Syllabus: GS 3: Science and Technology – Developments and their Applications and Effects in Everyday Life
Source: The Hindu (Data Point) – 31/07/2023
Introduction
- Since the introduction of UPI in 2016, the digital payments system in India has grown significantly in value and volume.
- Demonetisation in November 2016 and the COVID19 lockdown in 2020 were major push factors for the widespread adoption of digital payment.
- However there are many hurdles that need to be tackled in order to boost India’s way towards digital revolution.
Major hurdles
Financial inclusion
- According to the World Bank Global Findex Survey, 80% of the population had bank accounts in 2021 as a result of push for Jan Dhan accounts.
- However,of those with bank accounts, 38% have inactive accounts.India has one the highest share of inactive accounts in the world. Most of these inactive accounts belonged to women (than men), rural population (than urban) and the poorest section (than rich) of the society.
- Even though the popularity of UPI has increased substantially in recent years, only 35% of the population reported carrying out any digital transaction in 2021( whereas world average is 64% )
Gender gap
- There exists sharp gender gap in digital transactions. While 41% of the male population carried out any digital transaction in 2021, the corresponding figure among women was only 28%.
Rural urban divide
- Only 30% of Indians in rural areas made or received any digital payment in 2021 as opposed to 40% in urban areas.
- Internet connectivity and accessibility are also widening the digital divide between rural and urban people.
Digital india Act
- Lack of an inclusive Digital India Act is another hurdle which needs to be addressed for an effective and efficient digital economy.
- Digital India Act 2023 is a proposed legislation that aims to replace the Information Technology Act 2000 and provide a comprehensive framework for regulating the digital space in India.
- It will foster the development and deployment of digital technologies across multiple sectors, such as education, health, agriculture, and e-governance.
- It will also address various challenges related to cybersecurity and data privacy
Digital public infrastructure (DPI)
- Digital public infrastructure is the key for 21st century innovations and growth
- DPI refers to the technological system that enables the delivery of important digital services to the public.
- It will promote digital inclusion and reduces digital divide
Digital illiteracy
- The overall digital literacy rate in the country has to bridge a gap of more than 90%.
Govt. initiatives
National internet exchange of India
- The National Internet Exchange of India (NIXI) is a non-profit company incorporated under Section 25 of the India Companies Act, with an objective of building India’s internet infrastructure.
- NIXI’s exceptional contributions to create a robust and inclusive digital ecosystem in the country via its business divisions towards Internet Exchange, .IN Registry, IRINN and NIXI-CSC Data Services Ltd.
Kerala Fibre Optic Network (KFON)
- KFON is an audacious project of the Kerala Government aiming to obviate the digital divide. This project is to be a complementary infrastructure to the existing telecom ecosystem in the State.
- It can provide affordable and better broadband connectivity to households.
- The government can even explore delivering e-Governance services to citizens through such networks.
Internationalization of digital payment
- Internationalization of digital payment refers to cross border transactions.
- India digital payment systems like RuPay, UPI (Unified Payments Interface), is steadily becoming globally attractive amid measures to enable seamless cross-border transactions.
- Countries that have accepted different forms of Indian payment systems include France, UAE, Saudi Arabia, Bahrain, Singapore, Maldives, Bhutan, and Oman.
Other related topics
Web 3.0
- Web 3.0 refers to a new, improved, and democratized, internet ecosystem which will be free from any sort of central authority.
- It is an emerging phase or the latest phase of the evolution of the internet which is based on the concept of creating a totally decentralized ecosystem.
- This new technological dimension believes in leveraging the power of A.I., machine learning, and the latest technologies like blockchain to solve the problems of the present-day internet/online ecosystem.
- People will be able to buy, own, sell and earn by selling their digital content in the form of NFTs(Non-Fungible Tokens)
Main features of web 3.0
- Artificial Intelligence – One of the primary features of Web 3.0 will be its ability to decipher human emotions and thoughts.
- Semantic Web – It would enable the computer to analyze data and decode the meaning and emotions that they are trying to convey.
- Ubiquity – ubiquity means omnipresence. It makes the internet more widely accessible using the Internet of Things (IoT).
- 3D Graphics – Web 3.0 will bring in the new graphics technology, making the three-dimensional virtual world a reality. The use of 3D graphics will make the internet user experience more immersive and will also be helpful in transforming a variety of sectors like health, e-commerce, real estate, etc.
Way forward
- Bridge the digital literacy gap by providing digital education to all vulnerable sections (women, elderly, poor, rural etc ) of the society thereby generating trained and skilled manpower for New digital India .
- Investment in Digital infrastructure is another key factor that can help India attain the ambitious target of doubling its economy in five years to $5 trillion.
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