Introduction
India stands at the forefront of a digital revolution, propelled by a visionary leadership and a commitment to harnessing technology for inclusive growth and societal empowerment. Under the guidance of Prime Minister Narendra Modi, the nation has embarked on an ambitious journey to transform itself into a digitally empowered society and a global hub of innovation. This transformative path is paved by the implementation of a robust Digital Public Infrastructure (DPI), which has garnered international recognition and inspired adoption across the globe.
Nitin Seth
Nitin Seth, Co-founder and CEO of Incedo, a digital service provider headquartered in the USA, emphasized that India boasts one of the most advanced digital public infrastructures globally. He underscored the significance of Aadhaar data, noting its extensive nature and suggesting its potential to significantly enhance service delivery capabilities.
Regarding the country's advanced digital ecosystem, Seth remarked, "While I carry my US COVID vaccination certificate wherever I go around the world, people vaccinated in India carry digital certificates."
Book Launch: "The Data Paradox"
Seth's book explores the complexities and possibilities inherent in data, offering practical guidance on harnessing the transformative capabilities of AI. It navigates the contradictions within data, addressing essential questions about AI implementation, managing data challenges, and deriving principles relevant to both data science and everyday life.
Empowering Lives through Data and AI
Expressing optimism about the fusion of data and AI, Seth laid out a vision for individuals, businesses, and nations to leverage their potential for a better future. "We are living in a transformative era where data and AI redefine every aspect of our lives," he remarked.
Renowned for his leadership roles at Flipkart, Fidelity International, and McKinsey's Global Knowledge Centre in India, Seth is also the acclaimed author of "Winning in the Digital Age," a global bestseller. His latest publication, 'Mastering the Data Paradox,' draws on his extensive career experience to provide guidance to individuals and businesses on unlocking the full power of AI through data.
The Rise of India's Digital Public Infrastructure
The seeds of India's digital transformation were sown in 2009 with the launch of Aadhaar, a unique digital identity system. Over the past 14 years, this initiative has flourished, driven by three key factors: favorable demographics, a burgeoning middle class, and evolving digital behaviors. Leveraging these drivers, India has cultivated a competitive digital economy, facilitating paperless and cashless transactions for individuals and businesses alike.
The Digital India mission, launched in 2015, has acted as a catalyst for change, reshaping governance, empowering citizens, and fostering innovation across various sectors. At the heart of this initiative lies the implementation of the JAM trinity – Jan Dhan, Aadhaar, Mobile – which has revolutionized financial inclusion, streamlined service delivery, and improved transparency in governance. The Reserve Bank of India (RBI) had a pavilion at the Bharat Mandapam during the New Delhi Leaders’ Summit on September 9 and 10, showcasing the financial applications that have significantly enhanced inclusion. This recognition is well-deserved. It all began with the Aadhaar digital identity in 2009, later joined by services like the Unified Payments Interface (UPI), the JAM (Jan Dhan Yojana, Aadhaar, and Mobile number) trinity, and Co-WIN (for managing the Covid-19 vaccination program), among others. These initiatives helped India achieve 80% financial inclusion in just six years, a feat that a paper from the Bank for International Settlements estimated would have taken 47 years otherwise. Moreover, the impact of these services goes beyond digital identity and financial inclusion, now extending to efforts in healthcare, education, and sustainability.
Recognized by the Digital Economy Working Group (DEWG) under the G20 and hailed as a success story, several developing nations have expressed interest in adopting India’s Digital Public Infrastructure (DPI). Keyzom Ngodup Massally, Head of Digital Programming at the United Nations Development Program Chief Digital Office, notes that DPI appeals to every country because each one is building its own DPI at different stages of their journey. For low- and middle-income countries (LMICs), in particular, adopting a DPI approach can reduce implementation costs and shorten the learning curve through shared lessons, learnings, and technologies, thereby increasing the societal impact of digitalization.
DPI is not a new concept but is built on foundational principles such as open-source, open APIs, interoperability, privacy by design, inclusive design, and universal access. Most developed countries have their own DPIs. For instance, Estonia has the X-Road digital infrastructure, while France has FranceConnect.
However, the outbreak of Covid-19 was a turning point for digital services. Test and track systems, including those deployed in India, and the vaccination program rollout highlighted the importance of DPIs. Kunal Walia, Partner at Dalberg Advisors, notes that India’s success with direct benefit transfers to more than 160 million beneficiaries within a month of the Covid-19 outbreak set an example, while countries like Germany struggled to reach their citizens.
The appeal of DPI lies in its ability to provide citizen services at scale and at low cost. Interoperability allows a multitude of third-party solutions to be built on top of the existing architecture, fostering innovation. India's DPI is particularly attractive to many countries because it solves common problems around identity, payments, healthcare, and education, and at scale. Among the bouquet of services, UPI and DigiLocker are clear favorites, although platforms like MOSIP, Co-WIN, and the National Health Stack are also in demand.
Despite the enthusiasm, a challenge hindering the signing of more MoUs is the limited talent pool and developer ecosystem to support the extension of this architecture. India is working on building its talent base and plans to release courses to certify developers and system integrators to use and deploy India’s DPI.
Given the interest in India’s DPI, the government plans to build and maintain a Global Digital Public Infrastructure Repository (GDPIR), a virtual repository of DPI, for the use of other G20 members and beyond. This repository will include India’s DPI and those adopted and tweaked by other nations, serving as a ready repository for more nations to adopt DPI.
India’s DPI is continually evolving, with plans to add 20 to 30 new services to the stack. The goal is to have a DPI that spans the entire spectrum of current government public services and future plans.
Additionally, there is potential to harness the power of artificial intelligence (AI) in the DPI ecosystem. AI can leverage the standardized data collected at scale to provide solutions in various areas like climate prediction, agricultural advisory, and health research. India’s Bhashini, offering openly accessible AI models for translation, is an example of AI being integrated into DPI functionalities. While other technologies like superapps will also play a crucial role, the integration of IoT, biometric authentication advances such as facial recognition, edge computing, cross-border payment solutions, and voice and natural language processing into DPIs is expected.
However, countries face challenges associated with the lack of capacity and cohesive vision to bring together funders and other players. A global governance structure, standards, and regulatory framework are essential for seamless adoption across countries. Additionally, strong regulations and mechanisms are required to ensure data protection and privacy globally. Despite these challenges, DPIs have the potential to bring about profound changes, both in India and other countries.
Democratizing Access to Technology
One of the hallmarks of India's digital revolution is its success in democratizing access to technology. Through the use of digital platforms and innovative solutions, the Modi government has bridged the digital divide, ensuring that the benefits of technology reach all corners of the country, from urban centers to remote rural areas. The proliferation of Common Service Centers (CSCs), increased mobile phone penetration, and the expansion of high-speed optical fiber cables in rural areas under the BharatNet project have empowered millions of citizens, enabling them to access essential services and information with ease.
Economic Growth and Resilience
The widespread availability and adoption of digital infrastructure have played a significant role in fostering economic growth and resilience within the country. The Economic Survey 2022-23 highlights the remarkable shift in perceptions regarding access to digital services, noting that prior to 2014, it was predominantly seen as a privilege enjoyed by urban households. However, with focused efforts in rural regions through various government schemes, the growth of internet subscribers in rural areas has surpassed that of urban areas, reaching 95.76 million compared to 92.81 million between 2019 and 2021.
This achievement can be attributed to initiatives such as the BharatNet Project Scheme, Telecom Development Plan, Aspirational District Scheme, and endeavors in areas affected by Left Wing Extremism (LWE). The substantial increase in rural internet subscriptions not only mitigated the impact of the COVID-19 pandemic on businesses and consumer demand but also contributed to economic resilience as businesses transitioned to digital platforms.
Global Recognition and Leadership
India's unique approach to creating and harnessing its DPI has garnered international attention and acclaim. At a G20 session in March 2022, Microsoft Co-founder Bill Gates praised India's burgeoning digital services architecture, stating, "No country has built a more comprehensive digital infrastructure than India." This sentiment was echoed by numerous dignitaries during India's presidency of the G20, with widespread appreciation for the country's leadership role in promoting access to its DPI, formerly known as India Stack.
The Reserve Bank of India even showcased financial applications that have significantly improved inclusion at the Bharat Mandapam during the New Delhi Leaders' Summit in September 2022. Several developing nations have expressed a keen interest in adopting India's DPI, with eight countries – Armenia, Sierra Leone, Suriname, Antigua, Barbados, Trinidad and Tobago, Papua New Guinea, and Mauritius – already signing memoranda of understanding (MoUs) with India to access this infrastructure at no cost and with open-source access.
Sectoral Impact and Innovations
The impact of India's digital revolution extends far beyond financial inclusion, with innovative solutions emerging across various sectors. The government has facilitated citizens' access to e-Government services across sectors at both central and state levels through initiatives like 'MyScheme,' Unified Mobile Application for New-Age Governance (UMANG), and 'Bhashini.' Platforms like OpenForge promote the use of open-source software, encouraging the sharing and reuse of e-governance-related source code.
The accelerated digital adoption during the COVID-19 pandemic, particularly in healthcare (CoWIN), agriculture, FinTech, education, and skilling sectors, underscores the vast potential of digital service delivery across India's economic landscape. From Aadhaar's inception as a service delivery medium to the reinforcement of digital payment infrastructure through UPI, India's digital journey has been fortified by initiatives like e-RUPI, TReDS, Account Aggregators, ONDC, and OCEN.
Conclusion
India's digital revolution, spearheaded by Prime Minister Narendra Modi's visionary leadership, has positioned the country as a global technology leader, attracting investment and collaboration from around the world. Initiatives like the National Supercomputing Mission and National Quantum Mission, along with partnerships with global tech giants, have propelled India to the forefront of research and development, while also facilitating the export of Indian solutions to international markets.
As India progresses toward becoming a digitally empowered society, the symbiotic relationship between physical and digital infrastructure emerges as a defining aspect of the nation's future growth trajectory. With each milestone, India reaffirms its status as a global powerhouse in the digital arena, paving the way for prosperity, inclusivity, and sustainable development for all.
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