DPIs expected to enable economic value creation equivalent to 4% of India’s GDP by 2030

By the next decade, the adoption of India’s digital public infrastructure (DPIs) is expected to scale and add higher economic and social impact. As per joint report by Nasscom and  Arthur D. Little, the economic value added by these DPIs will help  India to become $8 trillion economy by 2030 and aid in achieving the target of $1 trillion digital economy. Compared to 2022, the economic value added by DPIs will increase by 0.9%, accounting for upto over 4% of GDP in 2030.

“While mature DPIs have witnessed exponential adoption by 2022, the next 7-8 years offer an opportunity for further scalability, reaching even the most remote segments of the population. By 2030, DPIs will significantly enhance citizens' efficiency and promote social as well as financial inclusion,” said Brajesh Singh, President-India, Arthur D. Little.

As per the report, mature DPIs which includes UPI, Aadhaar, GSTN and FASTag enabled a value creation of $31.8 billion or 0.9% of India’s GDP in 2022. Aadhaar alone enabled economic value creation of $15.2 billion, whereas it was  $16.2 billion from UPI. Beyond just economic value creation, DPIs have also contributed to financial benefits, ecological advantages, process efficiencies, and citizen convenience. In terms of time, these infrastructure elements helped Indians save an estimated two working days in 2022, the report said. Other advantages include paper savings, carbon emission reduction, time saved in logistics and transportation, and alignment with UN SDG.

Aadhaar and UPI have specifically spurred global interest. These interoperable and open-source DPIs have been considered for adoption by over 30 countries. That said, the report notes that the impact of these solutions depends on the specific challenges they address, often requiring policy changes for maximum effect. Population and demographics also influence social inclusion.