UIDAI Help In Creation Of Jobs.
Posted on Friday, May 7th, 2010 at 5:45 pm
The Unique Identification Authority of India (UIDAI) project will not only provide an identity to over one billion Indians, but also create jobs for them.
An estimated 3, 50,000 new jobs are expected to be created as a result of the UID project, according to a report analyzing its impact. The mega project is estimated to result in a commercial opportunity of $20 billion in the first five years, and from the sixth year onwards, $10 billion annually, making it one of the largest projects not only in terms of scale, but also in revenue potential.
Other than software and hardware providers, who stand to gain by providing systems and services to implement the project, Telco’s and banks will be big beneficiaries, according to the report by brokerage firm CLSA. Telco’s stand to gain 60 million new subscribers, $4.5 billion in mobile payments, and $2 billion in ARPUs (average revenue per user) and handset sales, while banks stand to gain 125 million new bank accounts from the existing figure of 240 million unique account holders.
“Prima facie the inclusive agenda of the UID project will drive more business for financial institutions and Telco’s. The ultimate objective of the project is to have bank account for every person with a UID. As a result, a majority of the billion-strong population, even if not the entire billion, will come into the banking fold. A lot of what is now transacted through cash will get canalized through the banking system. Telco’s will benefit as the concept of mobile-wallet takes off. They are also well-placed to play the role of business correspondents for banks, since banks cannot have branches everywhere and will have to use business correspondents for reach,” said Guru Malladi, partner, Ernst & Young.
Each of these is expected to create more jobs in areas like systems integration, training and analytics, spurring demand for roles like systems specialists and programmers, and jobs associated around business process engineering.