Availability, Spread Of Digital Infra Will Contribute Significantly To Economic Growth: Economic Survey

The Economic Survey on Tuesday said that the availability and spread of digital infrastructure will contribute significantly to economic growth in the coming years. 

The survey mentioned that significant growth in internet subscribers in rural India was the major shock absorber during the COVID-19 pandemic when both businesses and consumer demand were impacted.

The Economic Survey was presented by the Union Minister for Finance and Corporate Affairs Nirmala Sitharaman in the parliament on Tuesday.

The survey noted that after the launch of Digital India in 2015, India added more internet subscribers in rural areas in the last three years (2019-21) than in their urban counterparts (95.76 million vis-a-vis 92.81 million in rural and urban areas respectively). 

The survey attributed this growth in recent past to the digital drives across rural areas through ambitious government schemes, like the flagship BharatNet Project Scheme, Telecom Development Plan, Aspirational District Scheme, initiatives in North-Eastern Region through Comprehensive Telecom Development Plan (CTDP) and initiatives towards areas affected by Left Wing Extremism (LWE) etc.

Courtesy: PIB

Digital infrastructure created over the years ensured not just the continuous transmission of information but also added economic value when businesses went digital, the survey said. 

“The 200 per cent increase in rural internet subscriptions between 2015 and 2021 vis-a-vis 158 per cent in urban areas, reflects the increased impetus the government is putting to bring rural and urban digital connectivity to the same level,” the survey mentioned.

The survey talked about the introduction of the Indian Telegraph Right of Way (Amendment) Rules, 2022, and how it will facilitate faster and easier deployment of telegraph infrastructure to enable speedy 5G rollout. 

It emphasised that the government has brought in procedural reforms in Wireless Licensing, including delicensing of various frequency bands to promote innovation, manufacturing and export. “The National Frequency Allocation Plan 2022 (NFAP) will give guidance to the users of the spectrum to plan their networks in accordance with the relevant frequency and parameters provided therein,” the survey stated.

The Economic Survey states that to further create digital linkages at the grassroots level and increase the consumer experience other initiatives include approval of a project for the saturation of 4G mobile services in uncovered villages across the country. Apart from this, with a special focus on the states in the North-Eastern Region, the government is implementing a Comprehensive Telecom Development Plan (CTDP). A comprehensive initiative to connect our islands to the mainland has also been realised through the government’s initiative of the Comprehensive Telecom Development Plan for Islands.

“The increasing digital adoption during covid-19 in areas like healthcare, agriculture, FinTech, education, and skilling indicates that the digital delivery of services in India has a massive potential across economic sectors,” the survey highlighted.