DIGITAL ECONOMY AND INDUSTRIAL TRANSFORMATION: A PATH TO SUSTAINABLE ECONOMIC GROWTH

The rapid proliferation of digital technologies has fundamentally restructured global economic systems, ushering in what scholars and policymakers have come to term the 'digital economy.' This article examines the theoretical underpinnings, empirical dimensions, and policy implications of digital economic transformation as a catalyst for sustainable industrial growth. Drawing on established economic theory — including endogenous growth models, general purpose technology (GPT) theory, and Schumpeterian creative destruction — the study analyses how the convergence of artificial intelligence (AI), the Internet of Things (IoT), blockchain, cloud computing, and advanced connectivity (5G) is reshaping value chains, labour markets, and productivity frontiers across advanced, emerging, and developing economies. The paper argues that while digitalisation offers historically unprecedented opportunities for inclusive and green growth, its benefits remain unevenly distributed, contingent upon institutional quality, digital infrastructure investment, and adaptive regulatory frameworks. Policy recommendations are offered with emphasis on human capital development, green digital investment, and multilateral governance.