In a bid to extend its successful digital public goods (DPGs) and infrastructure stacks to other developing countries, India is contemplating leveraging its lines of credit. The move comes in the wake of India’s notable achievements in digital infrastructure at home, including the CoWin portal for the COVID vaccination drive and the Unified Payments Interface (UPI). The plan is rooted in India’s aspiration to share its technological advancements with emerging economies, fostering partnerships and promoting inclusive development.
At the core of India’s digital infrastructure is the Indian Stack, a comprehensive suite of platforms such as Aadhaar, DigiLocker, DigiYatra, and UPI. Developed through collaborative efforts across various sectors, these digital public goods and infrastructure elements aim to provide citizens with seamless and efficient access to government services, fostering a digitally inclusive environment.
The success of India’s digital initiatives, particularly in the health and financial sectors, has sparked interest in sharing these technologies with other nations. The CoWin portal, instrumental in the efficient rollout of COVID vaccination programs, and the UPI, revolutionizing digital payments, have garnered attention globally. The Indian government envisions replicating this success in other emerging economies, especially those with a development-oriented focus and a demand-driven approach.
The anonymity of one of the sources suggests a cautious yet strategic approach to the plan, emphasizing the desire to develop partnerships, particularly with nations in the global south. The objective is to facilitate knowledge transfer and collaboration, addressing the unique needs of each country. By leveraging its lines of credit, India aims to support the importation of developmental and infrastructure projects, goods, and services from India to partner countries on deferred credit terms.
Several countries, including Ethiopia, Guinea, Sierra Leone, Sri Lanka, and Togo, have already explored or utilized technologies and services from the Indian Stack. The success stories from these collaborations highlight the potential benefits that other emerging economies could reap by adopting similar digital public goods and infrastructure.
India’s lines of credit, facilitated through institutions like The Exim Bank, play a crucial role in supporting overseas entities, financial institutions, regional development banks, and sovereign governments. These lines of credit enable partner countries to import goods and services from India, promoting exports and contributing to sectors such as agriculture, infrastructure, telecom, railway, transmission/power, and renewable energy.
The potential extension of India’s digital prowess aligns with the nation’s ongoing efforts to reform its lines of credit for economic diplomacy. With over 300 lines of credit extended to 65 countries, valued at an estimated $30 billion, India has positioned itself as a significant player in supporting global development projects.
Notably, the global landscape of digital public infrastructure is still evolving. According to a recent report by Deloitte, only 24% of government organizations worldwide are classified as digitally advanced. India’s digital public goods, including DIVOC used for secure COVID vaccination certificates, have played a pivotal role in various countries, such as Sri Lanka, Jamaica, and Indonesia. These digital solutions have not only supported public health initiatives but have also facilitated trade and border openness during the pandemic.
NSN Murty, Partner and Consulting Leader at Deloitte India, highlighted the strengths of the Indian Stack, stating, “Indian Stack is a set of solutions that have been tested for scale, social impact, and citizen experience and acceptance.” He emphasized that some of these solutions are quick to deploy, allowing adopter nations to implement them with minimal process reforms, pilot them, and scale them rapidly.
As India considers sharing its digital public goods and infrastructure stacks, it holds the potential to become a key contributor to the global digital transformation agenda. The success stories within its borders, coupled with the proactive approach to international collaborations, position India as a source of innovative solutions for emerging economies seeking to enhance their digital ecosystems and promote inclusive development.
