home Economy Our Online Payments boosted the Indian Economy by $ 6 bn

Our Online Payments boosted the Indian Economy by $ 6 bn

Times have changed, and so does the way we shop! No longer need to stand in long queue and wait to order your fav product and then drive all the way to bring it home. Here is the magic of online shopping: its easy, affordable and at your doorsteps!

According to a study by Moody Analytics this trend of ‘Online Shopping’ has given a real boost to the Indian economy by adding $6 billion (approximately Rs 40,000 crore) to India’s GDP and creating 1.4 million additional jobs.

The study analysed the impact of electronic payments on economic growth across 70 countries between 2011 and 2015.

Online Payment
Online Payment

According to the study, the two countries with the greatest average job increases were China (427,000 jobs added) and India (336,000 additions) and also experienced gains in consumption due to higher card usage.

It is worth noting that expanding electronic payments alone will not necessarily increase a country’s prosperity. It requires the support of a well-developed financial system and healthy economy to have the greatest impact. The report recommends at a macro level, countries must promote policies that minimize unneeded regulation, create a robust financial infrastructure, and lead to greater consumption.

Online Shopping
Online Shopping

As a result:

“Over the past two weeks the Finance Ministry (MoF) and Reserve Bank of India (RBI) have announced a series of measures to propel the shift to digital payments underscored by the objective to transform India into a less-cash society,” said T R Ramachandran, group country manager, India and South Asia, Visa.

Great times for on-line shoppers ahead!

Source: Economic Times