DPI: Achievements Diary 2024 | Protean

India's Digital Public Infrastructure (DPI) refers to the foundational digital platforms, systems and technologies that the government has built to deliver public services efficiently and inclusively. These systems aim to enhance governance, improve access to services and promote economic growth and innovation 

India Stack is India's own foundational DPI which consists of 3 interconnected layers: 

a. Identity Layer - Aadhaar, e-KYC etc

b. Payment layer - UPI, Aadhaar Payment Bridge etc.

c. Data governance layer - DigiLocker, Account Aggregator etc.

India’s Digital Public Infrastructure (DPI), including systems like UPI and Aadhaar, is significantly impacting the nation’s economy by reaching 97% of its 1.3 billion citizens. The below charts summarise the number of Aadhaar cards generated and no. of e-KYC authentic transactions over the years.

Source: UIDAI

India’s goal of becoming an $8 trillion economy by 2030 is closely tied to the growth and expansion of its DPI. The anticipated $1 trillion digital economy will rely heavily on the continued development and integration of platforms like UPI, ULI and CBDC, alongside the widespread adoption of AI, blockchain and other emerging technologies. 

India's DPI has undergone significant advancements in 2024, further cementing its role as a key driver for economic growth, financial inclusion and technological innovation. 

Here are the notable developments:

India's Digital Agriculture Mission

The government has approved a Rs. 2,817 crores budget for the Digital Agriculture Mission, focusing on two key components: AgriStack and the Krishi Decision Support System (Krishi-DSS). The mission aims to create digital identities for farmers similar to Aadhaar Ids for 11 crore farmers within 3 years (6 crores by FY 2024-2025, 3 crores by FY 2025-2026 and 2 crores by FY 2026-2027) and launch digital agriculture initiatives Pilot projects have been conducted in six states, with 19 states signing MoUs for AgriStack. The mission also includes a digital crop survey, soil mapping and the integration of geospatial data. The soil profile mapping will enable detailed soil profile maps on a 1:10,000 scale for approximately 142 million. hectares of agriculture land out of which 29 million has already been mapped in the inventory. All data will be accessible via the Krishi Integrated Command and Control Centre and can be accessed from anywhere anytime. 

1. Digital Land Records Modernisation

In 2024, the government introduced a major reform under the Digital India Land Records Modernisation Programme (DILRMP) by implementing the Unique Land Parcel Identification Number (ULPIN) also called Bhu-Aadhaar. This 14-digit ID system uses geo-referenced cadastral maps and international standards to serve as the “Aadhaar for land.” The initiative aims to reduce land disputes which have been a significant issue in India, and streamline land-related processes for both citizens and government stakeholders and enhance transparency and reduce litigation.

2. Expansion of Unified Payments Interface (UPI)

UPI, which has been a game-changer in India’s digital payments landscape, continued to grow in 2024. By October 2024, the UPI had processed a record 16.6 billion transactions, contributing significantly to financial inclusion and digital payments. Additionally, innovations like Account Aggregators and ONDC (Open Network for Digital Commerce) further contribute to the country's digital growth, expanding access to credit and supporting MSMEs. As of March 2024, ONDC operates in 720 cities. Internet usage has grown, especially among younger and rural populations, with a significant rise in online consumer purchases.     

3. Growth of Artificial Intelligence in DPI

India's push to adopt advanced technologies such as Artificial Intelligence (AI) has gained momentum in 2024. AI adoption in Indian companies has surged from 8% in 2023 to 25% in 2024, making it one of the fastest-growing technology sectors in the country. AI’s integration into India’s DPI infrastructure will enable better decision-making, enhance public service delivery and improve financial services like credit scoring and fraud detection. Notably, Deputy Governor of the RBI, pointed out that generative AI could contribute between $359 billion and $438 billion to India's GDP by 2029-30, showcasing its potential impact on the country's economic growth. 

4. Digital Lending and FinTech Regulation

India's fintech sector, valued at over $6 billion in investments over the last two years, is playing an increasingly vital role in the digital economy. The recognition of the Fintech Association for Consumer Empowerment (FACE) as a self-regulatory organization (SRO) by the RBI in 2024 marks an important step toward ensuring consumer protection and enhancing trust in digital financial services. FACE aims to establish industry standards, foster ethical practices and promote healthy competition within the growing fintech ecosystem. This development complements India's push for secure digital financial solutions such as digital lending which is crucial for addressing credit access issues faced by smaller businesses and underserved populations. 

5. Unified Lending Interface (ULI) and Financial Inclusion

The RBI's pilot launch of the Unified Lending Interface (ULI) is a landmark development in India’s DPI strategy. The ULI aims to make credit more accessible and frictionless, particularly for rural and MSME borrowers. By reducing the time taken for credit appraisal and integrating data from diverse sources (such as land records), the ULI will significantly improve the efficiency of the loan disbursement process. This initiative is poised to complement UPI and the upcoming Central Bank Digital Currency (CBDC), creating a more integrated and accessible financial system. ULI’s nationwide rollout is expected to have a transformative effect on India’s credit landscape. As a new form of currency, CBDC will also enhance transparency and reduce the risk of fraudulent activities in digital transactions.

6. Global Leadership and International Partnerships

In 2024, India chaired the Global Partnership for AI, a collaborative effort with 29 countries to advance AI research and development. This global leadership, combined with India's thriving IT sector and a large base of AI talent, strengthens its position as a hub for digital innovation. International collaborations also offer the potential for India to export its digital solutions globally, showcasing the success of India’s DPI model.

7. India’s DPI Model for Global Progress: New Report

Primus Partners Pvt. Ltd. and iSPIRT launched the report ‘Beyond Boundaries: India’s Digital Public Infrastructure (DPI) Model for Global Progress’, building on India's G20 leadership. The report provides a roadmap for the Global South to utilize DPI's potential, following the G20's adoption of the DPI, AI and Data for Governance Declaration. It offers strategic insights into advancing Sustainable Development Goals by leveraging India's DPI experience, covering 700+ government programs and services. The report includes 11 recommendations for adapting India’s DPI model to diverse global needs.

8. Policy Reforms and Future Directions

India's regulatory bodies, including the Reserve Bank of India (RBI), have emphasised the need for complementary policies to maximise the benefits of digital technologies. These policies focus on promoting competition, reducing market concentration and optimizing resource allocation to ensure a robust and resilient digital economy. A key reform is the refinement of the KLEMS framework which traditionally measures productivity through capital, labor, energy, materials and services. This framework is now being updated to incorporate digital assets, providing a more accurate representation of how digital transformation influences economic output. 

Conclusion

The developments in India’s Digital Public Infrastructure in 2024 have set the stage for an inclusive and growth-oriented digital economy. With groundbreaking initiatives in digital agriculture, land record modernisation, fintech regulation, and AI adoption, India is creating a robust foundation for sustainable economic growth. The advancements in UPI, ULI, CBDC, and other digital platforms are not only transforming financial services but are also reshaping sectors such as agriculture, governance, and healthcare. As India continues its digital journey, it is poised to become a global leader in technology-driven economic transformation, with its DPI playing a pivotal role in achieving the nation's ambitious goals.

Also read: 

• Digital Public Infrastructure: Empowering India's Skilling and Employment Ecosystem 

• A Global Vision for Collaborative Sustainability Efforts

• Sowing Future Growth: Union Budget 2024 Amplifies Digital Public Infrastructure Revolutionising Indian Agriculture

• Budget 2024 Reforms: Major Boost to DPI, NPS for Minors, and Individual Tax Amendments

• All Developments in Protean in 2024

Story by Bruhadeeswaran R.