Use of tech, digital platforms common thread in reforms

India's world-class digital public infrastructure (DPI), also referred to as the India Stack, has enabled online, paperless and cashless digital access to various public and private services, according to the review of the economy released by the economic division in the finance ministry. It said the use of technology and digital platforms has been the common thread in the reforms undertaken during the past nine years.

"India's digitalisation reforms and the resulting efficiency gains in terms of greater formalisation, higher financial inclusion, and more economic opportunities stand as a model for other economies to follow," the report said.

Digital infrastructure has enabled the creation of digital identities, improved access to finance, access to markets, reduced transaction costs and improved tax collection, and has provided the foundation for sustained and accelerated economic growth this decade, it said. The report said that the pursuit of inclusive development finds Indian households in good financial health, adding that 510 million bank accounts under Jan Dhan Yojana now have total deposits of more than ₹2.1 lakh crore.


It said the India Stack has given a digital face to the country's services sector.

"The India Stack consists of three interconnected layers - the identity layer (Aadhaar), the payments layer (Unified Payments Interface, Aadhaar Payment Bridge, Aadhaar Enabled Payment Service) and the data layer (account aggregator)," it said.

"The payments layer enabled an enormous surge of cashless payments, both in value and volume terms," it said, adding that the UPI easily substituted for cash payments when safe distancing was the norm during the pandemic.