As UPI crosses 10 billion transactions-mark, a look at India’s key foreign policy sell: Digital public infra

Source: The post is based on the article “As UPI crosses 10 billion transactions-mark, a look at India’s key foreign policy sell: Digital public infra”  published in Indian Express on 4th September 2023

What is the News?

Digital public infrastructure (DPI) has been a key part of the government’s overall narrative about India throughout its G20 presidency. 

During the G20 digital economy ministers’ meeting in Bengaluru earlier this month, Prime Minister said that India is an “ideal testing lab” for solutions that can be replicated globally anywhere in the world.

What is Digital public infrastructure(DPI)?

Digital public infrastructure (DPI) refers to blocks or platforms such as digital identification, payment infrastructure and data exchange solutions that help countries deliver essential services to their people, empowering citizens and improving lives by enabling digital inclusion.

What is India’s Digital public infrastructure (DPI)?

India’s Digital public infrastructure (DPI) is known as India Stack.It is the name used to describe a collection of disparate technology products and frameworks.The components of this collection are owned and maintained by different agencies.

The overall architecture of India Stack has three key layers – identity, payments, and data management.

Digital Identity: It is centered around Aadhaar, India’s national identity program.It can be used to remotely authenticate via two-factor or biometric authentication, receive digitally signed records such as driver’s licenses, educational diplomas, and insurance policies, and sign documents or messages using a government-backed digital signature service.

Real-time fast payment system: UPI forms the second layer as it is designed to enable interoperability between money custodians, payment rails and front-end payment applications.The technology, which is in the custody of the National Payments Corporation of India (NPCI), has been licenced to several third-party private entities such as PhonePe, Google Pay and Paytm.

Data Management: It focuses on creating a new model for data governance.It operates as per a policy called the Data Empowerment and Protection Architecture (DEPA), which at its core has the institution of a consent management system — which will allow the sharing of the information — with a view to provide better financial, health and telecom-related products and services to individuals and firms.

How is India Stack part of India’s Foreign Policy?

India has launched the Digital Public Infrastructure (DPI) partnership to enable countries, especially low and middle-income brackets, to learn from its experiences in harnessing technology to improve governance, and for social, economic, digital and sustainable development.

India also introduced the idea to form an alliance of countries called One Future Alliance which would allow like-minded nations to use technology to improve people’s lives.

India signed MoUs with Armenia, Sierra Leone, and Suriname to share its successful digital solutions implemented at scale through the India Stack.

Draft Public Key Infrastructure(PKI) Mutual Recognition Framework has also been released by the Ministry of Electronics & IT, Government of India with an aim to take the lead on the subject of implementation and adoption of India’s DPI beyond the country’s borders