AIR Spotlight: India’s Digital Public Infrastructure

AIR Spotlight is an insightful program featured daily on the All India Radio News on air. In this program, many eminent panellists discuss issues of importance which can be quite helpful in IAS exam preparation.

This article is about the discussion on: ‘India’s Digital Public Infrastructure’.

Participants:

1. Dr. S P Sharma, Economic Analyst
2. S. Rangabhashiyam (AIR Correspondent)

Context:  This article discusses the various aspects of digital public infrastructure in India.

Introduction:

• Digital public infrastructure refers to the technology and infrastructure that is used by the government and public sector to provide services and information to citizens through digital channels. 
• India has made significant strides in building digital public infrastructure in recent years, which has helped to transform the country in various ways.
• India is a country with a population of over 1.3 billion people, making it the second most populous country in the world. The country is also one of the fastest-growing economies globally, with a GDP of over $2.8 trillion. 
• Despite its size and economic potential, India has struggled with issues such as poverty, corruption, and a lack of basic infrastructure.
• To address these challenges, the Indian government has made significant investments in building digital public infrastructure in recent years. 
• The aim has been to use technology to provide citizens with better access to government services and information, as well as to create new opportunities for businesses and entrepreneurs.

Key Components of India’s Digital Public Infrastructure:

• Aadhaar: Aadhaar is a 12-digit unique identity number issued to Indian citizens and residents by the Unique Identification Authority of India (UIDAI). It is the world’s largest biometric ID system, with over 1.2 billion registered users. 
• Digital Locker: The Digital Locker is a cloud-based platform that allows Indian citizens to store and share their digital documents securely. The platform was launched in 2015 and has since gained over 38 million registered users. 
• Goods and Services Tax Network (GSTN):  The GSTN is a non-profit, private limited company that manages the IT system for the GST. The GSTN provides a common IT platform for all stakeholders, including taxpayers, tax authorities, and banks.
• India Stack: India Stack is a set of APIs (Application Programming Interfaces) that allows businesses and entrepreneurs to build innovative solutions on top of India’s digital public infrastructure. India Stack includes various components such as Aadhaar, eSign, and the Unified Payments Interface (UPI).
• UPI:  UPI  is a real-time payment system launched by the National Payments Corporation of India (NPCI) in 2016. The UPI allows users to send and receive money instantly using a mobile phone number and a virtual payment address (VPA).

Impact of DPI on Socio-economic conditions in India:

• India’s digital public infrastructure has had a significant impact on the country. It has helped to transform various sectors, including finance, healthcare, and education. 
• Financial Inclusion: India’s digital public infrastructure has played a crucial role in increasing financial inclusion in the country. 
  • The UPI has enabled millions of people to access digital financial services, such as mobile payments and digital wallets. 
  • Aadhaar has helped to reduce the number of people who are excluded from the financial system by providing a secure and reliable way to verify identity.
• Impact on healthcare: The National Health Stack, which is based on India Stack, aims to create a national digital health ecosystem that connects various stakeholders, including patients, healthcare providers, and insurance companies. 
  • The Health Stack is expected to improve the quality and accessibility of healthcare services in India by providing a digital platform for medical records, telemedicine, and e-prescriptions.
• Impact on education: The Digital Locker has made it easier for students to access and share their educational certificates, which has reduced the administrative burden on schools and universities. 
  • The ePathshala platform, which is part of the National Mission on Education through ICT, provides free access to educational resources, such as textbooks and e-books, to students across the country.

Impact during Covid-19 Pandemic: 

• Aadhaar has played a crucial role in enabling citizens to access government schemes and services during the pandemic.
  • The Aadhaar-based Direct Benefit Transfer (DBT) system has helped transfer financial assistance to citizens, including food and cash benefits. The system has also helped identify beneficiaries for the vaccination drive.
• Digital payments have become critical during the pandemic as physical contact needs to be minimised. UPI transactions surged during the pandemic as people used it to pay for essential services, including groceries and medicines.
• The Indian government launched the eSanjeevani platform, which enables patients to consult doctors remotely. The platform has been a game-changer for people in remote areas who previously had limited access to healthcare services.
• With schools closed due to the pandemic, e-learning has become essential for students. The government launched the DIKSHA platform, which provides e-learning content for students from primary to secondary school.

Impact of 5G on DPI’s:

• The arrival of 5G technology in India is expected to have a significant impact on the country’s digital public infrastructure. 
• 5G technology offers faster and more reliable connectivity which would enable faster data transfer and better communication between devices. 
  • For example, it could improve the performance of the UPI and other digital payment systems, as well as telemedicine and other healthcare applications
• 5G networks are designed to support a large number of devices, which is essential for Internet of Things (IoT) applications. 
  • This could enable a wide range of smart city applications, such as intelligent traffic management systems, smart lighting, and waste management. 
  • It could also improve the efficiency of public services, such as emergency services and public transportation.
• 5G technology is expected to play a key role in Industry 4.0, as it could enable real-time communication between machines and improve the efficiency of production processes. 
  • This could lead to increased productivity and competitiveness for Indian businesses, and could also create new job opportunities in the manufacturing sector.
• 5G provides high-speed connectivity and low latency for augmented and virtual reality (AR/VR) applications such as immersive educational experiences and virtual tourism.

Challenges:

• Despite the significant progress made in building India’s digital public infrastructure, there are still some challenges that need to be addressed.
• India’s digital divide remains a significant challenge. While India has over 600 million internet users, there are still millions of people who do not have access to the internet or digital devices.
  • This digital divide could widen the gap between those who have access to digital services and those who do not, leading to further exclusion.
• As India’s digital infrastructure becomes more interconnected, the risk of cyber threats increases. Cybersecurity is a crucial issue that needs to be addressed to protect sensitive data and prevent fraud and other cybercrimes.
• The issue of privacy is another challenge that needs to be addressed in India’s digital public infrastructure. 
  • The Aadhaar system, in particular, has been criticised for collecting and storing sensitive personal information. 

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