The benefits of digital trade to the Indian economy could grow 14-fold from $35 billion now to $512 billion by 2030, if India dismantles barriers to digital trade and fully enables cross-border data flow. The Digital Trade Report added that the export value of virtual goods and services, enabled by the digital economy, such as e-commerce, could grow more than three times from the current $58 billion to $197 billion by 2030. “To maintain and even enhance this strong performance, India’s strategy in its export markets must be supported by greater cross-border data exchanges, processing and storage,” the report said. There is a considerable opportunity to improve transparency on data management requirements across Asia and to identify areas to enhance performance. Clarity is required around the type of data that can be shared, the boundaries of sharing, and the type of consumer consent that is required. The report said most Indian businesses are yet to tap the export opportunity, with about 9% of businesses currently engaged in exporting, compared to China’s 21%. Internet of Things and 5G networks will multiply data flows in the future. Already, digitally-enabled trade in services is growing fast, and even the goods trade is being powered by data. India’s digital trade is set for rapid growth, provided India can create an enabling policy environment.

(Live Mint)