Is India on its Way to Becoming a Digitised Society?

Wed, 28 Dec Pre-Open

   Previous Close   

   09:30 am   

   11:30 am   

   01:30 pm   

   Closing   

The government's demonetisation drive has changed the way how India spends money to a great extent. The cash crunch, long lines at ATMs and hassles with the Rs 2,000 note have led many people towards digital transactions. And as days go by, many seem to expect that India will now move inexorably in the direction of becoming a cashless economy.

It would indeed be a positive development if India moves to a cashless economy. It will ensure lower costs, improve transparency in transactions, and open up opportunities for some companies.

But is India ready to go digital?

If one has to go by ground realities, they are not so conducive. Facts show that India is not going to become a cashless economy anytime soon. The reality remains that the absolute quantum of such payments is just not large enough compared to the size of the economy.

Even if these issues are sorted out, there remain many issues ahead blocking Modi's cashless ambition. As a recent issue from Vivek Kaul's Inner Circle points out:

• When we start thinking in terms of months and years as opposed to days or weeks, things change dramatically.
  
  Lack of trust in online payments, security risks, identity and privacy issues, as well as old habits of paying in cash, are just some of things that come into play.
  
  Then there's the all-important issue of data usage on cell phones. A majority of Indians don't seem to use phones to surf the internet in the same carefree manner as we use them for calls and messages.

So unless the above things change, the road towards a cashless economy will remain a long one.

Apart from these issues, India's digitisation would deal a big blow to the informal economy. While digitisation will encourage these firms to enter the formal sector, it will also expose them to various threats. Tax levy and increased regulation would affect their operations and make them less competitive.

One way to solve this issue could be to expand the formal sector and make it easier for firms to operate there. If this is done, many informal businesses will themselves be encouraged to join the formal sector and also offer more jobs - which is the need of the hour.

Therefore, unless the whole financial system is made more secure, fool proof, and easy to operate in, the shift towards a cashless economy can prove to be a financial nightmare for the common man.

To know more on digital India and its far-reaching implications, you can read the recent edition of The 5 Minute WrapUp titled Is Digital India Also Made in China? It offers some insights on how digital India is related to the global war on cash.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Top Gainers TodayTop Gainers over 1-WeekTop Gainers over 1-MonthTop Gainers over 1-YearTop Gainers over 3-YrsTop Gainers over 5-YrsTop Losers TodayTop Losers over 1-WeekTop Losers over 1-MonthTop Losers over 1-YearTop Losers over 3-YrsTop Losers over 5-YrsOnly BuyersOnly SellersMost Active StocksMost Popular Stocks52 Week High Stocks52 Week Low Stocks

INDICESBSE (Rs 0 to 1)BSE (Rs 1 to 2)BSE (Rs 2 to 4)BSE (Rs 4 to 10)BSE (Rs 10 to 20)BSE (Above Rs 20)BSE - AllBSE-30BSE-100BSE-200BSE-500BSE AutoBSE BankexBSE Capital GoodsBSE Consumer DurablesBSE FMCGBSE HealthcareBSE ITBSE MetalBSE Oil & GasBSE PSUBSE TeckBSE RealtyBSE PowerBSE A GroupBSE B GroupBSE Mid-CapBSE Small-CapBSE Basic MaterialsBSE Consumer DiscretionaryBSE IndustrialsBSE UtilitiesBSE Sensex 50BSE Sensex Next 50BSE Bharat 22BSE 150 MidCapBSE 250 SmallCapBSE 250 LargeMidCapBSE 400 MidSmallCapBSE AllCapBSE LargeCapBSE SmallCap SelectBSE 100 LargeCap TMCBSE InfraBSE ManufacturingBSE CPSEBSE Private BankBSE Diversified FinancialsBSE MomentumBSE Low VolatilityBSE QualityBSE Enhanced ValueBSE Divident StabilityS&P BSE IPOBSE SMEIPOBSE 100 ESGBSE CarbonexBSE GreenexNSE (Rs 0 to 10)NSE (Rs 10 to 20)NSE (Above Rs 20)NSE - AllNSE-50NSE ITNSE Nifty Midcap 50NSE JR. NiftyNSE Bank NiftyNIFTY Next 50NIFTY 100NIFTY 200NIFTY 500NIFTY MidCap 100NIFTY SmallCap 250NIFTY SmallCap 50NIFTY SmallCap 100NIFTY LargeMidCap 250NIFTY MidSmallCap 400NIFTY AutoNIFTY Consumer DurablesNIFTY FinanceNIFTY FMCGNIFTY MediaNIFTY MetalNIFTY PharmaNIFTY Private BankNIFTY PSU BankNIFTY RealtyNIFTY Oil & GasNIFTY SME EmergeNIFTY CommoditiesNIFTY CPSENIFTY EnergyNIFTY India ConsumptionNIFTY InfraNIFTY MNCNIFTY PSENIFTY Serv SectorNIFTY100 Liquid 15NIFTY Midcap Liquid 15NIFTY Midcap 150 Quality 50NIFTY50 Equal WeightNIFTY100 Equal WeightNIFTY100 Low Volatility 30NIFTY100 Alpha 30NIFTY Alpha 50NIFTY Dividend Opportunities 50NIFTY High Beta 50NIFTY Low Volatility 50NIFTY200 Quality 30NIFTY 500 Value 50NIFTY 100 Quality 30SECTORSAgricultureAirlinesAluminiumAsset Management CompaniesAutomobilesAuto AncillariesBanks (Private)Banks (PSU)BankingCementChemicalsDefenceDiagnosticsDronesEngineeringElectric VehicleElectric Vehicle BatteryEnergy SourcesESGEthanolFertilizersFintechFMCGFoodGreen HydrogenHotelsInfrastructureInsuranceInvestment and FinanceInvITIT (Large)IT (Others)LogisticsMediaMetalMiningIndia's Big Tech StocksIndian PharmaMNC PharmaPSUPaintPaperPlasticPowerRating AgenciesReal EstateREITsRenewable EnergyRetailingSemiconductorShippingSteelSugarSupply ChainTelecomTextilesTravel Support Services

10 results 25 results 50 results 100 results All results

Indian Share Market Update: Top Gainers and Losers