5 Sutras for Digital Infrastructure, Key Characteristics

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In the age of digital transformation, digital infrastructure has become the backbone of modern societies, driving economic growth, innovation, and global connectivity. With initiatives like India’s Digital Infrastructure Growth Initiative (DiGi Framework) spearheaded by international cooperation, the focus on building robust, high-quality digital infrastructure is stronger than ever. For UPSC aspirants, understanding the core elements, or “Sutras,” of digital infrastructure is essential to analyze India’s strategic shift toward becoming a digitally empowered society.

This article delves into the “5 Sutras” of digital infrastructure, its characteristics, and its key applications, providing an insightful view on India’s journey toward achieving a resilient and comprehensive digital ecosystem.

U.S., Japan, and South Korea Collaborate to Boost Digital Infrastructure in India

On October 25, 2024, the United States, Japan, and South Korea announced the launch of the Digital Infrastructure Growth Initiative for India (DiGi Framework), aimed at enhancing collaboration with the Indian private sector to support the nation’s digital infrastructure. This initiative, signed by the U.S. International Development Finance Corporation (DFC), Japan Bank for International Cooperation (JBIC), and Korea Eximbank, focuses on key areas such as 5G technology, optical fiber networks, data centers, smart cities, and advanced technologies like artificial intelligence and quantum computing. The framework establishes a streamlined process that allows these institutions to effectively channel private sector investments into strategic digital infrastructure projects in India, aligning with both Indian governmental objectives and the broader goals of sustainable development in the Indo-Pacific region.

The DiGi Framework represents a significant step toward addressing the increasing demand for high-quality digital infrastructure in India. It aims to facilitate policy dialogues between the Indian government and the private sector to foster private investment in vital digital projects. DFC CEO Scott Nathan emphasized that this partnership would unleash private capital effectively, thereby promoting sustainable development and prosperity in the region. The initiative is rooted in prior agreements made during high-level trilateral meetings, reinforcing the commitment of these nations to enhance cooperation with India and leverage shared technological advancements for mutual benefit.

Key Characteristics of a Good DPI

Inclusive: It should be accessible to all citizens, regardless of their socioeconomic status, location, or technical skills.
Interoperable: It should be compatible with different systems and platforms, allowing for seamless integration and data sharing.
Secure: It should prioritise data privacy and security, protecting sensitive information from unauthorised access.
User-friendly: It should be easy to use and understand, even for those with limited technical knowledge.
Scalable: It should be able to accommodate increasing demand and adapt to changing needs.
Cost-effective: It should be efficient and resource-efficient, maximising value for money.
Ethical: It should be aligned with ethical principles and avoid discriminatory practices.
Transparent: It should be open and transparent, with clear governance structures and accountability mechanisms.
Innovative: It should foster innovation and experimentation, encouraging the development of new solutions and approaches.

What is the difference between India Stack and Citizen Stack?

India Stack focuses on enabling digital services like digital payments, identity verification (Aadhaar), and e-governance.
Citizen Stack is not a DPI solution provider itself. Instead, it functions as an auditor or regulatory body that certifies and authenticates Digital Public Infrastructures (DPIs) to ensure they meet stringent standards of security, quality, scalability, and inclusivity.

India’s Global Strategy For DPI

India’s G20 task force released a report outlining a global strategy for DPI development
India is helping other nations achieve digital sovereignty, financial inclusion, and self-reliance.
Various stakeholders — including private enterprises, government bodies, non-profits, and think tanks — are working to develop and promote DPI solutions.

What Are the 5 Sutras for Digital Infrastructure?

Citizen Stack has defined five guiding principles (sutras) for evaluating DPI solutions:

Uphold Citizen-Market-State Relationship: Ensure the digital infrastructure maintains a fair balance, free from external distortions.
Citizen Empowerment and Privacy: Implement consent-based systems for data sharing, prioritising individual empowerment and data privacy.
Prevent Monopolistic Lock-in: Ensure interoperability to prevent citizens from being trapped by monopolies.
Techno-Legal Regulation: Use a combination of public technology and legal frameworks to govern the ethical use of technology, ensuring innovation, security, and societal rights.
Public and Private Innovation: Encourage collaboration between the public and private sectors, while preventing corporate monopolies and ensuring that technology serves the public good.

These principles are non-negotiable for a DPI to be considered “good.”

Digital Public Infrastructure and SDGs

Improved Access to Information: DPI provides digital access to important information and resources, helping people stay informed about health, education, and other vital services. This can empower individuals and communities to make better decisions for their well-being, which aligns with SDG 4 (Quality Education) and SDG 3 (Good Health and Well-being).
Financial Inclusion: DPI can facilitate digital payment systems, making it easier for people to access and use financial services. This supports SDG 1 (No Poverty) by providing financial tools to underserved populations.
Economic Growth: By enabling digital entrepreneurship and access to online markets, DPI can stimulate economic growth and job creation, contributing to SDG 8 (Decent Work and Economic Growth).
Environmental Sustainability: DPI can help monitor and manage environmental data and resources, contributing to SDG 13 (Climate Action) and other environmental goals by aiding in the sustainable management of natural resources.
Reduced Inequalities: DPI can help bridge the digital divide by providing access to digital services and information to marginalized and underserved populations, aligning with SDG 10 (Reduced Inequality).
Innovation and Industry Growth: DPI can foster innovation and the growth of the digital industry, which can support SDG 9 (Industry, Innovation, and Infrastructure).
Efficient Service Delivery: Digital systems supported by DPI can enhance the efficiency of public services such as healthcare and education, contributing to SDG 16 (Peace, Justice, and Strong Institutions).
Data-Driven Decision-Making: DPI can provide valuable data for policymakers and organizations to make informed decisions and prioritize efforts to achieve the SDGs, supporting multiple goals, including SDG 17 (Partnerships for the Goals).

Understanding Digital Public Infrastructure (DPI):

What is DPI?

It refers to an open-source identity platform that can be used to access a wide variety of government and private services by building applications and products.
It includes digital forms of ID and verification, civil registration, payment (digital transactions and money transfers), data exchange, and information systems.
These public digital platforms are customizable, localizable, and interoperable and leverage public data for open innovation models.
- For example, the Unified Payment Interface (UPI) architecture’s interoperability is resonated in over 300 banks offering linkages to bank accounts through UPI which is accessed by consumers via 50-plus third-party apps.
Principle: The platforms in DPI are based on core principles of consent-based data sharing protocols, openness, equity, inclusivity, fairness, transparency and trust, hence reducing the digital divide.

Significance

Because of DPI’s low-cost and inclusive platforms, India has been able to push the boundary of public service delivery and digitally leapfrog, with the public sector defining regulatory limits and the private sector innovating and competing in the marketplace.
DPI also allows nations to retain strategic control over their digitalization processes, ensure digital cooperation and strengthen long-term capacity.
A recent study by the Bank for International Settlements (BIS) has highlighted that on account of the DPI, India has delivered in 10 years what would have taken 50 years to achieve.
The analysis by the Centre for Digital Economy Policy Research (C-DEP) estimates that national digital ecosystems could add over 5% to India’s GDP.

Applications

India is seen as a global trendsetter in the DPI movement, having set up following multiple large-scale DPIs in contrast to the tech innovations that earlier emerged from the developed world:

JAM trinity which links Aadhaar, mobiles and bank accounts
Digi Locker for digital storage and documents
Bharat Bill Pay, a one stop solution for multiple payments.
UPI, Aadhaar Enabled Payment Systems (AePs) and Immediate Payment Service (IMPS)
CoWin for vaccination.

Digital Public Infrastructure and Platforms (DPIPs)

The five predominant DPIPs that are currently in operation in India, namely, Aadhaar, Unified Payment Interface (UPI), Ayushman Bharat Digital Mission (ABDM), Digital Infrastructure for Governance, Impact & Transformation (DIGIT), and the Account Aggregator (AA) Framework.

DPIPs	Performance
Aadhaar	Provided a massive boost to financial inclusion in India. The country has reached significantly high levels of bank account ownership, closing the gap between the rich and the poor and between men and women. The scheme has led to an overall savings of INR 2 trillion. Aadhaar through e-KYC has also brought down costs of verification, leading to savings in costs for customer acquisition from INR 500 – 700 per person to INR 3.
The Unified Payments Interface (UPI)	Real-time interoperable payments system, which has seen unprecedented growth, especially for peer-to-peer (P2P) transactions. UPI has introduced features such as UPI123 and UPILite to make the ecosystem more inclusive.
Ayushman Bharat Digital Mission (ABDM)	While Co-Win platform saw phenomenal success, the registration of health IDs and linking of electronic health records has been relatively slow and regionally dispersed. The system currently is completely driven by public sector institutions, unlike most other DPIs in India. E-Sanjeevani, the government’s telehealth platform, is a rising star and stands out in terms of the share of female users, compared to many other private sector platforms.
Urban Platform for deliverY of Online Governance (UPYOG)	It is a platform designed to enhance the operational capacity of rural and urban local bodies, municipalities, and cantonments in India. It is built using the Digital Infrastructure for Governance, Impact & Transformation (DIGIT) core. UPYOG aims to integrate these different bodies into a central system to enable efficient online governance and service delivery. The platform could potentially streamline administrative tasks, provide greater access to government services and information, and enhance the overall effectiveness of local government bodies in India. Improvements in development outcomes are slowly becoming visible.
Account Aggregator Framework (AAs)	Built on the Data Empowerment and Protection Architecture (DEPA) is a new class of intermediaries that facilitate data sharing based on valid consent from individual users. From the latest data available, 4.02 million bank accounts have been linked to AAs and the cumulative count of consent requests successfully fulfilled is 3.9 million. According to industry estimates, 50 per cent of the lending disbursed through AAs was to MSMEs and the cost of loan processing has declined by 75 per cent from INR 440 to below INR 100.

Conclusion

As the world moves towards a more digital future, the principles embodied by Citizen Stack will be essential in building the trust needed for widespread DPI adoption.
The success of initiatives like India Stack showcases India’s ability to provide authentic, reliable, and high-quality DPI solutions for the global community.