Digital Public Infrastructure and Inclusive Development : Daily News Analysis

Date : 4/12/2023

Relevance: GS Paper 3 - Infrastructure Also relevance GS Paper 2 - Governance - Service Delivery

Keywords: Digital Public Infrastructure (DPI), Global Digital Public Infrastructure Repository (GDPIR), JAM Trinity, Digital India, Aadhaar, Digilocker

Context-

  • In a digitalized world, a robust Digital Public Infrastructure (DPI) is vital for resilience, service delivery, and innovation. It caters to diverse sectors and ensures equitable participation in the digital economy, from urban innovators to rural artisans.
  • The experts highlight technology's role in bridging digital divides and fostering inclusive and sustainable development.

DPI in India

  • Under the central theme of "Vasudhaiva Kutumbakam," translating to 'One Earth, One Family, One Future,' the G20 India Presidency highlighted the significance of equitable economic growth and a shared vision for the future.
  • In alignment with this vision, India is planning to establish a Global Digital Public Infrastructure Repository (GDPIR), a digital repository of DPI.

Role of DPIs in India's Digital Transformation:

  • In India, the adoption of Digital Public Infrastructures (DPIs) like Aadhaar, in conjunction with Jan Dhan bank accounts and mobile phones, has played a pivotal role in shifting ownership of transaction accounts.
  • The JAM Trinity has substantially accelerated financial inclusion, increasing it from 25% in 2008 to over 80% within the past six years.
  • This achievement, which could have taken up to 47 years without DPI implementation, resonates with the importance of safe, secure, and inclusive DPI highlighted in the G20 New Delhi Leaders' Declaration.

Government-to-Person Programs and UPI:

  • Government-to-Person programs and the Unified Payments Interface (UPI) have been integral to India's digital landscape. India has established one of the world's largest digital Government-to-Person (G2P) architectures using DPI, enabling the transfer of approximately Rs 32.29 trillion directly to beneficiaries across various government schemes.
  • The Unified Payments Interface (UPI) in India has become a rapid and instantaneous payment network, recording over 10.586 billion transactions totaling approximately Rs 15.76 trillion in August 2023. UPI's international linkage with 11 countries aligns with the G20's focus on financial inclusion, facilitating quicker, cost-effective, and transparent cross-border payments.

India Stack and Account Aggregator System:

  • India Stack, India's fundamental DPI, has fostered innovation, healthy competition, market expansion, and financial inclusion. It has streamlined the Know Your Customer (KYC) processes, with a total of 16.47 billion eKYC transactions facilitated by 232 eKYC Authentication Agencies (KUA) to date.
  • India's Account Aggregator (AA) system empowers individuals to have control over their financial information, ensuring that no data is shared without their consent.

Key Initiatives

Digital India Initiative & BharatNet Project:

  • Launched in 2015, the Digital India Initiative aligns with the G20's commitment to narrowing the digital divide.
  • Focuses on providing digital infrastructure and promoting digital literacy.
  • As of 11 September 2023, the BharatNet project successfully connected 202,028 Gram Panchayats, with 658,685 kilometers of optical fiber cables (OFC) installed.
  • Deployment of 643,789 Fiber-To-The-Home (FTTH) connections and 104,675 Wi-Fi hotspots for last-mile connectivity.
  • The BharatNet project plays a pivotal role in enhancing digital connectivity in rural areas.
  • Significant progress with over 202,028 Gram Panchayats connected, providing access to digital services.
  • Deployment of 643,789 Fiber-To-The-Home (FTTH) connections and 104,675 Wi-Fi hotspots for last-mile connectivity.

Pradhan Mantri Jan Dhan Yojana (PMJDY):

  • PMJDY, a critical initiative for financial inclusion, aligns with the G20's emphasis on public participation.
  • As of 13 September 2023, the total number of beneficiaries across various types of banks amounted to 50.41 crore, with a significant proportion being rural-urban females.
  • Cumulative deposits in their accounts reached a total of Rs 20,494.18 billion, with 34.26 crore Rupay Debit Cards issued to beneficiaries.
  • PMJDY has had a transformative impact on financial inclusion and access to banking services.
  • Substantial participation of rural-urban females, signifying gender-inclusive financial services.
  • Massive cumulative deposits and widespread distribution of Rupay Debit Cards to beneficiaries.

Make in India and Startup India:

  • The Make in India initiative strengthens India's self-reliance in technology and reduces dependency on imports.
  • Aligns with the G20's focus on innovation, technology transfer, and fostering a secure digital environment.
  • Business requests and investments in the pipeline totaling $201.12 billion have been generated, fostering local production and job creation.
  • Startup India nurtures entrepreneurship, aligning with the G20's commitment to promoting responsible and inclusive use of digital technology.
  • Inclusive support to startups, including access to funding, mentorship, and regulatory reforms.
  • The establishment of 108 unicorns signifies the program's success in fostering entrepreneurship and growth.

Smart Cities Mission:

  • Integration of Digital Infrastructure in Urban Development:
  • The Smart Cities Mission, primarily an urban development initiative, integrates digital infrastructure components.
  • Aligns with the G20's emphasis on building Digital Public Infrastructure (DPI).
  • Involves 100 mission cities, 7,934 projects, and an estimated cost of Rs 170,392 crore, enhancing both physical and digital aspects of urban living.

Aadhaar:

  • Aadhaar plays a pivotal role in enabling digital services and identity verification, aligning with the G20's emphasis on data protection, privacy, and secure digital infrastructure.
  • Recent statistics indicate 1.38 billion Aadhaar numbers generated, 788.64 million Aadhaar records updated, and 100.33 billion authentications, along with 16.42 billion eKYC processes completed.
  • Aadhaar's ongoing importance ensures the smooth operation of India's digital infrastructure, enabling secure and efficient digital services and identity verification.

UMANG & DigiLocker:

  • The UMANG app provides secure and inclusive access to a wide range of government services, aligning with the G20 Leaders Declaration 2023.
  • With 56 million registered users and 3.849 billion transactions processed, UMANG showcases its comprehensive reach and importance as a digital platform.
  • DigiLocker advances paperless governance by providing citizens with authentic digital documents.
  • Enhancing the accessibility and authenticity of digital documents while streamlining government-citizen interactions.

Central Bank Digital Currency (CBDC):

  • The launch of e- Rupee by the Reserve Bank of India (RBI) aligns with the G20 Leaders Declaration 2023 regarding CBDCs.
  • Reflects India's approach to embracing modern digital currency solutions and aligns with global trends in CBDC development.

Artificial Intelligence (AI):

  • MeitY's schemes and programs accelerate AI implementation and development in India.
  • MeitY's commitment to promoting responsible AI for achieving Sustainable Development Goals (SDGs) demonstrates India's dedication to using AI for public benefit.
  • Efforts include reskilling/up-skilling IT professionals, capacity building, research centers, and international collaborations.

Conclusion

Digital Public Infrastructure (DPI) plays pivotal role in driving inclusive and sustainable development. India's commitment to DPI initiatives, including Aadhaar and the JAM Trinity, has accelerated financial inclusion and set a global standard for impartial digital transformation. India's leadership in technology adoption, exemplified by the Unified Payments Interface (UPI), aligns with the G20's goals, making it a model for other nations. India's success story inspires countries striving for inclusive digital futures. It highlights the transformative potential of DPIs in fostering a more equitable and prosperous global digital landscape.

Probable Questions for UPSC mains Exam-

  1. Discuss the role of Digital Public Infrastructure (DPI) in India's inclusive development, citing examples such as Aadhaar, JAM Trinity, and the Unified Payments Interface (UPI). How have these initiatives contributed to financial inclusion and service delivery? (10 Marks, 150 Words)
  2. Evaluate the impact of India's Digital India Initiative and the BharatNet Project on narrowing the digital divide, especially in rural areas. Highlight the key achievements, challenges, and future prospects of these initiatives in enhancing digital connectivity and promoting digital literacy. (15 Marks, 250 Words)

Source- Indian Express