Digital Economy: A Leveller or a Source of Economic Inequality | HPSC Preparation: All subjects - HPSC (Haryana) PDF Download

Science-Technology

With more and more technological developments, the internet has become a means to make life easier. It has transformed many sectors of the economy and has aided significantly in boosting the country's economic growth. It is no surprise that the digital economy is expanding its reach across the length and breadth of the country and has become an integral part of people’s lives.
While going digital has made things simpler in almost all spheres of life (economic, political, social, commercial, etc.), whether it is actually beneficial or not is up for debate. It goes without saying that having a digital economy has made the day to day activities much smoother; it would be incorrect to assume that it hasn’t created problems.

A Leveller or a Cause for Inequality?

The benefits of the digital economy are there for everyone to enjoy. Some of the major advantages offered by the digital economy in India are: -

• An Increase in Online Businesses: Also known as e-commerce, the availability of a well-developed internet network along with facilities such as online banking, trading, video conferencing, etc., makes it so much easier for individuals to carry out their work. Owing to these facilities, marketing, buying and selling, money transactions, etc., have become so much easier, closer to home, and have significantly helped in the empowerment of the underprivileged sections of the Indian society.
• Higher Transparency and More Proof: Once something is on the internet, it stays out there forever, no matter whether you delete it from one domain or another. It never fully disappears. This is a massive advantage, especially when it comes to money transactions and other kinds of agreements entered by the people. For instance, once a person makes a payment online, the transaction record is saved online and is easily accessible as and when required. This has made life simpler for individuals and offers protection in case of instances of fraud, theft, or other forms of cyber-crimes.
• Easy Availability of Services: Not only does the internet provide a means to easily conduct essential activities, but it also allows people to access necessary services conveniently. Information regarding necessary steps, benefits available, documentation required, etc., for different government schemes. Many government agencies have their own apps which allow the users to avail themselves of the essential services within a few minutes.

While the advantages offered by the digital economy are noteworthy, it goes without saying that the digital economy is responsible for creating some inequalities in Indian society as well, such as:

• Unemployment: It goes without saying that an internet driven economy has made life less complicated, but it has also become a cause for concern. With almost everything being done online with the help of software, there is a decrease in the demand for manpower. Fewer and fewer people are required to do a particular work, which has thrown many people into unemployment. For example, when it comes to bank work, the easy availability of banking apps, Paytm, Google Pay, etc., has put many people out of work. Also, for people with a lesser understanding of the internet, it becomes difficult to find a suitable job.
• Increased Cyber Crimes: Even though every activity on the internet can be traced, it does not mean that cybercrime no longer exists. In fact, it is quite the opposite. With almost everyone having access to the internet, some with greater knowledge of its functioning and loopholes, there have been increased cases of cybercrime, including hacking of bank accounts, thefts, illegal transactions, etc., which have eroded the trust of people in the prospects of the digital economy.
• Lack of Security: The ease with which unauthorized entities can access data on the internet can turn out to be quite harmful. Many companies, businesses, and even government agencies store large amounts of data online or on computers. Anyone who knows how to hack into another system, even a secure one, can easily gain access to important and confidential data and can also use it to their advantage.

Steps to Tackle The Issue of Inequality

With constant technological developments, it is good to move along with those changes; it is good to learn new ways of life. However, the problem arises when people get so absorbed in that new life that they do not realize the harm it is causing to themselves and others. In such situations, it becomes important to identify what the problem is and how to find a solution to it. Here are some ways to bridge the gap that was and continues to be created by the digital economy:

• Stricter Cyber Laws: While cybercrime has been on the rise in recent years, thanks to easier access to the internet, the laws for cyber crimes are still not well-defined. There should be improvements in cyber laws so that the victim is provided immediate attention and relief and the culprits are caught in time. There should be increased awareness about such crimes, and efforts should be made to make the internet more secure. Users should be educated about the do’s and don’ts while using the internet to secure their digital space.
• Education: Since almost every sector of the economy uses the internet and its related services to carry out daily functions and run businesses, more and more people should be taught how to use the internet. They should be encouraged to develop skills related to the internet so that they have a better chance of finding employment. This is especially the case with rural areas. While people in small towns and villages do have access to the internet, it is often limited. If they, too, are taught how to perform online banking, purchasing or selling items online, or even promoting a local business online, they would benefit immensely.
• Empowering people: The fact that many business activities are being conducted online and it has become important to have basic knowledge of the functions of the internet for anyone to land a decent job. These trends indirectly contribute to problems such as unemployment. It is the government’s responsibility to create more job opportunities in all sectors and all regions of the country. Efforts must be undertaken by the central government and the state governments to ensure that people, irrespective of their lack of knowledge of the internet, have a way of earning a livelihood.

Over the years, the government has made efforts to transform the traditional economy into a digital economy. It is in no way wrong to hope for an economy that keeps growing steadily while making things easier for the people. But it is also important to be fully aware of the country's situation and its people before giving priority to major changes such as the ones mentioned above. It is necessary to assess both the positive and negative impacts of such a transformation and then develop a balanced approach that satisfies the needs of all stakeholders.