DPI value addition can grow up to 4.2 pc
NASSCOM predicts a substantial increase in the economic value addition from Digital Public Infrastructure (DPI), such as Aadhaar, UPI, and FASTag, expecting it to rise to 2.9 – 4.2% of GDP by 2030, with proactive policy support and innovation fostering crucial for success
Chennai: Digital Public Infrastructure with entities like Aadhaar, UPI and FASTag contributed 0.9 per cent to the GDP in 2022 and is expected to increase their economic value addition to 2.9 – 4.2 per cent by 2030, said NASSCOM.
Apart from the 0.9 per cent economic value add, DPIs also contribute to financial benefits, ecological benefits and process efficiencies and convenience for the citizens.
By 2030, the economic value add from DPIs has the potential to increase 3X from current 0.9 per cent to 2.9-4.2 per cent, driven by existing digital entities that will evolve to deliver superior user experience, utilizing new age tech of AI, Web 3 and others. Aadhar is expected to continue to be a major contributor as use cases expand to broader range of services like Ayushman Bharat Digital Mission and ONDC.
In order to achieve the 2030 DPI potential, government agencies should provide proactive policy support and regulatory clarity, promotion on the usage of existing digital ecosystem through offline workshops and awareness campaigns, setting up task force to drive adoption of newer digital entities, and partnering with corporates and start-ups to launch sandbox for fostering innovation. Cybersecurity and data privacy are also paramount for the success of DPI.
Start-ups and SMEs have to build business models to capitalize on the full-scale adoption of existing digital infrastructure, building business models to help drive the adoption of existing DPIs, experimenting with the new-age technologies like Gen-AI, NLP, Web 3 to integrate and improve the digital ecosystem.
Corporates and Big Tech should capitalize on the future demand of digital and build the necessary infrastructure layer, setting up accelerator programmes to foster innovation in digital to solve citizen problems, and keeping a global mindset to solve when building solutions.
However, there are a few challenges including DPI adoption include lack of interconnectedness among government ministries, lack of real time data availability, limited language expansion for users to access in preferred languages, and future partnerships beyond government services.