Mains Practice Questions

Introduction

India’s G20 presidency highlighted Digital Public Infrastructure (DPI) as a transformative enabler for inclusive economic growth and financial transformation.

• DPI, characterized by its openness, interoperability, and scalability, integrates foundational systems such as Aadhaar and UPI with sectoral initiatives like Ayushman Bharat Digital Mission to drive digital empowerment.

Body

Potential of DPI:

• Inclusive Economic Growth:
  • Financial Inclusion: Aadhaar-enabled payment systems and UPI have expanded access to formal banking for marginalized groups, with over 10 billion UPI transactions monthly.
  • Economic Value: DPI could contribute 4.2% of GDP by 2030, as projected by Nasscom, enhancing India's potential to become an $8 trillion economy.
  • Empowerment of MSMEs: Platforms like ONDC democratize e-commerce, fostering equitable market access.
• Improved Governance and Service Delivery:
  • E-Governance: Platforms like CoWIN facilitated 2.2 billion vaccine administrations, showcasing seamless public service delivery.
  • Data Empowerment: Digilocker and DEPA ensure secure data management while upholding privacy.
• Catalyst for Innovation:
  • Digital ecosystems encourage startups and private sector innovation, leveraging tools like the Account Aggregator Framework for fintech development.

Limitations of DPI:

• Digital Divide: As of 2022, India's internet penetration is only 52%, with rural areas significantly behind urban centers, limiting access to digital services like UPI and e-governance.
• Digital Illiteracy: Despite initiatives like the Pradhan Mantri Gramin Digital Saksharta Abhiyan, a large portion remains digitally illiterate, impacting the adoption of services like digital payments (UPI).
• Cybersecurity Risks: India faces over 3,000 cyberattacks weekly, with incidents like the 2023 AIIMS Delhi ransomware attack exposing vulnerabilities in digital public infrastructure.
• Data Privacy and Security: The Digital Personal Data Protection Act, 2023 is still being implemented. Past breaches, such as the Aadhaar leak in 2018, highlight concerns about data security.
• Digital Sovereignty: Policies like the RBI's mandate to store payment data locally challenge global tech companies and impact cross-border data flows.

Way Forward

• Universal Connectivity Expansion: Expand broadband and mobile internet coverage, focusing on underserved rural areas. Leverage initiatives like BharatNet to ensure nationwide access.
• Promotion of Digital Literacy: Scale up programs like Pradhan Mantri Gramin Digital Saksharta Abhiyan to improve digital skills. Integrate digital literacy into school curricula and community training centers.
  • Focus on increasing women's and marginalized communities' access to digital education.
• Strengthening Cybersecurity Framework: Build a comprehensive cybersecurity strategy to protect critical infrastructure. Regular audits of government and private sector digital platforms.
• Ensuring Data Privacy and Protection: Implement the Digital Personal Data Protection Act, 2023, to safeguard personal data. Establish clear guidelines for data localization while ensuring cross-border data flow.
• Enhancing Language Inclusivity: Develop multilingual digital platforms to cater to India’s linguistic diversity. Expand initiatives like BHASHINI to promote content in regional languages..
• Upholding Digital Sovereignty: Strengthen laws around data localization and protect national interests. Balance global tech collaboration with data security concerns.

Conclusion

DPI has immense potential to bridge socio-economic gaps and drive financial transformation, but challenges such as digital inequality, privacy risks, and regulatory fragmentation must be addressed. By adopting these measures, India can solidify DPI as a cornerstone of inclusive growth, fostering a digital ecosystem that is innovative, equitable, and resilient.