Digital transformation fuelling India's economic growth and inclusion
- IBEF
- January 16, 2025
India is projected to become the fourth-largest economy by GDP in 2025, a remarkable achievement amidst global challenges. The country’s economic resilience offers an opportunity to redefine its global role and set new benchmarks for leadership. India’s rapid digital transformation, underpinned by the India Stack infrastructure, has empowered millions by democratising data, identity, and payments. However, to realise the Rs. 25,92,60,000 crore (U$ 30 trillion) ‘Viksit Bharat’ vision by 2047, momentum must be accelerated, focusing on key drivers such as skilling and leveraging the demographic dividend. India’s young workforce, with over 65% of the population aged between 15-64 years, will play a crucial role in achieving sustainable growth.
Artificial intelligence (AI) is another critical growth driver. Expected to contribute Rs. 83,56,814 crore (US$ 967 billion) to India’s GDP by 2035, AI’s potential is immense. With 16% of global AI talent residing in India, the country is well-positioned to capitalise on this. Visa has been leveraging AI for over 30 years, focusing on cybersecurity and safe payments, saving an estimated Rs. 3,45,680 crore (US$ 40 billion) annually through its global cyber protection workforce. Moreover, Visa is committed to enhancing financial literacy and cybersecurity awareness through partnerships with the Ministry of Electronics and Information Technology (MeitY) and the Common Services Centre (CSC), empowering rural citizens, particularly women. Small and medium businesses contribute nearly 30% to India’s GDP and are also key to economic growth. In partnership with United Way Mumbai, Visa supports women-led businesses by providing access to capital, upskilling, and digital tools. The focus on infrastructure investments, particularly in highways, railways, and airports, will enhance connectivity, stimulate tourism, and provide a competitive advantage for India’s growing digital economy. Through multi-stakeholder collaboration, India is poised to lead the global economy.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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