India is at the forefront of the global digital payments landscape, holding a significant share of 48.5 per cent in real-time payments volume, as highlighted in a recent Reserve Bank of India (RBI) report. In addition, India leads the world in global remittances, receiving a staggering USD 115.3 billion in 2023. The report emphasized the increasing trend of mobile money and digital platforms for remittances worldwide, estimating a total of USD 857.3 billion in 2023.
The digital economy in India currently accounts for about a tenth of the country’s GDP, with projections indicating a growth to a fifth of GDP by 2026. The rapid growth of digital payments is evident through a compound annual growth rate (CAGR) of 50 percent in volume and 10 percent in value terms over the last seven years. In 2023-24 alone, there were 164 billion digital transactions worth Rs 428 lakh crore.
India’s digital revolution is not limited to financial technology (FinTech) but also encompasses the India Stack, which includes biometric identification, the unified payments interface (UPI), mobile connectivity, digital lockers, and consent-based data sharing. This integration has revolutionized banking infrastructure and public finance management systems, enabling efficient direct benefit transfers and tax collections. The rise of vibrant e-markets further expands the reach of digital technologies across various sectors.
Despite the advancements in digital technologies, cybersecurity remains a significant challenge in India. The diverse nature of cyber threats targeting the digital financial infrastructure has led to a substantial increase in security incidents handled by the Indian Computer Emergency Response Team (CERT-In). Unauthorized network scanning, probing, and vulnerable services account for over 80 percent of all security incidents in the country, highlighting the critical need for enhanced cybersecurity measures.
Looking towards the future, the RBI report underscores the importance of India’s digital technology infrastructure as a key driver of growth. The focus is on advancing next-generation communication technologies such as 6G and satellite networks, alongside expanding the 5G network to rural and underserved urban areas. These technological advancements are expected to create new opportunities and bridge the digital divide in areas with limited connectivity.
In order to fully realize the potential of the digital revolution, achieving self-sufficiency in chip manufacturing is deemed crucial. The report emphasizes the significance of developing indigenous capabilities in chip manufacturing to support the growth of digital technologies and promote innovation in India’s digital ecosystem. As the country continues to embrace digital transformation, investments in cybersecurity, technological infrastructure, and digital skills development will be essential to drive inclusive growth and sustainable development in the digital era.
