India currently ranks 8th in the global digital economy, according to the CHIPS score. This score evaluates digital progress across 32 major economies, highlighting India's advancements and ongoing challenges.
The CHIPS framework stands for Connect, Harness, Innovate, Protect, and Sustain. It assesses digitalisation through various factors, including access quality, affordability of services, data intensity, AI readiness, the strength of the fintech industry, and investments in green energy.
Several countries surpass India in digitalisation, including:
India's score stands at 34.7, reflecting areas for improvement.
India faces several challenges that contribute to its lower user-level digitalisation ranking. These include high internet costs, limited connectivity in rural areas, and significant digital divides based on income and gender.
Despite the challenges, India excels in several areas that boost its aggregate ranking:
The CHIPS framework provides valuable insights for policymakers, helping them identify both strengths and weaknesses in digital growth. It emphasizes the need for a balanced approach, focusing on large-scale connectivity while improving individual user access to digital services.
Q1. How does India's digitalisation compare to other countries?
Answer: India ranks 8th globally in digitalisation, with countries like the US and China leading. Its strengths lie in fintech and AI, but it faces challenges in user-level access.
Q2. What is the significance of the CHIPS framework?
Answer: The CHIPS framework helps assess digitalisation by analyzing connectivity, innovation, and sustainability, guiding effective policy decisions for digital growth.
Q3. Why is user-level digitalisation important for India?
Answer: User-level digitalisation is crucial as it reflects individual access to digital services, which is essential for economic participation and social inclusion.
Q4. What are the main barriers to digital access in India?
Answer: Major barriers include high internet costs, limited rural connectivity, and socio-economic divides that restrict access to digital platforms.
Q5. How does India's fintech industry contribute to its digital ranking?
Answer: India’s fintech industry enhances financial inclusion and innovation, significantly boosting its overall digital ranking and facilitating easier access to financial services.
Question 1: Which framework assesses India's digitalisation progress?
A) SMART
B) CHIPS
C) GROWTH
D) CONNECT
Correct Answer: B
Question 2: What rank does India hold in aggregate digitalisation?
A) 1st
B) 3rd
C) 5th
D) 8th
Correct Answer: B
Question 3: Which country ranks highest in the global digital economy?
A) China
B) United States
C) Germany
D) India
Correct Answer: B
Question 4: What is a major challenge for user-level digitalisation in India?
A) High internet costs
B) Strong fintech
C) AI readiness
D) Public infrastructure
Correct Answer: A
Question 5: Which factor is NOT part of the CHIPS framework?
A) Connect
B) Innovate
C) Invest
D) Sustain
Correct Answer: C
Question 6: How does India rank in user-level digitalisation?
A) 8th
B) 28th
C) 3rd
D) 5th
Correct Answer: B
Question 7: What does the 'H' in CHIPS stand for?
A) Harness
B) Help
C) Heighten
D) Highlight
Correct Answer: A
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