Digital transformation fueling India's economic growth and inclusion

In 2025, India is projected to become the fourth largest economy by GDP. Amid global challenges, India's economy remains resilient, presenting an opportunity to redefine its global role and establish new standards for economic leadership.  

 

India’s dramatic digital transformation has empowered millions through a digital infrastructure [India Stack], democratising data, identity, and payments. This revolution underpins economic growth, but momentum needs to be accelerated to achieve the $30 trillion ‘Viksit Bharat’ vision by 2047. A sharp focus on key drivers will fuel India's rise to global economic leadership.  

 

Harnessing the demographic dividend 

 

India’s demographic dividend is a unique asset, with over 65 per cent of its population between 15-64 years, set to enter the workforce by 2030. To achieve the 2047 Viksit Bharat target, “skilling” has been identified as a key growth driver for sustainable development.  

 

 

In addition to several government initiatives like the Skill India Mission, Visa believes that public-private partnerships in skill development can accelerate growth in labour-intensive sectors like tourism. An example of this is our partnership with NSDC's Tourism and Hospitality Skill Council to upskill 20,000 Indian youth in tourism across 10 states, enhancing employment, service standards, and tourist experiences.  

 

Artificial intelligence (AI) as an economic catalyst  

 

AI is expected to add $967 billion to India’s GDP by 2035. With 16 per cent of the global AI talent pool residing in India, we are uniquely positioned to harness AI for significant economic growth.  

 

Visa has leveraged AI in payments for over 30 years. As a network of networks, we help partners, clients, and governments worldwide tackle cyber threats with AI, ensuring safer payments. Globally, our dedicated 1,000+ cyber protection workforce and an investment of over $10 billion prioritising cybersecurity using AI save our customers an estimated $40 billion annually. We believe AI will further enhance payment personalisation and fraud detection and look forward to working with the Government and regulator to safeguard India's expanding digital economy and ensure a safe and seamless experience for users.  

 

Digital transformation and financial inclusion  

 

With the Government’s push towards a less-cash economy and UPI's phenomenal impact, India has become a global leader in digital payments. Digital transactions are expected to triple by FY29.  

 

As demand for digital solutions grows, especially in Tier 2 and 3 cities, embracing innovations like mobile contactless payments will help. Moreover, the future of payments authentication is advancing towards biometric authentication to make transactions smoother and more secure. As payments become more digital, flexible, and driven by consumer preferences, in partnership with the ecosystem, we aim to provide more choice through innovative tools.  

 

As part of Visa’s relentless commitment to expanding financial literacy and cybersecurity awareness in the country, we are proud to partner with the Ministry of Electronics and Information Technology’s (MeitY) Common Services Centre (CSC) and adopt 1,000 villages. Through this Digital Village Adoption program, across 16 states, Visa enables training in digital finance and secure payments to 50,000 rural citizens, half of whom are women; the program has been implemented to date in over 900 villages.  

 

Empowering small and medium-sized businesses  

 

Small and medium businesses in India contribute nearly 30 per cent to GDP and employ over 110 million people, playing a vital role in the country’s economic growth. However, they face challenges such as limited capital and a lack of digital knowledge.  

 

We endeavour to provide equitable access to financial and knowledge resources to digitise the economy, especially for women-led small businesses in India. Our continued partnership with United Way Mumbai has enhanced thousands of women-led micro-businesses.  

 

Visa and Visa Foundation in India collaborate with NGOs, investors, and agencies to support over 3 million women-led small businesses by providing access to capital and skills for business growth and income enhancement. Since 2022, we have enabled more than 70,000 upskilling opportunities in financial literacy and business skills for women entrepreneurs.  

 

At Visa, we champion SMB empowerment. In collaboration with banks and the ecosystem, we offer custom digital tools and services designed to help SMBs optimise digital payment benefits and respond to market needs. A few examples of Visa’s custom innovations to power India’s SMBs include digital payment acceptance solutions like Visa’s Acceptance Fast Track Program, or affordable, low-cost acceptance devices to facilitate multiple payment options across QR, NFC Tap to Pay, and others. Additionally, with partners, we facilitate services like digital marketing, business productivity tools, access to marketplaces, insurance coverage, and others.  

 

Enhancing connectivity through infrastructure investments 

 

Investments in highways, railways, and airports are boosting connectivity across India. This infrastructure focus will drive tourism, promote cultural exchange, and stimulate local economies.  

 

Developing a world-class payments system with integration of digital payments and cashless options is pivotal to enhancing tourism. Visa has successfully implemented over 750 contactless public transit projects in cities like London and New York. We look forward to collaborating with ecosystem stakeholders in India and contributing with Visa’s global expertise to streamline travel. With an increasing expectation of cashless options, India's progress in enhancing tourism infrastructure will provide a significant competitive advantage.  

 

At Visa, we are led by our purpose to uplift everyone, everywhere, by being the best way to pay and be paid. Visa has been in India for over 40 years and continues to be deeply committed to contributing towards the country’s socioeconomic progress by promoting digital inclusion, financial empowerment, innovation, and cybersecurity.  

 

Achieving the Viksit Bharat vision, we believe, is a collective mission. With multi-stakeholder collaboration among the private sector, Government, and civil society, focusing on key growth drivers, together, we can squarely position India at the forefront of the global economy.    (Sandeep Ghosh is the Group Country Manager, India & South Asia at Visa)

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Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper