Nasscom & Arthur D Little 2024 Report on India's DPI Journey

Nasscom & Arthur D Little 2024 Report on India's DPI Journey

• 1. India’s Digital Public Infrastructure February 2024 January 2024

• 2. Foreword India’s digital journey, beginning with Aadhaar in 2009, has been transformative. It started with addressing a fundamental problem: three out of four people in India didn’t have formal identification. This meant they had limited access to basic services like opening a bank account or getting a SIM card. Aadhaar was our first step, but the journey evolved into something much bigger. It was about creating a digital identity system that empowered individuals to authenticate their identity easily and securely, wherever they were. This evolution wasn’t just about technology, it was about reimagining how we interact with and within our digital ecosystem. The move from traditional ID methods to a comprehensive digitized system marked a significant shift. It required the collective efforts of the public and private sectors working together. The pace at which India achieved this milestone has been remarkable, condensing decades of progress into a mere fraction of the time. The concept of Digital Public Infrastructure (DPI) that emerged has since grown beyond Aadhaar. It has become a catalyst for further innovations, with platforms like UPI and the growth in digital finance just scratching the surface of what’s possible. The nasscom-Arthur D. Little report titled “Digital Public Infrastructure of India - Accelerating India’s Digital Inclusion” is a great summary of the journey so far, the impact these DPIs have had, and will have on the economy. I’m excited by the fact that many multilateral development agencies have adopted the mission of 50 in 5 i.e., 50 countries adopting DPI in 5 years. What excites us most about DPIs is not the technology itself but what it enables people to do. This digital journey is about transforming challenges into opportunities and leveraging technology to empower people. And this is only the beginning, and the path ahead is filled with promise! Nandan Nilekani Co-Founder & Chairman of Infosys Technologies Limited Founding Chairman, Unique Identification Authority of India (UIDAI)

• 3. Foreword The world has witnessed India’s massive transformation over the last several years, driven by digital revolution at the core of its economic growth, with a vision to make India into a digitally empowered society and knowledge economy. India is leapfrogging from offline, informal, low-productivity to a single, online, formal, highproductivity mega economy. The foundation of this digital revolution has been strengthened by the Digital Public Infrastructure (DPIs) or India Stack, enhancing the ability of the country to use digital technologies at a population scale to change the society. DPIs form the cornerstone to shape this “tech-ade” and ultimately drive the “India@47” growth path. The DPI model is unique, interoperable, collaborative, equitable, with the inclusive principle that every citizen in the most inaccessible corner of the country has the same opportunity as everyone else. The Nasscom-Arthur D. Little report titled “Digital Public Infrastructure of India - Accelerating India’s Digital Inclusion” is a first-of-its kind report, providing a holistic view of the Indian DPI ecosystem, analysing the past, present, and the future impact that these DPIs will have on the Indian and global economy. Staying true to the fundamental principle of creating impact to over 1 billion Indians, the report highlights the significant contribution made by DPIs to the Indian economy. And with the maturing adoption of many of these entities, it is projected to yield substantial economic and social impact on a broader scale, creating a widespread revolution which covers every aspect of our society and economy. India is currently the global leader in developing DPIs, using it to implement widespread adoption of digital payments, data-sharing infrastructures, bolstering domestic businesses and spurred entrepreneurship in the country. This has been due to the relentless support by the government and enabled by the IT intellectual capital and start-up ecosystem, a combination which has made DPI a success. Not limited to India, the success of these DPIs has been gaining global recognition as well and have the capability to solve key global challenges including key UN Sustainable Development Goals, creating a lasting impact across the globe and with an aim to take this model to 50 countries in five years. This report highlights the possibilities of the vast potential that DPIs hold in revolutionizing the entire Indian economy and the world and paints a hopeful picture of an interconnected, open, inclusive world with infinite possibilities, empowering each and everyone across the globe. Debjani Ghosh President, Nasscom Satya Easwaran Partner, Arthur D. Little

• 4. 4 February 2024 Shri Kuntal Sensarma Dr. Pramod Varma Arvind Mohan Sujith Nair Venkatesh Hariharan Gaurav Gupta Jay Amin Shridhar Marri Amit Ranjan T Koshy Mansi Kedia, PhD Kameshwari Chandra Economic Adviser and Group Coordinator, Ministry of Electronics & Information Technology (MeitY), Government of India We would like to thank all the economic advisors for their valuable inputs. We would like to thank all the leaders and industry experts for sharing their valuable insights. Chief Technology Officer, EkStep Co-founder – FIDE Co-chair - Center for digital public infrastructure Ex-Chief Architect – UIDAI Professor of Economics & Director Institute For Management Science, University of Lucknow CEO & Co-founder – FIDE Steward and Member, Core Working Group – Beckn Protocol Independent Researcher - DPIs Chief Growth Officer – EkStep Principal Strategy Manager, Fractal Analytics CEO and Founder - Flyfish Ex – CEO - Senseforth.AI Startup Angel Investor Ex Architect – DigiLocker CEO – ONDC Research Fellow, Indian Council For Research On International Economic Relation (ICRIER) Chief Strategy Officer - CDPI Acknowledgements Kiran Anandampillai Dharmender Jhamb Kay McGowan Ravi Chandrasekhar Kanishka Agiawal Varun Basu Gautham Ravichander Vibhor Bansal Santosh Pathak Technology Advisor – NHA CEO and Founder – iDrishti Ex- VP - Paytm Senior Director for Policy & Advocacy - Digital Impact Alliance Director – Product strategy - Flipkart Head - Service Lines, India and South Asia Awazon Web Services (AWS) VP - Growth and Partnerships - eGov Foundation Manager – Partnerships - eGov Foundation Head – Strategy - eGov Foundation Associate Vice President – Infosys

• 5. 5 India’s Digital Public Infrastructure Executive Summary Over the past decade, India has emerged as one of the fastest growing economies in the world and is set to become the 3rd largest in the world before the end of this decade. DPI Maturity Framework – ■ To analyse the impact of DPIs on India’s economy, Arthur D. Little has designed a ‘Maturity Framework’ built on components such as – Recency, Indirect benefits, Direct benefits in transaction value and volume, Total Addressable Market (TAM), and reach of each DPI as a % of TAM. ■ When evaluated methodically, there is a clear clustering of ‘matured digital entities’ with successful mass adoption and larger economic impact & ‘budding digital entities’ with successful proofs of concept and ready for mass adoption. Indian DPIs – Impact on India in 2022 – ■ We estimate matured digital entities (Aadhaar, UPI & FASTag) to have enabled value creation of ~0.9% to India’s GDP in 2022. ■ Apart from economic value add, DPIs also contribute to financial benefits, ecological benefits and process efficiencies and convenience for the citizens. This massive economic transformation has been powered by digital public infrastructure (DPIs) that have facilitated the development of necessary government services & platforms and these in turn have powered market innovations in both public and private sectors, and enabled creation of inclusive ecosystems. India’s DPI foundational stack has been built on 3 core guiding principles- they have open APIs, are interoperable and based on consent, and consist of 3 layers based on identity, payments and data which have facilitated the development of necessary government services & platforms. Private players have also participated by building business models using some of these DPIs. The foundation of DPIs is based on the underlying principle of trust on the infrastructure and stakeholders. Indian DPIs – Global Impact Potential – ■ UPI & Aadhaar are being adopted by other countries globally to solve similar social & economic challenges. Presently, over 30 countries are either adopting or in early discussions to implement UPI, Aadhar, and Beckn in their respective countries for boosting social & financial inclusion. 5 India’s Digital Public Infrastructure 1. 2. 3. 4. 5. 6.

• 6. 6 February 2024 Executive Summary Indian DPIs – Impact potential by 2030 – By 2030, we believe that the economic value add from DPIs has the potential to increase ~3X- from current 0.9% to 2.9-4.2%, driven by- ■ Existing digital entities that will evolve to deliver superior user experience, utilizing new age tech of AI, Web 3 and others. Aadhar is expected to continue to be a major contributor as use cases expand to broader range of services. ■ Enhanced impact of budding DPIs such as ABDM (better healthcare for citizens of the country, resulting in increased labour productivity) and ONDC (incremental growth in retail spending of the country). Key challenges in DPI adoption include lack of interconnectedness among government ministries, lack of real time data availability, limited language expansion for users to access in preferred languages, and future partnerships beyond government services. Key imperatives for the stakeholders to achieve the 2030 DPI potential– ■ For Government agencies, imperatives to be cognizant of include proactive policy support & regulatory clarity, promotion on the usage of existing digital ecosystem through offline workshops and awareness campaigns, setting up task force to drive adoption of newer digital entities, and partnering with corporates and start-ups to launch sandbox for fostering innovation. Importance of cybersecurity and data privacy are paramount for success. ■ For Startups and SMEs, it includes building business models to capitalize on the full-scale adoption of existing digital infrastructure, building business models to help drive the adoption of existing DPIs, experimenting with the new-age technologies like Gen-AI, NLP, Web 3 to integrate and improve the digital ecosystem. ■ For Corporates and Big Tech, imperatives include capitalizing on the future demand of digital & build the necessary infrastructure layer, setting up accelerator programs to foster innovation in digital to solve citizen problems, and keeping a global mindset to solve when building solutions. 6 January 2024 7. 8. 9.

• 7. Contents Introduction to India’s Digital Public Infrastructure 08 Indian DPIs - Global Impact Potential 47 DPI Impact - Past and Present 15 Indian DPIs - Future Impact Potential by 2030 51 Indian DPIs - Impact on India in 2022 38 Appendix 57

• 8. Introduction to India’s Digital Public Infrastructure

• 9. 9 India’s Digital Public Infrastructure Introduction to India’s Digital Public Infrastructure Digital India in this Techade In a rapidly increasing digital world, the growth in India’s digital prowess clearly stands out, while maintaining its vast diversity. With a growing young population and massive digital transformation, Indian government announced the “Digital India” initiative to not only encourage its citizens to increase digital adoption, but also transform the economy into a digitally empowered one. The “Digital India” initiative drives progress and prosperity through technology, revolutionizing citizen engagement and connectivity. It prioritizes Digital Public Infrastructure (DPIs) to enhance efficiency and stimulate innovation in both the public and private sectors. With robust digital frameworks, India lays a strong foundation for accelerated growth and technological advancements, reflecting its commitment to utilizing digital infrastructure for economic development and societal well-being. Unlocking the Techade of India In the past decade, India has experienced an extraordinary digital revolution, marking a period of unprecedented growth and success. With a rapidly expanding digital ecosystem, India has emerged as a global leader in harnessing the power of technology. India is one of the fastest growing economies in the world 1 As on Dec 2022 2 As on Oct 2022 Source: IMF World Economic Update, morth.nic.in, Binswanger Anarock report, https://usof.gov.in/en/bharatnet-project, Arthur D. Little, nasscom analysis 1.1 a. Introduction Chapter #1

• 10. 10 February 2024 Driven by its remarkable digital transformation journey in the last two decades 1 As on June 2023 2 As on Dec 2022 3 As on 28 July 2023 Source: TRAI, UIDAI, NPCI, CoWIN, Secondary news reports, nasscom 1.1 b. Vision and Scope of the Indian DPIs Vision for creating DPIs In the pre-digitized era, on one side, there was the presence of government with its internal applications and public systems, which led to innovation at its own pace. On the other end, we witnessed the emergence of private tech organisations, who with their own apps, platforms, operating systems etc. created a “walled garden” controlling the user’s access to network-based content thus providing access to only select applications. Internet penetration has soared, opening new opportunities for connectivity and access. The digital economy has blossomed and is poised to become a significant contributor to India’s GDP. Moreover, India’s commitment to digital innovation is evident in its deployment of numerous digital public entities, solidifying its position as a trailblazer in the digital realm. This exceptional progress showcases India’s unwavering dedication to shaping a vibrant and inclusive digital future. ₹

• 11. 11 India’s Digital Public Infrastructure A differented approach was followed, which required the buy-in from the government and the technological prowess promised by the tech giants. In the “DPI Approach”, the govt worked with stakeholders to design “interoperable DPIs”, enabling other companies to build their own solutions, leading to an ecosystem solving citizen-centric problems. DPI Framework and Universe In the pursuit of a digitally empowered nation, India has crafted a visionary framework that lays the foundation for comprehensive digital transformation. At the core of this framework lies a strategic alignment of multiple layers, each contributing to the seamless integration of digital services, platforms, and infrastructure. India’s Digital Public Infrastructure (DPIs) are key building block enabling this transformation Source: Adapted from multiple secondary sources including presentations by Dr. Pramod K Varma, State of India Digital Economy report - ICRIER, Arthur D. Little, nasscom analysis To streamline the process, India has crafted a visionary framework, ‘Digital India Framework’

• 12. 12 February 2024 ₹ Solutions Layer - Solutions built using DPI by government (including digital government services which are all the government services that have been digitized) and private entities (including all the solutions which have been built using DPIs as foundation). The digitization of government and private services empowers citizens through the conversion of traditional service delivery into efficient digital formats. This streamlines access to essential public services, ensuring convenience, transparency, and inclusivity. The Digital India framework consists of 3 layers, which include Digital Public Infrastructure Layer - DPIs are digital utilities which create a foundation on which various digital services can be built. These refer to the solutions and systems that enable the effective provision of essential society-wide functions and services in the public and private sectors and include - Digital public platform - Non-exclusive, non-rivalrous digital networks that allows two or more parties to interact (with govt. involvement). These are sector specific platforms, enabling public service delivery and serve as catalysts for collaboration, fostering seamless communication and engagement. Digital public goods - Any open source, open data, open AI, software, etc., openly available to use, procured and deployed adhering to privacy & other applicable laws. Physical Infrastructure Layer - Physical layer (network, computing & storage) ensuring immersion, interaction and persistence. 1. 2. a b 3. At the core of India’s digital revolution, the key DPIs with a strong foundation of interoperability, open-source principles, and consent-driven frameworks come together. Aadhaar, UPI, and DEPA exemplify these principles, enabling seamless digital identity, secure payments, and controlled data access. These DPIs not only enhance user experiences, but also foster collaboration between public and private entities. 1.1 c. Foundation / Tech-stack

• 13. 13 India’s Digital Public Infrastructure DPIs built layer by layer focusing on 3 core guiding principles Global economies work on trust and transparency. Indian DPIs’ foundational layers are based on transparency and trust, promoting paperless transactions, reducing bureaucracy, and advancing the concept of digital identity and document management. This forms the backbone of massive adoption of DPIs across the country. Indian DPIs represent critical layers on which various government services are built – ■ Identity layer enables secure and unique identification of individuals, and businesses and facilitates seamless authentication, verification, and integration of identity information, enabling efficient delivery of public and private services. ■ Payment layer facilitates secure and convenient transactions between individuals, businesses, and the government and aims to promote a cashless economy, enhance financial inclusion, and simplify the process of giving and receiving payments by leveraging technology and interoperable payment solutions. ■ Data Exchange layer provides a standardized, consent-driven, and interoperable platform where individuals, businesses, and government agencies can securely share and access data for various purposes, such as financial services, e-governance, education, healthcare, and more. Source: Dr. Pramod Varma, Arthur D. Little, nasscom The introduction of DPIs has had a profound impact on various sectors, stakeholders, and government services in India. Key benefits across stakeholders include: For individuals - 1. Increased access to services, improved standard of living, cost savings, and enhanced productivity. 2. Enable citizens to avail government welfare programs, financial services, and healthcare facilities seamlessly. For businesses - DPIs enable simplifying operations, foster ease of doing business, provide authentication solutions, and offer insights into consumer data. For Government entities – Higher tax revenues, reduced operational costs, improved service delivery, and enhanced global image. DPIs have enabled efficient tax collection and facilitated the implementation of transparent and accountable governance practices. 1.1 d. DPIs as a Utility Trust and Consent

• 14. 14 February 2024 Source: ICRIER, Arthur D. Little, nasscom analysis DPIs are spread across all sectors Logistics Agriculture Education Healthcare Financial services Account aggregator Education Agriculture Others Digital Public Infrastructure (DPI) Layer DEPA (Data empowerment and protection architecture) NDEAR (National digital education architecture) IDEA (India digital ecosystem of agriculture) OCEN (Open credit enablement network) Non-Exhaustive Service Provider Landscape Using DPIs Riding on the benefits offered by the DPIs, many private players have adopted them for building business-centric solutions. Private players and start-ups creating solutions for unique problems using DPIs Solutions Platforms Digital Public Infrastructure (DPI) Digital Public Goods (DPG) eKYC

• 15. 15 India’s Digital Public Infrastructure DPI Impact – Past & Present

• 16. 16 February 2024 DPI Impact – Past & Present Since the inception of DPIs in more than a decade, the progress and impact created is humungous. This chapter assesses the progress of DPIs, which includes user adoption and growth, direct impact on citizens and economy, indirect non-tangible benefits like convenience, time savings etc. To further analyse and categorize the DPIs into specific categories, Arthur D. Little designed a ‘Maturity Framework’ built on 6 major components. The framework is based on the 6 variables, basis which a maturity score is assigned to each DPI. These variables include – 1. Recency: Measured as the number of years since the DPIs have been launched and measures the period from when the citizens have availed benefits from the DPIs. 2. Indirect benefits: These are the intangible, indirect benefits availed by the citizens from the DPIs. These include financial inclusion, social inclusion, increase in productivity, cost savings, and ecological impact. 3. Direct benefits: These measure the dollar value or volume generated through the adoption of the DPI by the citizens. 4. TAM (Total Addressable Market): The total population which can potentially benefit from the DPIs. 5. TAM Penetration and Reach: Total users and the reach of the DPIs as percentage of the TAM. DPI Maturity Framework parameters Source: Arthur D. Little analysis 2.1 Maturity Framework Chapter #2

• 17. 17 India’s Digital Public Infrastructure The Maturity Framework assesses the impact of Indian DPIs based on total reach and adoption. DPI Maturity Framework Non-Exhaustive Source: Arthur D. Little, nasscom analysis It measures the maturity score on X axis, with TAM on the y axis. The size of the bubble represents the penetration of TAM by the DPI. Matured DPIs, in the top right corner, have scaled substantially, indicating a high maturity score. While the budding DPIs still have scope for growth and maturity. There is a natural clustering with most mature DPIs (comprising of Aadhaar, UPI, FasTag and GSTN) on the right side, followed by the budding DPIs, and other DPIs which are nascent. To elucidate, GSTN is at the bottom of the chart, while Aadhaar is on the top, despite having similar maturity score. This highlights the key difference that GST is for limited TAM, whereas Aadhaar’s TAM comprises of the overall population of the country. The budding DPIs comprise of a cluster with high TAM and low maturity score, which includes the DPIs for education, healthcare and commerce. This section covers the progress of the DPIs in 4 parts – 1. Matured DPIs 2. Budding DPIs 3. Other notable DPIs 4. Select state-level DPIs 2.1 a. DPI progress in the last 10 years

• 18. 18 February 2024 Note: As sourced from government dashboards Source: uidai.gov.in, Arthur D. Little, nasscom analysis Details on each matured DPI - Aadhaar is a unique biometric identification system, providing authentication through biometric, enrolment software, Central Identities Data Repository (CIDR), authentication servers and Aadhaar network. It has facilitated the development of services like Aadhaar-enabled Payment System (AePS) and Aadhaar Payments Bridge (APB), electronic Know Your Customer (eKYC) and eSign. Aadhaar today provides a digital ID to over 1.3 billion Indian citizens (~97% of the population). The growth for this DPI since its inception has been over 300 times. Aadhaar is the pioneer in creating unique digital identities for citizens Matured DPIs Matured DPIs are impacting ~1.3 Bn citizens, covering 97% of the population Mature Mature

• 19. 19 India’s Digital Public Infrastructure UPI has driven financial inclusion and revolutionised the payment landscape for millions of Indian citizens & merchants Source: npci.org.in, Arthur D. Little, nasscom analysis Unified Payment Interface (UPI) is used to link bank accounts to any UPI-enabled app, leading instant transactions across various platforms. It has driven financial inclusion and revolutionized the payment landscape for millions of Indians. Private fin-tech players have also supported the growth of the ecosystem by building business models around it. Stabilizing transaction size indicates that UPI payments are replacing cash transactions for regular low-ticket expenses. AePS (Aadhaar enabled Payment System) is a payment service that allows a bank customer to use Aadhaar as their identity to access their Aadhaar enabled bank account and perform basic banking transactions securely like balance enquiry, cash withdrawal, remittances through a Business Correspondent. AePS ensures the security and authenticity of the transactions by utilizing biometric authentication linked to the individual’s Aadhaar number, eliminating the need for physical documents, and minimizing the risk of identity theft or fraud. Mature Mature AEPS allows online payments using Aadhaar – the adoption has increased 2.8X over the last 5 years

• 20. 20 February 2024 Fastag: FASTag, built by National Payments Corporation of India (NPCI) on top of UPI protocols, is an RFID device mapped with the payment ID of any vehicle and allows quick and seamless payment of tolls and taxes on highways. Presently, tax collections on all the national highways is mandatorily paid by FASTag. It lowers congestion at toll-plazas and improves travel time. FASTag widely adopted by tolls and made mandatory on national highways, leading to 97% adoption Note: 2023 data till Nov 2023 Source: npci.org.in, Arthur D. Little, nasscom analysis

• 21. 21 India’s Digital Public Infrastructure Goods and Services Tax Network (GSTN) has built an indirect taxation platform for GST to help taxpayers in India to prepare, file returns, make payments of indirect tax liabilities and do other compliances. It provides IT infrastructure and services to the Central and State Governments, taxpayers, and other stakeholders for implementation of Goods and Services Tax (GST) in India. Since its inception, GST has shown consistent annual revenue growth of around 20% and a significant increase in registered taxpayers. GSTN streamlined taxation system and resulted in ~2X increase in number of taxpayers and 1.5X increase in overall tax collected Note: The data pertains to respective Financial years. Source: gst.gov.in, incometaxindia.gov.in, Arthur D. Little, nasscom analysis

• 22. 22 February 2024 ONDC has gained significant traction since its inception, onboarding 150k+ merchants, touching 40k+ orders/ day and integrating big tech companies till now Note: Data as of August 2023, sourced from government dashboards and news articles Source: Arthur D. Little, nasscom analysis Open Network for Decentralized Commerce (ONDC) is an open protocol which envisions an equal access to the digital retail markets for small businesses and retailers of the country, thus providing a level playing field for all players. The platform onboards sellers, logistics partners, delivery force of gig-workers and does not charge exorbitant margins from the community. Users or buyers of the platform can choose which seller they want to buy from, and how much to pay for shipping etc. Budding DPIs Budding DPIs such as ABDM and ONDC have shown great potential for scaling in the future Budding

• 23. 23 India’s Digital Public Infrastructure 1 Technology Service Providers 2 Reconciliation Service Providers 3 Seller created by the e-commerce player based on purchase data to self-manufacture key products Note: Data as of 13th August 2023, as sourced from government dashboards Source: ADL, ONDC report, Arthur D. Little, nasscom analysis ABDM lays the groundwork for the digitization of Indian healthcare, reaching over 28% of population DPIs for healthcare DPIs in healthcare aim to improve healthcare accessibility, enable better disease surveillance, and streamline administrative processes.

• 24. 24 February 2024 ABDM is the integrated digital health infrastructure, with growth of over 800X in ABHA IDs registered since 2020 ABDM has been adopted in the public sector, however its adoption amongst the private players is yet to scale Ayushman Bharat Digital Mission (ABDM) aims to develop the backbone necessary to support the integrated digital health infrastructure. The idea is to bridge the gap amongst different stakeholders in the healthcare ecosystem. With the existing infrastructure, one can digitally identify people, doctors, and healthcare facilities, facilitate electronic signatures, ensure non-repudiable contracts, make paperless payments, securely store digital records, and streamline healthcare information through digital management. 1 Ayushman Bharat Health Account Note: Data as of 14th August 2023, as sourced from government dashboards Source: dashboard.abdm.gov.in/abdm, ADL, ONDC report, Arthur D. Little, nasscom analysis Budding

• 25. 25 India’s Digital Public Infrastructure eSanjeevani provides access to medical professionals for the citizens located even in the remotest part of the country, providing direct & assisted tele-consultation. This is a step towards digital health equity to achieve Universal Health Coverage (UHC). This service is cloud based, ABDM compliant and abides by the EHR guidelines of Ministry of Health and Family Welfare. CoWIN has revolutionized vaccine registration, scheduling, and monitoring, ensuring efficient distribution and data-driven decision-making. It is estimated that it saved more than 3.4 million lives in 2021, by undertaking a nationwide COVID-19 vaccination campaign at an unprecedented scale covering 1.4 bn citizens. eSanjeevani: a platform of the healthcare stack leveraged by 73 Mn patients for doctor consultations Note: Data as of 13th August 2023, as sourced from government dashboards Source: esanjeevani.mohfw.gov.in/#/about, Arthur D. Little, nasscom analysis Budding

• 26. 26 February 2024 Data Empowerment and Protection Architecture (DEPA) empowers citizens to seamlessly and securely access their data and share it with third party institutions. It creates a digital framework that allows users to share their data on their own terms through a third-party entity, who are known as Consent Managers. DigiLocker aims at ‘Digital Empowerment’ of citizens by providing access to authentic digital documents to their digital document wallet. This DPI serves, built on DEPA, federates data records issued by government entities and allows users to securely store and share their documents as needed. CoWIN & Aarogya Setu facilitated the rapid vaccination drive for ~1.4 Bn citizens of the country DEPA framework (Data Empowerment and Protection Architecture) governs the consent- based data sharing between multiple stakeholders Note: Data as of 13th August 2023, as sourced from government dashboards Source: dashboard.cowin.gov.in/, The Lancet, Arthur D. Little, nasscom analysis Budding

• 27. 27 India’s Digital Public Infrastructure With 157 Mn total registered users, DigiLocker penetration is ~11% of the TAM Note: Data as of 13th August 2023, as sourced from government dashboards Source: DigiLocker.gov.in, Arthur D. Little, nasscom analysis Sahamati, built on DEPA, is powering harmonious adoption of the Account Aggregator framework to create better value and innovative services for every Indian through secure exchange of financial data, between financial institutions like banks, insurance agencies, or mutual fund companies with the consent manager. Budding

• 28. 28 February 2024 Sahamati is powering simple and secure exchange of user data between financial institutions – doubling the number of linked accounts within the last year DPIs for education sector National Digital Education Architecture (NDEAR) lays down a set of guiding principles and building blocks to enable the creation of digital technology-based applications pertaining to education and aims to achieve the goals laid out by National Education Policy (NEP) 2020. It seeks to digitize every aspect of learning and provide a comprehensive learning methodology for the next generation of students. Note: Data as of August 2023, as sourced from government dashboards Source: Sahamati.org.in/aa-dashboard/, Arthur D. Little, nasscom analysis Budding

• 29. 29 India’s Digital Public Infrastructure NDEAR has the potential to disrupt the education of 510 Mn students NDEAR ecosystem is the backbone infrastructure on which multiple platforms and services in the education sector are built Adoption of NDEAR is in its early phase, with a potential to cater to ~500 million students across the nation Note: 2022 data, as sourced from government dashboards, Arthur D. Little, nasscom analysis Source: ndear.gov.in/, Arthur D. Little, nasscom analysis Budding Budding Budding

• 30. 30 February 2024 Digital Infrastructure for Knowledge Sharing (DIKSHA) serves as a National Digital Infrastructure for Teachers. Diksha portal enables, accelerates, and amplifies solutions in the realm of teacher education. It aids teachers to learn and train themselves using available assessment resources. National Digital Library (NDL) is a virtual repository of learning resources and provides a host of services for the learner community. It offers open access of learning resources for graduates, postgraduates, competitive exams, home study etc. The content includes books, research articles, texts, presentations, videos, images, simulations, animations, supplementing the traditional text-book based methodology. Diksha offers a stack of services covering each leg of education value, from digitizing textbooks, to preparing mock quizzes, collaboration tools etc. National Digital Library is aimed to revolutionize the traditional text-book based teaching methodologies, reaching over 34 Mn users Note: Data as of August 2023, as sourced from government dashboards Source: diksha.gov.in, National Digital Library, Arthur D. Little, nasscom analysis Budding Budding

• 31. 31 India’s Digital Public Infrastructure Study Webs of Active Learning for Young Aspiring Minds (Swayam) is an education platform that aims to empower students, teachers, and institutes in developing curriculum and providing learning material, taught in classrooms from Class 9 till post-graduation. Promoting digital education, Swayam has improved accessibility and quality of educational resources for students and learners across the country. Swayam is an education platform that empowers students, teachers & institutes in developing curriculum and providing learning material, reaching over 34 Mn students India’s agriculture ecosystem is witnessing a gradual increase in the number of DPIs, with IDEA being the latest addition Note: Data as of August 2023, as sourced from government dashboards Source: swayam.gov.in, AICTE, Arthur D. Little, nasscom analysis DPIs for Agriculture sector India has been proactive in using digital technologies to deliver the relevant agriculture related services and subsidies to the farmers. In 2005, National Horticulture Mission (NHM) was launched to maximize the horticulture potential of the country. Several schemes, and mandates have been implemented by the government, before culminating into a formal DPI for this sector in 2021, named IDEA – India Digital Ecosystem for Agriculture. Budding Others

• 32. 32 February 2024 For agriculture ecosystem, digital initiatives & government schemes are creating a huge impact India Digital Ecosystem for Agriculture (IDEA) - The adoption of IDEA has already begun with the Unified Farmer Service Platform (UFSP), which aims to create a central database of farmers, lands, and the farm output on each piece of land. Once the farmers are onboarded and are connected to the system, it will solve for each problem faced by the farmers methodically using new platforms, and policy changes. AgriStack DPI, ‘IDEA’ is in initial phases of implementation – unique farmers’ ID is at the forefront Note: Data sourced from government dashboards as of 13th August, 2023 Source: kisan.gov.in, Arthur D. Little, nasscom analysis Others Others

• 33. 33 India’s Digital Public Infrastructure mParivahan aims to automate all vehicle registration and driving license related activities in transport authorities of the country, with introduction of smart card technology to handle issues like inter-state transport vehicle movement and to create state and national level registers of vehicles/DL information. It is a digital medium to interact with all stakeholders and provides services related, but not limited to, licenses, vehicle services, manufacturer services etc. Other DPIs in India such as Bhashini and GeM also showcase lot of potential to grow into scalable solutions Some of the services that are yet to scale but expected to create larger impact in the future Note: Data sourced from government dashboards as of 13th August, 2023 Source: swayam.gov.in, AICTE, Arthur D. Little, nasscom analysis Other nascent DPIs Others Others

• 34. 34 February 2024 mParivahan witnessed 1.3X growth in revenues collected since 2019 myGOV is a citizen engagement platform which collaborates with government bodies and citizens for policy formulation and seeks the opinions of people on issues and welfare. Government uses this platform to disseminate information to citizens for various schemes and programs. myGov uses multiple methodologies like discussions, polls, surveys, blogs, on-ground activities, internet & mobile app, IVRS, for crowd sourcing ideas and discussing issues of citizens. Unified Mobile Application for New-age Governance (UMANG) is a platform that aims to revolutionize citizen services by consolidating a wide range of government services into a single app. With its user-centric approach and focus on accessibility, UMANG empowers users to effortlessly access various services, ranging from healthcare to scholarships, in real-time. myGov witnessed ~4X growth in total registered users since 2018, reaching approx. 2% of the population Note: Data as of 13th August 2023, as sourced from government dashboards Source: parivahan.gov.in/parivahan, mygov.in, Arthur D. Little, nasscom analysis Others Others

• 35. 35 India’s Digital Public Infrastructure Transactions per user in UMANG platform has grown 7x since 2017 1 eGov has operations in other countries as well Note: Data sourced from government dashboards as of 13th August, 2023 Source: web.umang.gov.in, Arthur D. Little, nasscom analysis Others eGov foundation was founded in 2003, with the aim to digitize the government services across the country. . eGov foundation, with its platforms DIGIT and DIVOC, aims to build public digital platforms, enable effective policy to formulation & build open ecosystems for government bodies Others 5 • 2 Bn+1 citizens impacted • 100 partners onboarded • 40 solutions built

• 36. 36 February 2024 Source: egov.org.in, nammayatri.in/open, Arthur D. Little, nasscom analysis Few DPIs focused on solving state level challenges have been tremendously successful making them ready to be scaled nationally Select state level DPIs In addition to the national level DPIs, various state governments and independent bodies have launched local digital entities aimed to solve regional problems. Others

• 37. 37 India’s Digital Public Infrastructure Kochi Open Mobility Network (KOMN) was launched by Kochi’s Metropolitan Transport Authority in 2021 and drives the integration of urban transport across modes using technology. KOMN facilitates all mobility apps in the network to communicate with each other in the same language, offering open interoperable led integration approach. It brings taxi owners and riders on a single platform and entrusts the power back to the taxi owners and riders, delivering enhanced convenience to users. Kochi Open Mobility Network (KOMN), a pioneering initiative launched by Kochi Metropolitan Transport Authority in July 2021, aims to decentralize cab aggregators Namma Yatri simplified public transportation in Bengaluru, with easy access to information & decentralization of authority from private auto-aggregators Source: openkochi.net, nammayatri.in/open, Arthur D. Little, nasscom analysis Tackling the same problem, Karnataka government launched Namma Yatri app, which is aimed to empower the auto drivers of Bangalore.

• 38. 38 February 2024 Indian DPIs - Impact on India in 2022

• 39. 39 India’s Digital Public Infrastructure Indian DPIs - Impact on India in 2022 This chapter covers an analysis of the DPIs, evaluating the economic, social, ecological, time and cost savings through implementation of the DPIs. The Arthur D. Little Maturity Framework segregates the digital entities into mature and budding DPIs based on their adoption. This serves as the premise for evaluating the economic impact by the DPIs. DPI Maturity Framework* * Disclaimer - The maturity index is based on various assumptions Source: Arthur D. Little, nasscom analysis Chapter #3 Non-Exhaustive

• 40. 40 February 2024 Key use cases of digital entities adding value to the overall economy For an analysis of the economic impact, select mature DPIs - Aadhaar, UPI, and FASTag were considered. Also, the value add in the economic impact of a DPI includes all the platforms and services which are solely built on Aadhar and UPI. For e.g., between UPI and Aadhaar, the economic value add due to AePS is also accounted for. Our analysis indicates that matured DPIs have enabled value creation of $31.8 Bn, equivalent to 0.9% of India’s GDP. The assessment includes direct as well as indirect impact created by these DPIs. Economic value add by DPIs Note: Economic value-add measured in $ Bn for 2022 based on the specific use cases. GDP of India for 2022 as per IMF, $3.4 Trillion Source: Arthur D. Little, nasscom analysis

• 41. 41 India’s Digital Public Infrastructure Aadhaar and its economic impact Direct impact includes direct value add to GDP like extra tax or toll collected. While the indirect impact translates to either cost savings, or time savings (opportunity cost). Note: Economic value-add measured in $ Bn for 2022 based on the limited use cases. Financial data is shown as per respective financial year; Govt. collection includes additional tax revenue and household savings include cost saved due to no cascaded taxes Source: Arthur D. Little, nasscom analysis Value addition to India’s GDP by Aadhaar Aadhaar plays a pivotal role as the foundational identity layer for multiple DPIs. The use cases for calculating Aadhaar’s contribution to GDP includes additional revenue due to money in bank accounts (e.g., Jan Dhan Yojna accounts), direct benefit transfer savings due to prevention of leakages, and costs saved due to e-Authentications. Overall, Aadhaar has enabled economic value of $15.1 Bn, with the major contributor being direct benefits transfer leakages being eliminated.

• 42. 42 February 2024 Value addition to India’s GDP by UPI UPI has replaced cash transactions as well as electronic transfers across sectors. Three use cases are identified for the analysis for value addition to GDP. UPI has added additional $16.2 Bn in GDP Source: Arthur D. Little, nasscom analysis Payment cost saved due to UPI: While UPI is replacing cash based and electronic transactions, it saves on cash-handling expenses as well as the markups paid on electronic transfers. Presently, UPI does not charge anything from merchants or users for sending or accepting payments.. Value addition due to extra interest earned from bank accounts: As more retail transactions are conducted online with UPI, users’ dependency on cash reduced. This resulted in extra interest earned on their bank accounts due to the just-in-time nature of these transactions. Value addition due to reduction in float payments: Electronic payments earlier used to take more than 1 day to reflect, which resulted in money staying in float accounts with the bank. With UPI, this transfer is immediate, hence users can earn extra interest. The use cases for calculating UPI’s contribution to GDP include: 1. 2. 3. Value addition to India’s GDP by FASTag FASTag, built on NPCI, enabled value creation of $423 Mn (₹0.03 Tn) to the GDP including direct and indirect impact. With FASTag, vehicles at the toll gate are spending less time paying for the toll, significantly reducing slow-moving congestion and pollution. The value add due to this is evaluated as indirect benefit. A direct contribution to GDP is the marginal increase in productivity of the users by saving waiting time at the toll.

• 43. 43 India’s Digital Public Infrastructure FASTag, built on NPCI, has reduced waiting time at toll gates on National and state highways, added $423 Mn (₹0.03 Tn) to GDP Source: Arthur D. Little, nasscom analysis Financial inclusion Aadhaar based authentications made it easy to open a bank account, leading to higher adoption of PMJDY (PM Jan Dhan Yojna), from 44% in 2014 to 77% of the population gaining access to bank accounts in 2023. As of 2nd August 2023 there were 497 Mn beneficiaries of PMJDY which helped government in the disbursal of $6.3 Bn. Apart from economic value add, DPIs also contribute to financial benefits, ecological benefits and process efficiencies and convenience for the citizens. This section analyses the non-economic benefits qualitatively, highlighting the magnitude of impact created by matured and budding DPIs. Under Pradhan Mantri Jan Dhan Yojna, 497 Mn bank accounts were opened to integrate Aadhaar with the financial sector Non-economic value add of DPIs

• 44. 44 February 2024 Time Savings Time savings is the most versatile parameter, and every digital entity is aimed to save time for the citizens by changing the mode of delivery of these services. On an average, in 2022 every Indian citizen saved ~2 working days by using digital services. Cost Savings Cost savings are a direct result of ‘time saved’, across different industries by reducing inefficiencies and making the processes faster. Note: TAT: Turn around time Source: Arthur D. Little, nasscom analysis With the convenience of online service delivery, the country saved ~2 working days per citizen annually in 2022 across different industries Digital initiatives helped in reducing inefficiencies & eliminating leakages and increasing profitability – across different industries

• 45. 45 India’s Digital Public Infrastructure Ecological Impact One of the core impacts of DPI adoption includes ecological impact by way of paper savings and reduction in pollution. Every digitization has impact on an ecological impact, only a select digital entities (e.g., ABDM, FASTag, Digilocker and Aadhar) with highest impact are considered for evaluation. Innovative business solutions Adoption of DPIs have led to innovative and customized business models built by private and public entities, which enabled better services and solutions for the citizens. Source: Arthur D. Little, nasscom analysis Time saved in logistics & transportation sector reduced carbon emissions by 3.2 Mn tonnes in 2022 Innovation in business models catalysed by DPIs

• 46. 46 February 2024 India’s digital framework has made it possible to address each of the SDGs and improve the lives of the citizens, both economically and socially. DPIs also aim to fulfill core UN SDG goals through citizen centric solutions Solving for UN Sustainable Development Goals (SDGs) The digital solutions developed by India are by design open source, highly interoperable and customized. These solutions if implemented globally can help countries solve similar challenges and help improve lives of their citizens. This will also help countries align themselves with UN SDG goals. Source: Arthur D. Little, nasscom analysis

• 47. 47 India’s Digital Public Infrastructure Indian DPIs - Global Impact Potential

• 48. 48 February 2024 Indian DPIs - Global Impact Potential Witnessing the success of DPIs such as Aadhar and UPI in India, countries across the globe are also adopting digital methods to solve for their local challenges. While some countries are adopting UPI and Aadhar, others are building digital solutions similar to them. Presently, over 30 countries are either adopting or in early discussions to implement UPI, Aadhar, and Beckn in their respective countries for boosting social & financial inclusion. ~30 countries are adopting India’s DPIs such as UPI, Aadhaar and Beckn for boosting social & financial inclusion Source: Arthur D. Little, nasscom analysis Chapter #4 Projected impact of adoption of Indian DPIs by select countries ₹

• 49. 49 India’s Digital Public Infrastructure Similar to India, if successfully implemented, countries globally will also benefit from these digital infrastructures. The impact & economic value addition will depend on the challenges addressed by these. A digital solution in isolation may not solve the challenges faced by any country, a series of policy changes are often needed for maximum impact. For social inclusion, the population and demographics of the country plays an important role, for example for countries like Estonia (with small populations ~1.3 Mn & 90%+ internet penetration) a digital solution based on smartphones will work effectively. Whereas for countries like Brazil or Indonesia a totally different approach is needed. Comparison of countries solving for financial inclusion with similar solutions as UPI Comparison of countries adopting digital governance & driving social inclusion Source: Arthur D. Little, nasscom analysis

• 50. 50 February 2024 DPIs of India is designed to be interoperable and is open source, and it can be effortlessly replicated by other countries. Over 30 countries are planning to adopt UPI. Singapore and Russia have set-up bi-lateral partnerships with India to take UPI at global level. Singapore has integrated PayNow with UPI to instantly transfer funds between the two countries. Similarly, Russia is also in discussion to launch Rupay and Mir cards with UPI-FPS interaction. True potential of UPI 2.0 lies in reducing remittance cost for global transactions of UPI. Remittance cost can come down from currently ~4% to ~1%. For instance, India would have saved over ~$3 bn in remittance cost in 2022, when India received ~$100 bn foreign funds. Philippines and Morocco have already implemented Aadhaar like systems in their countries, while other countries are already in talks. India’s digital health register ABDM is not the first of its kind. Several countries have executed digital solutions related to healthcare very well. Countries like South Korea have made more than 50% of their hospitals paperless, while countries like Australia are maintaining digital health records for ~90% of their population. India has a long way to go before the tangible benefits of ABDM are unlocked, despite the 30% citizen enrolments most of the documentation is still paper based in India. Overview of countries improving access to healthcare using digital solutions Source: Arthur D. Little, nasscom analysis

• 51. 51 India’s Digital Public Infrastructure Indian DPIs - Future Impact Potential by 2030

• 52. 52 February 2024 Indian DPIs - Future Impact Potential by 2030 By 2030, adoption across the matured and budding DPIs has potential to scale and add higher economic and social impact. The economic value add of these DPIs by 2030 has the potential increase to ~2.9%-4.2% of GDP from 0.9% in 2022. The incremental value add will be largely driven by ABDM (better healthcare for citizens of the country, resulting in increased labour productivity) and ONDC (incremental growth in retail spending of the country). Aadhar will continue to be a major contributor as use cases expand to broader range of services. With mature DPIs like Aadhaar already reaching 97%+ adoption, budding DPIs are also projected to create a larger impact for the Indian economy and citizens. These DPIs are also focused on solving sector specific challenges and drive innovation and inclusion within the country. Potential economic value add of DPIs in India’s GDP; 2022, 2030P Source: Arthur D. Little, nasscom analysis 1 Under base scenario; Conservative scenario assumes lower increase in efficiency from the implementation of ABDM and NDEAR ecosystem Chapter #5 Projected economic value add of DPIs in India’s GDP

• 53. 53 India’s Digital Public Infrastructure While the mature DPIs have achieved exponential adoption by 2022, the next 7-8 years present an opportunity to scale up further and impacting to the citizens even in the remotest parts of the country. By 2030, DPIs will have made life of the citizens more efficient with social and financial inclusion Source: Arthur D. Little, nasscom analysis Non-economic value add by 2030

• 54. 54 February 2024 Being digital in nature, the solutions using DPIs are most affected by technological enhancements and disruptions. To avoid the risk of becoming obsolete, the digital services will need to be upgraded to stay relevant and useful. Few such forces of technological advances that can create a larger impact are AI and the new internet built on the principles of Web3 and immersion of Metaverse. Matured DPIs expected to evolve, driven by advancements & integration with key emerging technologies Current budding DPIs expected to leverage emerging technologies to mature and contribute to the economy Source: Arthur D. Little, nasscom analysis Transformation of Matured and Budding DPIs through innovative technology integration

• 55. 55 India’s Digital Public Infrastructure A next-gen digital services Super Bot with multilingual capabilities and speech-controlled portal has been envisaged to provide one-stop solution for all citizens problems. Similarly, a highly advanced version of ABDM integrated with cloud computing and AI can be used to present a holistic health and wellness solutions. Such a system can deliver the true experience of connected healthcare to its citizens with better epidemic management, wellness solutions, etc. to improve health at individual level and faster emergency response systems. Source: Arthur D. Little, nasscom analysis

• 56. 56 February 2024 Source: Arthur D. Little, nasscom analysis Certain challenges hinder the adoption and scaling up of DPIs to their full potential, which need to be managed by all stakeholders. While the country has successfully adopted the early DPIs, with the proliferation of transformative technologies in the future, there are certain imperatives that the stakeholders need to be cognizant of. Key challenges Key Imperatives for the ecosystem Challenges to be addressed by all stakeholders

• 57. 57 India’s Digital Public Infrastructure Appendix

• 58. 58 February 2024 Scope of Study Focus of the study is to assess the economic and non-economic impact achieved due to India’s DPIs. It covers metrics related to DPIs including - 1. Current progress of national and state level DPIs in the Indian digital ecosystem 2. Maturity analysis of the DPIs 3. Economic and social impact on governments, businesses, and consumers 4. Future potential of the mature and budding DPIs 5. Roadmap to increase adoption of existing DPIs and develop budding DPIs 6. Learnings from global counterparts and roadmap to take the Indian DPIs global

• 59. 59 India’s Digital Public Infrastructure Approach and Methodology Quantitative assessment is driven through econometric models to estimate economic impact of various mature and budding DPIs in India. The inputs to the econometric model were sourced from publicly available databases, research publications, and expert interviews. The economic impact (direct and indirect) was estimated by calculating additional revenue generation, cost savings, and time savings. The impact has been calculated bottom-up based on the most impactful use cases of the selected DPIs. The use cases were derived and chosen in consultation with industry experts. The following methodology has been used to calculate the impact for these DPIs: Aadhaar – ■ Leakages avoided by the government in providing social support through Direct Benefit Transfer scheme ■ The average time saved with implementation of Aadhaar authentications and eKYC, resulting in incremental value-add for the citizens. Applications covered include those in Telecom, Banking, Public Distribution System, etc. ■ Incremental income from new bank accounts opened under the Pradhan Mantri Jan Dhan Yojna scheme. UPI - ■ With shifting to UPI, the total direct and indirect payment system costs saved such as reduction in transportation of physical currency, less visits to the ATMs, etc. ■ The additional value generated by consumers, banks, and businesses due to increase in average bank balance over a month driven by reduced cash withdrawal from bank accounts. ■ The extra value generated due to payments being blocked for a lower time in the system, freeing more working capital. The report’s qualitative evaluation encompasses insights derived from interviews conducted with both business and technology leaders responsible for constructing and overseeing the digital ecosystem, as well as stakeholders affected by it. The research involved conducting over 20 interviews with leaders from diverse digital sectors, including thinktanks, developers, infrastructure providers, businesses, consumers, and NGOs, spanning various industries such as banking, healthcare, agriculture, eCommerce, and technology. The insights from interviews were supplemented by extensive secondary research involving analysis of research publications, press releases, and reports issued by government, public and private entities on these topics. Qualitative Assessment Quantitative Assessment

• 60. 60 February 2024 FASTag - ■ Total time saved by passengers at toll gates after implementation of FASTag ■ Total work hours saved due to increased labour productivity. ONDC – ■ Incremental increase in the overall eCommerce spend after ONDC implementation calculated by forecasting the change in penetration and average spend per user Diksha – ■ Increased labour productivity due to a more educated population ABDM – ■ Extra productivity achieved by health professionals due to a digital healthcare system. ■ Total time saved by the working population in availing medical facilities. The aggregate GDP impact due to the time saved is calculated based on the labour population impacted and the average labour productivity. The total impact by global adoption of UPI and Aadhaar is similarly calculated at a country level (depending on data availability) based on the characteristics of each country and extrapolated to calculate the overall impact on the world. The 2 use cases – savings due to better public distribution system and value generated due to reduced float payments have been omitted for global impact calculation due to constraints on data availability.

• 61. 61 India’s Digital Public Infrastructure Acronyms Acronym AA ABHA AI APB API AR ATM BIS CAGR CBDC CIDR DBT DGS DHIS DPG DPI DPP e2e e-Gov EHR eKYC ERP eSign FID FPS GDP Gen-AI GoI GSP GST HCX HFR HP HPR Full form Acronym Account Aggregator Ayushman Bharat Health Account Artificial Intelligence Aadhaar Payments Bridge Application Programming Interface Augmented Reality Automated Teller Machine Beneficiary Identification System Compound Annual Growth Rate Central Bank Digital Currency Central Identities Data Repository Direct Benefits Transfer Digitized Government Service Digital Health Incentive Scheme Digital Public Good Digital Public Infrastructure Digital Public Platform End-to-end electronic Governance Electronic Health Record electronic Know Your Customer Enterprise Resource Planning electronic Signature Farmer ID Faster Payment System Gross Domestic Product Generative AI Government of India GST Suvidha Provider Goods & Services Tax Health Claims Exchange Health Facility Registry Himachal Pradesh Healthcare Professionals Registry Full form HWC IoT IVR KOMN ML MoHFW NBFC NLP NPCI OEM OS OTP PAN PMJAY PMJDY PoS PSU QR RFID RFP RSP SaaS SDGs SME TAM TAT TPA TRAI TSP UFSP UHC UN VR Health & Wellness Centre Internet of Things Interactive Voice Response Kochi’s Open Mobility Network Machine Learning Ministry of Health & Family Welfare Non-Banking Financial Company Natural Language Processing National Payments Corporation of India Original Equipment Manufacturer Operating System One-time Password Permanent Account Number Pradhan Mantri Jan Arogya Yojana Pradhan Mantri Jan Dhan Yojna Point of Sale Public Sector Undertaking Quick Response Radio Frequency Identification Request for Proposal Reconciliation Service Provider Software as a Service Sustainable Development Goals Small and Medium-sized Enterprise Total Addressable Market Turn around Time Third Party Administrator Telecom Regulatory Authority of India Technology Service Provider United Farmer Service Platform Universal Health Coverage United Nations Virtual Reality

• 62. 62 February 2024 Authors nasscom Arthur D. Little, India Sangeeta Gupta Satya Easwaran Nirmala Balakrishnan Pankaj Mann Achyuta Ghosh Brajesh Singh Vandhna Babu Shubhang Kandoi Apar Sharma Kalyan Mangalapalli Senior Vice President Partner Deputy Director Consultant Head - Research & Senior Director President and Associate Director Senior Manager Business Analyst Business Analyst Director-Emerging Technologies - President Office

• 63. 63 India’s Digital Public Infrastructure About nasscom nasscom is the industry association for the technology sector in India. A not-for-profit organization funded by the industry, its objective is to build a growth-led and sustainable technology and business services sector in the country with over 3,200 members. nasscom Insights is the in-house research and analytics arm of nasscom, generating insights and driving thought leadership for today’s business leaders and entrepreneurs to strengthen India’s position as a hub for digital technologies and innovation. Address: Plot no. 7 to 10, Sector 126, Noida- 201303, India Phone: +91-120-4990111 Email: research@nasscom.in Web: www.nasscom.in, community.nasscom.in

• 64. 64 February 2024 About Arthur D. Little Arthur D. Little has been at the forefront of innovation since 1886. We are an acknowledged thought leader in linking strategy, innovation and transformation in technology-intensive and converging industries. We navigate our clients through changing business ecosystems to uncover new growth opportunities. We enable our clients to build innovation capabilities and transform their organizations. Our consultants have strong practical industry experience combined with excellent knowledge of key trends and dynamics. ADL is present in the most important business centers around the world. We are proud to serve most of the Fortune 1000 companies, in addition to other leading firms and public sector organizations. For further information please visit www.adlittle.com or www.adl.com. Copyright © Arthur D. Little Luxembourg S.A. 2023.

• 65. 65 India’s Digital Public Infrastructure Disclaimer The information contained herein has been obtained from sources believed to be reliable. nasscom and its advisors & service providers disclaims all warranties as to the accuracy, completeness or adequacy of such information. nasscom and its advisors & service providers shall have no liability for errors, omissions or inadequacies in the information contained herein, or for interpretations thereof. The material or information is not intended to be relied upon as the sole basis for any decision which may affect any business. Before making any decision or taking any action that might affect anybody’s personal finances or business, they should consult a qualified professional adviser. Use or reference of companies/third parties in the report is merely for the purpose of exemplifying the trends in the industry and that no bias is intended towards any company. This report does not purport to represent the views of the companies mentioned in the report. Reference herein to any specific commercial product, process or service by trade name, trademark, manufacturer, or otherwise, does not necessarily constitute or imply its endorsement, recommendation, or favouring by nasscom or any agency thereof or its contractors or subcontractors. The material in this publication is copyrighted. No part of this report can be reproduced either on paper or electronic media without permission in writing from nasscom. Request for permission to reproduce any part of the report may be sent to nasscom. Forwarding/copy/using in publications without approval from nasscom will be considered as infringement of intellectual property rights. Usage Information

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