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India's Digital Transformation Boosts Economic Growth and Global Leadership

Digital Transformation

Business Honor
15 January, 2025

India’s digital transformation, powered by AI and innovation, sets the stage for global economic leadership.

India is poised for a remarkable digital transformation that will accelerate its economic growth and enhance its global position, according to industry experts. India is expected to become the fourth-largest economy by GDP in 2025, fueled mainly by its rapid adoption of digital technologies. This expansion will be further driven by programs like India stack, a digital infrastructure, which has transformed data, identity, and payment systems in the country. To realize the ambitious vision of $30 trillion Viksit Bharat by the year 2047, India is looking to ride its digital revolution, especially bank on its demographic dividend and progress in financial inclusion.

As a driving force of digital transformation, AI and machine learning are projected to contribute almost $967 billion to India's GDP by 2035. India's strong AI workforce, representing 16 percent of the world's AI talent, positions India best to benefit from these technologies for economic development. Large corporations like Visa already leverage AI in payments and cybersecurity, providing safer transactions and enhancing digital economies. Visa has also done much to aid financial inclusion through its Digital Village Adoption initiative, where it is empowering rural citizens in digital finance and secure payments, impacting more than 50,000 citizens, including many women.

India's small and medium enterprises, which contribute to almost 30 percent of the GDP, will gain enormously from India's expanding digital ecosystem. Visa, in partnership with NGOs, is attempting to reskill and empower women-owned micro-enterprises, equipping them with digital tools and financial education. With investments in infrastructure, including highways and airports, along with the thrust for cashless transactions, India's digital future appears to be poised to define its position as a global economic leader.