IT is an example of a general-purpose technology that has the ability to contribute significantly to economic growth as well as other aspects of economic and social development. In 2020, the IT industry contributed to roughly 8% of India’s GDP.
Socio-economic Consequences of IT Industry Development
Positives:
Each of the United Nations’ Sustainable Development Goals relies on IT to provide the infrastructure required to achieve them.
It also provides for financial inclusion through m-commerce and immediate connections with millions of people.
It allows users to instantly share expertise and assistance, as well as set up a low-cost online shop or website, substantially lowering the obstacles to beginning a business.
In addition to urban development, information technology plays an important role in rural development. IT now allows even the most remote persons to access the services.
Due to the rise of IT businesses, women’s labour force involvement in quality occupations is comparatively higher in big cities, resulting in their financial independence and empowerment.
Our IT architecture allows us to connect with millions of people in real time. This means that social entrepreneurs’ projects aren’t limited to a single group; they can simply reach out to the individuals they wish to help and disseminate their message far and wide.
Negative Repercussions:
Uneven growth and economic disparity: Major cities with substantial IT hubs are developing faster than semi-urban and Tier I and II cities. Furthermore, there is a significant compensation disparity between IT workers and other professions.
Increasing the Digital Divide: Access to critical services is hampered in rural areas due to a lack of infrastructure, which has a negative impact on their socioeconomic growth.
Increased Migration and Cultural Change: As kids migrate from rural areas and small cities to large IT metropolis, their parents become isolated and in need of social and emotional assistance.
As a result, India’s joined family culture is breaking down, and a more nuclear family culture is forming.
Way Forward:
If India’s technology services industry can tap into the fast-growing commercial potential in cloud, artificial intelligence (AI), cybersecurity, and other emerging technologies, it might generate USD 300-350 billion in annual revenue by 2025. As a result, we must invest in such technology.
This investment should be dispersed rather than concentrated in a few areas. IT-BPO industries, for example, can be formed in cities in the North East, as well as Tier 1 and 2 cities.
Only by having an even and inclusive development can we become a knowledge economy.