KALINGA VARTA

Business

India's Digital Payments Revolution Reshapes the Economy, but Challenges to Financial Inclusion Persist

By Staff Correspondent · Bhubaneswar, July 2026

India's digital payments ecosystem has undergone a remarkable transformation over the past decade, emerging as one of the world's largest real-time payment networks. Driven by policy initiatives, expanding internet connectivity and rapid smartphone adoption, digital transactions have become integral to commerce, public service delivery and financial inclusion. While the Unified Payments Interface (UPI) has significantly reduced dependence on cash, economists caution that infrastructure gaps, cybersecurity risks and uneven digital literacy continue to present challenges to inclusive digital finance.

The Reserve Bank of India (RBI) and the National Payments Corporation of India (NPCI) report that UPI has witnessed unprecedented growth since its launch in 2016. In May 2026, UPI processed over 19 billion transactions, with the total transaction value exceeding ₹25 lakh crore, making it the largest real-time retail payment platform globally. Monthly transaction volumes have increased consistently as consumers, businesses and government agencies increasingly adopt digital payment systems.

The expansion has been supported by growing financial inclusion. According to the Pradhan Mantri Jan Dhan Yojana (PMJDY) dashboard, India has opened more than 56 crore Jan Dhan accounts, with women holding over 55 per cent of these accounts. The World Bank's Global Findex Report also indicates that nearly 80 per cent of Indian adults now possess a bank account, a substantial improvement over the previous decade. Combined with Aadhaar and mobile connectivity, these developments have strengthened the JAM (Jan Dhan–Aadhaar–Mobile) architecture that underpins India's digital economy.

Digital payments have also transformed government welfare delivery. The Direct Benefit Transfer (DBT) programme has transferred over ₹44 lakh crore through digital platforms since its inception, covering subsidies, pensions, scholarships and welfare schemes. According to the Ministry of Finance, digital transfers have reduced leakages, improved transparency and accelerated the delivery of benefits to eligible beneficiaries. Economists view DBT as one of India's most significant governance reforms in public financial management.

Despite these achievements, experts warn that digital inclusion remains uneven. The National Sample Survey and independent studies continue to highlight disparities in internet access between urban and rural areas, as well as gender gaps in digital usage. Small merchants in remote regions often face unreliable internet connectivity, while first-time digital users remain vulnerable to online fraud. The RBI Annual Report notes a steady rise in complaints relating to digital payment fraud, reinforcing the need for stronger cybersecurity awareness and consumer protection mechanisms.

Industry analysts argue that India's digital payment success has also encouraged financial innovation. Fintech companies have expanded credit access for micro-enterprises, introduced QR-code-based payment solutions and developed digital lending products. However, regulators continue to emphasise responsible lending, data privacy and robust cybersecurity standards to ensure that rapid innovation does not compromise financial stability or consumer rights.

The internationalisation of UPI represents another significant development. India has established cross-border payment linkages with countries including Singapore, the United Arab Emirates, France, Nepal and Sri Lanka, enabling faster and more affordable remittances for travellers, businesses and the Indian diaspora. Policymakers believe these partnerships could strengthen India's position in the evolving global digital payments ecosystem.

India's experience demonstrates how digital public infrastructure can accelerate financial inclusion and economic modernisation. Yet experts emphasise that sustaining this progress will require continued investment in digital infrastructure, cybersecurity, financial literacy and regulatory oversight. As digital payments become central to everyday economic activity, the challenge before policymakers is to ensure that technological innovation benefits every section of society while maintaining trust, security and accessibility.

Business

Import Duty Waiver Gives Fresh Push to India's Electronics and Battery Manufacturing Ambitions

By Staff Correspondent · Bhubaneswar, July 05

The Union government's decision to waive customs duty on selected inputs and machinery used for battery, display assembly and electronics manufacturing marks another step towards strengthening India's ambition of becoming a global manufacturing hub. The policy measure is expected to reduce production costs, encourage domestic investment and support emerging sectors such as electric vehicles (EVs), renewable energy storage and advanced electronics.

According to the government notification, basic customs duty exemptions have been extended to specified capital goods and components required for lithium-ion cell manufacturing, display assemblies and wireless charging modules. The move includes duty relief on 85 categories of machinery and equipment used in lithium-ion battery cell production, providing manufacturers with greater flexibility to expand domestic capacity.

The decision assumes significance as India's electronics sector has recorded rapid growth in recent years. According to the Ministry of Electronics and Information Technology (MeitY), India's electronics manufacturing sector has grown from around ₹1.9 lakh crore in 2014-15 to more than ₹9 lakh crore in recent years. Mobile phone production has been one of the biggest contributors to this expansion, with India emerging as one of the largest mobile manufacturing bases globally.

However, experts point out that India still depends heavily on imported components and advanced manufacturing equipment. While assembly operations have increased, domestic production of high-value components remains limited. The latest customs duty exemption is aimed at addressing this gap by reducing the cost of importing essential production inputs.

The battery manufacturing sector is particularly important because of the growing demand for electric mobility. According to the Ministry of Heavy Industries, India's electric vehicle adoption has increased steadily, with more than 18 lakh electric vehicles registered during 2023-24 across different categories. Developing domestic battery production capacity is considered essential for reducing dependence on imported energy storage technology.

Industry analysts believe that lower input costs could improve competitiveness for Indian manufacturers. The exemption may encourage companies investing under the government's ₹18,100 crore Production Linked Incentive (PLI) scheme for Advanced Chemistry Cell (ACC) battery storage manufacturing to expand production facilities within India.

The policy also supports India's broader manufacturing strategy. The government aims to increase the country's share in global supply chains by encouraging domestic production, attracting foreign investment and creating employment opportunities. Electronics manufacturing has become a priority sector because of its potential to generate large-scale jobs and increase exports.

Despite the positive outlook, economists caution that duty reduction alone cannot guarantee manufacturing success. India will also need improvements in research and development, skilled manpower, logistics infrastructure and reliable supply chains. Experts argue that developing a complete ecosystem of suppliers and technology providers is necessary to compete with established manufacturing centres in countries such as China, South Korea and Taiwan.

The latest decision reflects a shift from promoting only assembly-based manufacturing towards building deeper industrial capabilities. By reducing barriers for critical inputs, the government hopes to create conditions for stronger domestic production of batteries and electronic components.

As global demand for clean energy technologies and electronic products continues to rise, India's ability to develop a complete manufacturing ecosystem will determine its position in future technology markets.

Business

India's Digital Payment Revolution: UPI Drives a Cashless Economy

By Staff Correspondent

Bhubaneswar, July 05: India's digital payment ecosystem has witnessed unprecedented growth over the last four financial years, reflecting increasing adoption of cashless transactions across urban and rural areas. Official data released by the Ministry of Finance and the Reserve Bank of India (RBI) indicate that digital payment systems, particularly the Unified Payments Interface (UPI), have become the preferred mode of financial transactions for millions of Indians.

According to the Ministry of Finance, the total volume of retail digital payment transactions increased from 7,176.90 crore in FY 2021–22 to 22,167.90 crore in FY 2024–25, registering an increase of nearly 209 per cent. During the same period, the value of these transactions rose from ₹457.44 lakh crore to ₹849.12 lakh crore, highlighting rapid expansion in digital financial services across the country.

The growth has been largely driven by UPI, which has emerged as the backbone of India's digital payment ecosystem. In FY 2024-25, UPI accounted for 81 per cent of retail digital payment transactions, making it one of the world's largest real-time payment platforms. (The Reserve Bank of India's Digital Payments Index (RBI-DPI), which measures the expansion of payment infrastructure and digital adoption, also reflects this transformation. The index increased from a base value of 100 in March 2018 to 465.33 in September 2024, showing continuous improvement in digital payment penetration across the country.

The rise of digital payments has improved financial accessibility, especially for small businesses, street vendors and rural consumers. QR-code-based payments have allowed even small traders to participate in the formal digital economy without expensive banking infrastructure.

However, experts point out that rapid digitisation also creates challenges. Cyber fraud, digital literacy gaps and concerns over data security remain important issues. Greater awareness campaigns and stronger cyber protection systems are required to ensure safe digital transactions.

The data indicates that India's digital payment growth is not merely a technological change but a structural shift in consumer behaviour. Between FY 2021-22 and FY 2024-25, transaction volume increased by nearly 209 per cent, demonstrating widespread acceptance of online payment systems.

The expansion of digital payments supports India's goal of building an inclusive and transparent economy. As smartphone usage and internet connectivity continue to grow, digital transactions are expected to become an even more dominant feature of economic activity.

Agriculture

Climate Variability and Rising Input Costs Renew Focus on Sustainable Agriculture

By Staff Correspondent · Bhubaneswar, July 2026

Indian agriculture, which supports nearly half of the country's workforce, is undergoing significant transformation as farmers confront the combined pressures of climate variability, rising production costs and changing market dynamics. While successive years of record foodgrain production have strengthened India's food security, agricultural experts caution that sustaining growth will require greater investment in climate-resilient farming, efficient water management and technological innovation. The policy debate has increasingly shifted from increasing production alone to improving farm incomes, sustainability and resilience.

According to the Ministry of Agriculture and Farmers' Welfare, India produced a record 354 million tonnes of foodgrains during the 2025–26 agricultural year, reflecting steady improvements in crop productivity and irrigation. Wheat and rice continue to dominate cereal production, while horticulture output has also expanded, making India one of the world's leading producers of fruits and vegetables. However, agricultural economists note that production gains have not always translated into proportional increases in farmers' incomes because of fluctuating market prices, input costs and weather-related risks.

Agriculture remains central to India's economy. The Periodic Labour Force Survey (PLFS) 2024–25 estimates that around 45 per cent of India's workforce continues to depend on agriculture and allied activities for employment. At the same time, the Economic Survey 2025–26 estimates that agriculture contributes about 16–18 per cent of the country's Gross Value Added (GVA), highlighting the sector's importance despite structural changes in the economy. This imbalance between employment and economic contribution underscores the continuing challenge of improving agricultural productivity and rural incomes.

Climate change has emerged as one of the sector's most significant concerns. The India Meteorological Department (IMD) has reported an increase in the frequency of extreme weather events, including heatwaves, intense rainfall and prolonged dry spells, affecting crop yields across several States. Scientific assessments by the Intergovernmental Panel on Climate Change (IPCC) warn that South Asian agriculture faces heightened risks from rising temperatures and erratic monsoon patterns. These developments have intensified demand for climate-resilient crop varieties, improved irrigation systems and weather-based advisory services.

Water management has become equally critical. According to the NITI Aayog Composite Water Management Index, agriculture accounts for nearly 80 per cent of India's freshwater consumption, making efficient irrigation essential for sustainable farming. The expansion of micro-irrigation under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) has helped conserve water while improving productivity in several regions. Government data indicate that over 1.6 crore hectares have been brought under micro-irrigation through central and State initiatives, though experts believe much larger coverage will be necessary to address future water stress.

Digital technologies are also reshaping agricultural practices. The Government's Digital Agriculture Mission promotes satellite-based crop monitoring, digital land records, artificial intelligence and precision farming to improve decision-making. Meanwhile, the PM-KISAN income support programme has transferred more than ₹3.7 lakh crore to eligible farmers through direct benefit transfers since its launch, enhancing financial inclusion and reducing transaction delays. Economists observe that digital governance has improved the efficiency of welfare delivery, although complementary investments in extension services, storage and agricultural marketing remain essential.

Agricultural scientists argue that future policy must increasingly focus on diversification, value addition and climate adaptation rather than cereal production alone. Expansion of food processing, farmer producer organisations (FPOs), crop insurance and sustainable farming practices can strengthen rural livelihoods while improving resilience against climatic shocks. Greater investment in agricultural research and rural infrastructure will also be necessary to ensure long-term food security.

India's agricultural sector has demonstrated remarkable resilience despite multiple challenges. Yet sustaining this momentum will require balancing productivity with environmental sustainability and ensuring that technological progress benefits small and marginal farmers who constitute the majority of cultivators. As climate risks become more pronounced, the future of Indian agriculture will depend not only on higher output but also on policies that promote resilience, resource efficiency and inclusive rural development.

Film & Entertainment News Report

Analysis

Climate Change and Sustainable Development: The Global South at the Frontline of a Warming World

By Staff Correspondent · By Staff Correspondent

Climate change has emerged as one of the defining challenges of the twenty-first century, influencing not only the environment but also economic growth, public health, food security and social justice. Rising temperatures, erratic rainfall, prolonged droughts, floods and extreme weather events are increasingly disrupting development gains across the world. Although climate change affects every nation, its consequences are not evenly distributed. Countries of the Global South–-including India, Bangladesh, Brazil, South Africa and many African and Pacific nations–-are among the most vulnerable despite contributing comparatively less to historical greenhouse gas emissions. As a result, climate action has become inseparable from the pursuit of sustainable development.

The scientific evidence has become increasingly compelling. According to the World Meteorological Organization (WMO), 2024 was the warmest year ever recorded, with the global average temperature reaching approximately 1.55°C above the pre-industrial average. The Intergovernmental Panel on Climate Change (IPCC) warns that the remaining carbon budget to limit global warming to 1.5°C is shrinking rapidly, requiring substantial reductions in greenhouse gas emissions during this decade. The United Nations Environment Programme (UNEP) further estimates that global emissions reached 57.1 gigatonnes of carbon dioxide equivalent in 2023, indicating that the world remains significantly off track in achieving the objectives of the Paris Agreement.

For developing countries, climate change is fundamentally a development issue. The United Nations Development Programme (UNDP) observes that climate-related disasters threaten decades of progress in poverty reduction, education, health and infrastructure. Developing economies often possess limited financial and technological capacity to recover from repeated climate shocks. Cyclones, floods, heatwaves and droughts impose enormous costs on governments already facing competing priorities such as healthcare, education and employment generation. Consequently, climate resilience has become central to national development planning across the Global South.

Agriculture represents one of the sectors most vulnerable to climate change. According to the Food and Agriculture Organization (FAO), agriculture and associated land-use activities contribute around 30 per cent of global greenhouse gas emissions, yet they are also among the sectors most severely affected by changing climatic conditions. Rising temperatures, declining soil moisture, shifting rainfall patterns and increasing frequency of extreme weather events are reducing crop productivity in many developing countries. The FAO–UNDP assessment of National Adaptation Plans submitted by developing countries identifies climate-resilient agriculture as one of the highest priorities for ensuring food security and protecting rural livelihoods.

India illustrates both the opportunities and challenges confronting climate-vulnerable economies. Agriculture continues to employ around 45 per cent of India's workforce, according to the Periodic Labour Force Survey, while nearly half of the country's cultivated land remains dependent on monsoon rainfall. The India Meteorological Department (IMD) has documented an increase in heatwaves, intense rainfall episodes and changing monsoon patterns over recent decades. These climatic changes have affected agricultural productivity, groundwater recharge and rural incomes, particularly in rain-fed regions where farmers possess limited adaptive capacity.

Water security has emerged as another critical concern. NITI Aayog's Composite Water Management Index estimates that agriculture accounts for nearly 80 per cent of India's freshwater consumption. At the same time, groundwater depletion and irregular rainfall are placing increasing pressure on irrigation systems. Climate experts argue that expanding micro-irrigation, rainwater harvesting, watershed management and climate-smart farming practices will be essential for maintaining agricultural productivity while conserving water resources.

Land degradation further compounds climate risks. According to the United Nations Convention to Combat Desertification (UNCCD), human activities directly affect around 70 per cent of the world's ice-free land, contributing to biodiversity loss, declining soil fertility and reduced agricultural productivity. The Convention estimates that restoring degraded ecosystems could remove approximately three billion tonnes of carbon dioxide from the atmosphere annually while simultaneously improving food production, water conservation and rural livelihoods. More than 450 million hectares of degraded land have already been pledged globally for restoration by 2030, demonstrating growing international recognition of ecosystem restoration as a climate solution.

Climate change also presents an increasingly serious public health challenge. The World Health Organization (WHO) identifies climate change as one of the greatest threats to global health during this century. Rising temperatures increase heat-related illnesses, while floods and changing weather conditions contribute to the spread of vector-borne diseases such as dengue and malaria. Air pollution, driven largely by fossil fuel combustion, continues to cause millions of premature deaths worldwide every year. Health experts therefore emphasise that investments in climate adaptation–-including resilient healthcare systems, heat action plans and early warning mechanisms–-should be regarded as investments in public health and human development.

Innovation and technology will play a decisive role in addressing these challenges. The World Intellectual Property Organization (WIPO) reports sustained growth in patents related to renewable energy, electric mobility, green hydrogen, energy storage and climate-smart agriculture. However, developing countries continue to face barriers in accessing advanced technologies because of financial constraints, intellectual property costs and limited research infrastructure. International cooperation on technology transfer has therefore become a central element of global climate negotiations.

The international climate regime has increasingly recognised the principle of "common but differentiated responsibilities and respective capabilities," enshrined in the United Nations Framework Convention on Climate Change (UNFCCC). This principle acknowledges that while climate change is a shared global challenge, developed countries bear greater historical responsibility for greenhouse gas emissions and possess stronger financial and technological capacities. Consequently, developing countries have consistently called for enhanced climate finance, technology transfer and capacity building to support both mitigation and adaptation efforts.

India has sought to balance economic growth with environmental responsibility through initiatives such as the National Action Plan on Climate Change, expansion of renewable energy, the National Green Hydrogen Mission, the Mission LiFE (Lifestyle for Environment) campaign and programmes promoting climate-resilient agriculture. The country has also significantly expanded its renewable energy capacity and continues to invest in afforestation, sustainable mobility and disaster-resilient infrastructure. Nevertheless, experts caution that achieving long-term sustainability will require stronger implementation at the local level, greater investment in climate adaptation and closer coordination among governments, scientific institutions and local communities.

Climate change is therefore no longer solely an environmental debate; it is a question of development, equity and human security. For countries of the Global South, sustainable development cannot be achieved without strengthening resilience against climate risks. Protecting agriculture, conserving water resources, restoring degraded ecosystems, promoting clean technologies and expanding climate finance are now essential components of national development strategies. As the international community approaches the 2030 Sustainable Development Goals, the effectiveness of global climate action will ultimately be judged not only by reductions in greenhouse gas emissions but also by its ability to protect livelihoods, reduce inequalities and secure a sustainable future for the world's most vulnerable populations.