How Digital India and UPI are Driving eCommerce Growth in India

May 08, 2023

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India's Digital India program is a government initiative aimed at transforming the country into a digitally empowered society and a knowledge economy. The program includes various initiatives such as digital infrastructure, digital literacy, and digital services, with Unified Payments Interface (UPI) being one of its key components. In this article, we will discuss the contents of Digital India, the importance of UPI, and how this program can benefit India's economy as a whole.

Improving Indian Economy With Digital Inclusion: A Global Role Model

The Digital India program encompasses several initiatives that aim to transform the country's digital infrastructure, enhance digital literacy, and provide digital services to citizens. UPI, which is a part of Digital India, is a payment system that allows users to transfer money instantly between bank accounts through a mobile device. UPI has become a game changer for the Indian economy, making digital payments accessible to millions of people who previously had no access to banking services.

This shift is reflected in the preferred device of online shoppers in India, as 80% of them have used their Smartphone to make online purchases in the past year. The ease of access to UPI through QR codes, cards and even feature phones is helping to bring potential shoppers into the digital payment fold.

Frequently Used Devices IND

Overall, India's digital initiative is connecting previously excluded segments of the population to basic infrastructure. In doing so, it is addressing a decades-long divide between the richest and poorest in the country. By enabling India's population to participate in the UPI, which is free of charge and can be used across borders, India's eCommerce activity is expected to increase significantly in the coming years. This not only empowers citizens, but also helps the national economy reach new heights.

Other objectives of the Digital India program support this move by upskilling India’s workforce through digital literacy programs and vocational training. Supporting business ventures in India's rural periphery aims to spur digital innovation and further integrate workers in remote areas into the economy.

With more people having access to banking services and commercial education, financial and economic inclusion has become a reality for millions of Indians. This, in turn, benefits eCommerce as an integral part of the formal economy. Digital inclusion also propels economic ascension, and India's success with Digital India can serve as a role model for other developing countries.

With India hosting the G20 summit in 2023, issues such as technological advancement and inclusive economic growth will be highlighted and closely watched. Countries in Latin America, which have struggled with issues similar to India's for decades, are likely to benefit from India's model of financial and economic inclusion for segments of the population struggling to make ends meet.

India's success with Digital India and UPI has made the country more attractive to foreign investors. With China dominating the electronics manufacturing market, India's focus on digital infrastructure and services presents an opportunity for foreign investors to diversify their portfolios.

Digital India and UPI: A Game Changer for India's Role in the Global Digital Economy

Digital India and UPI are game changers for India's economy, promoting financial and economic inclusion by making digital payments services free of charge and widely accessible, providing digital literacy and vocational trainings, and facilitating the communication between necessity providers and population in remote parts of the country.

As India is aiming at overall economic ascension through empowerment of wider segments of the population, the country is becoming increasingly attractive to foreign investors, which further support India’s move to become a serious contender to China’s dominance as electronics manufacturer. India's success with these initiatives can serve as a role model for other developing countries looking to achieve similar economic success.