Date : 29/09/2023

Relevance – GS Paper 3 – Indian Economy

Keywords – Digital Public Infrastructure (DPI), COVID-19 pandemic, UIDAI, CERT-In

Context

India's digital public infrastructure (DPI) is the result of a distinctive collaboration involving various stakeholders, including government bodies (both at the Union and State levels), regulatory authorities, private sector entities, dedicated volunteers, startups, and academic institutions and think tanks.

Through the India Stack initiative, India achieved a significant milestone by becoming the pioneer in establishing the three fundamental components of DPIs: digital identity (Aadhar), real-time and efficient payment systems (UPI), and a secure platform for sharing personal data while safeguarding individual privacy.

Role of DPI: Facilitating Key Flows

Digital Public Infrastructure (DPI) serves as a facilitator for critical flows within a nation's digital ecosystem. These flows can be summarized into three primary categories:

1. Facilitating the Flow of Individuals: DPI enables the smooth movement of individuals through a digital identification system.
2. Facilitating the Flow of Finances: DPI supports the seamless transfer of funds via a real-time fast payment system.
3. Facilitating the Flow of Personal Information: DPI facilitates the secure sharing of personal data through a consent-based data-sharing system, ensuring that citizens have control over their data and can harness the benefits of DPIs effectively.

Key Challenges Associated with DPI

• Addressing the concerning trend of data and technology being used as tools of control, also referred to as Digital Colonization, is crucial in order to prevent the erosion of individual agency, national sovereignty, and personal privacy.
• Consequently, engaging in proactive discussions on the construction of ethical digital public infrastructure (DPI) becomes paramount to mitigating these potential challenges.

The Imperative for Digital Public Infrastructure (DPI)

Throughout history, the development of public infrastructure has been a linchpin of human advancement. From the vast transcontinental railways of the nineteenth century to the widespread adoption of telecommunications in the twentieth century, infrastructure has played an indispensable role in facilitating the movement of people, the circulation of finances, and the exchange of information. In democratic nations with open-market economies, this infrastructure has become the bedrock upon which both public and private sectors have innovated, leading to significant societal progress and the creation of substantial value.

In recent times, Digital Public Infrastructure (DPI) has emerged as the most viable model for several reasons. It boasts a cost-effective implementation, promotes interoperability among various systems, and offers scalability in design. Additionally, DPI is designed with built-in safeguards against monopolies and the perilous trend of digital colonization.

The COVID-19 pandemic, which imposed stringent isolation measures, significantly accelerated the adoption of DPI. In the face of enforced isolation, individuals had little choice but to depend on these digital alternatives for essential services, underlining the critical role DPI plays in modern society.

India's Digital Public Infrastructure (DPI) Advancements

India has placed a significant emphasis on the development of Digital Public Infrastructure (DPI) in recent years, launching numerous initiatives aimed at establishing a resilient DPI ecosystem. These endeavors underscore the government's commitment to modernizing the country's digital infrastructure.

As India sets its sights on the ambitious goal of becoming a $5 trillion economy in the near future and aspiring to rank as the world's third-largest economy within a decade, the vitality of a thriving DPI becomes evident. It is anticipated that this robust digital framework will play a pivotal role in not only realizing these economic aspirations but also in achieving the audacious objectives set by the nation.

The digital landscape in India has witnessed a remarkable transformation over the years, with a staggering increase in internet users. In the year 2000, there were a mere 5.5 million internet users in the country. Today, India boasts an impressive 850 million internet users. The central government proudly proclaims India as the world's largest "digitally connected democracy," highlighting the nation's substantial progress in harnessing the power of digital connectivity.

Crucial Components of India's Digital Public Infrastructure (DPI)

India's Digital Public Infrastructure (DPI) comprises several essential components that have been instrumental in the country's digital transformation:

1. Digital Identity: The Unique Identification Authority of India (UIDAI) has pioneered Aadhaar, a unique identification system that assigns each Indian citizen a distinct identification number based on their biometric data. Aadhaar serves as a digital identity proof and is widely used for accessing government services.
2. Unified Payment Interface (UPI): UPI has revolutionized digital payments by enabling individuals with bank accounts to make real-time transactions using their mobile devices. Operated by the National Payments Corporation of India (NPCI), UPI operates on a centralized server, facilitating seamless and secure digital payments.
3. DigiYatra and DigiLocker: DigiYatra enhances travel experiences by leveraging facial recognition technology to ensure hassle-free passenger identification at key checkpoints within airports, such as entry, security checks, and boarding gates. DigiLocker provides a secure platform for citizens to store and access digital documents.
4. Cybersecurity: India's cybersecurity resilience is reinforced through the Indian Computer Emergency Response Team (CERT-In), which plays a vital role in responding to cybersecurity incidents and safeguarding the integrity of the country's digital infrastructure.

Over the past decade, India's DPI ecosystem has made remarkable progress and growth. Looking ahead, there are substantial opportunities for further advancement in the years to come. As India continues its journey toward digital transformation, the development and fortification of a robust DPI ecosystem will be pivotal in fostering inclusive and sustainable growth across the nation.

The Way Forward

For India's DPI success to serve as a global catalyst for change, it necessitates the establishment of three distinct types of institutions.

Firstly, there's a need for the creation of independent DPI steward organizations. These institutions should possess an agile and responsive governance structure. By implementing a multi-party governance model facilitated by independent DPI entities, accountability can extend to a diverse array of stakeholders, preventing undue influence from any single entity or group. This approach fosters trust and confidence in the DPI framework.

Secondly, the development of global standards should be undertaken through a multinational dialogue led by India. Instead of imposing standards conceived in developed nations onto emerging economies without considering their unique developmental challenges, a more equitable approach is essential. This approach ensures that smaller countries are not merely subject to the dominance of major technology players.

Finally, sustainable financing models must be formulated to support the development of DPI on a global scale. Presently, DPI initiatives often rely on philanthropic funding, which, if not managed carefully, could inadvertently lead to competitive positioning and rivalry among philanthropic organizations.

India's DPI represents a significant milestone akin to our second struggle for independence – economic independence. It liberates individuals from the mundane aspects of daily life and transactions, serving as the backbone of India's journey toward achieving a $25 trillion economy by its centennial year of political independence. One can only imagine the transformative potential when innovative technologies like ChatGPT converge with India's pioneering initiatives, such as India Stack.

Conclusion

A fresh approach to digital infrastructure is essential to enable nations to empower their citizens through efficient management of people, finances, and information flows. This entails the swift creation of user-centric platforms tailored to individual needs, all while prioritizing trust, accessibility, and protection from exploitation for all users.

Source – Live mint, ANI