India accounts for nearly half of the world’s digital payments, holding a 48.5 percent share in global real-time payment volumes, according to a report released by the Reserve Bank of India (RBI) on Monday. The report also underscores India’s leadership in global remittances, receiving USD 115.3 billion in 2023.
“India is leading the world with a share of 48.5 percent in global real-time payments volume. Global remittances that are increasingly being affected through mobile money and digital platforms are estimated to have increased to USD 857.3 billion in 2023, led by India (USD 115.3 billion),” said the report.
The digital economy currently makes up about a tenth of India’s GDP and is expected to grow to a fifth of GDP by 2026, based on growth rates observed over the past decade.
Digital payments in India have experienced a compound annual growth rate (CAGR) of 50 percent in volume and 10 percent in value terms over the last seven years, amounting to 164 billion transactions worth Rs 428 lakh crore in 2023-24.
India’s digital revolution is not limited to financial technology (FinTech); it also encompasses the India Stack, which includes biometric identification, the Unified Payments Interface (UPI), mobile connectivity, digital lockers, and consent-based data sharing. This revolution is enhancing banking infrastructure and public finance management systems, covering direct benefit transfers and tax collections. E-markets are also becoming more vibrant and expanding their reach.
However, the report also pointed out that cybersecurity is a significant challenge due to the diverse nature of cyber threats targeting the digital financial infrastructure. Security incidents handled by the Indian Computer Emergency Response Team (CERT-In) increased from 53,117 in 2017 to 13,20,106 during January-October 2023. Unauthorized network scanning/probing/vulnerable services account for more than 80 percent of all security incidents in India.
The report highlights, that India’s digital technology infrastructure will be a key growth engine. The focus is on next-generation communication technologies like 6G and satellite networks, alongside expanding the 5G network to rural and currently uncovered urban areas. Advancing these technologies will create new opportunities in underserved areas.
The report also stated that achieving self-sufficiency in chip manufacturing is crucial for realizing the full potential of the digital revolution.
