India’s Digital Push

The most important element which distinguishes between a developed and developing economy is its infrastructure. The infrastructure of a country defines the economic condition and outlines the state of economic development there. Therefore, it is one of the first few things which economists of the current paradigm assess in a country. Subsequently, the scope of infrastructure did not remain limited to physically present bridges, rail tracks, shipyards and airports, it became pervasive and also exists in a realm untouchable, the digital realm. The topic for this article concerns the presence of infrastructure in this realm, also known as Digital Infrastructure, its importance, economic consequences and future.

Illustration by The Geostrata

However, the digital infrastructure of a country comprises countless small elements belonging to both the private and the public sector. Consequently, this article will only be assessing the public counterpart of this vast entity (Digital Public Infrastructure), dealing with the state of Digital Public Infrastructure and the vision of the Indian Government, keeping in mind the dreams, principles and nature of the Digital India Framework. With Governments around the world pushing for doctrines of digitalisation, this sub-element plays an increasingly important role in governance and the development of an economy. 

Current Status of Indian Digital Public Infrastructure: E-Governance, Fibre Cables & India Stack

India’s digital infrastructure, referring to its capabilities of data identification, sharing and payment collection, has served as a revolutionary model even for the developed countries. It has emerged as the cornerstone of India’s digital push towards connecting every citizen and transforming global standards of interaction and communication. Among all initiatives taken by the Government, three stand out the most in this regard- The India Stack, E-Governance and fibre-optic cables. 

First, we talk about E-Governance, one of the most important administrative and operational fields in which initiatives have been launched by the Indian Government. It aims to shift services related and concerned with Governance to a digital portal where citizens can, without hassle and with convenience, avail themselves or do their required part. The greatest part of this initiative is the UMANG app, which provides 2000 services from a single app. However, the E-Governance set-up of India is still weak, with only 48% of mandated services delivered. The number clearly signifies gaps in the E-Governance set-up and the pattern is prevalent in its fibre-optic cable structure too.

While the fibre-optic cable set-up in India offers many advantages like high speed connectivity and resilience. There remains a digital divide in the mandated infrastructure of the country. The accessibility has been highly uneven. However, the setup has served as a backbone to India’s digital vision and increased inclusivity. BharatNet, India’s project to combat the digital divide, has already connected more than 42 lakh kilometres of land.

Moreover, India Stack, arguably India’s most important digital initiative, is a set of APIs and digital systems set to revolutionise India in three layers- presence-less, paper-less and cash-less. The initiative has given birth to E-Aadhar (presence-less), Digi-Locker (paper-less), FASTag and UPI (cash-less).

The India stack has connected India like no other Initiative while generating economic revenue and global recognition. In 2022, these services generated 0.9% of India’s GDP, showing their direct economic impact. 

To summarise the current status of Indian Digital Public Infrastructure, it is an ambitious network which needs refining, however it has set a standard in what the technology can offer as services, and this statement highlights India’s provision and contribution of Digital Public Services.

DIGITAL PUBLIC GOODS: MADE IN INDIA, FOR THE WORLD

Digital Public Goods, different from Digital Public Infrastructure, are the different blocks which make up the ecosystem of the Infrastructure. The services provided by India Stack and E-Governance initiatives like E-Aadhar and Digi-Locker are Digital Public Goods, and they are defined as open-source software and models that are available for public use and benefits. 

When we talk about the status of these goods in India, it is state-of-the-art. Platforms like ONDC, UPI and Digi-Locker have transformed and revolutionised aspects of daily life more than we realise. At the current moment, 80% of India’s retail payments happen through the Unified Payments Interface, approximately 40% of the populace has their database in Digi-Locker, and private entities dream to be listed at the Open Network for Digital Commerce (ONDC). FASTag has reformed toll tax collection ,and UMANG has ensured public convenience for governance matters.

To say that the Digital Public Goods sector has reshaped the entire country would be an understatement. It has institutionalised aspects of economy and governance in a way one could have never expected and even with its hurdles and challenges, not only it has served as a role model to other countries but has also exported these goods to foreign nations initiating a new form of diplomacy, the Digital Diplomacy.

With collaboration of public goods centred around it, the digital diplomacy of India has allowed it to foster global relations and export technology. For any formal colonial and developing nation, this serves as a huge milestone. Not only has India’s soft power increased heavily but it has also allowed itself to become a centre for global advocacy of digital public goods securing greater regional integration and strengthened leadership in the Global South. One of its services, MOSIP (Modular Open Source Identity Platform) helps governments develop their own digital programs providing the tools necessary to create, manage, and store digital data securely and consistently.

Talking further about India’s digital push takes us to its potential future, whether it is destined to rise or fall and how it reflects on the Indian Economy.

FUTURE OF INDIA'S DIGITAL INFRASTRUCTURE; CHALLENGES, POLICIES AND SOCIAL CONSEQUENCES

The milestones which India’s Digital Infrastructure have already achieved are astonishing but the path which it has mandated for itself is even more. The scope of this technology is not limited and has the ability to overhaul the dynamics of Indian society. The technology can allow the economy to be more inclusive and reach even the most neglected and remote areas.

At the current moment, UPI is available to hawkers and village retailers who weren't even aware of the existence of such technology. However, with the 2025 Artificial Intelligence Summit hosted by India itself, it is aiming to involve Artificial Intelligence in the sector too. 

The path ahead is ambitious and vast, however, there are multiple hurdles in the way. As mentioned previously, the digital divide and digital illiteracy remains a huge issue. For the technology to have a trickling down effect, it needs to ensure wider digital literacy. Moreover, as much as it is a tool for convenience, it can be very easily weaponised with the use of cyber-attacks already becoming prevalent. The Government needs to ensure a safe and secure system. Threats can put civilian data at risk and while there already stands a question as to whether the Government should collect private data, these threats make traversing the path even more difficult.

Notwithstanding the threats, inclusion of Digital Public Infrastructure and Goods have had many social and economic benefits. Besides the direct revenue it generates, it increases convenience, accountability, efficiency and transparency of the Government. The initiatives have benefitted India in multiple aspects and it is almost certain that it will continue to do so to an even greater extent in the years to come.

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BY AMEYA GUPTA

TEAM GEOSTRATA

info@thegeostrata.com