India is quickly shifting on the trail of a digital revolution powered by a younger inhabitants with a median age within the 20s, growing broadband and web penetration, exponential information uptake, and, most significantly, the federal government’s focus on digitalisation. In truth, it will not be misplaced to say that in sure sectors, equivalent to fintech, a transformation is nicely and really underway with the Unified Payments Interface (UPI) processing funds value greater than $ 1 trillion–that’s 1000,000,000,000 {dollars}–in FY22 and crossing a vital month-to-month milestone of 5 billion transactions in March 2022.
The Open Network for Digital Commerce (ONDC) Project launched by DPIIT underneath the Ministry of Commerce & Industry is one other initiative which can remodel e-Commerce within the nation. At a time when large tech is being referred to as out for placing company targets forward of the consumer, ONDC will transcend the present structure and make e-Commerce extra inclusive by being primarily based on open-source expertise and utilizing community protocols unbiased of any particular platform. It will create new alternatives for MSME enterprises and small merchants by giving them entry to a non-discriminatory on-line platform.
Inclusion is vital as expertise creates alternatives but in addition dangers growing the digital divide, particularly between city and rural India. What is wanted is 1) improved entry at an inexpensive price, 2) strengthening of rural digital infrastructure, and three) educating folks on using expertise. The scale of web penetration in India and the sheer quantum of information consumed has quickly pushed down prices; at roughly 9 cents per 1GB of information, Indians have the most cost effective entry to cell information on the earth. Meanwhile, BharatWeb is the world’s largest rural connectivity programme which goals to supply a minimal 100 Mbps broadband connectivity to all 250,000 gram panchayats within the nation, overlaying 625,000 villages. However, the third facet can’t be achieved by the federal government’s efforts alone, and the non-public sector must play a supporting function.
Catalysed by PMJDY, e-KYC and UPI, the Digital India revolution is clearly on a sound footing. The Union Budget offered earlier this yr takes it ahead via initiatives in numerous sectors equivalent to agriculture, banking and training. However, whereas the paradigm shift in how India interacts with its residents is acknowledged globally, there is vital headroom to develop consumption by enabling broader entry to monetary merchandise since a CIBIL report states that 150 million Indians lack satisfactory entry to credit score.
Policymakers ought to now push the boundaries referring to digitalisation, together with allowing the establishing of ‘Digital Banks’. Rather than obtain incremental progress via standard considering, boldly embracing technology-based interventions will empower folks and allow New India to achieve the specified stage of sustainable and inclusive progress.
Subhrakant Panda is managing director, Indian Metals and Ferro Alloys Ltd (IMFA) and senior vice chairman, Federation of Indian Chambers of Commerce and Industry (FICCI)
