India’s digital public infrastructure have seen significant evolution in the recent years, particularly with the advent of digital technology and increased internet connectivity. Digital public infrastructure refer to digital products, services, and applications that are created and maintained for public use, with the goal of increasing access and improving outcomes for citizens. The development of digital public goods in India has had a significant impact on the economy, particularly in terms of increasing access to information and services, improving government efficiency and transparency, and fostering innovation and entrepreneurship.
India has made remarkable strides in developing its digital ecosystem, laying the foundation for a digitally empowered society. The government’s initiatives, such as Digital India and Aadhaar, have propelled the digitisation of public services and created a robust digital infrastructure. By integrating technology into governance, India has made public services more accessible, efficient, and transparent, transforming the lives of millions of citizens.
With the Prime Minister Modi’s significant visit to the US, and the both governments’ announcement of a historic partnership to jointly develop Digital Public Infrastructure for the world. It highlights the significance of India’s digital public infrastructure and emphasises the transformative potential of the India-US partnership in shaping the internet of the future.
India & DPIs
One of the most notable examples of India's digital public goods is the Aadhaar biometric identification system. Aadhaar has enabled millions of Indians to access a range of government services and benefits that were previously inaccessible. This has had a significant impact on social inclusion, as it has allowed people to access services like healthcare, education, and financial services more easily. India has made significant progress in promoting financial inclusion in the past few years using its DPIs. Several government initiatives and digital innovations have helped to bring more people into the formal financial system and provide access to a range of financial services. One of the key initiatives in this regard has been the Pradhan Mantri Jan Dhan Yojana (PMJDY), which was launched in 2014. The program aims to provide access to banking services to all households in the country, with a particular focus on the economically weaker sections of society.
The Digital India program, launched in 2015, aims to provide high-speed internet connectivity to all citizens and has helped to promote digital inclusion across the country. The growth of digital payments has helped to drive financial inclusion, with more and more people accessing financial services through their mobile phones. At the same time, the growth of India's digital economy has also led to the emergence of new business models and industries. Startups and entrepreneurs have been able to leverage the country's digital infrastructure to create new products and services, and the growth of e-commerce has created new opportunities for businesses of all sizes.
Overall, the evolution of India's digital public goods has had a significant impact on both the economy and social inclusion. While there is still work to be done to ensure that everyone has access to these resources, the progress that has been made so far is significant and has helped to lay the foundation for a more inclusive and prosperous future. The following are some examples of how digital public goods are being used to promote financial inclusion in India:
Unified Payments Interface (UPI): UPI is a payment system that allows users to instantly transfer money between bank accounts using their mobile phones. UPI has made it easy for people to make digital transactions, even in remote areas where traditional banking infrastructure may be lacking. UPI has been a game-changer in promoting financial inclusion, with the number of UPI transactions growing significantly in recent years.
BHIM (Bharat Interface for Money) app: BHIM is a mobile app developed by the National Payments Corporation of India (NPCI) that allows users to make digital payments using UPI. The app has a simple interface and can be used by anyone with a bank account and a mobile phone. BHIM has helped to promote financial inclusion by making it easy for people to make digital payments and access a range of financial services.
Why Indian experience is essential
India's Digital Public Infrastructure experience and success hold tremendous significance, and their importance can be reasoned in several ways.
Scale and Diversity:
India is home to a diverse population of over 1.4 billion people, representing a wide range of cultures, languages, and socio-economic backgrounds. The successful implementation of a robust Digital Public Infrastructure in such a vast and diverse country showcases India's ability to address complex challenges and deliver digital solutions that cater to the needs of a diverse citizenry. This experience proves invaluable as it provides insights and best practices that can be adapted and replicated in other nations facing similar demographic and infrastructural challenges.
Innovation and Frugal Engineering:
India's digital transformation journey has witnessed remarkable innovation and frugal engineering. Due to limited resources and the need for cost-effective solutions, Indian entrepreneurs and technologists have developed innovative approaches to tackle various issues. These innovations range from low-cost smartphones to digital payment systems, and they demonstrate India's capacity to find unique solutions that maximise efficiency while minimising costs. Sharing this experience with other countries can inspire innovative thinking and enable the adoption of cost-effective digital solutions across the globe.
Inclusive Digital Initiatives:
India's Digital Public Infrastructure has prioritised inclusivity, aiming to bridge the digital divide and ensure equal access to digital services for all citizens. The success of these inclusive initiatives in India can serve as a blueprint for other nations seeking to enhance digital access and inclusion, especially in regions with marginalised populations.
Resilience and Scalability:
India's digital ecosystem has shown resilience and the ability to scale rapidly. The country has witnessed exponential growth in internet usage, e-commerce, and digital services, placing immense demands on its digital infrastructure. However, India has consistently demonstrated its capacity to adapt, scale up infrastructure, and meet these challenges head-on. This experience in handling scalability and resilience is invaluable for countries looking to build their digital infrastructure, particularly in rapidly developing economies where digital adoption is on the rise.
Data-driven Governance and Citizen Empowerment:
India's Digital Public Infrastructure has facilitated data-driven governance and citizen empowerment. By digitising various government services and leveraging data analytics, India has made significant strides in improving service delivery, reducing corruption, and enhancing transparency. The experience of India's data-driven governance model can serve as a guiding light for other nations striving to strengthen their public administration systems and empower citizens through digital platforms.
India-US digital thinking
The India-US partnership has the potential to add tremendous value to the global digital landscape. Both nations share a commitment to democratic values, privacy protection, and the promotion of an open and inclusive internet. By combining their expertise, India and the US can leverage their respective strengths in data management, digital innovation, and policy frameworks to create a digital environment that prioritises consumer trust and safety.
Data is the currency of the digital era, and ensuring its responsible use is of utmost importance. The India-US partnership can establish frameworks for data governance, enabling individuals to have control over their personal information while fostering innovation and economic growth. By aligning their regulatory frameworks and adopting common standards for data protection, both countries can enhance cross-border data flows and facilitate secure digital transactions.
Moreover, the collaboration between India and the US can bolster efforts to address the challenges of the Web3 era. Web3, characterised by decentralised technologies and blockchain-based systems, offers immense potential but also poses new risks and complexities. Building consumer trust and safety in this evolving digital landscape is crucial. Through joint initiatives, India and the US can develop regulatory frameworks that prioritize data privacy, cybersecurity, and ethical use of emerging technologies. This collaborative approach will foster innovation while ensuring that citizens are protected from digital threats.
The India-US partnership can spearhead the internet of the future by harnessing the power of data, digital technology, and democracy. By leveraging their combined strengths, both nations can create platforms that not only enhance connectivity but also prioritise user-centric design, inclusivity, and digital literacy. This collaborative effort can empower individuals, businesses, and governments to fully embrace the digital age and its transformative potential.
In addition, the India-US partnership can serve as a model for other countries seeking to navigate the challenges and opportunities of the digital era. By sharing best practices, collaborating on research and development, and promoting international cooperation, India and the US can influence global discussions on digital governance, shaping a more equitable and secure digital ecosystem for all.
As we move towards an increasingly interconnected world, it is essential to build a digital infrastructure that upholds democratic values, safeguards privacy, and ensures the well-being of individuals and societies. It can build on the convergence of data, digital technology, and democracy, underscoring the importance of building consumer trust and safety in the era of Web3. The proposed partnership serves as a catalyst for a deeper India-US partnership that can embrace the digital future, fosters innovation, and promotes consumer trust and safety. By working together, India and the US can unlock the full potential of the internet, shaping an inclusive, secure, and better future for all.