The Digitalization of India
India is undergoing a digital revolution that is transforming the 1.3 billion-person country. At the heart of this dynamic change is Aadhaar, a voluntary, unique proof of identity system based upon demographic and biometric information. Available to all residents of India, Aadhaar is the largest biometric-based identification system in the world.

  • Aadhaar is the cornerstone of the India Stack, an ongoing digitalization project. When people sign up for Aadhaar’s multifactor identification, the government is able to deliver benefits and services directly to participants anywhere in India. Today 99% of India’s population already has a unique digital identity. More than half a billion of India’s people don’t even have a driver’s license or a passport; for them Aadhaar is their only proof of identification.

  • Aadhaar enrollments have skyrocketed since 2011, the first full year of unique identity issuance. Several favorable outcomes may result from the use of Aadhaar. India’s consumer base may expand, government subsidies may become more efficient, the country’s tax base may broaden and accessibility and delivery of goods and services may improve. 

  • India’s digitally connected population is nearing a critical scale. Digitalization is formalizing the Indian economy and we expect the consumer, financial services and telecommunications sectors to be the earliest beneficiaries. Investment strategies with exposure to India may be poised to benefit from these developments.​
 

The views expressed are the views of Fred Alger Management, Inc. as of July 2018. These views are subject to change at any time and they do not guarantee the future performance of the markets, any security or any funds managed by Fred Alger Management, Inc. These views are not meant to provide investment advice and should not be considered a recommendation to purchase or sell securities.

Risk Disclosure: Investing in the stock market involves gains and losses and may not be suitable for all investors. Investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Many technology companies have limited operating histories and prices of these companies' securities have historically been more volatile than other securities, especially over the short term. Technology companies may also face increased competition, government regulation, and risk of obsolescence due to progress in technological developments. 

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