New Delhi, June 4 -- Greater digital adoption, better access to capital, and longer operational experience contribute to higher productivity. According to a report by the State Bank of India (SBI), the adoption of Information and Communication Technology (ICT) can increase labor productivity by up to 76%.

The report noted that "one-unit increase in the ICT adoption index is associated with nearly a 76% increase in labor productivity, while firm age and capital intensity improve productivity by ~11% and 7%, respectively, holding all other factors constant."

The findings revealed that ICT is not only a productivity-enhancing technology, but also a mechanism that pushes firms towards formalisation. Digital firms are more integrated into fo...