Impact theme: Financial inclusion
Companies visited: Home loan provider; auto loan provider; small-finance bank
Key insights: The establishment in 2009 of a national unique identification number system has been the backbone of India’s overall digitization efforts. The largest biometric ID program in the world now reaches 99.7% of the country’s adult population and has opened the door to financial services for previously underserved communities. 2
Trends to watch: Penetration of financial services in India has risen from a very low base, and today approximately 22% of the adult population has access to some form of banking and credit, up from 12% in 2017.3 Rural customers, in particular, have embraced digital technology and are active users of finance apps and services. For their part, small banks and other lenders have leveraged technology to access clients more effectively and lower customer acquisition costs. Local businesses have also found they can differentiate themselves from larger competitors by making decisions with local customers’ needs in mind.
Impact theme: Resource efficiency
Companies visited: Electric two-wheeler manufacturer
Key insights: While India’s massive market for traditional two-wheelers (80% of urban commutes are made via motorbike) is highly consolidated,4 manufacturers of electric scooters have the potential to disrupt and take share. At the same time, battery-production capacity should expand substantially amid the government's planned production-linked incentive program.
Trends to watch: As consumers become more concerned about the effects of climate change, demand for clean-energy-enabled products has grown. In India, recent oil-market turmoil stemming from Russia’s invasion of Ukraine has raised consumer awareness of the cost advantages of electric transport. Adoption of electric scooters is expected to grow significantly in the next five years. By one estimate, market share for electric two-wheelers could surpass 15%, or 3.7 million units a year by 2027. 5