Post pandemic, it is time to relook at the digital opportunity in India.

We are on the cusp of a once-in-a-lifetime transformation of our Nation.

A thread from my conversation with @NandanNilekani on @FoundingF

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2/n The digital *consumption* economy (YouTube, Netflix, Facebook) in India will get dwarfed by the digital *transaction* economy (payments, shopping, digital services).

The change is happening as we speak.

3/n Why?

The digital infrastructure in the West was built on advertising. Over 200B$ flows through their digital economy via ads.

In contrast, India’s ad spend is small.

(Digital 3B$. Total 10 B$). Digital consumption, while growing rapidly cannot power the ecosystem.

4/n India’s future will be led by the transaction-led boom (low-cost, high-volume, small ticket size transactions).

Covid has brought this digital infrastructure to the fore and now it’s ready for phase2 with auto-debit & embedded lending

5/n India’s telecom boom kicked off on the back of creating pre-paid transactions.

The Telcos went into the nooks & corners of the country and activated customers.

This was pre-Aadhaar, with limited trust & lending history, we had no choice but to ask people to pay first.