Kautilya

The report traces this transformation from earlier banking systems such as RTGS and IMPS to the rise of the Unified Payments Interface, launched by the National Payments Corporation of India in 2016. UPI simplified digital transfers by allowing users to send and receive money instantly through mobile-linked IDs rather than sharing detailed bank account information, helping it spread rapidly across individuals, merchants, and service providers.

A major feature of this growth has been the widening of India’s digital consumer base. The report says the country’s annual active online shopper base is now nearing 300 million, while the seller ecosystem has tripled over the past five years. Growth is also becoming less metro-centric: Tier-II and smaller cities accounted for around half of incremental online orders in 2025, showing that the next phase of e-retail expansion is being driven as much by Bharat as by big urban centres.

The shift is already visible in India’s energy and transport mix. The WEF-published piece says solar now contributes about 9% of India’s electricity, while coal consumption per person remains far below China’s at a similar stage of development. In transport, electric passenger vehicles are nearing 5% of total sales, and electric three-wheelers account for almost 60% of the market, making India a global leader in that segment.

According to the World Bank’s latest India Development Update, India’s economy grew 7.6% in FY2025-26, up from 7.1% in FY2024-25, supported by robust domestic demand, low inflation, tax measures and relatively accommodative financial conditions. The report says India remained the fastest-growing major economy during FY26, with manufacturing and services providing much of the momentum.

The transition is designed to make toll payments faster and more efficient while cutting dependence on cash transactions. By shifting entirely to digital payments, the government is seeking to strengthen accountability in toll collection and improve the overall experience for highway users.