Context: Recently, the third meeting of G20 DEWG has started with inauguration of the Global DPI Summit and Global DPI Exhibition by Union Minister of State in Electronics and IT and MSDE.

Need for Digital Public Infrastructure 

• Huge digital divide: NFHS Report suggests that only 57.1% of the male population and 33.3% of the female population had ever used the internet. This gender gap was present across all states as demonstrated. The development of DPI in India can help create a digital ecosystem that is accessible, efficient, and transparent, and can empower citizens to participate in the digital economy.  

• The potential of Digital initiatives: The World Bank Group’s G2Px initiative researched social protection response to the COVID-19 pandemic. They found that countries that used digital databases and data exchange platforms reached 51% of their population with cash transfers. On the other hand, countries that could not rely on existing databases reached only 16% of their population. Linking a financial account with an ID or phone number helped the government to roll out cash assistance more quickly during COVID-19.  

• To avoid monopolisation, authoritarianism and digital colonisation: India needs a strong digital infrastructure and legal framework to benefit from the digital world and prevent digital colonisation. India can lead multilateral discussions to create global standards to prevent regulatory arbitrage by Big Tech and ensure a fair and democratic digital ecosystem.  

• Poor Indian agriculture: despite being a major contributor to the country’s economy and employment, it faces several challenges such as low productivity, small landholdings, inadequate access to technology, credit and markets, and weather uncertainties. DPI can improve the state of Indian agriculture by providing farmers with access to vital information, market opportunities, and resources necessary for increased efficiency, productivity, and profitability.

Digital Public Infrastructure (DPI)

• Digital Public Infrastructure (DPI) refers to the technological foundation that enables the delivery of essential digital services to people.

• DPI facilitates the flow of people, money, and information through digital ID systems, real-time payment systems, and secure data sharing.

Goal

• The goal of DPI is to empower citizens, promote inclusion, and improve lives by leveraging digital technology to provide accessible and efficient public services. 

Three Pillars of DPI

DPIs is enables three fundamental things:

• Flow of people through a digital ID System E.g., Aadhar

• Flow of money through a real-time fast payment system E.g., UPI

• Flow of personal information through a consent-based data sharing system e.g., Account Aggregator

Other examples of DPI in India

• India, through India Stack, became the first country to develop various types of DPI for services to people. E.g., Aadhaar; DigiYatra (biometric-enabled technology for faster travel clearance and based on facial recognition system); DigiLocker (digital document storage platform) and UPI (Unified Payment Interface).

What is India Stack?

• India Stack is a set of APIs (Application Programming Interfaces) that provide a unique digital infrastructure to solve India's challenges in presence-less, paperless, and cashless service delivery. 

• India Stack provides a secure and reliable platform for digital identification (Aadhaar), digital document storage (DigiLocker), and digital payments (UPI).

Data Protection Initiatives for DPI

• Aadhaar Act, 2016: Provides a legal framework for the Aadhaar Personal Data Protection Bill: Aims to protect the privacy of personal data

• National Cyber Security Policy, 2013: Provides a framework for the protection of critical information infrastructure and prevention of cyber-attacks.

• Cyber Swachhta Kendra: It secures digital devices and networks through free tools and security solutions.

Challenges Related to DPI in India

• Securing political will, public support, and necessary resources for developing and implementing DPI; 

• Ensuring strong privacy and security measures; 

• Addressing the digital divide and ensuring accessibility for all citizens.

• Digital Literacy: There is a need to improve digital literacy among citizens in India to enable them to fully utilize digital services and platforms.

Benefits of DPI

• Aadhaar enables the direct transfer of social safety net payments, reducing leakages and corruption

• Digital payments expanded smaller merchants’ customer base and improved access to financial services.

• Digitalization formalized the economy, with nearly 9 million new GST taxpayers CoWIN platform scaled India’s vaccine delivery services.

Attributes of Ideal DPI

• DPI should accelerate sustainable development by building applications in agriculture, education, healthcare, and financial access.

• DPI should be inclusive, citizen-centric, trustworthy and interoperable.

• DPI should support innovation, resilient and be politically viable.

What should be done to improve India’s Digital Public Infrastructure further?  

• Improve internet connectivity: Increase internet connectivity speed, expand broadband infrastructure and ensure the availability of affordable internet services in rural areas as well.  

• Digitize government services: Digitize government services and make them accessible through a single platform such as e-governance portals, like e-Seva in Andhra Pradesh.  

• Encourage digital payments: Encourage digital payments, such as UPI, and make them easier to use through improved interfaces and faster transaction processing.  

• Promote digital literacy: Promote digital literacy among the general population through training programs and awareness campaigns.  

• Develop a robust cybersecurity framework: Develop a robust cybersecurity framework to ensure the safety of digital assets, such as Aadhaar and banking information, and prevent cyber attacks.  

• Leverage emerging technologies: Leverage emerging technologies, such as blockchain and artificial intelligence, to improve the efficiency and transparency of government services.  

• Build a robust digital identity system: Build a robust digital identity system, such as Aadhaar, to enable seamless authentication and verification for access to government services, banking, and other transactions.  

• Facilitate the growth of digital startups: Facilitate the growth of digital startups by providing incentives, such as tax breaks and access to funding, and creating a conducive environment for innovation.  

• Collaboration between countries: It is necessary for the joint management and maintenance of DPI. Strategic decisions related to choice, data portability, interoperability etc., need to be made together to create and support new models for digital cooperation.