Good digital public infrastructure is the backbone of a modern, efficient society. It refers to the digital systems and technologies that support essential services like online payments, identity verification, and access to government services. For everyday people, this means faster, easier interactions with everything from banking to healthcare. When built well, digital public infrastructure can reduce red tape, improve transparency, and bring services closer to citizens, even in remote areas. It creates a foundation for growth in key sectors, driving innovation and improving everyone’s overall quality of life.
Tags: GS – 2, Government Policies & Interventions– E-Governance, GS – 3, Economy- Inclusive Growth– Achievements of Indians in Science & Technology
Why in the news?
- India’s extraordinary achievement of over 80% financial inclusion within just six years stands as a testament to its innovative approach to digital and financial inclusion.
- This achievement has not only earned global admiration but also positioned India as a guiding light for the Global South.
What is Digital Public Infrastructure?
- Definition:
- Digital Public Infrastructure (DPI) encompasses the essential digital systems and services provided by the government or public sector to bolster and advance the digital economy and society. It includes:
- Digital Identity Systems: Platforms for verifying and managing individuals’ identities online, such as Aadhaar in India.
- Digital Payment Systems: Infrastructure supporting secure financial transactions, including digital wallets, payment gateways, and banking platforms.
- Public Digital Services: Government-provided online services, such as e-governance portals, public health information, and digital education platforms.
- Data Infrastructure: Systems for secure data storage, management, and sharing, ensuring data sovereignty and privacy.
- Cybersecurity Frameworks: Measures and protocols to protect digital assets and personal information from cyber threats.
- Broadband and Connectivity: Infrastructure ensuring widespread and equitable access to high-speed internet across regions.
- Digital Public Infrastructure (DPI) encompasses the essential digital systems and services provided by the government or public sector to bolster and advance the digital economy and society. It includes:
Key Developments in India’s Digital Public Infrastructure
- Unified Payments Interface (UPI): UPI has transformed digital payments in India with remarkable growth since its inception.
- UPI transactions increased from 92 crore in FY 2017-18 to 8,375 crore in FY 2022-23.
- The system has expanded internationally, with countries like UAE, Singapore, and France adopting or considering UPI.
- Recent innovations include UPI integration with credit cards and the launch of UPI Lite for offline transactions.
- These advancements have not only boosted financial inclusion but also established India as a global leader in digital payments.
- Aadhaar Ecosystem: Aadhaar, India’s biometric identification system, serves as the foundation for numerous government and private sector services.
- With over 1.3 billion enrollments, it is the world’s largest biometric ID system.
- Integration with Digi Locker has facilitated secure document storage and sharing.
- The Aadhaar ecosystem has effectively reduced fraud in welfare distribution and streamlined Know Your Customer (KYC) processes.
- Open Network for Digital Commerce (ONDC): ONDC is India’s ambitious initiative to democratise e-commerce.
- Launched in the pilot phase across multiple cities, it aims to bring 30 million sellers and 10 million merchants online.
- By creating an open network, ONDC challenges existing e-commerce monopolies and offers a level playing field for small and medium enterprises.
- Account Aggregator Framework: The Account Aggregator framework is revolutionising financial data sharing in India.
- It allows secure, consent-based sharing of financial information across institutions.
- As of 2023, over 1.1 billion accounts are Account Aggregator-enabled across various banks.
- This system benefits Micro, Small, and Medium Enterprises (MSMEs) by providing faster loan processing and improved credit access.
- Digital Health Initiatives: India’s digital health ecosystem, driven by the Ayushman Bharat Digital Mission, is advancing significantly.
- As of December 2023, 50 crore individuals have an Ayushman Bharat Health Account (ABHA) as their unique health ID.
- The CoWIN platform, initially used for Covid-19 vaccination, is now repurposed for universal immunisation programs.
- Telemedicine consultations have surged, with platforms like eSanjeevani conducting over 100 million consultations.
- These initiatives are enhancing healthcare access and efficiency across India.
- Digital India BHASHINI: BHASHINI (BHASHa Interface for India) is an AI-powered language translation platform aimed at overcoming language barriers in digital communication.
- It is being integrated into various government websites and apps to improve accessibility.
- Central Bank Digital Currency (CBDC): The Reserve Bank of India launched the Digital Rupee pilot in December 2022, marking India’s entry into the CBDC space.
- By mid-2023, over 2.2 crore transactions had been processed under the CBDC pilot.
- This initiative aims to reduce currency management costs and facilitate real-time, cost-effective cross-border transactions.
- Government e-Marketplace (GeM): The GeM portal has experienced significant growth in procurement, exceeding Rs 1.24 lakh crore in the first quarter of 2024-25.
- This system has achieved a 10% reduction in public procurement costs.
- GeM’s success has led to its adoption by public sector enterprises and its model is being evaluated by other countries for potential replication.
- Note: India Stack, comprising open APIs and digital public goods like Aadhaar, UPI, and Digi Locker, continues to evolve as the backbone of India’s digital infrastructure. The Consent Layer, part of the Data Empowerment and Protection Architecture (DEPA), facilitates secure data sharing.
Major Challenges Related to India’s Digital Public Infrastructure
- The Digital Divide Dilemma: The digital divide remains a significant issue, marked by disparities in technology access and digital literacy.
- As of 2022, India’s internet penetration was approximately 52% (Internet in India Report 2022), leaving around half the population offline.
- Rural areas lag behind urban centres in digital adoption, with many village residents still relying on cash despite booming UPI transactions in cities.
- The National Family Health Survey 2019-21 found that only 33% of Indian women used the internet, compared to 57% of men.
- Digital Literacy Lag: While infrastructure development is crucial, improving digital literacy is equally important.
- Despite initiatives like the Pradhan Mantri Gramin Digital Saksharta Abhiyan, a significant portion of the population remains digitally illiterate.
- This impacts the adoption and effective use of digital services, from UPI to e-governance platforms.
- Vulnerability to External Shocks: Recent global IT system outages, triggered by a faulty software update from CrowdStrike, caused widespread disruptions across various Windows operating systems.
- This overdependence exposed a lack of robust fail-safe mechanisms, highlighting the need for a more resilient digital ecosystem.
- Increased digitization also heightens cybersecurity risks, with India facing over 3,000 cyberattacks per week. For example, the 2023 ransomware attack on AIIMS Delhi revealed vulnerabilities in critical infrastructure.
- Vernacular Issues: In a country with 22 official languages and numerous dialects, language barriers pose a significant challenge to digital adoption.
- While initiatives like BHASHINI aim to address this, comprehensive language support across all digital platforms remains a challenge.
- Many government apps and websites are still predominantly in English or Hindi, limiting their reach.
- Digital Sovereignty Struggle: India’s push for data localization, reflected in draft policies, seeks to ensure digital sovereignty.
- However, this creates challenges for global tech companies and affects cross-border data flows.
- For instance, the Reserve Bank of India’s mandate for local storage of payment data has led to compliance challenges for international payment providers.
- The Digital Personal Data Protection Act, 2023 allows personal data transfer outside India, but only to countries notified by the central government. This mechanism may not adequately assess data protection standards in those countries.
- Personal Data Privacy Paradox: As digital services expand, concerns about data privacy and security grow.
- The Digital Personal Data Protection Act, 2023, has not yet been fully implemented.
- Past incidents, such as the Aadhaar data breaches reported in 2018, have raised public concerns about data privacy.
Steps to Enhance the Resilience of India’s Digital Public Infrastructure
- Enhanced Cybersecurity Measures:
- Increase the cybersecurity budget to reflect its growing importance.
- Conduct mandatory cybersecurity audits for critical infrastructure to identify and address vulnerabilities.
- Implement a national cyber incident response plan with regular drills to improve readiness for large-scale attacks.
- Interoperability Standards:
- Develop and enforce national standards for digital service integration and data exchange.
- Create an Open API policy for government services to foster innovation and third-party development.
- Establish a regulatory sandbox for testing financial service interoperability to balance innovation with security.
- Adopt the IndEA (India Enterprise Architecture) framework to standardise digital transformation across sectors.
- Inclusive Digital Literacy Programs:
- Launch “Digital Saksharta Abhiyan 2.0” to teach practical digital skills, partnering with NGOs and tech companies to reach remote areas.
- Introduce digital literacy modules in secondary school curricula to build a strong foundation.
- Develop targeted programs for women, the elderly, and marginalised communities to bridge the digital divide.
- Cyber Security Board:
- Establish a Cyber Security Board with government and private sector representatives to analyse major cyber incidents and recommend improvements.
- Implement zero-trust architecture, enforce a standardised incident response playbook, and modernise state networks and response policies.
- Agile Regulatory Framework:
- Create a multi-stakeholder Digital Economy Task Force for adaptive policymaking that evolves with technological advancements.
- Develop technology-neutral, principle-based regulations to maintain oversight while allowing flexibility.
- Infrastructure Expansion:
- Accelerate the Bharat Net project to provide high-speed internet to all 600,000 villages.
- Promote edge computing to enhance service delivery in remote areas, reducing latency and improving user experience.
- Develop a national strategy for efficient 5G rollout and beyond to lead in wireless technology.
- Vernacular Digital Content:
- Mandate multi-lingual support for all government digital services to ensure inclusivity.
- Develop AI-powered real-time translation tools to break down language barriers on digital platforms.
- Implement voice-based interfaces to make technology accessible to those with literacy challenges.
- Green Digital Infrastructure:
- Set energy efficiency standards for data centres and digital infrastructure to promote sustainability.
- Encourage the use of renewable energy to reduce the carbon footprint of the digital economy.
- Incentivize the adoption of green technology in the IT sector to align digital growth with environmental sustainability goals.
UPSC Civil Services Examination, Previous Year Question
Prelims
Q:1 Consider the following statements about G-20: (2023)
- The G-20 group was originally established as a platform for the Finance Ministers and Central Bank Governors to discuss international economic and financial issues.
- Digital public infrastructure is one of India’s G-20 priorities.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Answer: C
Q:2 Consider the following statements: (2018)
- Aadhaar card can be used as a proof of citizenship or domicile.
- Once issued, Aadhaar number cannot be deactivated or omitted by the Issuing Authority.
Which of the statements given above is/are correct?
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
Ans: (d)
Q:3 In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits? (2020)
- Cost of restoration of the computer system in case of malware disrupting access to one’s computer
- Cost of a new computer if some miscreant wilfully damages it, if proved so
- Cost of hiring a specialised consultant to minimise the loss in case of cyber extortion
- Cost of defence in the Court of Law if any third-party files a suit
Select the correct answer using the code given below:
- 1, 2 and 4 only
- 1, 3 and 4 only
- 2 and 3 only
- 1, 2, 3 and 4
Ans: (b)
Q:4 In India, it is legally mandatory for which of the following to report on cyber security incidents? (2017)
- Service providers
- Data centres
- Body corporate
Select the correct answer using the code given below:
- 1 only
- 1 and 2 only
- 3 only
- 1, 2 and 3
Ans: (d)
Mains
Q:1 What are the different elements of cyber security? Keeping in view the challenges in cyber security, examine the extent to which India has successfully developed a comprehensive National Cyber Security Strategy. (2022)
Source: IE
FAQs
Q: What is digital public infrastructure?
- Answer: Digital public infrastructure refers to the technology systems that support essential online services for the public. It includes things like digital payment platforms, online government services, and systems for identity verification, helping people access services quickly and efficiently.
Q: Why is good digital public infrastructure important?
- Answer: Good digital public infrastructure makes life easier for people by streamlining services, reducing paperwork, and making things faster and more accessible. Whether it’s paying bills, applying for a government service, or accessing healthcare, having a strong digital system saves time and effort.
Q: How does good digital public infrastructure benefit the public?
- Answer: It benefits the public by offering quick, easy access to a variety of services from anywhere. People can make payments, verify their identity, or file taxes online, reducing the need for physical visits to offices and cutting down on long wait times.
Q: What are the features of good digital public infrastructure?
- Answer: Key features include accessibility, security, efficiency, and user-friendliness. Good infrastructure ensures that even people with limited technical knowledge can use the system, while keeping personal data safe and secure. It should also handle large numbers of users without delays.
Q: How can a country improve its digital public infrastructure?
- Answer: A country can improve its infrastructure by investing in better technology, ensuring widespread internet access, promoting digital literacy, and securing systems from cyber threats. Regular updates and innovations help keep the system reliable and user-friendly for the public.
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