20-Apr-2024
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India’s Digital Transformation Journey: From Cash Crunch to a Digital Revolution

India's digital revolution, fueled by bold initiatives and innovation, exemplifies how technology can transform a nation.

A few years ago, a chance encounter with an auto-rickshaw driver transformed my perspective on India’s Digital Transformation Journey. Stranded outside the Press Club in Delhi one night, we reluctantly accepted the ride.

To my surprise, when I tried to pay the fare with a ₹500 note, the driver suggested, “PayTM kar deejay, ya UPI, or debit card bhi chalega (please pay by PayTM, UPI, or debit card).” That moment marked my transition from a sceptic to a staunch believer in digital transactions. Today, like countless Indians, my utility bills, groceries, and more are paid online.

The digital revolution didn’t occur overnight; it involved a journey filled with determination and innovation. Demonetization and the COVID-19 lockdowns were catalysts for this transformation. Before demonetization, digital payments accounted for just 10% of total transactions in India. Since then, it has grown to over 35%, reshaping our lives.

Consider the statistics: Since November 2016, when demonetization removed 86% of physical cash, India witnessed a digital payments surge. 2017 UPI recorded 900% YoY growth, processing transactions worth ₹67 billion. By 2021, it grew by 72%, totalling ₹125.95 trillion, equivalent to nearly 86% of India’s GDP in FY 2022.

This transformation continues as Internet and smartphone penetration rises. By 2026, projections indicate that Indian e-commerce will reach $200 billion, with an expected 220 million online shoppers by 2025.

KV Kamath, Chairman of the National Bank for Financing Infrastructure and Development, highlighted India’s achievements in digital payments. India’s QR payments via UPI now surpass global giants Visa and MasterCard with over 10 billion monthly transactions.

As we celebrate these milestones, we are determined to become a $5 trillion economy. India’s digital revolution, fueled by bold initiatives and innovation, exemplifies how technology can transform a nation. The journey from a cash crunch to a digital powerhouse is a testament to our conviction and courage to embrace change.

For a detailed story, please visit: Awaz the voice

Also Read: India’s Global Leadership: G-20 and Development

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