Economic value added by Digital Public Infrastructures (DPIs) could potentially increase to 2.9 – 4.2 per cent of GDP by 2030, up from 0.9 per cent in 2022, according to nasscom-Arthur D. Little Report.
These DPIs will pave the way for India to become a $8 trillion economy by 2030 and aid in achieving the target of a $1 trillion digital economy, the “India’s Digital Public Infrastructure – Accelerating India’s Digital Inclusion,” report showed.
The incremental value add will be largely driven by Ayushmann Bharat Digital Mission (ABDM), which aims to provide better healthcare for citizens, resulting in increased labour productivity, and ONDC, which is expected to boost the country’s retail spending. Aadhaar will continue to play a significant role as its use cases expand to a broader range of services.
Debjani Ghosh, President, nasscom said, “India’s digital transformation, propelled by Digital Public Infrastructure, 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.”
Significant opportunities
The transformation of matured and budding DPIs through innovative technology integration such as AI, Web3, Metaverse presents significant opportunities. However, key challenges in DPI adoption include lack of interconnectedness among various stakeholders, lack of real time data availability, limited language expansion for users to access in preferred languages , and future partnerships beyond government services.
To realize the 2030 DPI potential, stakeholders must focus on key imperatives. Government agencies need to continue to give proactive policy support, regulatory clarity, and promote existing digital ecosystems by setting up task force to drive adoption and foster innovation through partnerships with corporates and start-ups, the report noted.
According to the report, matured DPIs (UPI, Aadhaar, GSTN and FASTag), with successful mass adoption and larger economic impact, are impacting approximately 1.3 billion citizens, covering 97 per cent of India’s population.
The matured DPIs have enabled a value creation of $31.8 billion, equivalent to 0.9 per cent 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 $15.2 billion, primarily through the elimination of direct benefits transfer leakages, it further noted.