India’s Digital Public Infrastructure (DPI), powered by Aadhaar and the Unified Payments Interface (UPI), has been recognised among the world’s 10 highly effective structural reforms, according to a report by CareEdge Global Ratings.
The report highlights how India’s digital ecosystem has expanded access to financial services, lowered transaction costs, improved financial inclusion and encouraged businesses to participate in the formal economy. The findings also underline the importance of digital technology in delivering services and supporting economic activity on a large scale.
Aadhaar and UPI Drive India’s Digital Growth
The CareEdge report assessed 43 reform initiatives across 38 countries. Of these, 10 were classified as highly effective, nine as moderately effective, 15 as work in progress and nine as least effective. India’s Digital Public Infrastructure was included in the highly effective category.
Aadhaar covers more than 1.3 billion people, representing approximately 95% of India’s population. Meanwhile, UPI handles more than 13 billion transactions every month, demonstrating the extensive reach of the country’s digital payment network.
Digital payments have also gained wider acceptance among micro, small and medium enterprises (MSMEs). According to the report, more than 85% of transactions involving these businesses take place digitally, reflecting their growing integration into the formal economy.
Together, Aadhaar and UPI have helped establish a shared digital foundation that supports multiple financial and administrative services.
How Digital Infrastructure Is Addressing Economic Barriers
Nitesh Jain, Chief Rating Officer at CareEdge Global Ratings, said India’s digital infrastructure had helped address longstanding obstacles to participation in the formal economy.
He highlighted challenges such as dependence on cash, limited access to banking and formal credit, and difficulties in delivering financial services and welfare benefits to large sections of the population.
According to Jain, the significance of India’s digital model lies in its ability to support several economic and administrative functions through a common technological framework.
The report also identified coordination between institutions and interoperability among digital systems as important factors behind the development of this ecosystem. Collaboration involving government departments, regulators, banks, payment networks and fintech companies has supported the integration of digital services.
Europe and Asia-Pacific Account for Most Highly Effective Reforms
The report found that Europe and the Asia-Pacific region together accounted for eight of the 10 reforms classified as highly effective, with four initiatives from each region.
Other examples included tax digitalisation in Greece, Germany’s debt brake, banking reforms in Cyprus and Project Repeal in the Philippines.
The assessment illustrates the range of policy measures countries have adopted to address economic and institutional challenges. It also highlights the importance of effective implementation in determining whether reforms achieve their intended results.
Implementation and Emerging Challenges Remain Important
CareEdge Global Ratings cautioned that announcing a reform is not enough to ensure lasting economic benefits. Results depend on sound policy design, appropriate sequencing, clearly defined institutional responsibilities, political commitment and support from relevant stakeholders.
The report also emphasised the need for governments to prepare for emerging challenges involving artificial intelligence, digital infrastructure, climate risks, critical technologies and supply-chain vulnerabilities.
Addressing these issues will require policymakers to adapt existing frameworks and strengthen institutional capabilities. Sustained implementation and the ability to respond to changing economic conditions will remain important for preserving the long-term benefits of structural reforms.
Disclaimer
This article is intended for general informational purposes only and is based on the findings attributed to the CareEdge Global Ratings report described in the source material. The information should not be interpreted as financial, investment or policy advice. Readers should refer to the original report and relevant official sources for further details.
