India’s technology landscape has experienced significant transformation in recent years, driven by the adoption and development of advanced technological solutions. From healthcare to finance and e-commerce, the country has witnessed the emergence of groundbreaking initiatives that are reshaping industries.
All these technologies cumulatively make the India Stack, we’re gonna emphasize on National Health Stack, OCEN, ONDC & UPI.
No discussion about India’s technological advancements would be complete without mentioning the Unified Payments Interface (UPI). Since its inception, UPI has revolutionized the digital payment ecosystem, providing faster and more convenient payment options compared to traditional methods such as NEFT and RTGS.
Indians used UPI to transact 24.3 billion transactions totaling Rs. 39.45 trillion in Q4 FY23. Let’s look into how UPI moved on to reach where it is today.
Above is the number of transactions that took place Year on Year through UPI.
Initially, when the infrastructure of UPI was being laid out, its value proposition was faster and convenient payments in comparison to other available alternatives like NEFT, RTGS, Debit/ Credit Cards and Cheques.
While UPI was a significant value add in comparison to NEFT, RTGS and Cheques which are comparatively slower and less user friendly, Its value add was barely enough when compared to IMPS (Note — UPI is built on IMPS infrastructure) and Debit/ Credit Cards which were equally fast and comparatively user friendly.
With its simplicity, interoperability, and widespread adoption across various platforms, UPI has witnessed remarkable growth. Billions of transactions and trillions of rupees are now being transacted through UPI, empowering individuals and businesses with secure and hassle-free payment solutions. This transformative technology has not only improved financial inclusion but also paved the way for a cashless economy, driving India’s progress towards a digitally empowered society.
2. ONDC: Democratizing E-commerce in India (Deep Dive)
Another significant innovation reshaping India’s technology landscape is the Open Network for Digital Commerce (ONDC),which was launched in December 2021 with its beta version released in September of 2022. Mirroring the successes of UPI and OCEN, ONDC, disrupts the e-commerce space by serving as an open-source network connecting buyers, sellers, payment providers, and logistics services seamlessly.
By unbundling e-commerce capabilities and fostering collaboration among function-specific entities, ONDC aims to create a more inclusive and competitive marketplace. It empowers smaller players, bridging the gap for vendors struggling with digitization, and democratizes access to resources.
Furthermore, ONDC offers standardized APIs, ensuring interoperability and enabling businesses of all sizes to thrive in the digital economy. This holistic approach revolutionizes the — commerce landscape, propelling India towards a more equitable and dynamic future.
- ONDC is set to achieve significant growth in the number of transacting consumers, aiming to reach a buyer base of 90 crore users by the year 2030.
- Additionally, it aims to generate an additional Gross Merchandise Value (GMV) of Rs 3.75 lakh crores in the E-Commerce sector.
- Furthermore, ONDC envisions expanding the Pin Code Coverage of E-Commerce across India, ensuring that more areas are included in online commerce services.
- Simultaneously, the initiative aims to onboard over 12 lakh sellers from the digitally excluded section onto the ONDC network.(ONDC Strategy Paper)
3. OCEN: Enabling Accessible Credit for MSMEs (Deep Dive)
India is home to approximately 56 million MSMEs, employing around 110 million individuals and contributing significantly to the nation’s economy. These enterprises account for 31% of the GDP and 45% of total exports. Among them, approximately 53 million are micro MSMEs with investments below INR 1 crore. (International Financial Corporation, 2018)
However, only 14% of MSMEs in India have access to credit, a figure significantly lower than the 30% observed in developed countries. In 2022, the credit gap was estimated to be USD 540 billion. (Avendus MSME Lending Report, 2023)
The primary reason behind this disparity is that these entrepreneurs often require small amounts of money for short durations.
In the realm of finance, the Open Credit Enablement Network (OCEN) has emerged as a game-changer. Similar to the Unified Payments Interface (UPI), OCEN, launched in July 2020, acts as a standardized middle layer connecting digital platforms and lenders in the credit ecosystem. This integration streamlines the lending life cycle, allowing platforms to offer credit solutions tailored to the specific needs of Micro, Small, and Medium Enterprises (MSMEs).
Supported by the India Stack, OCEN facilitates consent-based, cashless, paperless, and presence-less transactions, eliminating the traditional complexities associated with obtaining credit. Through seamless data sharing and credit assessments, OCEN enables lenders to evaluate the creditworthiness of MSMEs efficiently. This, in turn, provides entrepreneurs, such as Rajni, the roadside food vendor, with faster and more accessible credit, fueling their business growth and contributing to the overall economic development of the nation.
4. NHS: Revolutionizing Healthcare through Digital Infrastructure (Deep Dive)
At the forefront of India’s healthcare revolution is the National Health Stack (NHS). As an integral part of the India Stack, NHS leverages digital infrastructure to transform the delivery and management of healthcare. Among the various layers of NHS are health data exchange, unified health interface, and user applications. These layers facilitate seamless information exchange, data ownership, and interoperability among healthcare stakeholders.
With its various layers, including health data exchange, unified health interface, and user applications, NHS facilitates seamless information exchange, data ownership, and interoperability among healthcare stakeholders.
NHS was launched in September 2021, in order to consolidate health data and empower individuals with control over their own information, to further make healthcare delivery more efficient, cost-effective, and innovative.
Patients can securely access and share their medical records, enabling healthcare providers to deliver personalized care and make informed decisions.
Additionally, the NHS facilitates the integration of emerging technologies like telemedicine, AI-powered diagnostics, and remote patient monitoring, expanding access to quality healthcare across the country.
Way Forward:
India’s technology landscape is undergoing a revolution, driven by innovations like the National Health Stack (NHS), Open Credit Enablement Network (OCEN), Open Network for Digital Commerce (ONDC), and Unified Payments Interface (UPI). These advancements are shaping industries, fostering innovation, and driving economic growth across the nation.
- NHS is revolutionizing healthcare by leveraging digital infrastructure to improve efficiency and patient care.
- OCEN is streamlining access to credit for MSMEs, fueling entrepreneurship and economic development.
- ONDC is democratizing e-commerce, providing equal opportunities for businesses of all sizes.
- UPI is transforming digital payments, making transactions faster and more convenient for millions of Indians.
As India continues to embrace and develop cutting-edge solutions, these technological advancements play a crucial role in propelling the nation’s growth and solidifying its position in the global economy.
It only took India 5 years to achieve its 3rd Trillion in the GDP, in comparison to 60 years for the 1st Trillion. The 4th Trillion is expected to come even faster, as a result of transformations led by the above discussed technologies and a lot more to come.
Auxano aims to identify such mega-trends early, onboarding their journey in order to empower their creators and generate wealth for their believers.
Join us in this journey!!!
Author:
Brijesh Damodaran
