New Delhi, Dec. 4 -- Calling initiatives like Aadhaar, UPI and Open Network for Digital Commerce (ONDC) as 'micro' reforms,BlackRock Investment Institute has said that these digital drives are integrating more households and businesses into the formal economy and lowering transaction costs.

In its report titled "2026 Global Outlook", the BlackRock Investment Institute noted that India's financial system is becoming a key engine of growth as rising domestic savings and digital infrastructure expand capital formation.

"These changes can help India fund a large share of its capital spending from domestic savings, supporting current-account stability and keeping external debt near 20% of GDP. They are also broadening domestic participation ...