Technology: DPI could drive India’s $8 trillion economy by 2030, says NASSCOM
Virendra Pandit
New Delhi: India’s rapid digital revolution and its multiplier effect on the overall economic growth is a game-changer and its matured Digital Public Infrastructures (DPIs) are expected to drive a USD 8 trillion economy by 2030.
Matured DPIs like the Unified Payments Interface (UPI) and the Aadhar Number have already impacted 1.3 billion citizens, generating a value of USD 31.8 billion, equivalent to 0.9 percent of India’s GDP in 2022.
Now, the new DPIs, like the Ayushman Bharat Digital Mission (ABDM) and the Open Network for Digital Commerce (ONDC), are likely to play a key role in India’s goal of emerging a USD 8 trillion economy by 2030—including a USD 1 trillion digital economy.
This is the finding of a report prepared by the National Association of Software and Service Companies (NASSCOM), a non-governmental trade association and advocacy group primarily serving the Indian technology industry. Founded in 1988 by two of India’s best technology visionaries Nandan Nilekani and Devang Mehta, NASSCOM operates as a nonprofit organization and serves as a key entity within the Indian technology sector.
Its latest report, “India’s Digital Public Infrastructure – Accelerating India’s Digital Inclusion,” prepared along with Arthur D. Little, NASSCOM calculated the economic value added by DPIs, which could potentially increase to 2.9 – 4.2 percent of GDP by 2030, up from 0.9 percent in 2022.
The incremental value additions will be largely driven by the ABDM, which aims to provide better healthcare for citizens, resulting in increased labor productivity, and ONDC, expected to boost the country’s retail spending. Aadhaar will continue to play a significant role as its multiple uses expand to a broader range of services.
NASSCOM President Debjani Ghosh said, “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, aiming to influence nations globally, promising equitable access to technology for all and fostering economic growth.”
The transformation of matured and budding DPIs through innovative technology integration such as AI, Web3, and Metaverse presents significant opportunities. However, key challenges in DPI adoption include a lack of interconnectedness among various stakeholders, a lack of real-time data availability, limited language expansion for users to access preferred languages, and future partnerships beyond government services.
To realize the 2030 DPI potential, stakeholders must focus on key imperatives. Government agencies should continue to provide proactive policy support, and regulatory clarity, and promote existing digital ecosystems by setting up task forces to drive adoption and foster innovation through partnerships with corporates and start-ups, the report noted.
Matured DPIs (UPI, Aadhaar, GSTN, and FASTag), with successful mass adoption and larger economic impact, are impacting approximately 1.3 billion citizens, covering 97 percent of India’s population.
These DPIs have enabled a value creation of USD 31.8 billion, equivalent to 0.9 percent of India’s GDP in 2022. This assessment encompasses both the direct and indirect impacts generated by these DPIs. Aadhaar has enabled an economic value of USD 15.2 billion, primarily through the elimination of direct benefits transfer leakages, it added.
