India’s Digital Leap: Will This Budget Deliver the Next Big Push?

Imagine a farmer in rural Bihar accessing government schemes with a tap on his phone, or a small business in Chennai leveraging AI to scale operations. India’s Digital Public Infrastructure (DPI) has already transformed millions of lives, but can the upcoming budget take it to the next level?

The Strategic Imperative of DPI in India

India's DPI, spearheaded by initiatives such as Aadhaar, UPI (Unified Payments Interface), and the Open Network for Digital Commerce (ONDC), has positioned the country as a global leader in public digital services. These systems have democratized access to financial services, improved transparency in governance, and enabled greater participation in the digital economy. However, increased investment and strategic planning are essential to achieve the ambitious goals set forth in the national digital agenda.
Despite these advancements, challenges remain. Connectivity gaps in rural areas, cybersecurity threats, and the need for greater digital literacy continue to hinder progress. Addressing these gaps requires a multi-faceted approach that involves collaboration between the government, private sector, and civil society.

The Next Big Step: DPI^AI

Artificial Intelligence has the potential to significantly amplify the impact of DPI by making services more intelligent, efficient, and responsive. AI can lead to predictive analytics for better policy decisions, automation of administrative processes, and improved citizen engagement through personalized digital experiences.

For example, AI can optimize resource allocation in healthcare, provide real-time insights for agricultural productivity, and enhance fraud detection in digital transactions. Integrating AI across DPI can also enable more inclusive governance by offering personalized services in multiple regional languages, thus breaking down barriers to accessibility.

To harness AI's potential, the budget should prioritize a national AI innovation fund to support startups and research institutions focused on AI-driven public services. Collaboration between academia, industry, and government will be key to fostering impactful solutions tailored to India's needs.

Developing ethical AI frameworks is crucial to ensure fairness, transparency, and accountability in AI applications, addressing concerns such as bias and data privacy.As AI systems become more prevalent in public infrastructure, the budget must support the creation of ethical AI guidelines. This includes regulatory frameworks that address bias, discrimination, and data privacy concerns.

Sector-specific investments in agriculture, healthcare, and education can yield substantial benefits, from improving crop productivity to enhancing patient journeys and personalizing learning experiences. Establishing common standards and interoperable frameworks across different DPI components is critical.

Seamless integration across sectors such as health, education, agriculture, and social welfare must be a priority to create a more cohesive self-oiling digital ecosystem.

The government must allocate higher budgetary resources to modernize DPI, focusing on expanding broadband infrastructure, cloud-based platforms, and cybersecurity frameworks. Public-private partnerships should be encouraged to attract private investments and a collaborative community-driven approach should be the preferred method to accelerate innovation and adoption.

With the recent enactment of the Digital Personal Data Protection Act, ensuring compliance and public trust is crucial. All-encompassing data protection frameworks must be developed and supported with appropriate budget allocations. Ensuring transparency in data collection and usage, along with cybersecurity measures, will be key to maintaining public confidence.

The Road Ahead: Aligning Budget Priorities with Vision 2047

As India aspires to become a $5 trillion economy and a global technology powerhouse by 2047, the upcoming budget must align its DPI and AI strategies with long-term national goals. Investments in DPI and AI should aim not only at economic growth but also at creating inclusive and equitable digital ecosystems.

To achieve this, the budget must focus on fostering innovation, enhancing infrastructure, and promoting digital literacy. Encouraging research and development in emerging technologiesand expanding AI education in universities can pave the way for a future-ready workforce.

Conclusion: A Call to Action
As Budget 2025 looms, it's clear that strategic investments in AI-powered DPI will not only fuel economic growth but also create an inclusive digital society. With careful planning and execution, India has yet another opportunity to set new global benchmarks in Digital Public Infrastructure. The question remains—will policymakers rise to the occasion?

•    NSN Murty, Partner & Leader, Government & Public Services, Technology and Transformation, Deloitte India
•    Kanika Kishore, Senior Consultant, Deloitte India