In 2022, these mature DPIs collectively contributed $31.8 billion to the economy, equivalent to 0.9 per cent of the GDP
A recent report by Nasscom and Arthur D. Little has highlighted the significant potential of Digital Public Infrastructures (DPIs) in boosting India’s economy. The report projects that by 2030, the economic value added by DPIs could range from 2.9 to 4.2 per cent of the GDP, a substantial increase from the 0.9 per cent recorded in 2022.
These DPIs are poised to play a pivotal role in India’s journey towards becoming an $8 trillion economy by 2030, aligning with the target of achieving a $1 trillion digital economy. The report specifically identifies key DPIs such as the Ayushmann Bharat Digital Mission (ABDM) and the Open Network for Digital Commerce (ONDC) as drivers of this incremental value. ABDM aims to enhance healthcare services, thereby improving labour productivity, while ONDC is expected to stimulate retail spending across the country. Additionally, Aadhaar continues to hold significance as its applications expand to cover a wider range of services.
Debjani Ghosh, President of Nasscom, emphasised that India’s digital transformation, fuelled by DPIs, signifies a significant step towards a digitally empowered economy. This transformation positions India as a global leader in digital innovation, with the potential to influence other nations and promote equitable access to technology.
Ghosh said, “India’s digital transformation, propelled by Digital Public Infrastructure, 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, aiming to influence nations globally, promising equitable access to technology for all and fostering economic growth.”
Despite the opportunities presented by DPIs, the report also acknowledges several challenges hindering their adoption. These challenges include a lack of interconnectedness among stakeholders, limited real-time data availability, and insufficient language options for users. Overcoming these obstacles will be crucial in realising the full potential of DPIs by 2030.
To achieve this, the report suggests that government agencies should provide proactive policy support, regulatory clarity, and foster innovation through partnerships with corporates and start-ups. Mature DPIs such as the Unified Payments Interface (UPI), Aadhaar, Goods and Services Tax Network (GSTN), and FASTag have already demonstrated their impact by reaching approximately 1.3 billion citizens, covering 97 per cent of India’s population.
In 2022, these mature DPIs collectively contributed $31.8 billion to the economy, equivalent to 0.9 per cent of the GDP. Aadhaar, in particular, played a significant role in generating economic value through the elimination of direct benefits transfer leakages, contributing $15.2 billion.
The report highlights the immense potential of DPIs in driving economic growth and fostering digital inclusion in India. By addressing key challenges and leveraging mature DPIs, India can accelerate its journey towards a thriving digital economy by 2030.
