UPI, Aadhaar set to drive India to $8 trillion economy by 2030
DPIs Impacting 97% of India's Population, Benefitting 1.3 Billion Citizens with Mass Adoption and Economic Impact
New Delhi: Digital Public Infrastructure (DPIs) like Unified Payments Interface (UPI) and Aadhaar are poised to propel India towards a $8 trillion economy by 2030, helping the country achieve a $1 trillion digital economy target, a Nasscom-led report said on Wednesday.
With successful mass adoption and larger economic impact, DPIs are impacting approximately 1.3 billion citizens, covering 97 per cent of India’s population.
The matured DPIs enabled a value creation of $31.8 billion, equivalent to 0.9 per cent of India’s GDP in 2022.
Aadhaar has enabled an economic value of $15.2 billion, primarily through the elimination of Direct Benefits Transfer leakages. UPI, on the other hand, has replaced cash transactions and electronic transfers across sectors, contributing $16.2 billion, according to the report by Nasscom in collaboration with global consulting firm Arthur D. Little.
“India’s digital transformation, propelled by DPIs, marks a leap towards a digitally-empowered economy, a cornerstone of ‘techade’, driving the ‘India@47′ growth narrative. DPI’s success has positioned India as a global leader in digital innovation,” said Debjani Ghosh, President, Nasscom.
Ecologically, DPI adoption has led to significant paper savings and carbon emissions reduction. The time saved in logistics and transportation sector reduced carbon emissions by 3.2 million tonnes in 2022.
Furthermore, DPIs align with core UN SDG goals by providing citizen-centric solutions, said the report.
India’s interoperable and open-source DPIs are now being adopted or considered by over 30 countries to enhance social and financial inclusion.
“While mature DPIs have witnessed exponential adoption by 2022, the next 7-8 years offer an opportunity for further scalability, reaching even the most remote segments of the population. By 2030, DPIs will significantly enhance citizens’ efficiency and promote social as well as financial inclusion,” said Brajesh Singh, President-India, Arthur D Little.
The transformation of matured and budding DPIs through innovative technology integration such as AI, Web3, Metaverse presents significant opportunities.
To realize the 2030 DPI potential, government agencies need to continue to give proactive policy support, regulatory clarity, and promote existing digital ecosystems by setting up task forces to drive adoption and foster innovation through partnerships with corporates and startups, the findings showed.
“Startups and SMEs should build business models that capitalise on the full-scale adoption of existing digital infrastructure and experiment with new-age technologies. Corporates and Big Tech should anticipate future digital demand, build necessary infrastructure and foster innovation,” it added.
