Skip to main content

Digital India to be Run Like Corporate Entity


IT minister says govt has roped in McKinsey to prepare road map for digital economy With the aim to “corporatise“ its Digital India project, the government is looking at creating a Digital India Corporation.

Union minister for electronics and IT Ravi Shankar Prasad said the idea is to have a professional way to implement the programme. “It will be professionally managed with a corporate architecture,“ he said on Tuesday at a press conference to list achievements of his ministry after three years of the Modi government.

Prasad also said the government has appointed consultancy firm McKinsey to prepare the road map for the digital economy for the next few years. Government think-tank Niti Aayog will also prepare an e-readiness index of the states. “The digital economy in the country will become a one trillion [dollar] economy in the next five to seven years,“ Prasad said.

Since the government announced demonetisation, the volume of digital payments through mobile wallets has increased by 104% to 44.3 lakh, by 8803% under the unified
payment interface to 3.31 lakh and by 309% under the Aadhaar Enabled Payment System to 1.58 lakh as of May 17 this year.

On news about layoffs in the IT sector, Prasad denied any downturn and said that in four to five years, 20-25 lakh jobs would be created in the sector. “I completely deny and refute that there is any downturn in the employment in the IT sector. It is robust. Once the digital economy is here, you will see how much it will progres.“.

“In the last three years, almost six lakh people have been employed in our IT sector. In 2016-17, the number of people employed was around 1.7 lakh,“ he said.

Prasad said the government's thrust on a digital economy will also create a slew of new jobs.He said that in the last three years, the number of common service centres has increased to about 2.5 lakh which employ almost 10 lakh people and did business of around  Rs 1,800 crore out of which Rs 600 crore came only from Aadhaar.

Talking about cyber security and the recent ransomware attack, Prasad said about 200 locations were affected and all were standalone computers, since the government had taken proactive measures from March itself by getting the Microsoft patch being installed and by sending advisories.

The Economic Times New Delhi, 24th May 2017

Comments

Popular posts from this blog

RBI deputy governor cautions fintech platform lenders on privacy concerns during loan recovery

  India's digital lending infrastructure has made the loan sanctioning system online. Yet, loan recovery still needs a “feet on the street” approach, Swaminathan J, deputy governor of the Reserve Bank of India, said at a media event on Tuesday, September 2, according to news agency ANI.According to the ANI report, the deputy governor flagged that fintech operators in the digital lending segment are giving out loans to customers with poor credit profiles and later using aggressive recovery tactics.“While loan sanctioning and disbursement have become increasingly digital, effective collection and recovery still require a 'feet on the street' and empathetic approach. Many fintech platforms operate on a business model that involves extending small-value loans to customers often with poor credit profiles,” Swaminathan J said.   Fintech platforms' business models The central bank deputy governor highlighted that many fintech platforms' business models involve providing sm

Credit card spending growth declines on RBI gaze, stress build-up

  Credit card spends have further slowed down to 16.6 per cent in the current financial year (FY25), following the Reserve Bank of India’s tightening of unsecured lending norms and rising delinquencies, and increased stress in the portfolio.Typically, during the festival season (September–December), credit card spends peak as several credit card-issuing banks offer discounts and cashbacks on e-commerce and other platforms. This is a reversal of trend in the past three financial years stretching to FY21 due to RBI’s restrictions.In the previous financial year (FY24), credit card spends rose by 27.8 per cent, but were low compared to FY23 which surged by 47.5 per cent. In FY22, the spending increased 54.1 per cent, according to data compiled by Macquarie Research.ICICI Bank recorded 4.4 per cent gross credit losses in its FY24 credit card portfolio as against 3.2 per cent year-on-year. SBI Cards’ credit losses in the segment stood at 7.4 per cent in FY24 and 6.2 per cent in FY23, the rep

India can't rely on wealthy to drive growth: Ex-RBI Dy Guv Viral Acharya

  India can’t rely on wealthy individuals to drive growth and expect the overall economy to improve, Viral Acharya, former deputy governor of the Reserve Bank of India (RBI) said on Monday.Acharya, who is the C V Starr Professor of Economics in the Department of Finance at New York University’s Stern School of Business (NYU-Stern), said after the Covid-19 pandemic, rural consumption and investments have weakened.We can’t be pumping our growth through the rich and expect that the economy as a whole will do better,” he said while speaking at an event organised by Elara Capital here.f there has to be a trickle-down, it should have actually happened by now,” Acharya said, adding that when the rich keep getting wealthier and wealthier, they have a savings problem.   “The bank account keeps getting bigger, hence they look for financial assets to invest in. India is closed, so our money can't go outside India that easily. So, it has to chase the limited financial assets in the country and