Digital Public Infrastructure of India

26 Feb Digital Public Infrastructure of India

This article covers ‘Daily Current Affairs’ and the topic details of “Digital Public Infrastructure of India”.This topic is relevant in the ” Governance” section of the UPSC CSE exam.

 

Why in the News? 

Recently, a collaborative effort between Nasscom and Arthur D. Little resulted in the publication of a report titled “Digital Public Infrastructure of India – Accelerating India’s Digital Inclusion.”

 

Key Insights from the Report

 

Impact of Indian DPIs in 2022:

Existing digital entities like Aadhaar, UPI, and FASTag contributed around 0.9% of India’s GDP in 2022.

DPIs play a pivotal role in delivering financial, ecological, and procedural efficiencies to citizens, with global adoption of UPI and Aadhaar by over 30 countries grappling with similar social and economic challenges.

 

DPI Maturity Framework:

The DPI Maturity Framework encompasses key components, including Recency, Indirect benefits, Direct benefits in transaction value and volume, Total Addressable Market (TAM), and the reach of each DPI as a percentage of TAM.

An assessment of these components reveals two distinct clusters: ‘matured digital entities,’ characterized by widespread adoption and significant economic impact, and ‘budding digital entities,’ demonstrating successful proofs of concept and poised for extensive adoption.

 

Anticipated Economic Expansion of DPIs by 2030

In the coming decade, DPIs hold the potential to elevate their contribution to the economic value add from the current 0.9% to a projected range of 2.9-4.2% of the GDP by 2030.

This growth trajectory is foreseen to be propelled by emerging digital entities like ABDM (Ayushman Bharat Digital Mission) and ONDC (Open Network for Digital Commerce), both of which have substantiated their viability through successful proof of concepts.

 

Foundations and Principles of Indian DPIs:

The foundational stack of India’s DPIs is grounded in open APIs, interoperability, and principles centred on consent. These principles are structured across layers of identity, payments, and data.

Private entities have harnessed the potential of DPIs to construct innovative business models, with an emphasis on trust as a fundamental guiding principle.

 

About Digital Public Infrastructure

Digital Public Infrastructures (DPIs) represent a foundational framework designed to facilitate seamless and inclusive digital interactions within a society. These infrastructures are pivotal in harnessing the benefits of technology to enhance public services, governance, and overall socio-economic development. 

 

Definition and Scope:

DPIs encompass the digital backbone of a nation, comprising interconnected systems, platforms, and databases that enable the exchange of digital information. These infrastructures extend across various domains, including identity verification, payments, healthcare, education, and more.

 

Key Components:

 

Identity Layer: DPIs often include robust identity systems that authenticate individuals in the digital realm. This ensures secure access to services and enhances the efficiency of government processes.

 

Payments Layer: Facilitating secure and efficient digital transactions is a crucial aspect of DPIs. Electronic payment systems, such as Unified Payments Interface (UPI), contribute to financial inclusion and drive a cashless economy.

 

Data Layer: The data layer of DPIs involves the storage, management, and secure sharing of information. Open data principles and interoperability play a significant role in enhancing accessibility and usability.

 

Fundamental components of India’s DPI ecosystem: 

 

UPI (Unified Payment Interface):

With over 8 billion transactions per month and a monthly transaction value of USD 180 billion, Unified Payment Interface (UPI) stands as a formidable component within the National Payments Corporation of India (NPCI) operating systems. UPI surpasses other systems, including the National Automated Clearing House (NACH), IMPS, AePS, Bharat Bill Payment System (BBPS), and RuPay.

 

Aadhaar:

Aadhaar serves as a strategic policy instrument fostering social and financial inclusion, driving public sector delivery reforms, managing fiscal budgets, enhancing convenience, and facilitating hassle-free, people-centric governance. Individuals possessing Aadhaar can willingly utilize it for private sector purposes without the necessity for specific permissions.

 

DigiLocker:

DigiLocker, accomplished with a modest budget of INR 50 crore over seven years, boasts 150 million users and stores six billion documents digitally. Users can securely store a variety of documents such as insurance records, medical reports, PAN cards, passports, marriage certificates, school certificates, and more in a digital format.

 

DigiYatra:

DigiYatra represents a Biometric Enabled Seamless Travel (BEST) initiative built upon a Facial Recognition System (FRS). It envisions a paperless and contactless travel experience at airports, where travellers navigate various checkpoints using facial features to establish their identity, seamlessly linked to their boarding passes.

 

Challenges to DPIs in India

 

• Digital Divide:

The digital divide persists, with uneven access to digital resources and technology, particularly in rural and remote areas.

Unequal access hampers the inclusive benefits of DPIs, potentially excluding a significant portion of the population from reaping the advantages of digital services.

 

• Cybersecurity Concerns:

The increased reliance on digital platforms raises concerns about data security and the potential for cyber threats.

Cybersecurity vulnerabilities pose a risk to the integrity of DPIs, potentially compromising sensitive information and eroding public trust in digital systems.

 

• Privacy and Data Protection:

Balancing the need for data-driven services with privacy concerns is a continual challenge.

Inadequate privacy measures can lead to misuse of personal data, raising ethical concerns and undermining citizen confidence in the security of digital transactions.

 

• Technological Infrastructure:

Inadequate technological infrastructure, especially in remote regions, hinders seamless implementation and usage of DPIs.

Technological limitations may impede the accessibility and effectiveness of digital services, creating disparities in service delivery.

 

• Digital Literacy:

A significant portion of the population lacks digital literacy skills necessary for navigating and utilizing digital platforms effectively.

Low digital literacy rates hinder the adoption of DPIs, limiting their reach and effectiveness, especially among vulnerable or marginalized communities.

 

• Resistance to Change:

Traditional resistance to change, bureaucratic inertia, and a lack of awareness can impede the swift adoption and integration of DPIs.

Slower adoption rates may delay the realization of the full potential of DPIs in streamlining governance and service delivery.

 

• Integration Challenges:

Integrating diverse DPIs and ensuring seamless interoperability can be complex.

Lack of integration may result in fragmented digital services, hindering the holistic and interconnected functioning of the digital ecosystem.

Download plutus ias current affairs eng med 26th Feb 2024

 

Prelims practice question

Q1. Consider the following statements: (UPSC Prelims-2018)

1. Aadhaar card can be used as a proof of citizenship or domicile.
2. Once issued, Aadhaar number cannot be deactivated or omitted by the Issuing Authority.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

 

Answer: (d)

 

Mains practice question

 

Q1. Discuss the importance of interoperability in India’s Digital Public Infrastructures (DPIs). How does it contribute to creating a seamless and interconnected digital ecosystem? Provide examples to support your discussion.