Viewpoint: DPI and Economic Growth

06 MAR,2024 | MEDC


2023 was an important year for digital development around the world. Under India’s Presidency, the leaders of the G20 reached a consensus on how to effectively shape the Digital Public Infrastructure (DPI) of the future, as an accelerator of the Sustainable Development Goals (SDGs). As per their definition, DPI is a set of shared digital systems that are secure and interoperable, built on open technologies, to deliver equitable access to public and/or private services at a societal scale. With its open nature, DPI is about moving away from the silo approach to digital innovation, essentially the winner-takes-all approach, which characterized digitalization for the past two decades. Governments, international development agencies, and civil society organizations need to concentrate on developing national DPI strategies for promoting sustainable economic growth.

As the Finance Minister recently stated, DPI in India has undergone a significant shift, transcending its conventional role as a government service delivery mechanism to act as an important factor of production in the economy. It is truly an instrument for socioeconomic transformation. This evolution, characterized by cost savings, trust in open architecture and a culture of innovation, attracts startups and other forms of private entrepreneurship. Thus, DPI has come far from its early stages of deployment, wherein the basic aim was to reduce leakages in government welfare delivery. Today, the open architecture of DPI has served as a growth propellant for a wide range of stakeholders in our ecosystem. This symbiotic relationship between various players is fundamental to democratizing people’s access to cutting-edge technologies and fostering frugal innovation, both of which play a key role in sustaining economic growth.

India’s expertise in using the latest technology to expedite socioeconomic development is now being increasingly recognized worldwide. India’s DPI has been endorsed by many countries, as well as international organizations like the IMF and the G20. The underlying philosophy of India’s DPI design is based on robustness, reliability, safety and security. Various industry players are embracing and innovating upon this technology to enable a variety of citizen-centric services, that are online, paperless, cashless and privacy-respecting. There is no doubt that India’s DPI has diversified consumer choice, incentivized entrepreneurship, advanced competition, and prevented an unhealthy dependence on service providers.

However, there is no room for complacency. India needs to dive much deeper beyond exploring and understanding DPI to actively planning its holistic digital transformation revolving around DPI. This shift will underscore the need of developing a comprehensive national digital strategy, based on DPI, to ensure effective digital permeation throughout Indian society. To this end, holistic and strategic reforms around governance and institutions are crucial to close all delivery gaps and ensure effective coordination and inclusivity. Also, simply replicating successful DPI models from one country does not guarantee similar outcomes elsewhere. India must accurately identify its unique needs, technological capabilities, and societal structures to develop a detailed DPI blueprint revolving around its citizens as the ultimate beneficiaries of this transformation.




Photo Credit- Google

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