Public infrastructure has always been pivotal to human progress. However, the traditional models of infrastructure have posed challenges for the previous generation, prompting the emergence of a third type known as Digital Public Infrastructure (DPI). This form of infrastructure, built on more open and democratic principles, is quickly becoming an imperative.
Understanding Digital Public Infrastructure (DPI)
Digital Public Infrastructure refers to platforms like digital identification, payment infrastructure, and data exchange solutions that empower countries to deliver essential services to their people, thereby enhancing digital inclusion and improving lives. DPIs facilitate the flow of people through a digital ID system, money through a real-time fast payment system, and personal information through a consent-based data sharing system. These three elements form the backbone of an efficient DPI ecosystem.
Each layer of DPI serves a particular need, generating considerable value across various sectors. India, through the India Stack initiative, became the front-runner in developing all three foundational DPIs: Digital identity (Aadhar), Real-time fast payment (UPI), and Account Aggregator, under the Data Empowerment Protection Architecture (DEPA).
Data Empowerment Protection Architecture (DEPA)
DEPA provides a digital framework that allows users to share their data according to their terms through a third-party entity, known as Consent Managers. This framework gives power back to the users and contributes significantly to the functioning of a DPI.
The Pillars of India’s DPI Ecosystem
India’s DPI ecosystem is founded on several pillars:
1. Aadhaar: It serves as a strategic tool for financial and social inclusion, public sector delivery reforms, managing fiscal budgets, and promoting hassle-free governance.
2. DigiYatra: A Biometric Enabled Seamless Travel experience based on a Facial Recognition System, it manages an estimated passenger traffic of over 188 million across Indian airports.
3. DigiLocker: With about 150 million users, DigiLocker stores documents like insurance, medical reports, passport, and other important certificates in digital format.
4. UPI (Unified Payment Interface): It handles over eight billion transactions per month, contributing about 65% of India’s annual GDP.
About India Stack
IndiaStack is a set of APIs allowing governments, businesses, startups, and developers to utilize a unique digital Infrastructure for delivering cashless, paperless, and presence-less services. It leverages the economic primitives of identity, data, and payments on a population scale, promoting financial and social inclusion.
Boosting India’s Digital Infrastructure with DPI
DPI can greatly enhance India’s digital infrastructure through several means:
1. Independent Steward Institutions: Accountability to a broad range of stakeholders through multiparty governance can build trust and confidence in DPI.
2. Global Standards: Developing global standards through multilateral dialogues, led by India, can help prevent smaller countries from becoming captive to dominant technology players.
3. Sustainable Financing Models: Developing sustainable financing models to fund DPI projects can mitigate the risk of becoming a tool of philanthropic competition and positioning.
4. New Playbook for Digital Infrastructure: A new playbook can help countries digitally empower their citizens, address specific needs, and build platforms that people can trust and use without fear of exclusion or exploitation.
Understanding Aadhaar and its Functioning
The Aadhaar platform helps authenticate the identity of residents electronically in a safe and quick manner, making service delivery more cost-effective and efficient. According to the Government of India and the Unique Identification Authority of India (UIDAI), Aadhaar is not proof of citizenship. However, certain contingencies can lead to the deactivation of an issued Aadhaar – for instance, if it contains mixed or anomalous biometric information, multiple names in a single name, or if it remains unused for three consecutive years.
