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We are living in the digital era where Digital transformation has become increasingly important to business research and practice. The digital world is a world where the best use of digital technology is done. The rapid digitalization across various fields is of great importance and poses incredible opportunities for both companies and the society. Efficient use of digitized technology is a driving factor for competitive economic growth. The main aim of the study is to provide insights regarding the future prospects of digitalization in India. The data used in this research work is both primary and secondary data. A cross-sectional study comprising of 500 students of various streams from different colleges of Cuttack and Bhubaneswar was conducted out of which 400 responses were received. The paper covers the impact of digitalisation on the Indian Economy. It also analyses the role of Government in the digitalization process. The findings of this study will identify the obstacles in the path of digitalization and the remedies to be taken to overcome these barriers.