innovation and entrepreneurship, being less costly than conventional technologies to scale up and are seen as transfiguring innovators into entrepreneurs. 7 india is at the forefront of the digital revolution. financial technology ( fintech ) is speeding up digital payments. the india stack is expanding financial inclusion, galvanising banking infrastructure and public finance management systems covering both direct benefit transfers and tax collections. vibrant e - markets are springing up and expanding their reach. it is estimated that the digital economy currently accounts for a tenth of india ’ s gdp ; going by growth rates observed over the past decade, it is poised to constitute a fifth of gdp by 2026. 8 india is uniquely positioned to unlock new growth avenues and optimise existing ones with its digital public infrastructure ( dpi ), a vibrant information technology ( it ) sector and a burgeoning youth population, including one of the largest ai talent bases. forecasts suggest that generative ai will contribute $ 359 - 438 billion to india ’ s gdp by 2029 - 30. 9 united nations. ( 2023 ). opening session of global development initiative digital cooperation forum. panagariya, a. ( 2022 ). digital revolution, financial infrastructure and entrepreneurship : the case of india. asia and the global economy, 2 ( 2 ), 100027. chandrasekhar, r. ( 2023 ). address by minister of state for electronics and information technology and skill development and entrepreneurship. gpi global summit in pune, june 12. ernst and young. ( 2023 ). is generative ai beginning to deliver on its promise in india? aidea of india update indian firms'integration of ai into production processes has increased from 8 percent in 2023 to 25 percent in 2024. 10 india has also committed rs. 1. 25 trillion towards its semiconductor industry development. 11 yet, new technologies also involve challenges : disruptions in respect of traditional technologies and the labour market ; resource - intensity demanding substantial investment in technology, learning, and infrastructure ; potential cyber threats and data breaches ; ethical concerns, data privacy and potential malicious use. it is in this context of these opportunities and challenges that i have chosen ‘ unlocking new growth frontiers in the digital age ’ as the theme of my address. ii. digitalisation and productivity : navigating the paradox the contribution of digitalisation to growth should be reflected through its impact on productivity. this nexus has, however, sparked an animated debate. there is a view

during 1992 - 2000. ict van ark, b. ( 2016 ). the productivity paradox economy. international productivity monitor, 31, 3 - 18. of the new digital capital ’ s contribution to gva moderated to 14. 3 per cent during 20012010 and further to 10. 3 per cent during 2011 - 2023. new digital technologies also influence labour productivity growth within the klems framework. the share of ict investment per person in labour productivity growth in india was 8. 4 per cent in 1981 - 90, which increased to 20. 8 per cent during 1992 - 2000 but moderated to 17. 4 per cent during 2001 - 2010 and 11. 3 per cent during 2011 - 2314 indicating some evidence of solow ’ s productivity paradox for the post - gfc period, which is broadly consistent with similar trends globally. since the end of the technology boom period of the early 2000s, global total factor productivity ( tfp ) growth has remained relatively modest, averaging around 0. 2 per cent per annum during 2010 - 2024. 15 the weakness in global productivity growth is mostly confined to mature economies, mainly europe, whereas emerging economies have fared better, particularly in asia. multiple interlinked factors have accentuated the productivity slowdown ranging from ageing societies, all - time - high debt levels, decline in business dynamism especially among smaller firms and the scarring effects of the covid - 19 pandemic. 16 new headwinds – weak investment ; supply chain and logistics disruptions ; trade and investment fragmentation – may also act against gains in allocative efficiency, constituting risks to the global productivity outlook. chattopadhyay, s. sengupta, s and joshi, s. ( 2024 ) : new digital economy and the productivity paradox, rbi bulletin october 2024. total economy database ( 2024 ), the conference board, accessed through https : / / data - central. conference - board. org / dieppe, a. ( ed. ). ( 2021 ). global productivity : trends, drivers, and policies. world bank publications. for india, average labour productivity growth from 2021 to 2024 is estimated at 5. 2 per cent as against 2. 1 per cent among emerging markets and developing peers and 0. 6 per cent among mature economies. 17 india has witnessed rapid progress in digitalisation, drawing on its foundational strength in ict services. what began as streams of it services has now swelled into powerful