Digital economy: The twin pillars

In keeping with the demands of the digital civilisation, the Union ministry of electronics and IT has drawn up a plan for a $1 trillion digital economy. It is supposed to draw on the inherent strengths of the country as a powerhouse of the information age and erect a comprehensive architecture for the expansion of the digital economy where money flows as electric impulses in electrical circuits through electronic gateways and switches across the globe in milliseconds at the flick of a finger which would count and distribute cash less and less. It is an elaborate ecosystem where the designers, enablers and users are principally Indian.

With technocrats such as Ashwini Vaishnaw and Rajeev Chandrasekhar taking over the reins of the ministry, the idea seems to be one whose time has come. In the process of living up to this dream, India could turn into the largest connected society in the world with a pronounced emphasis on digital governance and legislations appropriate for digital technology.

And it is precisely here that the government has to bear in mind a few fundamental rules. One, the state should not feel tempted to do anything else other than being an enabler. It is a role for which there has been a lot of dialogue since the inauguration of the economic reforms in the early 1990s. Two, the executive has to plan and push for legislations appropriate for the digital economy. A digital world cannot flourish with the rules of a brick-and-mortar world. Three, the government should raise accountability standards of vendors. We have seen the fiasco that can happen with some of the best brands, especially after the IT portal fiasco.

The government should also leave the task of regulation to independent bodies and ensure that they remain free from state control. At the heart of the digital economy lies the carrier – the internet. It should be open, safe and accountable. But perhaps the most important pre-condition to a robust digital economy is the need for cyber security. There has been a huge rise in cyber frauds and attacks in the recent years which seems to be rising especially after the pandemic since more and more people are adopting digital transactions. The state has to raise levels of cyber security if it has to inspire trust among the citizens to embrace the emerging culture.

Being an enabler and a provider of security would both be the twin pillars and twin towers of the digital push that the new team is planning.