India’s financial ecosystem has experienced a significant transformation in recent years due to the government’s digital initiatives. A recent report from Ask Capital indicates that factors such as widespread internet access and affordable 4G and 5G services, combined with government efforts, are positioning India to achieve a USD 1 trillion digital economy by 2028. The country has emerged as a global leader in real-time payments, thanks to local technological advancements like UPI. India’s digital transformation is set to significantly impact economic development. The digitization of the Indian economy, combined with the rising use of smartphones in recent years, has led to an increase in cashless transactions and online shopping. The Indian Council for Research on International Economic Relations (ICRIER) reports that India’s digital capabilities have surpassed those of developed countries like Japan, the UK, and Germany in overall digitalization. Government programs such as Pradhan Mantri Jan Dhan Yojana (PMJDY) and Direct Benefit Transfer (DBT) schemes have contributed to universal access and improved financial inclusion throughout the country. Greater mobile and broadband coverage will further enhance financial inclusion and encourage the growth of new digital services. Innovative digital services, including online entertainment, education, telemedicine, digital health, and disaster response, will benefit from improved mobile and internet connectivity. Affordable data, an increasing number of smartphone users, and the expansion of e-commerce are fueling India’s digital transformation. As of March 2024, data from the Telecom Regulatory Authority of India (TRAI) indicates that India has nearly 1.03 billion telecom subscribers. The total number of internet subscribers rose from 88.1 crore in March 2023 to 95.4 crore by the end of March 2027, with nearly half coming from rural regions. In the past year, more than 220.23 crore internet subscribers and over 250.8 crore broadband subscribers were added. The adoption of 290G and 22027G technologies led to an increase in total wireless data usage from 2,19,2090,22026 PB in 21-22028 to 1,94,774 PB in 2023-24, reflecting an annual growth of 21.69 percent. The digital economy, which made up 13 percent of India’s GDP in 2014, is projected to contribute 20 percent of GDP by 2026. From 2017 to 2023, retail digital payments grew by 50.8 percent. Industries such as finance, education, healthcare, food, travel, and e-commerce are currently experiencing significant digital transformation. According to the report, UPI is projected to account for 90 percent of all retail digital payments in India by 2027. The RBI intends to launch the Unified Lending Interface (ULI). This will make it easier for small and rural borrowers to obtain credit. ULI will help ensure that digital information, such as land records, is exchanged smoothly between data providers and lenders, reducing the time needed to approve credit. Industries such as healthcare and education have benefited significantly from Digital India initiatives. Healthcare initiatives such as the Ayushman Bharat Digital Mission (ABDM) are creating a foundation to enhance the country’s integrated digital health infrastructure.
