Aadhaar, UPI put India among World’s Top 10 reform success stories: CareEdge report
Aadhaar system covers more than 1.3 billion people, representing approximately 95% of the population. Meanwhile, UPI processes more than 13 billion transactions every month, underscoring the scale of the country's digital payments ecosystem.
- Oct 17, 2026,
- Updated Oct 17, 2026 9:51 AM IST
India's Digital Public Infrastructure (DPI), supported by the widespread adoption of Aadhaar and the scale of Unified Payments Interface (UPI) transactions, has emerged as one of the world's 10 highly effective structural reforms, according to a report by CareEdge Global Ratings.
The report highlighted how India's digital infrastructure has expanded access to digital services, reduced transaction costs, strengthened financial inclusion and supported the formalisation of economic activity.
Aadhaar, UPI underpin India's digital ecosystem
The assessment examined 43 reform cases across 38 countries, classifying 10 as highly effective, nine as moderately effective, 15 as work in progress and nine as least effective. India's digital public infrastructure featured among the top-performing reforms.
India's Aadhaar system covers more than 1.3 billion people, representing approximately 95% of the population. Meanwhile, UPI processes more than 13 billion transactions every month, underscoring the scale of the country's digital payments ecosystem.
The report also highlighted the growing adoption of digital transactions among micro, small and medium enterprises (MSMEs), with more than 85% of their transactions taking place digitally. This reflects the increasing integration of businesses into the formal economy.
Digital infrastructure addresses structural barriers
Nitesh Jain, Chief Rating Officer at CareEdge Global Ratings, said India's digital infrastructure had addressed several structural barriers that historically limited participation in the formal economy.
"India's DPI stands out because it addresses foundational gaps that have historically constrained the reach of the formal economy: dependence on cash, limited access to banking and formal credit, and inadequate infrastructure for delivering financial services and welfare benefits at scale. The significance of this reform lies in creating a common digital foundation that can serve multiple economic and administrative functions simultaneously."
The report identified institutional coordination and interoperability as key factors supporting the development and adoption of India's digital infrastructure. Cooperation among government agencies, regulators, banks, payment networks and fintech companies has helped build an integrated digital ecosystem.
Europe and Asia-Pacific lead effective reforms
Globally, Europe and the Asia-Pacific region accounted for eight of the 10 highly effective reforms, with four cases each. Other reforms in this category included tax digitalisation in Greece, Germany's debt brake, banking reforms in Cyprus and Project Repeal in the Philippines.
Implementation remains critical to success
The report cautioned that announcing reforms alone does not guarantee lasting outcomes. Successful implementation requires coherent policy design, appropriate sequencing, clear institutional responsibilities, political commitment and stakeholder support. Reforms must ultimately deliver measurable improvements.
Looking ahead, the report called for policy frameworks to address emerging challenges, including artificial intelligence, digital infrastructure requirements, climate risks, critical technologies and supply-chain vulnerabilities. These areas will require governments to adapt existing reforms and strengthen institutional capacity to sustain long-term economic gains.
India's Digital Public Infrastructure (DPI), supported by the widespread adoption of Aadhaar and the scale of Unified Payments Interface (UPI) transactions, has emerged as one of the world's 10 highly effective structural reforms, according to a report by CareEdge Global Ratings.
The report highlighted how India's digital infrastructure has expanded access to digital services, reduced transaction costs, strengthened financial inclusion and supported the formalisation of economic activity.
Aadhaar, UPI underpin India's digital ecosystem
The assessment examined 43 reform cases across 38 countries, classifying 10 as highly effective, nine as moderately effective, 15 as work in progress and nine as least effective. India's digital public infrastructure featured among the top-performing reforms.
India's Aadhaar system covers more than 1.3 billion people, representing approximately 95% of the population. Meanwhile, UPI processes more than 13 billion transactions every month, underscoring the scale of the country's digital payments ecosystem.
The report also highlighted the growing adoption of digital transactions among micro, small and medium enterprises (MSMEs), with more than 85% of their transactions taking place digitally. This reflects the increasing integration of businesses into the formal economy.
Digital infrastructure addresses structural barriers
Nitesh Jain, Chief Rating Officer at CareEdge Global Ratings, said India's digital infrastructure had addressed several structural barriers that historically limited participation in the formal economy.
"India's DPI stands out because it addresses foundational gaps that have historically constrained the reach of the formal economy: dependence on cash, limited access to banking and formal credit, and inadequate infrastructure for delivering financial services and welfare benefits at scale. The significance of this reform lies in creating a common digital foundation that can serve multiple economic and administrative functions simultaneously."
The report identified institutional coordination and interoperability as key factors supporting the development and adoption of India's digital infrastructure. Cooperation among government agencies, regulators, banks, payment networks and fintech companies has helped build an integrated digital ecosystem.
Europe and Asia-Pacific lead effective reforms
Globally, Europe and the Asia-Pacific region accounted for eight of the 10 highly effective reforms, with four cases each. Other reforms in this category included tax digitalisation in Greece, Germany's debt brake, banking reforms in Cyprus and Project Repeal in the Philippines.
Implementation remains critical to success
The report cautioned that announcing reforms alone does not guarantee lasting outcomes. Successful implementation requires coherent policy design, appropriate sequencing, clear institutional responsibilities, political commitment and stakeholder support. Reforms must ultimately deliver measurable improvements.
Looking ahead, the report called for policy frameworks to address emerging challenges, including artificial intelligence, digital infrastructure requirements, climate risks, critical technologies and supply-chain vulnerabilities. These areas will require governments to adapt existing reforms and strengthen institutional capacity to sustain long-term economic gains.