Digital Public Infrastructure Empowers 97% Of Indians With Digital ID, Sparks Startup Ecosystem Surge: Redseer Report
In a groundbreaking revelation, Redseer Strategy Consultants, in collaboration with Nandan Nilekani, unveiled a report titled 'The Impact of DPIs on the Indian Internet Economy' during their flagship event 'Ground Zero 9.0' on 7 December 2023. The report highlights the remarkable expansion of India's Digital Public Infrastructure (DPI) beyond Aadhar and UPI, influencing diverse sectors like eCommerce, Gaming, Fintech, Banking, and MSMEs.
India's current DPI landscape has successfully provided digital identification to 97 per cent of the population, with profound impacts on sectors ranging from e-Governance to healthcare and finance. Noteworthy achievements include streamlining e-Governance through Aadhar, facilitating one billion COVID vaccinations in 9-10 months, and enabling Income Tax Filings.
The DPIs, extending beyond the JAM trinity (Jan Dhan, Aadhar, Mobile), now include Ayushman Bharat Health Account (ABHA), DigiLocker 2.0, Open Network for Digital Commerce (ONDC), Account Aggregator (AA), and Digital Infrastructure for Knowledge Sharing (Diksha), among others. Strengthening DPIs is crucial for bringing underserved demographics into the banking and Income Tax systems, while also laying a foundation for growth in startups and MSMEs.
Key findings from the report include the symbiotic relationship between DPIs and the startup ecosystem, adding over USD 100 billion in value across various sectors of the Indian Internet Economy. Aadhar and UPI have not only revolutionised governance but have also given rise to several DPIs at different developmental stages.
E-commerce, one of the primary beneficiaries of DPIs, achieved a GMV of USD 80 billion in 2022. Mobility, Foodtech, and Gaming emerged as significant contributors, with zero Merchant Discount Rates (MDR) boosting UPI's popularity in the eCommerce space. Emerging platforms like ONDC are gaining traction in the MSME sector due to their open architecture and affordability.
The DPIs' evolution presents exciting opportunities for new and innovative startups, particularly in the HealthTech, Agritech, and Insuretech sectors. Secure and centralised data storage through DPIs is expected to play a crucial role in providing timely access to insurance, enhancing diagnostic capabilities in healthcare, and supporting the agricultural value chain.
Gaming monetisation has surged by 20-25 per cent, contributing USD 27 billion in transaction value to the online gaming industry. UPI Autopay's launch in 2021 has revolutionised payment collection for subscription-based platforms like OTT, insurance, financial services, telecom, and media.
DPIs have seamlessly integrated themselves into various aspects of business and daily routines, significantly impacting the Indian startup ecosystem, which boasts 108 startups in the unicorn club, with 40 per cent nearing profitability. The ongoing democratisation of DPI technologies is poised to efficiently aid startup growth and support the MSME sector at large.
