Explaining the Linkages Between Digital Payments and Economic Growth: Evidence from India

The impact of digital payments on job creation and employment opportunities in India has been significant. It has played a crucial role in boosting employment rates and fostering economic growth in India. This study examines the relationship between digital payments and economic growth in India using quarterly data from 2011–12 to 2022–23. To determine the outcomes, the study employed an ARDL cointegration-bound testing approach. It has been found that the use of card payments and retail electronic payments has a favorable effect on India's economic growth. Prepaid payment methods and Retail electronic payments, however, have less of an impact on India’s economic progress. As a result, this study emphasizes the importance of card payments and retail electronic payments as a driving force behind India’s economic growth.