BENGALURU: Unified Payment Interface (UPI), which transformed the payment landscape, has grown from 17% of the total digital transactions in India in FY19 to 52% of the total 8,840 crore financial digital transactions in FY22.
According to the Economic Survey, on average, between FY19 and FY22 CY, growth in UPI-based transactions in value and volume terms has been 121% and 115%, respectively. In December 2022, UPI touched its highest-ever mark with 782 crore transactions worth Rs 12.8 lakh crore.
Apart from India, NPCI, through its international arm NPCIL(National Payments Corporation of India International) is pushing for acceptance of RuPay/UPI powered apps, cross-border remittance and UPI-Like deployment in international markets such as Singapore, UAE, France, the Netherlands, among others. Also, UPI is one of the major contributory factors to the growth of e-commerce.
Highlighting e-commerce in India, the Economic Survey said fashion, grocery and general merchandise to capture nearly two-thirds of the Indian e-commerce market by 2027. E-commerce firms such as Trell, Meesho, and shop 101, are expanding and gaining popularity in Tier 3 and 4 cities.
The survey also talks about start-ups’ ‘Reverse Flipping'(shifting of start-ups domicile back to India). To accelerate reverse flipping, it suggests measures such as simplification of taxation of Employee Stock Options (ESOPs) and simplifying procedures for capital flows.
Vidit Aatrey, Founder and CEO, Meesho said, “With start-ups exploring IPOs, easier domestic listing for foreign inc entities will bolster our markets. India has over $3T of market cap, of which about 1% comes from tech start-ups. The move will allow our market participants to derive a larger share of the value-creation by these firms.”
