India’s remarkable rise of becoming the fourth-largest economy in the world has drawn significant attention and acclaim, capturing headlines for all the right reasons globally. This inspite of the geo-political global headwinds. While this gigantic achievement speaks for itself, there is a need to analyse how this feat was achieved and what is in store for the future. A critical aspect that often goes unnoticed in discussions about India’s economic ascent is its robust Digital Infrastructure today, developed over the last many years.
The advanced digital India framework, commonly known as Digital Public Infrastructure (DPI) has served as a vital foundation, enabling the development of a new and innovative growth architecture for the Indian economy. The digital revolution in India has not only optimised existing sectors but also driven efficiency and entrepreneurship. As we look ahead, understanding the role of this digital backbone will be essential in formulating plans for the future.
One of the earliest challenges in realising this vision was integrating millions of Indians who comprised the vast informal sector, many of whom lacked access to basic banking facilities. A breakthrough in addressing this issue was the introduction of Aadhaar cards in 2009. This initiative had a transformative, two-fold impact: it not only enabled individuals to open bank accounts but also facilitated the acquisition of mobile SIM cards. This sparked a digital revolution at the grassroots level, empowering people and fundamentally changing the landscape of connectivity and financial inclusion in India.
Built upon the foundation laid by Aadhaar is the framework of Digital Public Infrastructure (DPI), which has proven to be a significant game changer in governance. A shining example of this DPI bouquet is the Unified Payments Interface (UPI), which has democratised financial transactions by mainstreaming the last person standing in the queue. Through UPI, every Indian became a participant in the digital economy.
According to IMF numbers, India had over 800 million smart phones (as of December 2022) and more than 10 million active 5G users. It also had 646 million km of fibre optics laid.
The digital penetration has been supported by the rapid expansion of physical infrastructure, with the number of airports increasing from 74 in 2014 to 147 in 2022. No wonder, because of this impressive growth profile, the last 10 years are often described as India’s techade.
India DPI evolution ROADMAP through integration and AI
- AI-powered grievance management system launched for better governance.
- Natural language processing technology.
- AI will analyse patient data & medical history to offer personalised treatment plans.
- AI algos will forecast disease patterns & healthcare trends.
- Enhance on-ground procedures & build efficiency.
- AI to improve fraud detection and prevention.
- Central Bank Digital Currency to reduce expences and enhance efficiency.
- Machine learning algos will be used by entity(s) to build eCommerce.
- Digital experiences will become immersive as Metaverse adoption increases.
- Analyse transaction data, identify patterns and detect anomalies.
- Smart contracts, executed on a blockchain, to automate tax computation.
- AI to analyse student data, learning patterns & preferences to provide personalised recommendations & adaptive content.
- Blockchain to provide a tamper-proof system for issuing and verifying educational credentials.
The other key components of India’s DPI stack, such as DigiLocker, FASTag, UMANG, and Ayushman Bharat, are shaping the future by incorporating advanced layers of Artificial Intelligence (AI), blockchain, and quantum-resistant security, thereby creating an intelligent ecosystem. IDEA (India Digital Ecosystem for Agriculture) is transforming the agriculture sector by creating a central database of farmers, land, and farm outputs.
It’s great to see the incredible progress, but there are still some challenges needing urgent attention. Cybersecurity is super critical, so staying alert and adapting security measures is key. India is focused on closing the digital divide, ensuring that everyone has access to high-speed internet, and helping people from all backgrounds become digitally literate. Additionally, as AI and data usage continue to grow, we must address the ethical implications and establish robust regulations to ensure that technology remains centred around people.
The Nasscom-Arthur D Little report titled “Digital Public Infrastructure of India — Accelerating India’s Digital Inclusion” states that by 2030, DPIs will have made life of the citizens more efficient with social and financial inclusion (only 78 per cent had a bank account in 2022).
The report has highlighted that being digital in nature, the solutions using DPIs are most affected by technological enhancements and disruptions. And to avoid the risk of becoming obsolete, the digital services will need to be upgraded to stay relevant and useful. For such forces of technological advances that can create a larger impact are AI and the new internet built on the principles of Web3 and immersion of Metaverse.
Now that the model of seamless service delivery through an efficient DPI is firmly established, India is poised to take it global. The Modi Government has already made a compelling case on the international stage, promoting its flagship Aadhaar and UPI initiatives as transformative tools for various countries.
What distinguishes India’s approach from its competitors is its cost-effectiveness. As many developing countries grapple with similar challenges in service delivery and digital access, India has the potential to lead in this area. The key here is that solutions to these complex issues must be affordable, and India has already showcased its capability to achieve this by significantly minimising costs without compromising on quality.
The world is also mesmerised that India could achieve this in a highly diverse environment and with a massive demographic burden. The Indian model is already serving a vast mass of humanity at home. It is a promising model for other nations to emulate, paving the way for a new era of global digital collaboration. It is also a geopolitical imperative for India to establish its leadership across the Global South.
Non-economic value add by 2030 (est)
While the mature DPIs have achieved exponential adoption by 2024, the next 6-7 years present an opportunity to scale up further and impacting the citizens even in the remotest parts of the country. By 2030, DPIs will make life of the citizens far more efficient with Social and Financial inclusion.
(The writer is Resident Editor, The Pioneer)
