Digital India 2.0: UPI, ONDC & Aadhaar Stack Drive the New Economy
India’s Tech Infrastructure is Powering a Digital-First Economy with Global Implications
New Delhi: June 26, 2025
A silent yet significant revolution is underway in India’s economy – and it is not necessarily linked to the developments in private companies. Utilizing the public digital infrastructures UPI (Unified Payments Interface), ONDC (Open Network for Digital Commerce), and the Aadhaar stack – the country is moving rapidly toward a tech-enabled inclusive digital economy.
UPI: A Global Model for Real-Time Payment
In 2025, UPI is processing over 14 billion transactions every month, establishing it as one of the most successful real-time payment systems in the world. What was initially a local concept by the National Payments Corporation of India (NPCI) is now getting traction internationally with France, UAE, and Singapore jumping into the fray by linking up payment across borders.
“Digital payments are no longer a luxury in India; they’re a default,” says Lokendra Chauhan, a B.Tech student who uses UPI daily. “You can even scan a QR code at the tea stall near my hostel that’s how common digital payments have become.”
ONDC: Democratization of E-Commerce
ONDC (Open Network for Digital Commerce) is a government of India-backed platform that is challenging the monopoly of private e-commerce companies to facilitate an open, interoperable network for small merchants to thrive.
By allowing buyers and sellers to transact through multiple apps, ONDC is breaking the reliance on monopolistic marketplaces. The ONDC promotes greater access to the digital economy by eliminating the ‘gatekeepers’ traditionally held by monopolies, standards, and practice.
Aadhaar Stack: Digital ID Enabler
With over 1.3 billion (1,309,430,543) Aadhaar enrollments in India, the Digital ID of Aadhaar serves as the backbone for literally countless public services to fintech innovations. Whether it is KYC (Know Your Customer) verifications or accessing government subsidies, Aadhaar integrates into daily lives.
“Earlier, applying for government schemes meant standing in long lines. Now everything is just a few taps away,” says Banti Tomar, a small farmer from Madhya Pradesh. “I received my PM-Kisan payment directly into my account without any hassle.”
The advent of technologies such as DigiLocker, Aadhaar-enabled Payment Systems (AePS) and e-KYC has further built trust and facilitated greater efficiency across multiple sectors including education and banking.
The Road Ahead: Challenges and Global Implications
There undoubtedly remains a lot of momentum, but several challenges remain in the form of data privacy, gaps in digital literacy, and cyber threats. The government has taken the user feedback on board and is currently reviewing recommendations to update to the Digital Personal Data Protection Act to safeguard citizen rights.
Experts have stated that India’s Digital Public Infrastructure (DPI) model could be a model for other developing countries, especially those facing issues with financial inclusion and fragmented technology ecosystems.
From a tap payment to scaling a small business across several states, the instruments of Digital India 2.0 are no longer solely available to urban elites. As UPI, ONDC, and Aadhaar evolve, they are shaping a digitally sovereign, inclusive economy one transaction at a time
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