Digital economy: A leveler or a source of economic inequality
Digital economy is an economy based on digital computing technologies using the internet. The digital economy is also known as Internet Economy. It covers financial services, retail marketing, social, cultural etc doing online by an electronic device. Essentials of digital economy are Knowledge on using internet, availability of internet and mobile or PC.
It reduces transaction costs and transforms supply chains eg Zomato, Swiggy (food chain), Phone Pe, Google Pay(Banking Services), Trivago (Tourism), Red Bus (Travel). Further, it reaches the directly to beneficiaries in the case of welfare schemes.
Currently, India's digital economy generates about $200 billion of economic value annually — 8 per cent of India's GVA in 2017–18 — largely from existing digital ecosystem comprising information technology and business process management (IT-BPM), digital communication services (including telecom), e-commerce, domestic.
Illiterate people often faces problem in participating in Digital Economy whereas literates who have knowledge of using internet (APPS) saving their time, resources etc.
The benefits of the digital economy for emerging economies like India are potentially large. ... Governments also benefit to deliver more and better public services, improve governance, evaluate policies etc.
Disadvantages of digital economy are loss of employment, heavy investment, menace of online theft etc. User needs to be alert, conscious about online transaction etc otherwise he/she may loss financially devices hacking and caused to virus attack.
Digital economy reduces socio economic inequality through reaching direct transfers of Govt Services to common people, accessing to banking services, retail marketing etc 24 x 7 without discrimination. It helps the economy of society and in overall development of nation but there is need of building awareness among users about safety and protection from cyber thefts by improving technologies.