New Delhi: The World Bank's recent report highlights the growing digital capital in India as a crucial factor driving entrepreneurship, business revenue, and social mobility, particularly benefiting small vendors and economically disadvantaged regions.
The report elaborates on how digital technologies—including the internet, mobile devices, and social media—are reshaping the socio-economic environment in the country.
It states that "digital capital has enhanced entrepreneurship and business income in India, favoring small-scale vendors and economically lagging areas."
Furthermore, the report emphasizes that digital technologies offer students from underprivileged backgrounds access to educational resources, fostering talent development and social mobility.
These technologies have also empowered individuals to create digital footprints—records of their online activities and transactions—which can function as digital capital. This capital aids individuals in establishing financial credibility, as lenders can now evaluate creditworthiness based on data related to payments, receipts, taxes, and loan repayments.
The report acknowledges Nandan Nilekani, a prominent tech entrepreneur in India, for his role in launching the Aadhaar system in 2009. This digital identification program has enabled millions of Indians to build digital capital and participate in the formal economy.
The World Bank has emphasized India's significant progress in social mobility, especially within urban settings. Following the country's economic liberalization, improvements have been notably greater among marginalized groups in cities than in rural regions.
The report stated that social mobility in India has seen substantial enhancement in urban areas over recent decades, yielding more significant benefits for disadvantaged populations compared to their rural counterparts.
Additionally, it acknowledged the pivotal role of India's IT revolution in this change. Tata Consultancy Services (TCS) showcased the availability of high-quality, cost-effective talent in India, becoming the first Indian firm to export computing services to the United States.
The report also highlighted Infosys, established by a group of former IBM engineers using their savings, which further illustrated India's IT capabilities and emerged as a global leader in technology consulting.
Furthermore, the report pointed out that the utilization of digital technologies and talent has not only strengthened entrepreneurship but also promoted inclusivity, helping to close gaps for underserved communities and solidifying India's status as a global technology leader.
