G20's DPI Fostering Global Trade Growth and Opportunities For Countries
28 September 2023
G20 Summit 2023, held by the Indian presidency on 8 September 2023, marked the beginning of a new geopolitical and economic transformation as the group of 20 countries gathered and paved the way for more inclusive, sustainable and transformative growth. One of the major highlights of the G20 Summit was the announcement of the establishment and expansion of the Digital Public Infrastructure (DPI) framework on a global scale. With its digital innovation and technology, India set an example of a nation that has uplifted its economy with the proper implementation of the DPI Framework and showcased the potential of DPI.
What Is DPI?
Digital Public Infrastructure (DPI) is a digital ecosystem with a network comprising private organizations, public agencies and individuals of a country that enables it to contribute to the overall development of a nation by providing economic opportunities and social services.
DPI encompasses the three parameters, which are also its pillars, consisting of –
Digital Identification System
Digital identification allows the government to know about the residents living in the country. A digital citizen benefits from digital identification as it allows them to access a wide range of goods and services such as banks, along with other government services.
Digital Payment Platforms
Digital payment platforms have enabled not only citizens to do transactions securely, but also governments to increase the digital money in run, which provides a comprehensive view of the financial exchanges happening in the country and keeps a check on the tabs.
Data Exchange Layers
Digital information has allowed governments to provide essential services related to information to citizens and businesses, contributing to a more transparent and mindful society of people with the ability to make informed and smart decisions for progression.
Need For DPI In Current Circumstances
Following the aftermath of the COVID-19 pandemic and the Russian government's invasion of Ukraine (which affected shipments of oil and grains), the significance of a DPI framework has increased in the current circumstances, not only in any particular country but on a global level.
Due to the collapse of the health system and the payment exchange methods during the pandemic, DPI’s importance rose, and it became clear that investment ideas are needed to formulate and implement to provide an open environment for citizens, businesses, and governments.
India’s Feat In Utilization Of DPI
The G20 Summit 2023 held by the Indian Presidency brought the DPI framework in front of the member and invitee countries, inviting a lot more inclusion of countries on a global scale. India itself set an example by showcasing its own achievements in utilizing the DPI framework.
India has successfully generated 13 billion Aadhaar numbers till September, and achieved a milestone of 300 million UPI (Unified Payments Interface) users, along with other India Stack such as Co-Win, DigiLocker, BHASHINI, and more DPI feats, according to various sources.
Opportunities For Growth
The G20 Declaration in India this year has recognized the importance of DPI Framework, aligning with the ‘G20 Framework for Systems of Digital Public Infrastructure’. Indian Union Ministry considered the Declaration of DPI Framework in G20 as a “tremendous achievement”.
The cross-border participation in exchange for commodities is a big part of the DPI development. During COVID-19, lack of secure transactional paths were a huge problem in absence of SWIFT payment. Digital payment platform such as UPI narrows this payment gap.
UPI-Pay interlinking between India and Singapore was operationalized in February this year, setting a big example of international cooperation in encouraging a DPI Framework while promoting faster, cheaper and transparent way to do cross-border payments.