India’s digital economy accounted for ₹31.64 lakh crore or 11.74% of GDP in 2022-23, employing 14.67 million workers, according to data presented in Budget 2025. By 2029-30, its contribution is projected to reach 20% of Gross Value Added (GVA), fueled by advances in AI, cloud services, and digital platforms. The budget underscores significant investments in digital infrastructure to sustain and accelerate this growth trajectory.
UPI Leads Global Real-Time Payments
The Unified Payments Interface (UPI) has become a global leader in real-time transactions, handling 49% of worldwide payments in 2023, according to the ACI Worldwide Report.
In December 2024, UPI recorded transactions worth ₹23.24 lakh crore, with over 16,730 million transactions conducted across 641 banks. UPI has expanded internationally, now live in seven countries, including the UAE, Singapore, and Nepal.
Telecom and Internet Expansion
India’s telecom sector has seen substantial growth, with total telephone connections rising to 1,188.7 million by October 2024. The country boasts 96.96 crore internet connections, a 285% increase since 2014. 5G rollout has achieved rapid progress, with 4,62,084 BTS units deployed across 779 districts. Additionally, broadband penetration increased dramatically, with 94.92 crore broadband users recorded by August 2024.
Aadhaar: Expanding Digital Identity
The Aadhaar program has crossed several milestones, issuing over 136.65 crore IDs by March 2023. Aadhaar face authentication surpassed 100 crore transactions in January 2025, and 1,470 crore e-KYC transactions have been recorded, demonstrating its role in improving digital governance and financial inclusion.
DigiLocker and UMANG Empower Citizens
The DigiLocker platform recorded 46.52 crore users and 2,025 lakh yearly signups in 2024, offering secure access to digital documents. Similarly, the UMANG app, which provides access to 2,101 government services in 23 languages, reported 516 crore transactions by December 2024. These platforms are crucial in driving mobile and digital governance across India.
BharatNet Expands Rural Connectivity
The BharatNet project has connected 2.14 lakh gram panchayats to high-speed internet, strengthening digital connectivity in rural India. As part of the initiative, 6.92 lakh kilometers of optical fiber cable have been laid, and over 1.04 lakh Wi-Fi hotspots installed to improve internet access and bridge the digital divide.
Also read: Budget 2025 Boosts Electronics and AI Funding by 84%
ONDC and BHASHINI: Strengthening Digital Inclusion
The Open Network for Digital Commerce (ONDC) is revolutionizing e-commerce, with 7.64 lakh registered sellers across 616+ cities. The platform processed 154 million+ orders by December 2024, boosting opportunities for MSMEs and small businesses.
Meanwhile, BHASHINI, launched in 2022, supports 22+ languages to promote digital inclusion across India’s diverse linguistic landscape. The platform records over 100 million monthly inferences, providing citizens with seamless access to digital services.
Government e-Marketplace Hits Record Growth
The Government e-Marketplace (GeM) recorded a GMV of ₹4.09 lakh crore in the first 10 months of FY 2024-25, reflecting 50% year-on-year growth. The platform hosts over 1.6 lakh government buyers and 22.5 lakh sellers, promoting transparency and efficiency in the procurement of goods and services.
India’s Digital Future
With investments in digital payments, broadband connectivity, and AI-driven platforms, Budget 2025 reinforces India’s push for technology leadership. The government aims to strengthen digital infrastructure and promote innovation to enhance global competitiveness and economic growth. These advancements will drive economic growth, improve digital inclusion, and support India’s sustainability goals for long-term development.
