predicted a drop in GDP in next 12 months.
So, the question remains whether India is rich enough to pay a huge price for demonetisation and subsequent digital transactions.
Last Updated 31, Mar 2018, 6:52 PM