31 JAN,2021 | MEDC
An unintended consequence of Covid is that the digital transformation of the economy has been speeded up by almost a decade. This fact should be adequately grasped and taken to its logical conclusion. Digital technology is going to become core to the resilience and continuity of many Indian businesses – particularly MSMEs – and it is going to massively impact their productivity. The forthcoming budget needs to accommodate this fact since, in almost every sector of the economy, a strategic digitization is the key to overcome operational blocks and generate multiplier effects throughout the system. However, any digital transformation should not occur at the cost of widening the digital divide, as that will be detrimental to sustainable and inclusive growth. As small businesses are now increasingly going online, the Union Budget should focus on the improvisation of digital infrastructure in Tier 2 and Tier 3 cities, which are the future growth engines of our economy. Better internet connectivity in rural areas will further stimulate the demand for ecommerce, and ensure that India’s economic recovery becomes truly broad-based.
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