dpi: DPI set to propel India towards $1 trillion digital economy by 2030: report

Digital Public Infrastructures (DPIs) are poised to propel India towards a $1 trillion digital economy by 2030, helping the country to become a $8 trillion economy, according a Nasscom-Arthur D Little report titled, “Digital Public Infrastructure of India – Accelerating India’s Digital Inclusion.”

By 2030, DPIs will significantly enhance citizens’ efficiency and promote social as well as financial inclusion, the report said. Mature DPIs such as Aadhaar, Unified Payments Interface (UPI), and FASTag have witnessed exponential adoption so far, the next seven to eight years offer an opportunity for further scalability, reaching even the most remote segments of the population.

India’s massive economic transformation has been powered by DPIs that have facilitated the development of necessary government services and platforms, and these in turn have powered market innovations in both public and private sectors, and enabled creation of inclusive ecosystem.

Brajesh Singh, president, Arthur D Little India, said, “India leads globally in developing DPIs, driving societal transformation through inclusive digital adoption and substantial contributions to the Indian economy. Our analysis indicates that mature DPIs have generated a value of $31.8 billion, equivalent to 0.9% of India’s GDP. By 2030, this economic value is projected to increase to approximately 2.9%-4.2% of GDP, considering both direct and indirect impacts.”

“DPIs hold vast potential in revolutionising the entire Indian economy and the world, and paints a hopeful picture of an interconnected, open, inclusive world with infinite possibilities, empowering each and every one across the globe,” he added.

India is currently the global leader in developing DPIs, using it to implement widespread adoption of digital payments, data-sharing infrastructures, bolstering domestic businesses and spurred entrepreneurship in the country. This has been due to the support by the government, the IT intellectual capital and startup ecosystem, a combination which has made DPI a success.

Existing digital entities will evolve to deliver superior user experience, utilising new age tech of AI, Web 3 and others. Aadhaar is expected to continue to be a major contributor as use cases expand to broader range of services.DPIs like India Stack, enhances the ability of the country to use digital technologies at a population scale.