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Building Tomorrow: Understanding Indian Govt's DPI Approach for Technological Advancement

In the era of rapid technological advancement, India has embarked on an exciting journey of implementing Digital Public Infrastructure or DPI to reshape the country’s socio-economic landscape.

We are living in an era where everyone needs awareness about modern technologies. From applying for a job to making payment, Indian is going through a digital transformation over the decades. This wouldn't be possible without DPI approach, which got a special shoutout at the ongoing Global IndiaAI Summit. In this article, we will discuss about DPI strategy, its potential and future predictions.

What is DPI?

DPI or Digital Public Infrastructure enable the flow of money (through realtime swift payment systems), human beings (through digital identity systems), along with information (through consent-based, privacy-protecting and data-sharing systems).

In simple words, DPI is just like roads forming a network mandatory for connecting people with each other and getting an access to a wide range of services digitally.

Use of DPI:

India is the first country in the world to build all 3 foundational DPIs including the Aadhaar unique identity, the Unified Payments Interface (UPI), as well as the Data Empowerment and Protection Architecture (DEPA).

Currently, Aadhaar is used by more than 99.9 % of Indian adults to avail public services. Everyday, Indians make a total of 30 million transactions. Also, DEPA is revolutionizing national credit system. Overall, DPI is creating open and useful network in commerce, credit, health, and other essential sectors. Some of the well-known and majorly used systems are DigiYatra, Fastag, DigiLocker, and so on.

India's Plan to Strengthen DPI:

During ongoing Global IndiaAI Summit, Union Electronics and Information Technology Minister Ashwini Vaishnaw said: “The government will be investing in creating a public platform where resources like compute power, high-quality datasets, a common set of protocols, a common framework, technical as well as legal, are available. Then startups, entrepreneurs, academicians, and people working on different applications for various sectors like agriculture, medicine, healthcare, and education can use this common platform to accelerate their efforts.”

The minister also mentioned government's initiatives to invest Rs 10,000 crore on IndiaAI Mission.

Future Predictions:

According to a report by the National Association of Software and Service Companies (Nasscom) and Boston-based management consulting firm Arthur D Little International: “Digital public infrastructure (DPI) could help India become an $8-trillion economy by 2030.”

“While mature DPIs have witnessed exponential adoption by 2022, the next seven or eight years offer an opportunity for further scalability, reaching even the most remote segments of the population. By 2030, DPI will significantly enhance efficiency and promote social and financial inclusion,” said Brajesh Singh, president of Arthur D Little’s India division. “DPI’s impact extends beyond borders, envisioning a globally interconnected, inclusive future," said Debjani Ghosh, president of Nasscom.

The report predicted a rise of DPI economic value of 2.9-4.2% by 2030, which was only 0.9% in 2022.

Overall, the three layers of DPI have revolutionised public service while democratising innovations. However, the researchers warned about unprecedented challenges in digital ecosystem.

Thus, the government needs to implement effective strategies for safe advancements in digital public infrastructure.