India’s Journey from Business Innovation to Economic Inclusion

The International Monetary Fund (IMF) has projected India’s economic growth at 6.5% in 2025, the highest among emerging markets and developing economies. A key aspect of the said growth is economic inclusion, which ensures everyone has full, fair, and equitable access to market opportunities as employees, leaders, consumers, entrepreneurs, and community members.

In just over a decade, India has established itself as a global frontrunner in financial innovation. It began with the creation of an ecosystem—the India Stack—comprising digital identity, payment, and data management. The stack has enabled the expansion of digital payments, a crucial driver of economic development. The launch of a nationally accepted digital identification, Aadhaar, became the first step in strengthening the India Stack and revolutionizing commercial banking services.

Aadhaar and the advent of the Unified Payments Interface (UPI) prompted the rapid rise of fintech firms that launched digital wallets and mobile money. These innovations simplified digital transactions. The UPI innovation has brought together all participants in the financial system—banks, non-banks, fintech firms, street vendors, small traders, and more. The UPI stack has ensured safe and stable digital financial transactions, instilling confidence in individuals.

UPI’s success in India has also inspired nations across the globe. For example, Japan is working on implementing a similar digital payment stack model, including UPI. This demonstrates the potential and promise of UPI to empower people and contribute to the larger goal of economic inclusion.

Taking a leaf from India’s UPI book, similar business innovation across industries will play a transformative role in fostering an inclusive economy. By creating opportunities, the private sector will be at the heart of this business-led innovation, acting as a crucial partner in helping the country catalyse economic inclusion and accelerate growth.

Embracing Opportunities

Technology innovation is already being leveraged across sectors, leading to economic inclusion. Agriculture, the backbone of India’s economy, is poised for massive tech-based disruption. Businesses and startups that offer advanced solutions of precision and smart farming, intelligent crop planning, and predictive analytics to manage risks associated with weather, crop yield, and market prices have explosive growth potential. Agritech solutions powered by artificial intelligence (AI), cloud computing, remote sensing, and the Internet of Things (IoT) can transform farming into a data-driven enterprise, making agriculture more resilient, profitable, accessible, and inclusive for smallholder farmers.

Micro, small, and medium enterprises (MSMEs) have a significant role to play in creating employment opportunities and boosting the Indian economy. Co-operatives, such as Amul and Lijjat Papad, are exemplary models of how collective action and community-driven businesses can create impact till the last mile. Such cooperative movements can be scaled through technology and digital transformation by enabling greater access to markets, improved supply chains, and efficient operations. India’s Open Network for Digital Commerce (ONDC) helps MSMEs digitize and expand their reach, providing data-driven insights for better decision-making and business strategies.

India’s economic inclusion also hinges on art, culture, and tourism. Technologies such as augmented reality (AR) and virtual reality (VR) can breathe life into art and culture, creating immersive experiences for a global audience. Digital inclusion can elevate rural artisans and women entrepreneurs, boost tourism, and support a sustainable livelihood for those involved in India’s diverse cultural heritage.

As businesses work towards economic inclusion, they must embed circular economy principles in their innovations. A business-to-planet (B2P) approach will set businesses on a trajectory integrating the planet and its people as fundamental stakeholders. Investments in areas such as clean technologies, green manufacturing, and renewable energy systems will help build a green economy. The concept of a green economy lays fresh emphasis on the economy, investment, capital and infrastructure, employment and skills, and favourable social and environmental outcomes.

Forwarding Future

In the pursuit of economic inclusion, businesses in India have a unique opportunity to create an innovative ecosystem for all. Business innovations will help stimulate markets, transform individual lives, and fuel sustainable development. By leveraging technology, businesses can ensure that innovation reaches remote and rural areas, small businesses, and traditionally underserved communities, democratizing access to resources, services, and economic opportunities.
 

Disclaimer

The views, thoughts, and opinions expressed in this blog are solely those of the author and any content provided on this blog is for informational purposes only.