Page 44 - Building digital public infrastructure for cities and communities

Unlocking growth through foundational infrastructure

A robust DPI framework facilitates innovation ecosystems by providing open, interoperable platforms
that public and private actors can build upon. India’s Aadhaar system exemplifies this transformation
(UNDP, 2023; Aadhaar Annual report, 2024). Launched in 2014, Aadhaar has provided more than
one billion people with biometric-linked digital identities, streamlining access to public services
and eliminating systemic inefficiencies.

The Indian government estimates that it has saved approximately 41 billion US dollars by preventing
fraud in welfare schemes. Beyond efficiency, Aadhaar underpins India’s fast-growing digital payment
system – particularly the Unified Payments Interface (UPI), which processed 8 billion transactions in
a single month in 2023 (Aadil, 2025). These layers of interoperable infrastructure have stimulated
an explosion of fintech innovation and broadened access to formal financial systems (International
Monetary Fund, 2024).

Fostering inclusive innovation and entrepreneurship

DPI also plays a critical role in democratizing entrepreneurship, particularly in underserved and
rural communities. In Kenya, the success of M-Pesa – a mobile money platform built on basic
DPI infrastructure – has been transformative. M-Pesa enabled millions of unbanked individuals to
access financial services and transact digitally, contributing to a 20 per cent rise in mobile money
transactions during the COVID-19 pandemic. As a result, Kenya’s economy rebounded by 7.5 per
cent in 2021, highlighting how inclusive digital infrastructure can serve as a powerful economic
stabilizer during crises (Ndung’u, 2021; Islam et al., 2025).

This pattern of DPI driving inclusive growth and economic resilience is further exemplified by India’s
large-scale DPI initiatives. India's DPI initiatives, including Aadhaar, UPI and FASTag, generated an
estimated 31.8 billion US dollars in economic value in 2022, contributing approximately 0.9 per
cent to the nation's GDP. Projections indicate that by 2030, DPI could contribute between 2.9 per
cent and 4.2 per cent to India's GDP, potentially aiding the country in achieving an 8 trillion US
dollars economy (IBEF, 2024).

Driving sustainable and green innovation

Beyond economic growth, DPI also supports environmental sustainability by enabling smarter
resource allocation and enhancing green innovation. Research on China's Yangtze River Economic
Belt found that regions with advanced digital infrastructure experienced more significant green
innovation outcomes. Improved connectivity not only accelerated market coordination but also
raised environmental awareness and stimulated investment in sustainable technologies (Zhou
et al., 2024). This suggests that DPI can serve dual roles – spurring economic development while
reinforcing climate resilience.

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