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Digital Public Infrastructure (DPI) and AI Adoption

Science & Technology

  • PYQs8
  • Articles1
I

Background

DPI is a cornerstone of India's digital transformation, financial inclusion, and governance. Its proposed extension to AI has significant implications for economic growth, innovation, technological sovereignty, and global leadership in the digital economy.

Digital Public Infrastructure (DPI) refers to shared digital systems that are foundational for public and private sector innovation and service delivery. In India, examples like Aadhaar (identity), UPI (payments), and data availability initiatives have demonstrated how DPI can enable rapid scaling of services and economic activity, fostering financial inclusion and e-governance.

II

Facts & tables

Past DPI Successes
Aadhaar enrolled 1.38 billion people; UPI processes 250 billion annual transactions ($3.4 trillion), handling 50% of global real-time digital payments.
Proposed AI Token Policy
Replicate the 'free data' model of Jio for AI by making 'tokens' free for top R&D institutions and schools.
Funding Mechanism
Fund AI token subsidies (estimated $2 billion annually) by freezing subsidy growth in other sectors for a year, rather than cutting existing welfare.
Leveraging Market Power
India's 1.4-billion-user market provides significant negotiating leverage for public-private partnerships with hyperscalers.
Static syllabus anchors
Type Reference
Conceptual area Emerging Information Technologies
Conceptual area Digital Financial Infrastructure
Conceptual area Welfare Schemes & Social Policies
Institutions & roles
Body Role
Ministry of Electronics and Information Technology (MeitY) Implements digital initiatives and policies
Niti Aayog Provides policy recommendations for digital transformation
III

Prelims angle

Prelims angle: Multi-statement analysis

Prelims angle: Policy measures

  • DPI: Foundational digital systems (Aadhaar, UPI) for scaling services.
  • Aims to replicate 'free data' model for AI 'tokens'.
  • Proposed subsidy for AI tokens: $2 billion annually (0.06% of GDP).
  • Funding via freezing subsidy growth, not cutting existing welfare.
  • Leverages India's large user base for strategic partnerships.
Constitutional vs statutory — Aadhaar is backed by the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, making it a statutory, not constitutional, body/framework.

Check if created by Constitution or by Parliament.

High-confidence PYQ links
Year Framing tags
2026 Multi-statement analysis, Conceptual understanding
2026 Statement-based questions, Factual recall
2026 Multi-statement analysis, Conceptual understanding
2026 Statement-based questions, Factual recall
2026 Statement-based questions, Conceptual understanding
2026 Multi-statement analysis, Factual recall
2022 Multi-statement analysis, Conceptual understanding
2018 Multi-statement analysis, Policy measures

Timeline

  1. Emerging Information Technologies

    Conceptual area

  2. Digital Financial Infrastructure

    Conceptual area

  3. Welfare Schemes & Social Policies

    Conceptual area

  4. Prelims 2018

    Multi-statement analysis, Policy measures

  5. Prelims 2022

    Multi-statement analysis, Conceptual understanding

  6. Prelims 2026

    Multi-statement analysis, Conceptual understanding

  7. Prelims 2026

    Statement-based questions, Factual recall

  8. Prelims 2026

    Multi-statement analysis, Conceptual understanding

  9. Prelims 2026

    Statement-based questions, Factual recall

  10. Prelims 2026

    Statement-based questions, Conceptual understanding

  11. Prelims 2026

    Multi-statement analysis, Factual recall

  12. Reforms 3.0 — towards the Bharat rate of growth

    India aims to replicate its successful Digital Public Infrastructure (DPI) model (Aadhaar, UPI) for Artificial Intelligence by making AI 'tokens' free. This strategy seeks to accelerate AI adoption, foster innovation, and leverage India's large user base to drive economic growth and technological leadership.

See also

Digital Public Infrastructure (DPI) and AI Adoption
Digital Governance in Public Services

Past papers

In the news

thehindu.com

Reforms 3.0 — towards the Bharat rate of growth

India aims to replicate its successful Digital Public Infrastructure (DPI) model (Aadhaar, UPI) for Artificial Intelligence by making AI 'tokens' free. This strategy seeks to accelerate AI adoption, foster innovation, and leverage India's large user base to drive economic growth and technological leadership.

Try these PYQs

UPSC Prelims 2018 medium Social Issues & Schemes Open full page

Which of the following is/are the aim/aims of "Digital India" Plan of the Government of India?
1. Formation of India's own Internet companies like China did.
2. Establish a policy framework to encourage overseas multinational corporations that collect Big Data to build their large data centres within our national geographical boundaries.
3. Connect many of our villages to the Internet and bring Wi-Fi to many of our school, public places and major tourist centres

Select the correct answer using the code given below

UPSC Prelims 2026 medium Science & Technology Open full page

Consider the following statements about Mission Sudarshan Chakra of India:

1. It aims to enhance India's air defence, ballistic missile defence and aerial offensive capabilities.
2. This Mission is being designed to enhance rapid, precise, and powerful defence responses, reinforcing India's strategic autonomy.
3. One of the aims of this Mission is to cover all public places of India by an expanded nationwide security shield by 2035.

Which of the statements given above is/are correct?

UPSC Prelims 2026 medium Economy Open full page

Consider the following statements with reference to the Sagarmala Programme of the Government of India :

I. The Sagarmala Programme seeks to achieve port-led economic growth through cost-effective and sustainable coastal infrastructure.
II. The success of the Sagarmala Programme is reflected in significant growth in coastal and inland waterway shipping, along with improved global port rankings.
III. Sagarmala 2.0 aims to position India as a global maritime innovation hub aligned with Atmanirbhar Bharat and Viksit Bharat 2047 visions.

Which of the following relationships among the above statements is/are correct ?

1. Statement II validates the effectiveness of the strategies envisioned in statement I.
2. Statement III extends the objectives of statement I by embedding them into a future-oriented innovation framework.
3. Statement I contradicts statement III by focusing only on traditional infrastructure instead of modern innovation.

Select the answer using the code given below :

UPSC Prelims 2026 hard Science & Technology Open full page

Consider the following statements with respect to the AI Impact Summit, 2026 held in New Delhi :

1. The Summit's intellectual framework was based on three foundational Sutras : People, Planning, and Progress.
2. The Preamble of the Summit stresses Democratising AI Resources, which acknowledges the Charter for Democratic Diffusion of AI as a binding framework to support locally relevant innovation and strengthen resilient AI ecosystems while respecting national laws.
3. The New Delhi Declaration on AI Impact was structured around seven Chakras (Pillars), which included Access for Social Empowerment, AI for Science, and Secure and Trusted AI.

Which of the statements given above is/are correct ?

UPSC Prelims 2026 easy Science & Technology Open full page

Which of the following statements with regard to Large Language Models (LLMs) used in machine learning is/are correct ?

1. LLMs assign probabilities to the next possible words and then pick the one with the highest probability.
2. LLMs process data through mathematical optimization to minimise prediction errors.
3. LLMs produce unbiased outputs.

Select the answer using the code given below :

Show 3 more PYQs
UPSC Prelims 2022 medium Science & Technology Open full page

With reference to Web 3-0, consider the following statements :

1. Web 3-0 technology enables people to control their own data.
2. In Web 3-0 world, there can be blockchain based social networks.
3. Web 3-0 is operated by users collectively rather than a corporation.

Which of the statements given above are correct?

UPSC Prelims 2026 medium Science & Technology Open full page

Which of the following statements with regard to the National Quantum Mission (NQM) is/are correct?

1. It aims at developing intermediate-scale quantum computers with 50-1000 physical qubits.
2. Its implementation includes setting up of four Thematic Hubs (T-Hubs) in academic and national R&D institutes across India.

Select the answer using the code given below:

UPSC Prelims 2026 medium Economy Open full page

Which of the following statements about Real-World Assets (RWA) Tokenization are correct?

1. Tokenization is the process of turning real world assets into digital tokens using blockchain technology.
2. Tokenization of real world assets offers 24x7 access, promoting financial inclusion.
3. Tokenization of real world assets will allow the access to high growth investment opportunities for individuals in India.

Select the answer using the code given below: