DPI serves as a catalyst for innovation and competition

Some scholars and practitioners have argued that digital public infrastructure (DPI) could lead to monopolization and stifle private innovation by creating large government-controlled platforms that overshadow private players.

- ARVIND GUPTA & AAKASH GUGLANI

However, India's experience with DPI tells a different story—one of innovation, competition, and inclusivity. By providing open-access platforms that are accessible to all, DPI empowers consumers, retailers, startups, and entrepreneurs, leveling the playing field and fostering competition. Far from monopolizing the market, DPI allows smaller players to thrive, creating opportunities for innovation across industries.

Before DPI, markets were dominated by large incumbents that controlled access to digital services, excluding smaller players. The Unified Payments Interface (UPI) disrupted this by democratizing digital payments, reducing transaction costs and allowing small businesses to compete on an equal footing with large firms. This has empowered entrepreneurs to access broader markets and given consumers more choice, reducing dependence on large fintech firms.

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