Digital Technology Could Increase Global Economic Output by $2 Trillion by 2020: Accenture Study

Digital Technology Could Increase Global Economic Output by $2 Trillion by 2020: Accenture Study

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With a fifth of the world’s GDP attributable to digital technology – services and products – an Accenture study says that use of digital skills and technologies could generate $2 trillion of additional global economic output by 2020.

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Digital world has impacted the economies in a major way.

A little more than one-fifth (22 percent) of world output is linked to this digital economy of skills and capital. The US is the world’s most digital economy, with existing digital investments accounting for 33 percent of its output. Forty-three percent of the U.S. labor force and 26 percent of its accumulated capital are capable of supporting digital related activity. The digital economy in other markets varies from more than 30 percent in the UK and Australia to 10 percent in China.

Here is an illustration of the share of digital imprint on the GDP of the countries.

Courtesy - Accenture study

Courtesy – Accenture study

The study also goes into how each National economy can use digital tech to help its overall economy.

For example, 70 percent of Brazil’s extra digital efforts should be focused on the improved application of technology, such as cloud and analytics, whereas greater efforts in digital skills would generate less of an economic return. In the US, however, just 10 percent of extra digital efforts need to be injected into technology, while a greater return will be gained from boosting digital skills and broader enabling factors.

India’s Modi Government – for example – has made Digital transformation in the country a major initiative.  “Digital India” is a big push.

That is why we should have a very good reason to welcome Modi Government’s ‘Digital India’ (#DigitalIndia) program.  It is billed to be a one stop shop for government services using mobile phones as the backbone with an investment of Rs 1.13 lakh crores!  It is being complemented with the Pradhan Mantri Jan Dhan Yojana, a financial inclusion plan, where every household in rural India will be given access to a bank account, along with a RuPay debit card and insurance cover of Rs 1 lakh.  The connectivity will be done via mobile phones as opposed to a computer.

And do you how the internet will be provided within the country?   A humongous national optic fibre network being laid out across the country to cover India’s 50,000 Gram Panchayats in 2015, 100,000 next year and the remaining 100,000 in the following year because of which the entire country will be covered by broadband within three years and the internet will reach the remotest villages.

One would hope that India’s Digital initiative is a success – for the sake of the emerging economies to learn from.

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