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Digital Public Infrastructure Boosts India's GDP, Set to Triple by 2030: Nasscom

The report observed that mature DPIs such as Aadhaar, UPI (Unified Payments Interface), and FASTag have witnessed exponential adoption by 2022.

Digital Public Infrastructure Boosts India's GDP, Set to Triple by 2030: Nasscom

Press Trust Of India

POSTED ON February 21, 2024 4:06 PM

Digital public infrastructures like Aadhaar, UPI, and FASTag generated a value of USD 31.8 billion in 2022, contributing 0.9 per cent to India's GDP, and the contribution is projected to increase 2.9-4.2 per cent by 2030, industry body Nasscom said in a report. 

The Nasscom-Arthur D. Little report titled 'Digital Public Infrastructure of India - Accelerating India's Digital Inclusion' said that Indian DPIs' foundational layers are based on transparency and trust, which promotes paperless transactions, reduces bureaucracy, and advances the concept of digital identity and document management. 

The report said that mature DPIs such as Aadhaar, UPI (Unified Payments Interface), and FASTag have witnessed exponential adoption by 2022, and the next 7-8 years offer an opportunity for further scalability, reaching even the most remote segments of the population. 

"By 2030, adoption across matured and budding DPIs has the potential to scale up. The economic value added of these DPIs by 2030 has the potential to increase to 2.9-4 per cent of GDP from 0.9 per cent in 2022. 

The report said that presently over 30 countries are either adopting or in early discussions to implement India's DPIs like UPI, Aadhaar, and Beckn in their countries for boosting social and financial inclusion. 

"India leads globally in developing DPIs, driving societal transformation through inclusive digital adoption and substantial contributions to the Indian economy," Brajesh Singh, President, Arthur D. Little India, said. 

"...DPIs hold vast potential in revolutionising the entire Indian economy and the world and paint a hopeful picture of an interconnected, open, inclusive world with infinite possibilities, empowering each and everyone across the globe," Singh added. 

India's position as a global leader in developing DPIs has been enabled by the support of the government, the IT intellectual capital, and the start-up ecosystem, the report said.