Current Affairs 24 February 2024
What is DPI?
DPI(Digital Public Infrastructure) refers to blocks or platforms such as digital identity, payment infrastructure and data exchange solutions that help countries provide essential services to their people, empower citizens as well as improve lives by enabling digital inclusion. Provides assistance.
DPI Ecosystem
DPIs mediate the flow of people, money and information. These three sets also form the foundation for developing an effective DPI ecosystem:
1. First, the flow of people through the digital ID system.
2. Second, the flow of funds through instant payment systems in real-time.
3. third, the flow of personal information through consent-based data-sharing systems to actualize the benefits of DPI and empower citizens with the real ability to control data.
IndiaStack
It is a set of APIs (Application Programming Interface) that provides a unique digital platform to governments, businesses, startups as well as developers to solve India’s tough problems towards presence-less, paperless and cashless service delivery. Allows access to infrastructure.
1. India, through India Stack, became the first country to develop all three basic DPI, Digital Identity (Aadhaar), Real-Time Fast Payment (UPI) and Account Aggregator built on Data Empowerment Protection Architecture (DEPA) .
2. DEPA creates a digital framework that allows users to share their data on their own terms through a third-party entity, known as a consent manager.
Why is Digital Public Infrastructure (DPI) in discussion?
Recently, NASSCOM and Arthur D. Little have jointly released a report titled – India’s Digital Public Infrastructure: Accelerating India’s Digital Inclusion, which states that India’s Digital Public Infrastructure (DPI) , It is likely to take India towards a US$1 trillion digital economy by 2030.
What are the pillars of India’s DPI ecosystem?
Base
1. Aadhaar is a strategic policy tool to promote social and financial inclusion, improvements in access to public sector facilities, management of financial budgets, enhancing convenience and hassle-free people-centric governance.
2. Aadhaar holders can voluntarily use their Aadhaar for private sector purposes and private sector entities do not need to obtain special permission for such use.
DigiYatra
1. DigiYatra, this project is envisaged to ensure a contactless, seamless travel process of passengers at airports based on Facial Recognition System (FRT).
2. The basic idea of this project is that any traveler can pass through various checkpoints without any paper or without any contact. For this, his facial features will be used to establish his identity which will be directly linked to his boarding pass.
DigiLocker
1. DigiLocker has 150 million users, stores six billion documents and was implemented over seven years with a minimum budget of Rs 50 crore.
2. Users can store their documents like insurance, medical reports, PAN cards, passports, marriage certificates, school certificates and other documents in digital format.
UPI
1. Transactions through UPI (Unified Payment Interface) have reached eight billion per month, with a monthly value of US$180 billion or approximately 65% of India’s GDP annually.
2. UPI is currently implemented by National Payment Corporation of India including National Automated Clearing House (NACH), Immediate Payment Service (IMPS), Aadhaar enabled Payment System (AePS), Bharat Bill Payment System (BBPS), RuPay etc. (National Payments Corporation of India- NPCI) is the largest among the operated systems.
What are the challenges of DPI in India?
Lack of access to infrastructure
In many areas, especially rural and remote areas, there is inadequate or no access to reliable internet connectivity and digital infrastructure. Limited access to electricity and the absence of essential digital hardware such as computers and smartphones further compound the problem.
digital divide
India faces a huge digital divide between urban and rural areas. While urban centers generally have better access to digital infrastructure and services, rural areas often lack reliable internet connectivity and face technological disparities.
sustainability
Even when digital infrastructure is available, the cost of Internet access and digital devices can be prohibitive for many individuals and families, especially in low-income communities.
Language and subject matter barriers
Non-English speakers or those who are not fluent in the prevalent language may be excluded due to the predominance/dominance of content in certain major languages. The lack of localized and relevant content can hinder access to important information and services.
Physical and cognitive disabilities
Individuals with disabilities often face challenges accessing and using digital technologies due to limited accessibility features and design considerations in digital platforms.
Privacy and Security Concerns
Fear of privacy violations and data security issues may prevent individuals from adopting digital technologies, especially when it comes to sensitive personal information.
What are the key points related to the report?
Economic Impact
1. According to the report, India’s digital economy will be worth 1 trillion US dollars by the year 2030, in which DPI will be the major contributor, which will help the country become an 8 trillion US dollar economy.
2. DPI can play a role in enhancing the efficiency of citizens and promoting social and financial inclusion.
Challenges and Suggestions
1. While DPI offers opportunities, challenges remain. These include a lack of connection between stakeholders, no real-time data, limited language options and little access beyond government services.
2. Governments should provide policy support and regulatory clarity and establish task forces to adopt DPI. They should also consider partnerships with startups and enterprises.
Widespread Use and Access
1. By the year 2022, advanced DPI like Aadhaar, UPI and FASTag have been widely adopted and its expansion is likely to increase further in the next 7-8 years, which will make it possible to spread its services even in remote areas . .
2. The said DPI has contributed 0.9% to India’s Gross Domestic Product (GDP). Taking into account both direct and indirect impacts, its contribution to GDP is estimated to increase to 2.9%-4.2% by 2030.
3. Ayushman Bharat Digital Mission (ABDM) which aims to support India’s digital health infrastructure will contribute to GDP growth.
Foundation of a digital revolution
1. The foundation of India’s digital revolution has been provided by the DPI or India Stack, enhancing the country’s ability to harness digital technologies for social transformation and economic growth.
2. DPI forms the cornerstone to shape “Tech-Ed” and ultimately propel India’s development path towards the “India@47” milestone.
Global Leadership
India currently plays the role of a global leader in driving developments in the field of DPI, facilitating widespread use of digital payments, and data-sharing infrastructure, promoting domestic businesses and promoting entrepreneurship in the country.
Government Support and Information Technology Ecosystem
The tireless support of the government and the information technology, intellectual capital, and startup ecosystem have contributed significantly to the success of DPI, creating a conducive environment for innovation and growth.
Growth and better user experience
1. It is anticipated that existing digital entities will evolve to provide a better user experience using AI, Web 3, and other cutting-edge technologies.
2. Aadhaar will continue to be a major contributor as its use cases expand to a wider range of services, further strengthening its role in India’s digital infrastructure.