Context

• The adoption of the Global Digital Compact (GDC) at the United Nations Summit marks a pivotal moment in the realm of digital governance.
• This initiative aligns with the multi-phase Universal Safeguards for Digital Public Infrastructure (DPI) launched in 2023 by the Office of the UN Secretary-General’s Envoy on Technology (OSET) and the United Nations Development Program (UNDP).
• As digital governance evolves, the GDC sets the stage for global cooperation, with India taking a leading role in championing the cause of DPIs, especially for the Global South.

An Analysis of India’s Leadership in Promoting Digital Public Infrastructure (DPI)

• Pioneering Initiatives: Aadhaar and UPI
  • At the heart of India's leadership in DPIs is the Aadhaar program, the world’s largest digital identity system, which provides unique identification numbers to over 1.3 billion residents.
  • Launched in 2009, Aadhaar was designed to ensure that every Indian has a secure and verifiable identity, which in turn facilitates access to various public services.
  • Aadhaar has enabled more efficient delivery of social welfare schemes reducing leakages and ensuring that subsidies reach the intended beneficiaries directly.
  • In addition to Aadhaar, India's Unified Payments Interface (UPI) has revolutionised the digital payments landscape.
  • UPI, launched in 2016, is an interoperable real-time payment system that allows seamless transactions between banks and payment platforms.
  • As of August 2024, UPI has facilitated a staggering 14.96 billion digital transactions in a single month, making it one of the largest digital payment systems globally.
  • By leveraging this digital identity, India has built an extensive ecosystem that connects people to services like banking, health, and education, driving financial and social inclusion across the country.
• The Modular Open-Source Identity Platform (MOSIP)
  • India's commitment to promoting DPIs on a global scale is further demonstrated by its development of the Modular Open-Source Identity Platform (MOSIP).
  • MOSIP is a not-for-profit initiative designed to help countries build their own digital identity systems.
  • It is a customisable, open-source platform that provides the technological infrastructure needed for digital identity programs.
  • By offering MOSIP to other nations, India has empowered governments to create secure and interoperable digital identity systems, without the burden of high licensing costs or the need for proprietary software.
• Driving Economic Inclusion through DPIs
  • India’s focus on digital public infrastructure is deeply tied to its goal of fostering economic inclusion.
  • By providing digital identities, promoting cashless transactions, and creating digital ecosystems for financial services, India has made significant strides in bringing marginalised communities into the economic fold.
  • One of the key successes has been the rapid expansion of bank account ownership under the Pradhan Mantri Jan Dhan Yojana (PMJDY), which uses Aadhaar to verify identities.
  • As a result, bank account ownership among Indian adults increased from 25% in 2008 to over 80% in recent years.

Existing Challenges and the Need for Impact Assessments

• Existing Challenges
  • Despite the enthusiasm surrounding DPIs, there are critical challenges that must be addressed.
  • The UN’s safeguard framework stresses the importance of managing and regulating the deployment of DPIs to ensure that they remain inclusive, accessible, and effective.
  • This is especially crucial as DPI initiatives become more widespread, both in foundational areas such as digital identity and payments and in sectoral applications like healthcare and education.
• Necessity of Impact Assessment
  • The necessity of impact assessments for DPIs is particularly significant in India, where these infrastructures have driven notable advancements.
  • For instance, the rate of bank account ownership among adults in India rose from 25% in 2008 to over 80% in recent years, with women owning 56% of these accounts.
  • Furthermore, digital transactions have become a major economic driver, contributing to nearly 50% of India’s nominal GDP in the fiscal year 2022-23.
  • These achievements have also facilitated access to credit through pre-sanctioned loans on platforms like UPI.
  • However, beneath these impressive figures lie complex questions about the true impact of DPIs on people’s lives, especially regarding their livelihoods, income, and social agency.

Necessary Measures to Overcome the Challenges Associated with Impact Assessments

• Integration of Impact Assessment During Design Phase
  • Integrating impact assessment mechanisms during the design phase of DPIs can ensure that data is collected systematically from the outset.
  • Much like privacy and security considerations, data collection capabilities must be built into DPI systems to create a continuous feedback loop.
  • This approach would allow for regular monitoring and adjustments, ensuring that DPIs remain effective and equitable.
• Transparent and Secure Data Collection System
  • The second pillar, data, involves making relevant information accessible through trusted and well-governed mechanisms.
  • Government agencies often prioritise data minimisation to prevent misuse, but this caution can hinder effective assessments.
  • By building trust with citizens and the private sector through transparent and secure data collection systems, higher quality assessments can be achieved.
  • Moreover, technical advancements are necessary to enhance data discoverability and utility, enabling more precise evaluations of DPI impacts.
• Dialogue Among Stakeholders
  • Creating an atmosphere of dialogue among stakeholders is essential for building a community that includes policymakers, third-party assessment agencies, the private sector, and civil society.
  • Engaging these actors in regular conversations can facilitate participative governance, fostering accountability and encouraging shared responsibility for the success of DPIs.
  • Establishing clear protocols for such engagement will ensure that all voices are heard, driving continuous improvement in the design and implementation of digital infrastructures.

India's Influence on Global Digital Policies, Future Role and the Path Forward

• India's Influence on Global Digital Policies
  • India's success with Aadhaar and UPI has positioned it as a thought leader in global discussions on DPIs.
  • During its G20 presidency, India has championed the idea that DPIs can be a powerful tool for accelerating development in low- and middle-income countries.
  • By sharing its experience and best practices, India has sought to encourage other nations to adopt similar approaches to building digital infrastructures that are inclusive, scalable, and secure.
• Influence Beyond Policy Advocacy
  • The World Bank’s ID4D (Identity for Development) initiative, which supports nearly 60 countries in building foundational identification systems, draws on lessons from India’s Aadhaar model.
  • Similarly, the G2Px program, which focuses on digitising government-to-person payments, benefits from India’s experience with direct benefit transfer schemes that leverage digital identity.
  • These initiatives reflect a growing recognition of the need to create inclusive digital ecosystems, where foundational infrastructure like digital identity and payment systems serve as the bedrock for broader digital transformation.
• India’s Future Role and the Path Forward
  • India’s confidence in the transformative potential of DPIs is well-founded, but it must also be matched with a commitment to thorough and regular impact assessments.
  • By institutionalising such assessments, India can take timely corrective actions when needed, ensuring that the promise of DPIs is fully realized.
  • This approach will not only help in transforming economies but also in improving the lives of millions of people across the country and beyond.

Conclusion

• The adoption of the Global Digital Compact represents a significant step towards global cooperation in digital governance.
• As DPIs gain prominence, India's leadership and experience provide a valuable blueprint for other nations.
• Yet, the path forward requires careful attention to the challenges of impact assessments, data collection, and inclusive governance.