IndiaAI and the Rise of Digital Public Infrastructure: Powering an Inclusive Digital Future

By Susanta Dash, Deputy Chief Technology Officer, State Bank of India

Introduction

As we move deeper into the digital era, the way governments and institutions interact with citizens is rapidly evolving. At the heart of this transformation lies Digital Public Infrastructure (DPI)—a silent enabler that is revolutionizing how services are delivered, how people connect, and how societies grow inclusively.

DPI is more than just a technological concept—it is the digital backbone of a modern nation. It is reshaping financial systems, empowering citizens, and driving innovation at a scale we have never seen before.

What is Digital Public Infrastructure?

Digital Public Infrastructure refers to the foundational digital systems that enable people, businesses, and governments to interact with each other efficiently, securely, and inclusively. Just like physical infrastructure—such as roads, electricity grids, or water systems—DPI forms the invisible network that supports modern digital economies and societies.

DPI typically includes three core layers:

1. Digital Identity This is the first step in enabling any digital transaction or access to public services. For example, India’s Aadhaar—a 12-digit biometric-based identity system—has provided over 1.3 billion people with a verifiable digital identity. This identity is used to open bank accounts, receive subsidies, sign documents electronically, and access services across both public and private sectors.

2. Digital Payments Seamless financial transactions are crucial to economic participation. With Unified Payments Interface (UPI), India has created one of the most advanced and inclusive real-time payment ecosystems in the world. It allows users to instantly send or receive money using mobile apps, making digital transactions as simple as sending a text message.

3. Data Exchange Platforms These systems enable secure, consent-based sharing of data across different services. India’s DigiLocker and the Account Aggregator Framework are prime examples, giving citizens control over their personal data while allowing secure sharing for purposes like applying for loans or accessing healthcare records.

Why DPI Matters

DPI is not just a technological upgrade—it is a catalyst for economic transformation, social equity, and digital sovereignty. Here's why it holds immense significance:

1. Financial Inclusion at Scale In a country like India, where millions were previously excluded from the formal financial system, DPI has made banking and digital payments accessible to nearly every household. Over 80% of Indian adults now have bank accounts, many opened using Aadhaar and linked to mobile wallets and UPI.

This development has enabled remote and underserved populations to participate in the economy—women in villages can receive government subsidies directly, farmers can access crop insurance and credit digitally, and small businesses can thrive without investing in costly infrastructure.

2. Accelerating Economic Growth A well-functioning DPI reduces the cost of service delivery and eliminates inefficiencies in both government and private sectors. According to studies, DPI can boost GDP growth by up to 33% in low- and middle-income countries by increasing productivity and enabling innovation.

India’s UPI system, for instance, processes over 10 billion transactions monthly, significantly reducing the cost of cash handling, improving traceability, and enabling a more dynamic business environment.

3. Transparent and Efficient Governance Through DPI, governments can deliver benefits and services directly to citizens without intermediaries. Initiatives like Direct Benefit Transfer (DBT) ensure that subsidies, pensions, and scholarships reach intended beneficiaries efficiently, reducing corruption and delays.

The presence of digital audit trails and biometric authentication further enhances transparency and citizen trust in governance.

4. Empowering Every Citizen By giving individuals control over their identity, finances, and data, DPI enables everyone to participate in the digital economy. Citizens can access telemedicine, apply for loans, enroll in online education, or even launch a business—all through secure digital systems.

Additionally, open and interoperable platforms encourage innovation, allowing startups and developers to build services atop DPI layers, such as fintech, edtech, and healthtech applications.

India’s Key DPI Developments

1. Unified Payments Interface (UPI) UPI has revolutionized digital payments in India, growing from 92 crore transactions in FY 2017-18 to 8,375 crore in FY 2022-23. It is now being adopted in countries like UAE, Singapore, and France. Recent upgrades include UPI integration with credit cards and UPI Lite for offline payments, enhancing financial inclusion and establishing India’s global leadership in digital payments.

2. Aadhaar Ecosystem With over 1.3 billion enrollments, Aadhaar is the world’s largest biometric ID system. Its integration with services like DigiLocker has streamlined KYC processes and reduced fraud in welfare distribution, ensuring secure, paperless documentation.

3. Open Network for Digital Commerce (ONDC) ONDC is India’s ambitious initiative to democratize e-commerce by creating an open network for 30 million sellers and 10 million merchants. It provides SMEs with a fair opportunity to compete against dominant platforms.

1. Account Aggregator Framework This framework enables consent-based financial data sharing across banks and institutions. Over 1.1 billion accounts are now AA-enabled, significantly benefiting MSMEs through quicker loan approvals and better credit access.

2. Digital Health Initiatives Under the Ayushman Bharat Digital Mission, over 50 crore individuals now have Ayushman Bharat Health Accounts (ABHA). Platforms like CoWIN and eSanjeevani have scaled up digital healthcare delivery and immunization programs.

3. Digital India BHASHINI BHASHINI is an AI-powered language platform designed to bridge language gaps in digital content. Its integration into government platforms is expanding digital access in regional languages.

4. Central Bank Digital Currency (CBDC) India’s Digital Rupee pilot was launched in December 2022. By mid-2023, over 2.2 crore CBDC transactions were processed. The initiative supports real-time, cost-effective digital payments and cross-border transactions.

5. Unified Lending Interface (ULI) Unified Lending Interface is an emerging DPI initiative aimed at streamlining digital credit delivery. It will connect lenders, platforms, and borrowers in a standardized, interoperable way, much like how UPI revolutionized payments. ULI is expected to democratize access to credit, especially for MSMEs and underserved populations, by providing faster, consent-based, and transparent loan disbursals.

Central KYC Registry (cKYC) by CERSAI:- The Central KYC Registry (cKYC), maintained by CERSAI, is another critical pillar of India’s digital infrastructure. It centralizes customer KYC records, enabling financial institutions to seamlessly verify identity without duplicating efforts. This reduces friction, speeds up onboarding, and strengthens the security and integrity of financial services.

Government e-Marketplace (GeM) GeM has become a robust platform for public procurement, with Rs 1.24 lakh crore worth of procurement in Q1 of FY 2024-25 alone. The platform has reduced procurement costs by 10% and is being evaluated globally as a model of efficiency.

Digital Health Initiatives:- Under the Ayushman Bharat Digital Mission, over 50 crore individuals now have Ayushman Bharat Health Accounts (ABHA). Platforms like CoWIN and eSanjeevani have scaled up digital healthcare delivery and immunization programs.

Digital India BHASHINI:- BHASHINI is an AI-powered language platform designed to bridge language gaps in digital content. Its integration into government platforms is expanding digital access in regional languages.

Policy and Framework Pillars of India’s Digital Public Infrastructure

While the technological layers of DPI—such as Aadhaar, UPI, DigiLocker, and Account Aggregator—form the operational core, a robust set of policies and governance frameworks ensures scalability, security, interoperability, and public trust. These frameworks enable DPI to function not just as digital tools, but as a national digital ecosystem.

1. IndiaAI (National AI Strategy)

Spearheaded by MeitY, IndiaAI is a multi-pronged initiative to foster artificial intelligence (AI) development in India through research, innovation, and application in governance and services. It complements DPI by enabling smart public services like language translation, fraud detection, and predictive analytics in social welfare.

2. Consent Management Framework (MeitY)

This framework empowers users to control and share their personal data securely. Integrated with the Data Empowerment and Protection Architecture (DEPA), it facilitates consent-driven, interoperable data sharing between financial institutions, healthcare providers, and other stakeholders.

3. API Setu

API Setu is an API platform built to enable seamless integration across government departments and private services. It allows applications to interact securely and efficiently with DPI elements like DigiLocker, PAN, Aadhaar, and e-District services—thus encouraging interoperability.

4. India Enterprise Architecture (IndEA)

This framework promotes a “Whole of Government” approach by creating a common architecture for digital transformation across government departments. It ensures coherence, eliminates redundancies, and promotes shared digital assets in public service delivery.

5. Data Empowerment and Protection Architecture (DEPA)

DEPA serves as the foundational layer for secure, user-consented data sharing. It is crucial for enabling financial inclusion, better loan underwriting, and customized insurance—all driven by transparent and secure data access mechanisms.

6. Global Digital Public Infrastructure Repository (GDPIR)

Initiated under India’s G20 presidency, this global platform shares DPI-related open-source software, documentation, and case studies with other countries. It positions India as a global DPI mentor, helping nations design scalable public infrastructure.

7. National e-Governance Plan (NeGP)

Launched in 2006, NeGP initiated Mission Mode Projects (MMPs) in various sectors—health, education, agriculture, etc.—laying the foundation for digitally delivered public services. It remains vital in scaling DPI across ministries.

8. National Cyber Security Policy (NCSP)

This policy sets out a framework to secure India’s cyberspace. It ensures DPI systems are protected against cyber threats, maintaining trust, integrity, and resilience of digital services.

9. Guidelines for Indian Government Websites (GIGW)

Developed by NIC, these guidelines ensure that government websites and platforms are accessible, responsive, and follow universal design principles. This standardization is key to consistent and inclusive DPI experiences.

10. Common Service Centres (CSCs)

Serving as digital access points in rural areas, CSCs extend DPI-powered services—banking, healthcare, e-governance, and education—to underserved communities. They act as the grassroots interface for inclusive digital growth.

11. UMANG (Unified Mobile Application for New-age Governance)

UMANG is a unified platform offering citizens access to 1,400+ central, state, and local government services through mobile and web. It follows strict cybersecurity protocols including end-to-end encryption, role-based access control, periodic vulnerability assessments, and compliance with CERT-In guidelines. These measures ensure secure, reliable, and privacy-first delivery of digital services at scale.

India’s Global DPI Leadership

India has become a global benchmark in DPI innovation. Its digital stack—Aadhaar, UPI, DigiLocker, and others—is inspiring countries across Asia, Africa, and Latin America. As of now, 15 nations have adopted or piloted components of India’s DPI, with plans to expand to 50 nations by 2030.

The Road Ahead

To unlock the full potential of DPI, India and other nations must focus on:

• Digital Inclusion: Bridging the rural-urban divide through affordable access and vernacular user interfaces.

• Data Privacy and Security: Building robust legal and technical safeguards for data protection.

• Interoperability: Ensuring DPI systems can seamlessly integrate across sectors and borders.

• Public-Private Collaboration: Encouraging partnerships between governments, startups, and enterprises to foster innovation.

Emerging Initiatives in DPI: Smarter, Safer KYC

India is piloting a cutting-edge video KYC system using blockchain and AI/ML technologies to simplify and secure customer verification. Under this model, banks and financial institutions can share verified KYC data with each other (on a need-to-know basis), avoiding the hassle of repeating KYC for every new service.

Currently in the Proof of Concept (PoC) stage, this initiative has the potential to become a part of the national DPI, making onboarding faster, safer, and more convenient for millions of users. Cabinet Approves Over Rs 10,300 Crore for IndiaAI Mission

“This approval of over 10,300 crores for the IndiaAI program will catalyze India’s AI ecosystem and position it as a force shaping the future of AI for India and for the world”: Union Minister Rajeev Chandrasekhar

On March 7, 2024, the Government of India approved a financial allocation of Rs 10,300 crore for the IndiaAI Mission. This landmark decision will:

• Empower AI startups

• Expand access to compute infrastructure

• Enhance research and development of indigenous AI models

• Foster safe and trusted AI practices

Key Components of the IndiaAI Mission

• IndiaAI Compute Capacity: Over 10,000 GPUs will be deployed through public-private partnerships.

• IndiaAI Innovation Centre (IAIC): To develop foundational models, including Large Multimodal Models (LMMs).

• IndiaAI Startup Financing: Funding pathways for AI startups from development to commercialization.

• IndiaAI Datasets Platform: Improve access to high-quality public sector datasets.

• IndiaAI FutureSkills: Expanding AI education through Data and AI Labs in cities and small towns.

• Safe & Trusted AI: Ensuring ethical deployment of AI technologies.

Union Minister Rajeev Chandrasekhar emphasized that this initiative will especially benefit Kerala, a state with untapped AI talent, by supporting innovation hubs and providing opportunities for young tech enthusiasts.

Emerging Initiatives in DPI: Smarter, Safer KYC

India is also piloting video KYC systems enhanced by blockchain and AI/ML, allowing secure, consent-based sharing of verified KYC data between institutions. Once scaled, this innovation could drastically reduce onboarding friction for banks and fintech platforms—paving the way for a DPI-powered, real-time verification framework.

India’s Global DPI Leadership

India’s digital stack—comprising Aadhaar, UPI, DigiLocker, and more—has gained international attention. As of now, 15 countries have adopted or piloted parts of India’s DPI, with a vision to expand to 50 countries by 2030.

Conclusion

Just as roads and electricity laid the foundation for industrial development in the past, Digital Public Infrastructure is enabling digital development in the 21st century. It is transforming aspiration into access, and inclusion into opportunity.

As the Deputy Chief Technology Officer of the State Bank of India, I have witnessed the profound impact DPI has had in strengthening financial systems and empowering citizens across the country. We stand at a pivotal moment where our actions will shape the digital destiny of future generations.

Let us work together to strengthen DPI—not just as a technology, but as a public good that belongs to every citizen. Now is the time to invest, innovate, and include—because the future isn’t just digital, it’s digitally inclusive.

If this message resonates with you, don’t forget to like, comment, and share it with your network. Let’s spread awareness and build a future where digital access is a right, not a privilege.

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https://government.economictimes.indiatimes.com/tag/dpi