India’s Digital Public Infrastructure (DPI) has substantially transformed the delivery of welfare services but continues to face significant challenges related to digital inclusion, data governance, interoperability, and cybersecurity, Chief Economic Adviser V Anantha Nageswaran said on Friday.

Speaking at a conference organised by the Indian Council for Research on International Economic Relations (ICRIER) on DPI and public service delivery, Nageswaran highlighted that despite the scale and sophistication of India’s digital systems, barriers persist for key demographic groups. These include the elderly, individuals in regions with limited connectivity, and people with low literacy or digital fluency, who often struggle to access digital services effectively. He emphasised that building robust digital infrastructure represents a necessary but insufficient step, noting that ensuring the most vulnerable populations can use these services remains a “last mile” challenge.

Nageswaran pointed to disparities in state-level digital systems for health, education, and land records that affect the overall citizen experience. While central government platforms have become more integrated, the quality and coverage of state-level infrastructure vary widely, resulting in fragmented services. The Chief Economic Adviser described interoperability across states as an ongoing process, with progress being made but substantial gaps remaining.

Another area of concern raised was data governance. As data-sharing among public services expands, evolving legislative and institutional frameworks are needed to manage data storage, access rights, and citizen recourse effectively. The lack of a fully developed data governance structure complicates the safe and equitable use of digital records, he said.

Cybersecurity also requires continuous attention due to the increased interconnectedness of systems and the evolving nature of threats. Nageswaran warned that larger digital networks present expansive attack surfaces, making sustained vigilance essential.

Despite these challenges, Nageswaran outlined the significant positive impacts of DPI on welfare delivery, particularly in reducing inefficiencies in the Public Distribution System, which in the past suffered from substantial leakages due to ghost beneficiaries, duplicate records, and weak monitoring. The introduction of the JAM trinity—Aadhaar (biometric identity), Jan Dhan Yojana (financial inclusion), and mobile phone penetration—has helped eliminate approximately 100 million ghost beneficiaries and extended social protection benefits to over 940 million citizens. These reforms have resulted in substantial fiscal savings by replacing inefficient intermediaries with real-time, verified transfers.

The Chief Economic Adviser characterised these outcomes as embodying “inclusive efficiency,” wherein improved targeting enhances both inclusion and cost-effectiveness. Savings generated from better precision can be reinvested in expanding coverage or funding other public goods without increasing borrowing or taxation.

Overall, while India’s digital public infrastructure has made significant strides in enhancing welfare delivery at scale, continued efforts to improve access, governance, interoperability, and security remain crucial for sustaining and expanding its benefits.