Digital public infrastructure

E-governance- applications, models, successes, limitations, and potential

In News:India’s Digital Public Infrastructure: How to ensure healthy competition

Digital Public Infrastructure(DPI) encompasses essential components such as digital identification( Aadhaar) , payment systems(UPI , and data exchange platforms, which collectively enhance public service delivery and promote economic inclusion.

DPI – bringing social change and facilitating equal opportunities:

  1. Access to Services: DPI enhances access to essential services like healthcare, education, and government benefits, particularly for marginalised populations, reducing barriers to entry. Example:Ayushman Bharat Digital Mission
  2. Financial Inclusion: Systems like UPI have revolutionised digital payments, enabling millions of unbanked individuals to participate in the economy and access financial services. DPI enabled 80% financial inclusion for its citizens
  3. Efficiency in Delivery: DPI streamlines public service delivery, reducing bureaucratic delays and improving the overall quality of services provided to citizens. 
  4. Empowerment of Women: By facilitating access to financial services and digital identities, DPI empowers women economically, helping to bridge gender gaps in financial inclusion.
  5. Crisis Response: DPI proved critical during the COVID-19 pandemic, enabling rapid distribution of financial aid to millions, showcasing its agility in crisis management. CoWIN platform, which utilised Aadhaar-based authentication to facilitate the administration of more than 2.2 billion Covid-19 vaccines.
  6. Data Interoperability: DPI allows for seamless data sharing across sectors, improving resource allocation and decision-making in areas like health and education.
  7. Promotion of Innovation: The foundational nature of DPI encourages innovation by enabling developers to create applications that leverage existing infrastructure for diverse services.
  8. Reduction of Corruption: By digitising processes and increasing transparency, DPI helps reduce corruption in public service delivery, enhancing accountability.
  9. Multi-Modal Access: DPI is designed to ensure accessibility for all, including those without smartphones or internet, through various access points.
  10. Global Model: India’s DPI has become a model for other nations, demonstrating how digital infrastructure can drive social transformation and economic growth, particularly in developing countries.

Challenges:

  1. Digital Divide: Excluding populations lacking internet access and digital literacy skills
  2. Data Privacy and Security: Risks of data breaches, hacking, and unauthorised access to sensitive personal information. The Aadhaar system, for example, has faced criticism regarding the potential misuse of personal data and the risks associated with centralised databases. 
  3. UPI duopoly: Two companies dominate the UPI market, capturing zero-price market and harvesting user data.This dominance can create a number of competition issues typical of platform-centric markets.
  4. Capacity Building: Lack of skills within public administrations to build and maintain digital services
  5. Regulatory Framework: Given DPIs are a recent development, there is a need for clear regulations to govern DPI.Soft law instruments like guidelines and best practices are more suitable than prescriptive rules for encouraging industry best practices due to their flexibility and adaptability.

As we advance into an increasingly digital future,addressing these challenges is crucial for realising the full potential of DPI in promoting social and economic development.

PYQ:The emergence of Fourth Industrial Revolution (Digital Revolution) has initiated e-Governance as an integral part of government”. Discuss. 2020

Source:https://indianexpress.com/article/opinion/columns/indias-digital-public-infrastructure-how-to-ensure-healthy-competition-9561138/

https://www.thehindu.com/news/national/digital-public-infrastructure-has-emerged-as-a-fundamental-driver-of-social-transformation-and-progress-says-unga-president/article68108848.ece

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