Growth System - Digital India: The Next Phase of Growth to be driven by Midsize Businesses

Digital India: The Next Phase of Growth to be driven by Midsize Businesses

 · 4 min read

Digital India: The Next Phase of Growth to be driven by Midsize Businesses

The Indian startup ecosystem is at an inflection point. The country has moved from being a largely analog economy to a digital one, and this is reflected in the startups that are being founded and funded. In the past few years, we have seen the rise of startups in sectors such as e-commerce, payments, and logistics, which have been made possible by the growth of internet and mobile penetration in the country. Now, we are starting to see the next phase of growth, which will be driven by midsize businesses. These are businesses that are too big to be considered startups but are still small enough to be nimble and agile. They are also businesses that have the potential to scale quickly and make a real impact.

What is Digital India?

The "Digital India" initiative was launched by the Indian government in 2014 with the aim of making India a digitally empowered society and knowledge economy. The initiative has three core components:


1. Digital Infrastructure as a Utility to Every Citizen

2. Governance and Services on Demand

3. Digital Empowerment of Citizens


Under the "Digital Infrastructure as a Utility to Every Citizen" component, the government is working on providing high-speed broadband connectivity to all citizens, especially in rural and remote areas. In addition, public Wi-Fi hotspots are being set up across the country, and all government websites and services are being made available online.


The "Governance and Services on Demand" component seeks to make all government services accessible to citizens electronically, thereby making them more efficient and transparent. For instance, citizens can now file their taxes or apply for a passport online.


Finally, the "Digital Empowerment of Citizens" component aims to ensure that all citizens have access to digital resources and services. This includes providing training on how to use computers and mobile phones, as well as creating awareness about various e-governance services.

The Different Phases of Digital India

Digital India is the next phase of growth to be driven by midsize businesses. The initiative, which was launched in 2014 by the Government of India, aims to transform India into a digitally empowered society and knowledge economy.


Midsize businesses are at the forefront of this digital transformation and are driving the growth of the Indian economy. They are investing in technology, adopting new business models, and expanding their customer base.


The different phases of Digital India are:


1. Connectivity: The first phase of Digital India is focused on boosting connectivity across the country. The government is working to provide high-speed broadband connections to all citizens. This will enable them to access online services and participate in the digital economy.


2. Infrastructure: The second phase of Digital India is focused on developing world-class infrastructure for the digital economy. This includes setting up data centers, strengthenin cybersecurity, and building a robust payments ecosystem.


3. Services: The third phase of Digital India is focused on providing citizen-centric services online. This includes e-governance services, e-healthcare, e-education, and e-commerce platforms.


4. Innovation: The fourth phase of Digital India is focused on promoting innovation and entrepreneurship. The government is encouraging startups with innovative ideas to set up shop in India and scale their businesses globally.

Midsize Businesses in India

In the last few years, India has been undergoing a digital transformation. The government's flagship Digital India initiative has been a catalyst for this change, with a focus on providing affordable and accessible technology to all citizens. This has led to an increase in internet and mobile penetration, as well as the adoption of new technologies by businesses of all sizes.


Midsize businesses in India are now starting to reap the benefits of this digital growth. Thanks to the increased connectivity and availability of affordable technology, midsize businesses are able to reach new markets, tap into new customer segments, and improve their operational efficiency.


There is still some way to go before all midsize businesses in India are fully digitized, but the potential for growth is huge. With the right support and government initiatives, midsize businesses can become the driving force behind India's next phase of economic development.

The Impact of Digital India on Midsize Businesses

Small and medium businesses (SMBs) play a vital role in every economy, and India is no different. In India, SMBs are the backbone of the economy, accounting for 45% of the country’s industrial output and 40% of its exports.


With the launch of the Digital India initiative in July 2015, the Indian government has taken several steps to promote digital transformation among SMBs. The goal is to help them become more efficient and competitive in the global marketplace.


One of the key components of Digital India is the establishment of a National Scholarship Portal. This portal provides financial assistance to SMBs so they can invest in digital technologies. The portal also offers training and capacity building programs to help SMBs adopt new technologies.


In addition, the government has launched a number of initiatives to promote digital literacy among SMBs. These include setting up digital literacy camps, providing online resources and training materials, and conducting awareness campaigns.


The Digital India initiative is already starting to have a positive impact on SMBs in India. A recent study by NASSCOM found that 72% of Indian SMBs are planning to increase their investment in digital technologies over the next three years. This is up from just 55% last year.


The study also found that 80% of Indian SMBs are now using social media, compared to just 50% last year. And, more than half of all Indian SMBs (51%) now have a website, up from

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Chetan Agarwal

Erp Expert

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