Sept. 6, 2024
India’s Digital Public Infrastructure
Context: India positioned digital public infrastructure as a key pillar of its G20 presidency, promoting its adoption globally as a model for inclusive development.
What is Digital Public Infrastructure?
Digital Public Infrastructure (DPI) refers to the foundational digital systems and services provided by the government or public sector to support and enhance the functioning of a digital economy and society. It includes: Digital Identity Systems (ex: Aadhaar), Digital Payment Systems, Public Digital Services (ex: e-governance portals and digital education platforms), Data Infrastructure (Systems for storing, managing, and sharing data securely), CybersecurityFrameworks, Broadband and Connectivity.
Key Developments in India's Digital Public Infrastructure
• Unified Payments Interface (UPI): UPI transactions have grown from 92 crore in FY 2017-18 to 8,375 crore in FY 2022-23. Recent developments include the integration of UPI with credit cards and the launch of UPI Lite for offline transactions.
• Aadhaar Ecosystem: With over 1.3 billion enrollments, it's the world's largest biometric ID system.
• Open Network for Digital Commerce (ONDC): it aims to bring 30 million sellers and 10 million merchants online.
• Account Aggregator Framework: An AA is a framework that simply facilitates sharing of financial information in a real-time and data-blind manner (Data flow through AA are encrypted) between regulated entities (Banks and NBFCs). As of 2023, over 1.1 billion accounts are AA-enabled across various banks.
• Digital Health Initiatives: India's digital health ecosystem, centered around the Ayushman Bharat Digital Mission, is making significant strides. As of December 2023, 50 crore individuals have Ayushman Bharat Health Account (ABHA) as their unique health ID.
• Digital India BHASHINI: BHASHINI (BHASHaINterface for India) is an AI-powered language translation platform aimed at breaking language barriers in digital communication.
• Central Bank Digital Currency (CBDC): The Reserve Bank of India launched the Digital Rupee pilot in December 2022, marking India's entry into the CBDC space.
• Government e-Marketplace (GeM): GeM portal has seen a significant surge in procurement, surpassing Rs 1.24 lakh crore in the first quarter of 2024-25.
Major Challenges Related to India’s Digital Public Infrastructure
• The Digital Divide Dilemma: Rural areas lag behind urban centers in digital adoption. For instance, while UPI transactions are booming in cities, many village residents still rely on cash.
• The National Family Health Survey 2019-21 found only 33% of Indian women using the Internet, compared to 57% of men.
• Digital Literacy Lag: Despite initiatives like the PradhanMantri Gramin Digital Saksharta Abhiyan, a significant portion of the population remains digitally illiterate. This impacts the adoption and effective use of digital services, from UPI to e-governance platforms.
• Vulnerability to External Shocks: Recently, the global IT system outage was triggered by a faulty software update from CrowdStrike, causing widespread disruptions across various Windows operating system (OS) types.
• Digital Sovereignty Struggle: India's push for data localization, as seen in draft policies, aims to ensure digital sovereignty. However, this creates challenges for global tech companies and potentially impacts cross-border data flows. For example, the Reserve Bank of India's mandate for storing payment data locally has led to compliance complexities for international payment providers.
• Personal Data Privacy Paradox: The provisions of the Digital Personal Data Protection Act, 2023, have yet to be fully implemented.
Steps that can be taken to enhance the resilience of India’s Digital Public Infrastructure
• Enhanced Cybersecurity Measures: Mandatory cybersecurity audits and Implementation of a robust national cyber incident response plan.
• Interoperability Standards: Mandatory cybersecurityaudits and Implementation of a robust national cyber incident response plan.
• Inclusive Digital Literacy Programs: The development and enforcement of national interoperability standards for all digital services would ensure seamless integration and data exchange across platforms.
• Cyber Security Board: Establish a Cyber Security Board in India, including both government and private sector members, with the power to analyze significant cyber incidents and recommend improvements.
• Infrastructure Expansion: Accelerating the BharatNetproject to connect all 600,000 villages with high-speed internet is crucial for bridging the digital divide.
• Green Digital Infrastructure: Setting energy efficiency standards for data centers and digital infrastructure would promote sustainability in the rapidly growing tech sector. Incentivizing green technology adoption in the IT sector would align India's digital growth with environmental sustainability goals.
• Inclusive Digital Literacy Programs: India should launch a nationwide "Digital Saksharta Abhiyan 2.0" focused on practical digital skills, partnering with NGOs and tech companies to reach remote areas.