India’s DPI model will be exported to 50 countries over the next five years through a global coalition of multilateral organizations, including the World Bank and the IMF in the words of Nandan Nilekani, CEO of Infosys and founder of the Aadhaar project.
Table of Contents
India’s DPI or Digital Public Infrastructure
- Digital public infrastructure (DPI) refers to building blocks or platforms like digital identity, financial infrastructure, and data exchange solutions that assist nations in providing citizens with basic services, empowering individuals, and enhancing lives by facilitating digital inclusion.
- DPIs act as an intermediary in the exchange of people, goods, and information. First, the flow of people through an electronic identification system. The second is the movement of cash through an instantaneous rapid payment system. Thirdly, the exchange of personal data via a consent-based data-sharing mechanism in order to realize the advantages of DPIs and give the citizens a genuine degree of data control.
What are the Standards of India’s DPI Ecosystem
Aadhar
- Key policy tools for advancing people-centered governance, public sector delivery reforms, increased convenience, and social and financial inclusion.
- Aadhaar holders can choose to utilize their Aadhaar for private sector activities, and private sector organizations are not required to obtain particular permission for them to do so.
Digilocker
- Besides having a budget of only RS 50 crore over seven years, DigiLocker has 150 million users and six billion documents saved.
- It also helps the users to keep their documents in a digital format, including insurance policies, medical records, PAN cards, passports, marriage certificates, school transcripts, and other documents.
UPI
- Unified Payment Interface (UPI) now processes more than eight billion transactions each month, valued at USD 180 billion, or about 65% of India’s annual GDP.
- It is the largest among the systems run by the National Payments Corporation of India, such as the National Automated Clearing House, Immediate Payment Service, Aadhaar-enabled Payment System, Bharat Bill Payment System, RuPay, etc.
DPIs: Catalysts for Climate Resilience and Financial Support
The DPIs will be essential in supporting climate adaptation and mitigation in order to meet the rising demand for financial transfers to bolster vulnerable populations and areas and for emergency funding in the wake of major climate disasters like floods.
Moreover, the cutting-edge digital public infrastructure opens the door to more precise and automated decision-making for safer infrastructure while giving end users the tools to engage, communicate, and visualize their environment. They improve climate resilience by enabling better modeling and understanding of the spatiotemporal dynamics of threats and infrastructure performance.
For example: By deploying likely scenarios of functionality loss for the transport network, almost real-time 5G-enabled agent-based modeling for the affected and interdependent infrastructure systems can be used to improve the accessibility of a substation that is a part of a power grid after a flood.
ONDC: Pioneering Digital Commerce and Sustainability
With the use of the Open Network for Digital Commerce (ONDC) platform, reverse logistics can be developed, enabling a circular economy that encourages recycling and minimizes waste.
Additionally, if more people start using electric vehicles, the DPIs’ technology can be utilized to build an interoperable network for accessing batteries and charging stations.
Strategic Significance of India’s DPI Ecosystem
According to Nilekani, DPIs are not only nice to have but strategic also, as shown in India’s pandemic response, in which they expedited large-scale cash transfers and mass vaccination campaigns.
DPI’s as data empowerment architecture
DPIs also function as a data empowerment architecture because the data produced by these platforms is a type of digital capital. People can use digital capital to advance in life, he continued. They can utilize the information to improve their chances of getting a loan, a job, or improved skills.
India’s Unique Approach to Formalisation through DPIs
According to Nilekani, India has solved the problem of formalization by onboarding new people. Besides, the combination of India’s startup density, talent density, and digital public infrastructure has also hastened the shift.
Conclusion
Thus, Digital Public Infrastructure (DPI) has emerged as a driver of significant change in a digital environment that is characterized by innovation and connectivity.
Moreover, Aadhaar, Digilocker, and UPI are just a few examples of India’s innovative leadership that can chart an ambitious path for global advancement.
With digital public infrastructure being used for driving financial inclusion and data-driven growth, India is not only filling in the gaps but is also developing a roadmap for a time when technology will cut across borders, and enable a world of fair access and shared prosperity.
