DPIs Will Drive India Towards An $ 8 Trillion Economy by 2030: Report

The advanced DPIs have facilitated a value creation of $ 31.8 billion, equivalent to 0.9 per cent of India's GDP in 2022

Digital Public Infrastructure (DPIs) such as the Unified Payments Interface (UPI) and Aadhaar are positioned to propel India towards an $ 8 trillion economy by 2030, thereby aiding the nation in achieving its $1 trillion digital economy goal, said a Nasscom-led report on Wednesday. These DPIs, with their widespread adoption and significant economic influence, are impacting around 1.3 billion citizens, covering 97 per cent of India's population. 

The advanced DPIs have facilitated a value creation of $ 31.8 billion, equivalent to 0.9 per cent of India's GDP in 2022.

According to a report by Nasscom, in collaboration with global consulting firm Arthur D. Little, Aadhaar has facilitated an economic value of $ 15.2 billion, chiefly by eliminating leakages in Direct Benefits Transfer. On the other hand, UPI has replaced cash transactions and electronic transfers across various sectors, contributing $ 16.2 billion.

“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 of Nasscom.

In terms of ecology, the adoption of DPIs has resulted in notable paper savings and a reduction in carbon emissions. The time saved in the logistics and transportation sector led to a decrease in carbon emissions by 3.2 million tonnes in 2022.

Moreover, the report stated that DPIs align with core UN Sustainable Development Goals (SDGs) by offering citizen-centric solutions. India's interoperable and open-source DPIs are now being embraced or under consideration by more than 30 countries to promote 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 evolution of both established and emerging DPIs, coupled with innovative technology integration like AI, Web3, and the Metaverse, offers substantial opportunities.

To unlock the full potential of DPIs by 2030, government agencies must persist in providing proactive policy support, regulatory clarity, and promoting existing digital ecosystems. The report highlights the importance of establishing task forces to drive adoption and foster innovation through collaborations with corporations and startups.

“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.