India Set to Take UPI and Digital Public Infrastructure Global

Mumbai: The NDA Government is gearing up to expand the digital public infrastructure (DPI), which includes the most successful payment interface (UPI).

India wants to turn the experience gained from building UPI + Aadhaar + digital identity + data/consent systems + fintech regulation into an exportable digital-financial ecosystem for other countries, particularly developing economies in Asia, Africa and Latin America, according to Union Commerce Secretary Rajesh Aggrwal.

This, he said, would significantly increase its financial services and has the potential to capture large share of the rapidly expanding global fintech trade. Aggarwal said India can potentially offer technological solutions to countries which still are large cash economies, low financial inclusion and high transaction costs.

The Commerce secretary was addressing the Global Fintech Fest in Mumbai. India has already signed an MoU with about 23 countries for the development of digital public infrastructure.

He said that if India could account for even 10 per cent of global fintech services trade, the country could potentially increase its exports from around $8 billion currently to $60-80 billion. This would mean India's DPI experience is poised to move from a domestic success story and move from being primarily an IT-services exporter to becoming an exporter of digital economic infrastructure. It can also help in integrating the payment systems with partner countries, particularly those with a large Indian diaspora, to facilitate easier and more affordable transfers of funds to India.

The Commerce Secretary also highlighted the role of free trade agreements (FTAs) in creating a more favourable regulatory environment for the fintech sector. India, he said, seeks to address barriers related to financial regulation, telecommunications, cross-border data flows, artificial intelligence, investment and movement of professionals while negotiating trade agreements.

Aggarwal added that, along with this, the Government would ensure that hurdles related to financial regulation, telecommunications, data flows, AI, investment, and movement of professionals, to help the fintech economy, were addressed.

Gowriswari.

ABOUT THE AUTHOR

The Hans India