The Digital India drive is a dream project of the Indian Government which was launched on 1 July 2015 by Prime Minister Narendra Modi to remodel India into a knowledgeable economy and digitally empowered society, along with good governance for citizens with an objective of providing participative, transparent and responsive government. Digital India imagines, universal digital literacy and approachability for all digital resources for citizens by ensuring that the resources and services are accessible in regional languages and providing digital scaffold to participatory governance ensuring convenience, like making all government certificates and documents available on the Cloud with portability. The objective of this paper is to know the impact, challenges of digital India on all aspects of governance and improvement in the quality of life of citizens. The research methodology is descriptive cum analytical in nature and the data for this study is collected through secondary sources such as websites, research journals, newspapers, magazines etc. The study gives an optimistic thought of providing more employment prospects for the youth which will boost the nation’s economy if it comes into reality.