India’s digital boom lifts 800 million out of poverty says UN

The United Nations General Assembly (UNGA) President, Dennis Francis, has lauded India’s digital revolution, attributing India’s digital boom as a key factor in lifting 800 million people out of poverty over the past five to six years.

Speaking at the Food and Agriculture Organisation (FAO) on the topic of “Accelerating Progress towards Zero Hunger for Current and Future Generations,” Francis highlighted how India’s digital boom has transformed the lives of people in rural India. The widespread use of smartphones has enabled instant financial transactions, significantly improving economic access and opportunities for millions.

Francis noted that before this digital shift, many people in rural India lacked access to banking services. Now, with smartphones, they can pay bills and receive payments with ease. He emphasized the critical role of high internet penetration in facilitating this change, which has allowed India to leverage its digital infrastructure for rapid development.

“Digitalization provides the basis for rapid development. Take, for example, the case of India. India has been able to lift 800 million people out of poverty over the past five to six years simply by the use of smartphones,” said Francis. He pointed out that rural farmers, who previously had no connection to the banking system, can now conduct all their business transactions through their smartphones.

He contrasted India’s success with the challenges faced by other Global South countries, which do not have similar levels of internet access and digital infrastructure. Francis called for global efforts to address these disparities and promote equitable digitalization.

The Narendra Modi-led government has focused on digitalization over the past decade. Following the demonetization of Rs 500 and Rs 1000 banknotes in 2016, there has been a significant increase in digital payment transactions, with the Unified Payments Interface (UPI) playing a major role.

Prime Minister Narendra Modi has promoted digitalization through the JAM initiative—Jan Dhan, Aadhaar, and Mobile. This initiative has enabled millions of people, including those in rural areas, to open bank accounts. These accounts are linked with Aadhaar, allowing people to access various government schemes and receive payments directly into their bank accounts.

Francis’s remarks underscore the transformative impact of digital technology in promoting financial inclusion and economic progress. As India continues to expand its digital infrastructure, it sets an example for other countries to follow in harnessing the power of technology for development.

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