The India stack as a potential gateway to global economic integration
This paper has been authored by Erin Watson, ORF.
India’s Digital Public Infrastructure (DPI), known as India Stack, has not only had a profound impact on the country’s economy but also has potential significance for global economic integration. This brief elucidates how this framework has facilitated financial inclusion, spurred innovation, and propelled economic growth in India. It highlights the foundational role of India Stack in transforming the country’s financial landscape, and advocates for its adoption as a model for other countries seeking to leverage digital technologies for economic development. As nations navigate the digital evolution of the global economy, integration with India Stack offers a promising pathway towards fostering greater economic cooperation and inclusive growth on a global scale.
From a small shop tucked away somewhere in the western part of Delhi, Jasmeen Kaur skyrocketed to internet stardom with her “Just looking like a wow!” Instagram reels. The endearing videos of Jasmeen showcasing her latest sarees and suits to potential clients even caught the attention of Bollywood stars and their hundreds of millions of followers. As a woman entrepreneur in India, Jasmeen was riding the wave of India’s economic growth and using the tools at her disposal to beat the competition. Yet, for women like her, it is not just the power of digital marketing that is reshaping their business potential, but India’s revolutionary approach to DPI.
India Stack is a set of digital public infrastructure components that comprise three pillars: Digital identification; payments; and data management. India’s approach to digitalisation has fundamentally changed lives, giving biometric identification to those previously not identifiable, banking the unbanked, and giving people control and privacy in managing their own data. For women like Jasmeen, the ubiquity of Stack means she can receive payments from consumers, share legal documents with her bank or lawyer, pay her suppliers, receive loans or investments, and coordinate delivery payments through the fast, easy, and cheap technology.
Given how Indian society and economy is now structured around DPI, and with its enormous diaspora across the globe, there is significant opportunity to unlock the country’s economic potential to international markets. This article argues that as countries pursue economic diversification and grapple with the digitisation of the global economy, they should look to India Stack for learnings in how to effectively unlock economic potential in their bilateral relationships and for their own digital public infrastructure. As developed countries seek to reform legacy financial systems or developing countries build new ones, India has a world-leading solution that can revolutionise how global economies engage with India and with each other. Integrating India’s DPI means international markets can go from “just looking” at the India opportunity, to building deep integration with its economic system.
The first section describes India’s approach to DPI and its key components, with a focus on its digital identification and payments systems. The article then outlines the international opportunity as exemplified by the case of Singapore and India’s DPI cooperation. The third section includes key lessons that other countries and markets can learn from India’s DPI experience. The essay concludes by offering a key takeaway: That India has revolutionised DPI with India Stack, and global economies can benefit from integration.
The paper can be accessed by clicking here
This paper has been authored by Erin Watson, ORF.