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बेसिक इंग्लिश का दूसरा सत्र (कक्षा प्रारंभ : 22 अक्तूबर, शाम 3:30 से 5:30)
Q. Infrastructure issue for digital economy: Discuss the infrastructural issue that are pose constraint to digital economy in India.
Dec 23, 2016 Related to : GS Paper-3

Ans :


In the backdrop of demonetisation, the union government is putting all efforts to move towards cashless economy. The government push towards cashless economy calls for greater digital infrastructure. Growth of the digital economy depends on building network capacity. The current push towards digital transactions leverages the high penetration of mobile phones, but these networks are suffering from various issues. 


  • The mobile phone will be the predominant mode of transitioning to the digital economy in India.  But India’s inability to meet the rising demand for network capacity will place severe constraints on the move to and growth of the digital economy. 
  • The constraining factors is the lack of sufficient spectrum available to mobile use, which is must for transitioning to the digital economy through mobile phones.
  • As per the Cellular Operators Association of India report, operators in India possess significantly smaller amounts of spectrum compared to international standards. 
  • Operators in India possess spectrum of approximately 13 MHz on average, which is very low compared to other Asian countries such as Bangladesh (37.4 MHz) and Malaysia (75 MHz). 
  • In India the problem is not scarcity of spectrum scarce,  but also available spectrum is fragmented, overpriced and inflexible. 
  • The current push to digital transactions on account of demonetisation has meant increased congestion on a limited spectrum capacity.


  • Government must allocate more spectrums at affordable price to deploy more spectrums for actual use by telecom subscribers, which in turn will push cashless economy goal.
  • o realise the goals of cashless/digital economy there is need to build greater digital infrastructure, which is vital considering the current digital infrastructure of India. 


A move towards cashless economy has multi-faceted benefits for any economy. But push towards digital economy calls for greater digital infrastructure. Hence government should address all the issues related to digital infrastructure to realise the benefits of digital economy. 

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