Digital economics explains and examines how digital technology is related to economic activity and performance. More specifically, digital economics studies the implication of digitization on markets and how digital data can be used to understand and solve economic problems and hence improve economic performance. Likewise, digital economy refers to an economy that is based on digital technologies. Digital economy is increasingly intertwined with traditional economy, making a clear delineation harder. This book, spread over 19 chapters, explains the application of digital technology to various sectors of an economy, with special reference to India. The areas covered include, inter alia, payments system, money and banking, financial technology (FinTech), governance, tax administration, marketing, health and education, cyber security, data protection and artificial intelligence (AI). It will acquaint teachers and students to basic concepts, components and processes of digital economics. Digital technology has transformed the world, enabling innovations and enhancing productivity, connecting people and communities, improving standards of living and providing opportunities across the globe. While changing the way individuals live, interact, and work, digitization has also proven to be a key enabler for enhanced competitiveness and economic and societal modernisation, as well as an important instrument for bridging economic and social divides and reducing poverty. India has experienced a digital revolution in recent years wherein digital technology has penetrated almost every sphere of economic and social life of the people—be it telecommunications, payments system, banking transactions or discharge of tax obligation. Digital technology is here to stay and would play a crucial role in the future socio-economic development of modern India. Digital technology is the representation of information in bits. This technology has reduced the cost of storage, computation, and transmission of data. The use of digital technology—the worlds fastest growing economic activity—to improve governance and economic performance cannot be over-emphasized. Digital technology has become the greatest agent of change and promises to play this role even more dramatically in the future. Technology, competition, and benchmarking to the best international practices are the driving forces of development efforts in any economy. Digitization is the process by which technology lowers the costs of storing, sharing, and analyzing data..