The India Stack model demonstrates how digital infrastructure, when developed as a public good, can empower citizens, drive financial inclusion, and boost economic activity on a national scale.
MUMBAI: India has emerged as a global leader in creating digital tools that serve the public good. These “Digital Public Goods” (DPGs) are transforming how citizens access essential services and how the economy functions. Unlike private tech platforms, these systems are open, interoperable, and designed for everyone—from city professionals to rural farmers. Collectively known as “India Stack,” they represent a fundamental shift in governance and economic development that offers valuable lessons for countries worldwide.
At the heart of this transformation are foundational layers like Aadhaar, the world’s largest biometric identity system, providing a unique digital identity to over a billion residents. This identity layer unlocks access to a multitude of services. Built upon this is the Unified Payments Interface (UPI), a real-time payment system that has revolutionized digital transactions, enabling seamless, low-cost money transfers for individuals and businesses alike. Further components like DigiLocker offer secure digital storage for official documents, reducing reliance on physical paperwork, while platforms like CoWIN demonstrated the stack’s power in managing a massive nationwide vaccination drive during the pandemic. These interconnected systems streamline processes, reduce corruption, and dramatically improve service delivery efficiency.
The success of India Stack hinges on its core design principles: openness, scalability, and interoperability. Open Application Programming Interfaces (APIs) allow private companies and developers to innovate and build new applications on top of the public infrastructure, fostering a thriving fintech and digital services ecosystem. This layered, modular approach ensures that the system can handle transactions and data at an unprecedented scale, accommodating India’s vast population. Interoperability guarantees that different systems and services can communicate seamlessly, preventing the creation of isolated data silos and ensuring a unified user experience across various platforms, whether government or private sector.
TECH THAT SCALES MASSIVELY
India’s digital infrastructure handles extraordinary volumes. The Unified Payments Interface (UPI) now processes over 14 billion transactions monthly, worth approximately $2.4 trillion annually. Experts predict UPI could handle 1 billion transactions daily by 2027, accounting for 90% of India’s digital retail payments.
This infrastructure connects with other systems seamlessly through standardized APIs—essentially digital connectors that allow different software to work together. The Ayushman Bharat Digital Mission links thousands of health facilities, enabling secure sharing of medical records when patients consent. Similarly, Aadhaar, India’s digital identity system with over 1.38 billion enrollments, helps government services recognize citizens instantly, eliminating paperwork and reducing fraud.
The Direct Benefit Transfer system, built on Aadhaar, delivers subsidies directly to beneficiaries’ bank accounts. Government estimates suggest this has saved approximately $24 billion by eliminating “ghost beneficiaries” from programs like LPG subsidies.
MAKING TECHNOLOGY WORK FOR EVERYONE
What sets India’s approach apart is its focus on inclusion across a diverse population. DigiLocker, a digital document wallet used by 270 million Indians, works in multiple languages. During Covid-19, the CoWIN vaccination portal operated in numerous regional languages, crucial for reaching rural populations.
To overcome connectivity challenges, systems like Aadhaar offer offline verification options. Meanwhile, the BharatNet project aims to connect all 250,000+ village councils with high-speed internet, enabling digital service delivery through community hubs even in areas with poor individual connectivity.
Complementing this digital infrastructure are over 500,000 Common Service Centres that provide training and access points, particularly in rural areas. These centres help millions of citizens develop the skills needed to use digital services effectively.
PROTECTING PRIVACY WHILE BUILDING TRUST
As digital systems grow, so do privacy concerns. India’s Digital Personal Data Protection Act imposes strict rules on data handling, with penalties up to Rs 250 crore ($30 million) for violations. Health data systems require explicit patient consent before information is shared between providers.
Aadhaar employs encryption and biometric hashing to safeguard personal data. While debates continue, studies suggest it has significantly reduced identity fraud in subsidy programs. Grievance redressal mechanisms, such as UIDAI’s Aadhaar portal, help citizens resolve problems quickly, building necessary trust in these digital systems.
SPARKING INNOVATION AND ECONOMIC GROWTH
These digital foundations have become launch pads for entrepreneurs. Government initiatives like Digital India and the Atal Innovation Mission actively support startups building on top of these platforms. Bengaluru and Hyderabad have become thriving tech hubs, producing companies like PhonePe and BharatPe that serve millions through UPI.
The Open Network for Digital Commerce (ONDC) aims to democratize e-commerce by helping small businesses compete online. This initiative partners with established players and startups to bring hundreds of thousands of small and medium enterprises into the digital marketplace, particularly benefiting artisans and weavers from remote areas.
Meanwhile, the combination of bank accounts, digital IDs, and mobile connectivity (the “JAM Trinity”) has brought over 510 million people into the formal banking system. This foundational step enables access to digital tools like UPI, facilitating rapid transfers for subsidies, insurance claims, and everyday commerce.
SAVING MONEY, INCREASING TRANSPARENCY
These systems deliver substantial economic benefits through reduced costs and increased efficiency. UPI’s extremely low transaction costs benefit small businesses, significantly reducing operational expenses compared to traditional payment methods.
Building on open-source principles avoids costly proprietary systems and fosters global collaboration. The Modular Open Source Identity Platform (MOSIP), inspired by Aadhaar, has been adopted or is being piloted by over 10 countries, potentially saving them millions in development costs.
Public dashboards provide real-time information on everything from subsidy disbursements to vaccine availability, increasing accountability. During the pandemic, the CoWIN dashboard offered real-time updates on vaccine administration, enhancing public trust. UPI employs sophisticated AI systems for fraud detection, keeping scams relatively low despite massive transaction volumes.
EMPOWERING CITIZENS
Ultimately, these digital tools empower citizens with greater control and convenience. Platforms like the Aadhaar app and DigiLocker allow users to manage their identity documents and access services directly, bypassing cumbersome bureaucratic processes. Updating details or accessing certificates often takes minutes rather than days.
For small businesses, including street vendors, UPI supports easy digital payment acceptance, boosting cashless transactions nationwide. This integration into everyday commerce has transformed how millions of Indians conduct business and manage their finances.
LOOKING AHEAD: INDIA’S DIGITAL FUTURE
As India approaches its centenary of independence in 2047, these digital foundations are positioning the country for continued growth. Future plans include integrating artificial intelligence for enhanced services and security, expanding e-commerce access through ONDC, ensuring robust data protection, and sharing India’s expertise globally.
The implications extend far beyond India’s borders. The India Stack model demonstrates how digital infrastructure, when developed as a public good, can empower citizens, drive financial inclusion, and boost economic activity on a national scale. It provides a blueprint for other developing nations seeking to leapfrog traditional development pathways and build inclusive digital economies. By prioritizing open standards and population-scale solutions, India has showcased a powerful alternative to technology models dominated by private, proprietary platforms, offering a potential pathway to accelerate global development goals and bridge the digital divide more equitably.
The success of India’s approach demonstrates that thoughtfully designed technology can serve citizens at massive scale while addressing challenges of accessibility, privacy, and inclusion. By fostering innovation through open ecosystems and public-private partnerships, India has created a powerful engine for growth that could help realize its development aspirations by 2047.
As other nations look to build their own digital infrastructure, India’s experience offers a compelling model of how technology can be harnessed for large-scale public good rather than just private profit.
* Brijesh Singh is a senior IPS officer and an author (@brijeshbsingh on X). His latest book on ancient India, “The Cloud Chariot” (Penguin) is out on stands. Views are personal.