India’s Digital Public Infrastructure (DPI) is no longer a domestic governance story. It is a market entry accelerator. With UPI processing over 600 million transactions daily, ONDC operational in over 630 cities and the India Stack enabling near-instant identity verification, payments and data exchange, foreign companies entering India can plug into a digital backbone that compresses time-to-revenue and reduces operational friction. T&A Consulting helps businesses and trade promotion organisations leverage India’s digital infrastructure for faster, more efficient market entry.
Introduction: What Is India’s Digital Public Infrastructure?
Digital Public Infrastructure refers to foundational, shared digital systems that enable secure interactions between people, businesses and governments at population scale. India’s DPI, commonly referred to as “India Stack,” rests on three foundational layers: digital identity (Aadhaar), real-time interoperable payments (UPI) and consent-based data exchange (Account Aggregator framework and DigiLocker). Built on top of these foundations are sector-specific platforms such as the Open Network for Digital Commerce (ONDC), the Goods and Services Tax Network (GSTN) and the Ayushman Bharat Digital Mission for healthcare.
The scale of adoption is striking. More than 1.44 billion Aadhaar numbers have been generated as of March 2026, covering virtually the entire population. UPI handles approximately 81% of all retail digital payments by volume in India, processing over 21 billion transactions by early 2026 and supporting more than 65 million merchants. DigiLocker has over 67 crore users with more than 950 crore documents issued. India’s digital economy contributed 11.74% of GDP in FY 2022-23, approximately $347.6 billion, with a projection to reach 20% of Gross Value Added by FY 2029-30.
For foreign companies, this infrastructure is not background context. It is operational infrastructure that directly affects how they will sell, collect payments, verify identities, comply with regulations and reach customers in India.
UPI: The Payments Layer That Changes Everything
The Unified Payments Interface, launched in 2016, has transformed how India transacts. Unlike closed proprietary payment systems, UPI is an open, interoperable protocol that enables real-time bank-to-bank transfers via mobile devices, with zero transaction fees for consumers. According to ACI Worldwide’s 2024 report, India accounted for approximately 49% of global real-time payment transactions. Within India, UPI has made digital payments a default behaviour, from street vendors using QR codes to enterprise-scale B2B settlements.
For foreign companies entering India, UPI has several practical implications. First, payment collection is frictionless. Any business, regardless of size, can accept UPI payments through a simple QR code or payment link, eliminating the need for expensive point-of-sale hardware or complex payment gateway integrations. Second, UPI creates a transaction trail that enables small businesses and new entrants to build credit histories, potentially unlocking working capital from banks and fintech lenders. Third, UPI’s cross-border expansion (now live in 8 countries including the UAE, Singapore, France, Sri Lanka, Nepal, Bhutan, Mauritius and Qatar) means that companies with operations across these markets can leverage a common payments infrastructure.
For trade promotion organisations and IPAs advising foreign companies on India entry, UPI is a tangible proof point of India’s digital readiness. It eliminates one of the traditional barriers to market entry: the complexity and cost of setting up payment collection in a new market.
ONDC: Democratising Digital Commerce
The Open Network for Digital Commerce (ONDC), launched in 2022, aims to do for e-commerce what UPI did for payments. It is an open protocol that decouples discovery, ordering, payment and fulfilment, enabling buyers and sellers to transact across applications rather than within proprietary platforms like Amazon or Flipkart. A buyer on one app can discover and purchase from a seller on a different app, with fulfilment handled by yet another provider. This interoperable design lowers barriers for small and medium enterprises that would otherwise be locked out by the high commissions and visibility costs of dominant platforms.
As of early 2026, ONDC is operational in over 630 cities with more than 1.16 lakh retail sellers live on the network. The platform has processed over 154 million cumulative orders, with average daily transactions of approximately 490,000 as of December 2024. While adoption remains uneven and operational frictions persist (particularly in logistics and merchant experience), the trajectory is clear: ONDC is building a public digital commerce layer that any business, foreign or domestic, can plug into.
For foreign SMEs considering India entry, ONDC offers a potentially transformative channel. Instead of negotiating with large marketplace platforms for visibility and bearing 15% to 30% commissions, a foreign brand can list products through an ONDC-compatible seller application, set its own pricing and reach consumers across multiple buyer applications. The network’s open architecture also supports services (food delivery, mobility, logistics), making it relevant beyond retail.
Aadhaar and Account Aggregator: Simplifying KYC and Credit Access
Foreign companies setting up operations in India traditionally face lengthy Know Your Customer (KYC) processes for banking, regulatory registrations and vendor onboarding. Aadhaar-based e-KYC has compressed this from days or weeks to minutes, reducing verification costs from approximately $20 to $0.15 per transaction. Banks, fintech companies and regulatory bodies now accept Aadhaar-based authentication for account opening, loan applications and regulatory filings.
The Account Aggregator framework, operational since 2021, adds another layer of efficiency. It allows individuals and businesses to share verified financial data (bank statements, tax returns, GST filings) securely and digitally with any requesting institution, with the data owner’s consent. For a foreign company seeking to establish banking relationships, secure credit lines or evaluate Indian partners, the Account Aggregator system enables faster due diligence and credit assessment.
DigiLocker, with over 67 crore users, provides a secure digital document wallet for verified documents, including tax filings, educational certificates and business registrations. This reduces the paper documentation burden that has historically slowed business processes in India.
GSTN and GeM: Digital Infrastructure for Compliance and Government Business
The Goods and Services Tax Network (GSTN) is the digital backbone of India’s indirect tax system. All GST registrations, returns and payments are processed through the GSTN portal, creating a transparent and auditable compliance trail. For foreign companies, the GSTN simplifies tax compliance by providing a single, unified system for indirect tax management across all Indian states, replacing the pre-2017 patchwork of state-level VAT, central excise and service tax.
The Government e-Marketplace (GeM) is an online procurement platform used by central and state government agencies. With over 11 lakh micro and small enterprises registered, GeM provides a transparent, competitive bidding environment. Foreign companies with a local entity in India can register on GeM and participate in government procurement, a significant market given India’s public spending on infrastructure, defence and technology.
DPI as a Global Export: India’s Digital Diplomacy
India’s DPI is also becoming a platform for international cooperation. As of February 2026, India has signed Memoranda of Understanding with 24 countries for cooperation on India Stack and DPI. UPI is now live in 8 countries, with further expansion planned. The G20 New Delhi Leaders’ Declaration of 2023 explicitly recognised DPI as a development accelerator, positioning India as a practical partner for countries seeking to build population-scale digital systems.
For trade promotion organisations and economic development agencies, India’s DPI diplomacy creates new opportunities. Countries adopting India Stack-inspired frameworks can facilitate smoother bilateral digital trade, interoperable payment flows and data exchange. The IMF has identified India as a leading example of how shared, reusable digital rails can reshape an economy, estimating that every dollar invested in India’s DPI generates returns of $3.2 to $4.0 across the broader economy.
Practical Recommendations for Foreign Companies
For foreign companies planning India entry, India’s DPI creates specific operational advantages that should be factored into market entry strategy:
- Integrate UPI into your payments strategy from day one. Whether you are a B2C brand, a SaaS company or a services firm, UPI should be your primary payment collection mechanism. It is free, instant, universally accepted and creates a digital trail for reconciliation and compliance.
- Evaluate ONDC as a distribution channel. If you are selling physical products or services, assess whether ONDC-compatible seller applications can provide a cost-effective route to market, particularly for initial market testing before investing in your own e-commerce infrastructure.
- Use Aadhaar-based e-KYC for faster banking and compliance setup. Work with your banking and legal partners to leverage e-KYC for account opening, regulatory registrations and vendor onboarding.
- Build on GSTN for compliance efficiency. Ensure your accounting and ERP systems integrate with GSTN for seamless GST return filing. Many cloud-based accounting platforms (Zoho, Tally, ClearTax) offer built-in GSTN integration.
- Explore GeM for government business. If your products or services are relevant to government procurement, register on GeM to access a transparent, high-volume market.
- Factor DPI into your cost-benefit analysis. India’s digital infrastructure reduces several cost lines that traditionally inflate market entry budgets: payment processing fees, KYC and compliance costs, distribution overheads and customer acquisition costs. Quantify these savings in your market entry business case.
How T&A Consulting Supports DPI-Enabled Market Entry
T&A Consulting helps foreign companies and trade promotion organisations understand and leverage India’s digital infrastructure as part of their market entry strategy. Our services include:
- Digital readiness assessment. We evaluate how India’s DPI layers (UPI, ONDC, GSTN, Aadhaar e-KYC) can be integrated into a company’s operational model, identifying specific cost savings and efficiency gains.
- E-commerce and digital trade strategy. We advise on ONDC integration, digital marketing, cross-border payment flows and digital trade compliance, helping companies build a digital-first India presence.
- Payment infrastructure advisory. We support companies in setting up UPI-based payment collection, cross-border payment flows and integration with India’s banking and fintech ecosystem.
- Market entry strategy and execution. We provide comprehensive market entry support, from feasibility assessment and entity setup to partner identification and go-to-market execution, with DPI integration embedded throughout.
- Trade promotion and IPA advisory. We help trade promotion organisations incorporate India’s DPI story into their investment attraction and trade facilitation strategies, creating compelling narratives for foreign businesses.
India’s Digital Public Infrastructure is not just a technology story. It is a market entry story. The companies and organisations that understand how to plug into India’s digital backbone will enter faster, operate more efficiently and scale more cost-effectively than those that treat India as a pre-digital market.
If your organisation is evaluating India as a market and wants to understand how UPI, ONDC, Aadhaar and the broader India Stack can accelerate your entry, T&A Consulting can help you build a DPI-integrated market entry strategy.
Contact us at: pnijhawan@taglobalgroup.com to explore how India’s digital infrastructure can work for your business.