Context:
Recently, Nasscom and Arthur D. Little have jointly released a report titled-Digital Public Infrastructure of India – Accelerating India’s Digital Inclusion, which stated that India’s Digital Public Infrastructures (DPIs) are likely to propel India towards a USD 1 trillion digital economy by 2030.
Relevance:
GS III: Indian Economy
Dimensions of the Article:
- Key Highlights of the Report on Digital Public Infrastructures (DPIs) in India
- About Digital Public Infrastructure
Key Highlights of the Report on Digital Public Infrastructures (DPIs) in India
Role in India’s Economic Growth:
- DPIs are projected to play a crucial role in propelling India towards a USD 1 trillion digital economy by 2030, contributing to the country’s overall goal of becoming an USD 8 trillion economy.
Enhancement of Efficiency and Inclusion:
- Expected to enhance citizens’ efficiency and promote social as well as financial inclusion.
Exponential Adoption of Mature DPIs:
- Mature DPIs like Aadhaar, UPI, and FASTag have witnessed exponential adoption by 2022 and are anticipated to scale up further, reaching even the remotest segments of the population.
Economic Impact:
- Mature DPIs have generated a significant economic value equivalent to 0.9% of India’s GDP. By 2030, this value is projected to increase to ~2.9%-4.2% of GDP, considering both direct and indirect impacts.
Ayushman Bharat Digital Mission (ABDM):
- ABDM, focusing on digital health infrastructure, is expected to drive a substantial increase in the economic value of DPIs.
Global Leadership in DPI Development:
- India is a global leader in developing DPIs, utilizing them for widespread adoption of digital payments, data-sharing infrastructures, and boosting domestic businesses.
Government Support and IT Ecosystem:
- The success of DPIs is attributed to relentless government support and the thriving IT intellectual capital and startup ecosystem, creating a favorable environment for innovation and growth.
Evolution of Digital Entities:
- Existing digital entities are expected to evolve, leveraging new-age technologies such as AI and Web 3 to deliver superior user experiences.
Aadhaar’s Continued Significance:
- Aadhaar is expected to continue as a major contributor, expanding its use cases to a broader range of services within India’s digital infrastructure.
Foundation for Digital Revolution:
- DPIs or India Stack form the cornerstone of India’s digital revolution, enhancing the country’s ability to utilize digital technologies at a population scale for societal changes and economic growth.
Challenges and Recommendations:
- Challenges include lack of connections between stakeholders, absence of real-time data, limited language options, and restricted reach beyond government services.
- Governments are urged to provide policy support, regulatory clarity, and establish task forces to drive DPI adoption, along with partnering with startups and enterprises.
About Digital Public Infrastructure
Digital Public Infrastructure (DPI) is a collection of platforms and systems that enable the delivery of essential services to people, promoting digital inclusion and empowering citizens. It encompasses various components that facilitate the flow of people, money, and information. Here are key aspects of DPI:
Digital Identification:
- DPI includes a digital ID system that enables the secure and efficient identification of individuals in the digital realm.
- This system allows for seamless authentication and verification processes, enhancing access to services and enabling digital interactions.
Payment Infrastructure:
- DPI incorporates a real-time fast payment system that facilitates swift and convenient financial transactions.
- This infrastructure enables individuals and businesses to transfer funds quickly and securely, fostering economic activities and financial inclusion.
Data Exchange Solutions:
- DPI encompasses a consent-based data sharing system that governs the flow of personal information.
- This system ensures that individuals have control over their data and can choose how and when their information is shared.
- By empowering citizens with data control, DPI enables the realization of its benefits while ensuring privacy and security.
India’s DPI Implementation (India Stack):
- India has been a pioneer in developing a comprehensive DPI ecosystem known as India Stack.
- India Stack includes three foundational DPI components: digital identity (Aadhaar), real-time fast payment (UPI), and account aggregation built on the Data Empowerment and Protection Architecture (DEPA).
- DEPA establishes a digital framework that allows users to share their data on their own terms through consent managers, which are third-party entities.
- This approach ensures privacy, security, and user control over data while facilitating the seamless flow of information.
-Source: The Hindu
