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Research Paper | Commerce and Law | Volume 15 Issue 5, May 2026 | Pages: 954 - 958 | India
Digital Financial Transformation and Macroeconomic Growth in India: An Empirical Analysis of Post-Pandemic Economic Development
Abstract: The digital economy has emerged as a significant driver of economic growth in India, particularly in the post-pandemic period. The rapid expansion of digital payment systems, internet penetration, fintech services, and technological advancement has transformed the country's economic environment. This study examines the relationship between the digital economy and economic growth in India using major macroeconomic variables. The study considers digital payment volume, internet penetration, Foreign Direct Investment (FDI) inflows, inflation rate, and unemployment rate as independent variables, while GDP growth rate is taken as the dependent variable. The study is based on secondary data collected from authentic sources such as the Reserve Bank of India (RBI), World Bank, IMF, MOSPI, and government reports for the period from 2015 to 2025. Analytical tools such as Descriptive Statistics, Unit Root Test (ADF Test), and Granger Causality Test were employed using EViews software to analyze the data. The findings of the study reveal significant variation among the selected digital economy indicators and macroeconomic variables. The Unit Root Test confirmed that all variables are stationary at first difference and suitable for further econometric analysis. The Granger Causality Test results indicate that digital payment volume, internet penetration, FDI inflows, and unemployment rate have significant causal relationships with GDP growth rate, while inflation rate does not show a significant relationship with economic growth. The study concludes that the expansion of digital financial services and technological infrastructure positively contributes to India's macroeconomic growth and economic transformation. The research highlights the importance of strengthening digital infrastructure, promoting financial inclusion, and encouraging fintech innovation for achieving sustainable economic development in India.
Keywords: Digital Economy, Economic Growth, Digital Payments, Internet Penetration, FDI Inflows, GDP Growth Rate, India, Fintech
How to Cite?: Dr. M Devaki, "Digital Financial Transformation and Macroeconomic Growth in India: An Empirical Analysis of Post-Pandemic Economic Development", Volume 15 Issue 5, May 2026, International Journal of Science and Research (IJSR), Pages: 954-958, https://www.ijsr.net/getabstract.php?paperid=SR26514225637, DOI: https://dx.dx.doi.org/10.21275/SR26514225637