RBI’s new report highlights India as being ahead of the rest of the world, with a share of 48.5% in global real-time payments volume. Global remittances that are increasingly being affected by mobile money and digital platforms are estimated to have increased to USD 857.3 billion in 2023, led by India with USD 115.3 billion.
The digital economy makes up about a tenth of India’s GDP and is expected to grow to a fifth of GDP by 2026, based on growth rates observed since 2014. According to the RBI, digital payments have recorded a compound annual growth rate (CAGR) of 50% in volume and 10% in value terms in the 2017-2024 period, involving 164 billion transactions worth 510 billion in 2023-24.
The report noted that India is at the forefront of digitalisation, embracing not just financial technology (fintech), but also the India Stack, which includes biometric identification, the unified payments interface (UPI), mobile connectivity, digital lockers, and consent-based data sharing.
However, the report also pointed out that cybersecurity is a significant challenge due to the diverse nature of cyber threats targeting the digital financial infrastructure. Security incidents handled by the Indian Computer Emergency Response Team (CERT-In) increased from 53,117 in 2017 to 1.32 million during January-October 2023. Unauthorised network scanning/probing/vulnerable services account for more than 80% of all security incidents in India.
Looking ahead, the report noted that India’s digital technology infrastructure will be a key growth engine. The focus is on next-generation communication technologies like 6G and satellite networks, alongside expanding the 5G network to rural and currently uncovered urban areas. Advancing these technologies will create new opportunities in underserved areas.
The report also stated that achieving self-sufficiency in chip manufacturing is crucial for realising the full potential of the digital revolution.
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