Page 32 - Nuvama | IC Report 2023

• DE-GLOBALISATION • DEREGULATION • DEBT • DEMOGRAPHY • DEMOCRACY

Digital infrastructure
Last but not least, the government’s digital infrastructure has significantly enhanced people’s quality
of life. This includes:
i) availing government services electronically—such as passport appointment;
ii) lowering financial transaction costs through introduction of payment services such as UPI, and
iii) creating portals for MSMEs to sell goods online to government, resulting in a more transparent
system.

According to Chief Economic Advisor Dr. Anantha Nageswaran, India’s digital infrastructure alone could
add ~0.5% of GDP every year to India’s baseline growth.

Exhibit 11: 12
India’s UPI
transcactions
have increased 10
(INR tn) 8
in recent years

6

4

2
SCAN
0
Aug ’16 Aug ‘17 Aug ‘18 Aug ‘19 Aug ‘20 Aug ‘21 Aug ‘22
India UPI transactions (value terms)
Source: NPCI, Nuvama Research

Dawn of manufacturing renaissance

Sure, sustained efforts toward deregulation and reforms led to some hiccups in the short run, but have
The created a long runway for growth for coming decades. Such efforts are not only empowering citizens
manufacturing- and consumers, but – combined with an expanding labour force and evolving global manufacturing
infrastructure nexus landscape – are paving the way to scale up manufacturing and infrastructure in a big way.
catapulted several
Asian economies It was the manufacturing-infrastructure nexus that catapulted several Asian economies into a higher
into a higher orbit; economic orbit. It may be India’s turn now. Improved investment climate, well-defined business
it may be incentives, efficient government focused on building public infrastructure, enabling legal institutions
India’s turn now and improved debt capacity in the economy (banks and corporate balance sheets are robust now)
clubbed with empowered households offer a solid launching pad for India’s manufacturing renaissance.

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