India's Digital Leap: Millions Launch Businesses via Public Infrastructure
Overview
India's Chief Economic Advisor Nageswaran lauded the nation's digital public infrastructure at the Global Inclusive Finance Summit. The initiative empowers millions to become entrepreneurs, building on successes like Pradhan Mantri Jan Dhan Yojana, which opened over 530 million accounts. Digital transactions, led by UPI, are transforming economic participation and financial security.
Digital Infrastructure Fuels Entrepreneurship
Chief Economic Advisor V. Anantha Nageswaran stated Tuesday that India's digital public infrastructure represents a critical step toward enabling millions of new entrepreneurs. Speaking at the Global Inclusive Finance Summit, he emphasized how this infrastructure supports individuals throughout their professional journeys. The summit itself has evolved into a global forum, sharing India's development strategies with other emerging economies.
Financial Inclusion Milestones
M. Nagaraju, Secretary of the Department of Financial Services, called the 2014 launch of Pradhan Mantri Jan Dhan Yojana (PMJDY) a transformative moment. This flagship program has since opened more than 530 million bank accounts, with a significant majority in rural and semi-urban areas. Women now hold 56 percent of these accounts, effectively closing the gender gap in financial access and fostering a sense of economic partnership within families.
Deposits in PMJDY accounts have reached ₹2.29 trillion. The initiative relies on 600,000 banking correspondents to deliver services directly to communities. India leads the world in digital transactions, accounting for roughly half of all global real-time payments. The Unified Payments Interface (UPI) alone processed over 21 billion transactions in December 2024, far exceeding card-based payments.
Expanding Access and Future Vision
This digital backbone also supports credit and insurance schemes for underserved populations. The Mudra scheme has sanctioned over 563.2 million loans totaling nearly ₹38 lakh crore since April 2015, with women entrepreneurs receiving 67 percent of these funds.
However, challenges remain. Nagaraju highlighted the need to update Know Your Customer (KYC) details for older accounts, bolster financial literacy, and enhance cybersecurity. The path forward, he outlined, involves embedding financial inclusion with literacy and security, creating a stronger, more confident nation ready for the next century.
