Context:
India utilized its presidency of the G20 to champion Digital Public Infrastructure (DPI) as a crucial mechanism for promoting inclusive and sustainable development. This initiative underscores the country’s commitment to leveraging technological innovation to drive developmental agendas on a global scale.
Relevance:
GS III: Indian Economy
Dimensions of the Article:
- About Digital Public Infrastructure
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
