Digital public infrastructure (DPI) is rapidly becoming an indispensable tool to meet policy objectives such as financial inclusion and identity management. It is generally understood as a set of interoperable, open and inclusive systems supported by technology to provide essential, society-wide, public and private services. Many countries, especially those in the global south, are adopting DPI to bring essential services to their communities. Examples of DPIs include digital ID systems such as India’s Aadhaar, Singapore’s Singpass, the Philippines’ PhilSys and the United Arab Emirates’ UAE-Pass; digital payment systems such as Brazil’s Pix, India’s UPI, Turkey’s FAST, the European Union’s TIPS and Thailand’s PromptPay; and data exchange platforms, particularly those incorporating trust and consent, such as India’s DigiLocker and Account Aggregator, Estonia’s X-Road, Singapore’s MyInfo, Australia’s Customer Data Right, and the UK’s Open Banking.
India, in particular, is gaining worldwide recognition for its DPI approach and achievements. In a historic move, under the country’s presidency, G20 Digital Economy ministers reached a consensus on the definition, framework and principles of DPI to effectively shape its future. India’s role in pioneering and deploying DPI has been lauded by the World Bank and the Global Partnership for Financial Inclusion. The “Indian experience” has been suggested for adoption among countries seeking to establish an open and interoperable system.
A look at India’s DPI approach and progress, its global partnerships and future plans…
India’s progress
India, through India Stack, became the first country to develop all three foundational DPIs – digital identity (Aadhaar), real-time fast payment (UPI) and a platform to safely share personal data without compromising privacy. The country’s success lies in its foundational building blocks approach, which has been guided by four basic principles. These include providing digital infrastructure as a public good, encouraging private innovation by providing open access to these infrastructures, creating a level playing field through a robust regulatory framework, and empowering individuals through a data-sharing framework that requires their consent.
Illustrating the impact, Aadhaar covers 100 per cent of the adult population, the UPI network processed a total of Rs 83.17 trillion during H1 2023 and the CoWIN platform helped immunise 90 per cent of the Indian population with at least one dose of the Covid-19 vaccine. With other initiatives such as e-RUPI, the trade receivables electronic discounting system, account aggregators, Open Network for Digital Commerce and Open Credit Enablement Network at different stages of implementation, India has developed a unique and robust DPI ecosystem. The country is currently collaborating with multilateral forums, including the United Nations and G20, for certification, testing, registration and benchmarking of its DPI and digital public goods.
Recent developments
DPI definition and framework
The G20 Digital Economy Working Group, under India’s presidency, collectively adopted a definition of DPI for the first time. It has been defined as a set of shared digital systems designed to be secure and interoperable and built on open standards to promote access to services for all, with governance and community as core components. A set of high-level guiding principles for DPI has also been endorsed, emphasising governance for public benefit, with trust and transparency as inherent aspects of DPI.
One Future Alliance
The G20 Digital Ministers also welcomed the “One Future Alliance”, a voluntary initiative proposed during the G20 India presidency with support from the United Nations Development Programme and its knowledge partners. It aims to bring together governments, the private sector, academic and research institutions, donor agencies, civil society organisations and other relevant stakeholders and existing mechanisms to synergise global efforts within the DPI ecosystem.
Global Digital Public Infrastructure Repository
The government announced the launch of the Global Digital Public Infrastructure Repository (GDPIR) during the virtual G20 Leaders’ Summit in November 2023. The G20 Digital Economy Working Group (DEWG), chaired by the Ministry of Electronics and Information Technology (MeitY), has led the advancement of the global DPI agenda. The DEWG’s rigorous negotiation efforts have resulted in the first-ever multilateral consensus on DPI. The Digital Economy Ministerial Meeting unanimously endorsed three DPI deliverables, which include a framework for building DPI, mobilising finances for DPI development in low- and middle-income countries, and creating a global DPI repository for the exchange of information and best practices. This landmark consensus was also affirmed as a part of the G20 New Delhi Leaders’ Declaration.
To achieve these goals, MeitY developed the GDPIR, which is a comprehensive resource hub, pooling essential lessons and expertise from G20 members and guest nations. Its primary aim is to bridge the knowledge gap in the choices and methodologies required for the design, construction, deployment, and governance of DPIs. The GDPIR presents information in a standardised format from countries and organisations that have developed DPIs at scale, incorporating elements such as maturity scales, source codes (where available) and governance frameworks. Currently, the GDPIR features 54 DPIs from 16 countries. These include one from Argentina, two from Australia, six from Bangladesh, three from Brazil, two from the European Union, five from France, one from Germany, 12 from India, two from Italy, four from Japan, one from Mauritius, one from Nigeria, nine from Oman, two from Russia, two from Singapore and one from South Korea.
Social Impact Fund
The government also announced the creation of the Social Impact Fund (SIF), to which India has pledged an initial commitment of $25 million. The SIF is conceptualised as a government-led, multistakeholder initiative to fast-track DPI implementation in the Global South. This fund will offer financial support to provide upstream technical and non-technical assistance to countries in developing their DPI systems. The SIF provides a platform for all relevant stakeholders, including other governments, international organisations and philanthropic entities, to contribute to this fund and help accelerate the achievement of the United Nations Sustainable Development Goals in low- and middle-income countries through DPIs.
Global partnerships
DPI is a key facet of India’s diplomatic outreach to the rest of the world, with several countries expressing interest in adopting the country’s DPI. India recently signed MoUs with eight countries, namely, Armenia, Sierra Leone, Suriname, Antigua, Barbados, Trinidad and Tobago, Papua New Guinea and Mauritius, offering them India Stack and DPI at no cost and with open-source access. The countries can now adopt and utilise these resources within their borders, further developing their unique innovation ecosystems.
In August 2023, India announced that its UPI would soon be operational in France, making it the first European country to accept the payment system. Other European countries such as Belgium, the Netherlands, Luxembourg and Switzerland are expected to follow France in recognising UPI. The Shanghai Cooperation Organisation also adopted India’s proposal for the development of DPI to promote inclusive digital growth on a global scale.
Countries collaborating with India are primarily interested in UPI and DigiLocker, the cloud-based platform for document and certificate storage, sharing and verification. The export of UPI, the payment platform, has grown exponentially, enabling partnerships with countries including the UK, UAE, Singapore, Malaysia and Nepal. In addition, UPI has partnered with more than 350 banks on its network, serving over 260 million unique users. According to the government, India can potentially sign deals with 30 more countries on this front.
Challenges and future plans
India’s DPI faces certain challenges, limiting the country from signing more MoUs. The biggest roadblock is the lack of capacity, further exacerbated by the difficulties in scaling pilots. Another issue is the limited talent pool and developer ecosystem in supporting the extension of this architecture. Furthermore, while privacy is one of the founding principles, strong regulations and mechanisms are required to ensure data protection and privacy. For instance, the Supreme Court of India has raised concerns about data privacy and security concerning Aadhaar.
Despite these challenges, the government is expected to rapidly expand India’s DPI by adding 20-30 new elements to the stack. It aims to cover the entire spectrum of current and future public services with digital assets. Additionally, the government is exploring the integration of new-age technologies such as artificial intelligence, internet of things and edge computing into future DPIs.
Sarah Khan
