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UNGA President Dennis Francis praises India’s use of smartphones for lifting 800 million people out of poverty and urges other Global South countries to embrace digitalization.
In a remarkable acknowledgment of India’s digital strides, United Nations General Assembly (UNGA) President Dennis Francis noted that the country has lifted 800 million people out of poverty in the last five to six years, primarily through the widespread use of smartphones. Speaking on August 1, Francis highlighted the transformative impact of digitalization in rural India, where individuals who previously had no access to banking services are now able to conduct transactions seamlessly via smartphones.
Francis pointed out that India’s rapid and extensive internet penetration, even in its remotest regions, has been a significant factor in this digital revolution. “Rural farmers in India who never had a relationship with the banking system are now able to transact all their businesses on their smartphones. They pay their bills and receive payments for orders. There is a high level of internet penetration in India as almost everyone has a cellphone,” he said.
This success story, according to Francis, is a model for other Global South countries that need to embrace digitalization to foster equitable development. “There has to be some effort and initiatives to address this inequality as an initial step in negotiating the global framework for digitalization,” he added.
The digital payments boom in India has been largely fueled by Prime Minister Narendra Modi‘s Digital India campaign, which began in 2014. The 2016 demonetization further accelerated the adoption of the Unified Payments Interface (UPI), which has revolutionized digital transactions in the country. The National Payments Corporation of India (NPCI) reported a 45 percent year-on-year growth in UPI transaction volume, reaching 14.44 billion transactions in July, with a 35 percent increase in transaction value totaling Rs 20.64 trillion.
India’s rapid adoption of 5G technology at affordable prices has further propelled this digital transformation. Reports indicate that India’s share of 5G phones grew by 66 percent year-on-year, with the average selling price of 5G hardware continuing to drop, leading to a surge in demand.
As countries worldwide struggle to build infrastructure for decent internet access, India’s successful leap into the digital age serves as a beacon of hope and a blueprint for others to follow. The achievements in digital payments and widespread smartphone usage underscore the potential for technology to drive significant socio-economic changes, especially in developing regions.