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India’s Digital Infrastructure – Supplying fuel to tech start-ups
India’s Digital Infrastructure – Supplying fuel to tech start-ups

February 23, 2022

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India’s Digital Infrastructure – Supplying fuel to tech start-ups

2021 for Tech Start-ups: A Blog Series (4/8)

 

India’s stack has come a long way in the last few years. A lot of start-ups are building solutions based on this India stack and why not. The India stack numbers are so big that a lot of start-ups see a huge opportunity in them. Some India stack numbers:

  • Aadhaar enrollments: 1.3+ B
  • Aadhaar eKYC processed: 10.4 B
  • Digilocker registered users: 92.3 M
  • UPI Payments: >4.5 B in 2021

If we talk about more specifically about India stack then UPI is a clear winner. It is the most popular among all. UPI, the dominant API has a unique three-layered infrastructure. It allows apps and fintech companies to gain access to the interconnected system of banks and backbone NPCI servers. A payment provider needs to just use one set of APIs to get access to bank accounts in India.

What makes UPI unique and popular:

  • 280+ banks live on UPI
  • UPI is 5th largest payment network in the world
  • UPI has become an integral payment option for payment services
  • The rapid adoption has only promoted financial and social inclusion for the masses

Financial Inclusion is an important area that got big support because of India’s strong digital infrastructure. India is making notable strides in new and deeper initiatives towards financial inclusion. Key developments:

  • Open Credit Enablement Network (OCEN): Creating a common language for collaboration and partnership with lending service providers (LSPs)
  • Account Aggregators (AA): Data sharing system making lending and wealth management faster
  • Regulatory Sandboxes: Continuous innovation and engagement for the evolving BFSI sector
  • Offline Retail Payments: Framework for facilitating small value digital payments in offline mode

digitalinfra

Digital Health Stack is building critical mass to deliver the “next UPI moment” for India. The creation of a robust public digital infrastructure built on United Health Interface (UHI) in healthcare will fundamentally transform how healthcare is delivered in India. It will improve affordability, access, and quality of care by creating new market opportunities for all public and private stakeholders. The new infrastructure can enable multiple services including, better insurance coverage and claims management, telemedicine, and seamless referrals across facilities, leading to improved healthcare access. Many use cases are emerging in HealthTech: Digital patient, Home based care, health games, plug-and-play models in drug development and more.

India stack has been one of the key pillars in the growth of the start-up ecosystem and with its increasing penetration, it will continue to play a significant role.

 


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