The funds layer, together with the UPI, witnessed a surge in cashless transactions, rising from Rs 0.07 lakh crore in FY17 to a powerful Rs 143.4 lakh crore in FY24 (April-December 2023).
The report famous that because the pandemic disrupted financial actions, the federal government responded swiftly, leveraging the power of digital public infrastructure, generally generally known as India Stack, to facilitate on-line, paperless and cashless entry to varied private and non-private companies
The Ministry of Finance’s lately launched report, ‘The Indian Economy – A Review’, has lauded India’s digital transformation, highlighting the success of the Digital Public Infrastructure (DPI) and its important position in delivering companies with a citizen-centric focus.
The report famous that because the pandemic disrupted financial actions, the federal government responded swiftly, leveraging the power of digital public infrastructure, generally generally known as India Stack. This digital spine facilitated on-line, paperless and cashless entry to varied private and non-private companies, remodeling transactions that had been as soon as thought-about time-consuming and call-intensive.
Comprising three interconnected layers — the Identity Layer (Aadhaar), Payments Layer (Unified Payments Interface, Aadhaar Payments Bridge, Aadhaar Enabled Payment Service), and Data Layer (Account Aggregator)— India Stack has reshaped the companies sector.
THE IMPACT OF INDIA STACK
The identification layer, anchored by Aadhaar, offered a digital identification to a overwhelming majority of Indians, considerably boosting monetary inclusion. As per the report: “Before Aadhaar, only one in 25 citizens had any form of formal identification, and just one in four had bank accounts.”
The funds layer, together with the UPI, witnessed a surge in cashless transactions, rising from Rs 0.07 lakh crore in FY17 to a powerful Rs 143.4 lakh crore in FY24 (April-December 2023). Similarly, the info layer remodeled the Know Your Customer (KYC) course of, lowering e-KYC prices from Rs 1000 to Rs 5.
The Pradhan Mantri Jan Dhan Yojana (PMJDY), using India Stack, propelled direct profit transfers, reaching 51.5 crore accounts by January 10, 2024. Direct Benefit Transfer (DBT) mode has transferred over Rs 33.6 lakh crore (December 2023), main to financial savings of Rs 2.7 lakh crore for the federal government by eliminating duplicate beneficiaries and plugging leakages.
PANDEMIC & E-COMMERCE
Furthermore, the report famous that India’s digital infrastructure performed a vital position throughout the pandemic with apps comparable to Aarogya Setu and CoWin aiding in monitoring and containing the virus. The PM eVIDYA initiative, leveraging digital expertise, addressed studying gaps throughout the pandemic, showcasing the adaptability of India’s digital ecosystem in occasions of disaster.
Meanwhile, it was additionally highlighted that by 2026, the Indian e-commerce sector is projected to develop to a price of $163 billion, with on-line gross sales making up greater than 25% of the nation’s main non-grocery retail classes. The e-commerce sector in India has been pushed by the nation’s growing urbanisation, center-class affect, and the widespread use of smartphones and web entry.
The report mentioned that India’s digital success has garnered international recognition. The International Monetary Fund’s Working Paper on India’s digital journey identified the advantages, whereas ACI Worldwide identifies India as a frontrunner in Global Real-time cost transactions.
It additionally famous that India’s quickly increasing inhabitants, high-notch DPI, and proactive laws have supported the event of the fintech sector. India is the third-largest growing fintech financial system on the planet, after the US and the UK.
