Cashless Economy And Digitization For Economic Growth

Abstract

The government embracing digital technology worldwide has played a crucial role in promoting a cashless society, fast-tracking economic growth, and supporting the transition into a new industrial revolution. Since 2020, this transition has notably influenced economic growth in various countries, especially in India, where a significant increase in cashless and digital payment methods was further propelled by the COVID-19 pandemic. The advantages of these digital transactions have made everyday payments more seamless and convenient for users. India’s transition to a cashless economy has been instrumental in reducing black money circulation, improving financial transparency, and stimulating economic development. This research delves into the mechanisms underpinning this transformation, highlighting the significant correlation between the rise in cashless transactions and the growth of retail markets (Zaware, 2020). It also addresses the accompanying challenges, such as digital literacy gaps and cybersecurity risks, providing a balanced view of the opportunities and obstacles in the journey toward a digitally empowered financial ecosystem. The findings underscore the potential for India's model to inspire similar transitions in other developing economies