Digital tech to contribute 20 pc in India's USD 5 trillion economy target by 2025: EY

Digital technologies are expected to generate USD 1 trillion in economic value by 2025, accounting for 20 per cent of India's USD 5 trillion economy ambition, consultancy firm EY said.

"Digital economy has the potential to sustain 60-65 million employment opportunities for women, differently-abled people, skilled and semi-skilled workers across digitally enabled businesses in urban, semi-urban, and rural areas. This transformation is expected to create a thriving market for digital services, content, solutions, platforms and applications," EY said in a statement that coincided with the ongoing India Mobile Congress 2019.

Digital technologies have the potential to create USD 1 trillion economic value, contributing 20 per cent to the country's nominal GDP, the statement added.

Enabling factors like availability of increased disposable income, cheaper smart phones, declining data tariffs, and increased digital literacy are helping achieve inclusive growth by making products and services more accessible thus fuelling the digital economy, EY said.

By 2025, India is expected to have 90 per cent internet penetration with 850 million users, as rural base growing 2.5 times compared to the urban base, it noted.

Also, e-commerce and consumer internet sectors are expected to reach USD 200 billion by 2027.

"India is at an inflection point digital has changed the way people communicate, socialize, create, sell, shop and work. What comes next' will be determined by the continued focus on fostering innovation, developing unique service offerings and enabling the digital infrastructure in the country which will help us achieve or even exceed the USD 1 trillion target," EY Emerging Markets TMT Leader Prashant Singhal said.

India is poised to be a game-changer in the world digital economy by empowering its citizens and revolutionising businesses, he added.