Examining the Long-Term Effects of Demonetization on Digital Adoption In India

Abstract

The digital transformation has significantly contributed to the world by creating employment opportunities, minimizing carbon emissions, and building sustainable world. In India, the ‘Digital India’ drive and ‘Demonetisation’ have catalysed the digital revolution in the country. India became the second fastest growing digital economy across the world due to growing internet penetration, robust IT sector, rising smartphone, and demographic dividend. Although, demonetisation has given a big thrust to digital adoption in the country. The present study attempts to explore and examine the demand-side effects of demonetisation on digital adoption in the long run by using paired sample t-test. The findings reveal that demonetisation have significantly affected the digital adoption, usage of plastic money and m-wallet in the country.