India, a country frequently called out for poor physical infrastructure, has experienced a radical transformation in the digital space. Most notably, a digital payments revolution has reshaped the universe of informal transactions that make up 85% of its economy. In January 2023 alone, eight billion such transactions, worth nearly $200 billion, were carried out involving 300 million people and 50 million merchants — remarkable for a country that used cash for 90% of transactions a few years ago.
The Case for Investing in Digital Public Infrastructure
How businesses and governments can work together to build digital foundations that benefit everyone.
May 22, 2023
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Summary.
In India, investment in digital public infrastructure (DPI) has transformed how the country does business and how its citizens interact with their government. DPI, or rails on which easy-to-use digital products and services can be built to benefit entire populations, has the potential to quietly remake entire economies through digital means in both the developing and developed world. However, to be successful, governments and businesses need to coordinate on how to invest in, build, and run this digital layer. The author lays out eight qualities of successful DPI projects, and how the public and private sectors can coordinate to build them.