Digital Transformation and Economic Growth in Post-Pandemic India: A Comprehensive Study
Authors: SWARGIARY KHRITISH 
Published: January 2024

This study aimed to investigate the impact of digital transformation (DT) on economic growth in India during the post-pandemic era. The research objectives involved examining the relationship between DT and economic growth, assessing the current level of digital transformation across sectors, identifying key drivers and barriers, exploring the impact on productivity and innovation, and examining the role of DT in enhancing the competitiveness of Indian businesses. Hypotheses were formulated to test positive relationships between DT and economic growth, increased productivity, fostering innovation, and enhancing competitiveness. The research adopted a mixed-methods approach, combining quantitative analysis and qualitative insights through surveys and interviews with business leaders, industry experts, and policymakers. The sample consisted of 21 businesses in India, selected using stratified random sampling across different sectors, ensuring a representative and diverse sample for meaningful analysis and generalizability of findings. Quantitative data were analysed using statistical techniques, including regression analysis and descriptive statistics, while qualitative data were analysed using thematic analysis. The findings revealed significant relationships between DT readiness, employee engagement, budget allocation, awareness, integration of digital tools, and anticipated impacts on competitiveness. The study concluded that factors such as employee engagement, budget allocation, awareness, and effective integration of digital tools play a pivotal role in achieving heightened readiness for digital transformation, enabling companies to enhance competitiveness and realize the anticipated benefits of successful digital initiatives. The research sample consists of 21 businesses in India, selected using stratified random sampling. The businesses are distributed across different sectors, including Manufacturing, with a population size of 500. This technique ensures a representative and diverse sample, allowing for meaningful analysis and generalizability of findings. The analysis of the data revealed several significant conclusions regarding digital transformation readiness and its impact on organizational factors. Firstly, a positive relationship was observed between digital transformation readiness and the anticipated impact on competitiveness, indicating that companies with higher readiness were more likely to expect positive competitive outcomes. Secondly, there was a noteworthy negative correlation between employee resistance and digital transformation readiness, suggesting that companies with lower levels of employee resistance tended to exhibit higher readiness for digital transformation. Additionally, a positive association was found between budget allocation and digital transformation readiness, indicating that companies dedicating a larger budget to digital transformation initiatives were more likely to demonstrate higher readiness in adopting digital technologies. Moreover, a positive correlation was identified between awareness and understanding of digital transformation and readiness, showcasing that companies with a deeper comprehension of digital technologies tended to have higher readiness. Furthermore, a positive relationship existed between digital transformation readiness and the actual adoption of digital technologies, emphasizing that companies with elevated readiness were more inclined to integrate digital technologies into their operations effectively. Lastly, the integration of digital tools was positively associated with digital transformation readiness, with companies proficiently incorporating digital tools demonstrating higher readiness. These findings underscored the pivotal role of factors such as employee engagement, budget allocation, awareness, and the effective integration of digital tools in achieving heightened readiness for digital transformation, enabling companies to enhance competitiveness and realize the anticipated benefits of successful digital initiatives.