India Urges For Global Adoption Of DPI To Boost Productivity

SUMMARY

India has urged for global adoption of Digital Public Infrastructure (DPI) to boost productivity and achieve inclusive and sustainable growth, as per G20 Task Force’s report

By leveraging DPI, the report claims India has leapfrogged financial inclusion and traditional stages of development, by achieving what ought to have taken it five decades in just under 10 years

The report also revealed the unified payments interface (UPI) penetration among the lower income households in India is estimated to be 56%

India has urged for global adoption of Digital Public Infrastructure (DPI) to boost productivity and achieve inclusive and sustainable growth, a G20 Task Force’s report said.

The study titled ‘Report of India’s G20 Task Force on Digital Public Infrastructure’ acknowledged India’s leadership in DPI and called for discussions to promote global adoption of DPI to accelerate socio-economic growth and development.

PTI reported the development first.

By leveraging DPI, the report claims India has leapfrogged financial inclusion and traditional stages of development, by achieving what ought to have taken it five decades in just under 10 years.

The task force was led by the co-chairs Amitabh Kant, G20 Sherpa of India and Infosys cofounder and chairman Nandan Nilekani.

Kant said, “Today in India, UPI is used at all levels from street vendors to large shopping malls, with the highest percentage of digital transactions globally, accounting for nearly 46% share.”

“We are far advanced in terms of digitisation and I am confident, this report will be the guiding North Star for the world to follow,” he added.

The report also revealed the unified payments interface (UPI) penetration among the lower income households in India is estimated to be 56%.

Based on the report, India has so far issued 1.389 Bn Aadhaar enrollments, facilitated more than 10 Mn daily e-KYC (electronic know your customer) transactions.

Also, the country has granted over 500 Mn individuals’ access to bank accounts, with 55% being women and 66% residing in rural areas, while enabling over 13 Bn UPI transactions in April 2024, with a cumulative value of $230 Bn (over INR 19 Lakh Cr), as per the data.

As per the National Payments Corporation of India’s (NPCI) data, the transaction volume surged by 36% to INR 20.07 Lakh Cr in June, compared to a year ago.

The study revealed, Aadhar roll out has demonstrated that the gap in account ownership between the richest 60% and the poorest 14% in 2011, has been reduced to 1% in 2021.

Also, this bridge has led to an estimated fiscal savings of INR 2 Tn through the DBT (direct benefit transfer) schemes, as per the report.