The World Bank in its latest report has recognized India’s increasing digital capital as a significant driver of entrepreneurship, business income, and social mobility, especially benefiting small-scale vendors and economically lagging districts.
In a recent report, the institution outlined how digital technologies–such as the internet, mobile phones, and social media–are transforming the socio-economic landscape in the country.
It said “digital capital has increased entrepreneurship and business income in India and has favored small-scale vendors and economically lagging districts”.
The report noted that Digital technologies provide students from disadvantaged backgrounds with access to instructional material, promoting talent development and social mobility.
These tools have also enabled individuals to build digital footprints–records of online activity and payments–which can serve as digital capital. This capital helps individuals establish financial credibility, as data on payments, receipts, taxes, and loan repayments can now be used by lenders to assess creditworthiness.
The report credits Nandan Nilekani, one of India’s leading tech entrepreneurs, for pioneering the Aadhaar system in 2009. This digital identification initiative has allowed millions of Indians to accumulate digital capital and integrate into the formal economy.
The World Bank also highlighted India’s remarkable strides in social mobility, particularly in urban areas. Since the country’s economic liberalization, the gains have been more pronounced among disadvantaged communities in cities compared to rural areas.It said “In India, social mobility has improved greatly in urban areas in recent decades, and has delivered larger gains for the disadvantaged than in rural areas”.
It also noted that India’s IT revolution has played a crucial role in this transformation. Tata Consultancy Services (TCS) demonstrated to the world the availability of high-quality, cost-effective talent in India, becoming the first Indian company to export computing services to the United States.
The report also mentioned Infosys, founded by a group of former IBM engineers with their savings, further showcased India’s IT potential, emerging as a global leader in technology consulting.
The report highlighted how leveraging digital technologies and talent has not only bolstered entrepreneurship but also fostered inclusivity, bridging gaps for underserved communities and reinforcing India’s position as a global technology powerhouse.