80 million out of poverty simply by smartphones: UNGA President praises Digital India

India’s digital model: Dennis Francis, President of the 78th session of the UN General Assembly, marked India's digitalisation efforts as a model for poverty alleviation during a global address in Rome. Speaking at the Food and Agriculture Organisation (FAO) of the United Nations, Francis commended India's use of smartphones to lift millions out of poverty.

"India has lifted 800 million people out of poverty over the last five or six years simply through the use of smartphones," Francis stated, noting the transformative power of digitalisation in development.

Francis underlined the impact on rural farmers, who can now conduct business, pay bills, and receive payments via their smartphones, despite previously having no access to the banking system. The shift has been facilitated by India's high internet penetration and widespread mobile phone ownership.

However, Francis noted that such digital equity is not prevalent across many parts of the Global South. He called for initiatives to address these inequalities as a foundational step towards a Global Framework for Digitalisation.

In 2009, only 17 per cent of adults in India had bank accounts, 15 per cent used digital payments, and about 37 per cent owned mobile phones. Today, teledensity has reached 93 per cent, over a billion people have digital IDs, and more than 80 per cent have bank accounts. As of 2022, India processes over 600 crore digital payment transactions monthly.

India's financial inclusion measures, including the Aadhaar biometric database, Jan Dhan no-frills savings accounts, direct benefit transfers, and the BHIM digital payment system based on the Unified Payments Interface (UPI), have driven this progress.

Responding to questions, Francis stressed the need to revisit international financial architecture, noting its origins 80 years ago in a vastly different world. The UN's 'Our Common Agenda,' released in September 2021, proposes a Global Digital Compact to be agreed upon at the Summit of the Future in September 2024, following the political declaration adopted during the UN's 75th anniversary in September 2020.

(With PTI inputs)