Examine the role of digital public infrastructure in transforming India's informal trade sector.

Digital Public Infrastructure (DPI) — the interoperable stack of Aadhaar, UPI and ONDC — is reshaping India's vast unincorporated economy. ASUSE 2025 records 7.92 crore establishments with over 50% of traders now using the internet to run their business, signalling a structural shift from cash-bound informality to digitally-linked enterprise [1].

Channels of transformation

• Payments deepening: UPI settles vendor receipts instantly, freeing working capital for inventory and supplier dues; Trade led GVA growth at 16.77% in ASUSE 2025 [2].
• Market access: ONDC lets local kirana and MSME sellers reach buyers without dependence on dominant platforms, widening reach for Tier-2/3 traders [1].
• Formalisation & credit: Digital trails from UPI/Udyam enable cash-flow-based lending, drawing informal units toward institutional finance.
• Inclusion: internet-linked trade supports female entrepreneurship — female-headed proprietary establishments rose to 27% [2].

Persisting limits

• Digital divide: low digital literacy, patchy connectivity and smartphone gaps exclude the poorest vendors.
• Trust deficit: fear that digital receipts trigger tax notices pushes some vendors back to cash.
• Thin protection: data privacy and grievance redress for micro-traders remain weak.

Conclusion DPI is genuinely widening the informal trade sector's productivity and reach, as rising GVA and digital adoption in ASUSE 2025 confirm [2]. Sustained transformation now needs targeted digital-literacy drives, assured connectivity and a light-touch, non-punitive formalisation framework — aligning informal enterprise with SDG-8's promise of decent work and inclusive growth.