India’s digital transformation is setting new global standards with its scalable, inclusive models. Central to this revolution is the India Stack, a public digital infrastructure that integrates a series of interconnected digital platforms across various sectors. These platforms have significantly impacted several areas, enabling nationwide digital reach and fostering inclusive growth.
Nationwide Reach: The Aadhaar System
The nationwide digitization effort began with the introduction of the Aadhaar system, a unique biometric identification system. Aadhaar, which covers over 1.3 billion residents, has become the backbone of many digital services, facilitating seamless service delivery and reducing fraud.
Financials: Transforming the Payment Landscape
India's financial landscape has been revolutionized by the Unified Payments Interface (UPI), which processes over 10 billion transactions monthly. This makes India one of the largest digital payment markets globally.
Additionally, embedded finance and the Account Aggregator (AA) system are transforming access to credit, with over 1.1 billion accounts linked. This is particularly beneficial for small and medium enterprises, empowering them to grow and thrive in the digital economy.
E-Commerce: Democratizing the Sector
ONDC (Open Network for Digital Commerce) is a groundbreaking initiative that aims to democratize the e-commerce by 2025.
The platform strives to bring 30 million small sellers onto a level playing field with giants like Amazon, enabling them to compete more effectively and reach a broader customer base.
Healthcare: Revolutionary Digital Health Services
Ayushman Bharat Digital Mission (ABDM) is revolutionizing healthcare with digital health IDs for over 500 million people. This initiative greatly improves access to healthcare services across both urban and rural areas, ensuring more equitable healthcare distribution.
AgriTech: Enhancing Agricultural Efficiency
The agricultural sector is also booming thanks to AgriTech innovations, which use AI and satellite data to enhance yields for over 150 million farmers. These technologies are helping to optimize farming practices and improve resource management, thereby increasing productivity and sustainability.
This holistic approach is driving India’s digital economy toward a USD1 trillion valuation by 2025.
MVIS® Digital India Index
Source: MarketVector. Data as of September 16, 2024.
The MVIS® Digital India Index (MVDIND), which provides pure-play exposure to Indian companies operating in the fields of technology, telecommunications, and internet applications, was up ~30% YTD 2024.
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About the Author:
Kinjal Shukla is the Index Researcher and Data Engineer at MarketVector. She is responsible for the design and development of MarketVector indexes and for creating data infographics. Kinjal has cleared FRM Level 1 having come from a risk profile in Barclays, India. She has a degree in a Master of Science in Financial Engineering from Stevens Institute of Technology, USA, and an MBA-Tech degree from NMIMS-MPSTME University, India.
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