Digital Public Infrastructure (DPI) and AI Adoption
Science & Technology
- PYQs8
- Articles1
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.
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.
| Type | Reference |
|---|---|
| Conceptual area | Emerging Information Technologies |
| Conceptual area | Digital Financial Infrastructure |
| Conceptual area | Welfare Schemes & Social Policies |
| Body | Role |
|---|---|
| Ministry of Electronics and Information Technology (MeitY) | Implements digital initiatives and policies |
| Niti Aayog | Provides policy recommendations for digital transformation |
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.
Check if created by Constitution or by Parliament.
| 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
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Emerging Information Technologies
Conceptual area
-
Digital Financial Infrastructure
Conceptual area
-
Welfare Schemes & Social Policies
Conceptual area
-
Prelims 2018
Multi-statement analysis, Policy measures
-
Prelims 2022
Multi-statement analysis, Conceptual understanding
-
Prelims 2026
Multi-statement analysis, Conceptual understanding
-
Prelims 2026
Statement-based questions, Factual recall
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Prelims 2026
Multi-statement analysis, Conceptual understanding
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Prelims 2026
Statement-based questions, Factual recall
-
Prelims 2026
Statement-based questions, Conceptual understanding
-
Prelims 2026
Multi-statement analysis, Factual recall
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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
Past papers
2018–2026 · 8 questions
In the news
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
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
* Statement 1 is not correct: The formation of India’s own internet companies, similar to China’s approach, is not an aim of the Digital India programme. The initiative focuses on creating digital infrastructure, providing digital services, and promoting digital literacy — not establishing government-backed internet firms. * Statement 2 is not correct: The Digital India plan does not include any policy framework to attract foreign multinational corporations to build data centres in India. While data localisation and data centre policies have emerged later under different frameworks, they are not part of the original Digital India objectives. * Statement 3 is correct: One of the key aims of Digital India is to connect villages through broadband and to provide Wi-Fi access in schools, public places, and tourist centres. This is part of its core pillars like Broadband Highways, Public Internet Access Programme, and Early Harvest Programmes.
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?
Statement 1 is Correct: Mission Sudarshan Chakra is designed as a multi-domain security umbrella. It explicitly aims to enhance India's air defence, ballistic missile defence, and aerial offensive capabilities, acting as both a defensive shield and an offensive sword. Statement 2 is Correct: The mission integrates advanced technologies like AI, space-based sensors, and directed energy weapons to ensure rapid, precise, and powerful defence responses. This indigenous development (incorporating projects like Project Kusha) is specifically aimed at reinforcing India's strategic autonomy and self-reliance in the defence sector. Statement 3 is Correct: A major distinguishing feature of this initiative is its expanded scope. Announced as a 10-year national security initiative, a stated goal of the mission is to bring all public places (including hospitals, railways, and religious/cultural sites) under an expanded nationwide security shield by 2035, moving beyond the conventional protection of just military and strategic installations. Therefore, the correct option is A.
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 :
Relationship 1 is Correct: Statement I outlines the core objective of the Sagarmala Programme, launched in 2015, which is port-led economic development through cost-effective and sustainable coastal infrastructure. Statement II provides empirical evidence of its success, such as the 118% growth in coastal shipping, a 700% surge in inland waterway cargo movement, and improved global port rankings (with nine Indian ports now in the global top 100). Thus, the tangible achievements in Statement II directly validate the effectiveness of the foundational strategies mentioned in Statement I. Relationship 2 is Correct: Statement III highlights the goals of Sagarmala 2.0, which focuses on smart ports, green shipping, and positioning India as a global maritime innovation hub aligned with the Viksit Bharat 2047 and Atmanirbhar Bharat visions. This acts as an evolutionary extension of the foundational infrastructure goals in Statement I, embedding them into a broader, future-oriented innovation framework rather than replacing them. Relationship 3 is Incorrect: Statement I does not contradict Statement III. The initial focus on traditional and sustainable coastal infrastructure in the original Sagarmala Programme serves as the necessary physical base upon which the modern innovation and technology-driven goals of Sagarmala 2.0 are built. The two phases are complementary and represent a progressive policy evolution, not a contradiction. Therefore, relationships 1 and 2 are correct, making Option B the correct choice.
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 ?
Statement 1 is Incorrect: The Summit's intellectual framework and core philosophy were anchored in three foundational principles (Sutras): People, Planet, and Progress, not People, Planning, and Progress. Statement 2 is Incorrect: The New Delhi Declaration introduced the Charter for Democratic Diffusion of AI to promote affordable access to foundational AI resources, support local innovation, and build resilient AI ecosystems. However, it was established as a voluntary and non-binding framework, respecting national laws, rather than a binding treaty. Statement 3 is Correct: The New Delhi Declaration on AI Impact was structured around seven thematic pillars of action, officially referred to as Chakras. These foundational areas included Access for Social Empowerment, AI for Science, and Secure and Trusted AI, alongside Democratizing AI Resources, Economic Growth & Social Good, Human Capital Development, and Resilient, Efficient & Innovative AI Systems. Therefore, option D is the correct answer.
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 :
Statement 1 is Correct: At their core, Large Language Models (LLMs) function by analyzing input context and calculating a statistical probability distribution for the next possible words (tokens) in a sequence. In their most basic form of text generation (known as "greedy decoding"), they pick the word with the absolute highest probability. While standard applications often introduce controlled randomness (stochastic sampling like *top-k* or *temperature scaling*) to make text more creative, the foundational mechanism relies on assigning probabilities to select the next word. Statement 2 is Correct: LLM training relies heavily on mathematical optimization. Algorithms such as Stochastic Gradient Descent and backpropagation are used to iteratively adjust billions of model parameters. The explicit goal of this process is to minimize a "loss function," which mathematically represents the model's prediction errors compared to the actual training data. Statement 3 is Incorrect: LLMs do not produce inherently unbiased outputs. Because they learn from massive, human-generated datasets scraped from the internet, they are well-documented to inherit, reflect, and sometimes amplify historical and societal biases (e.g., gender, racial, or cultural stereotypes) present in their training data. Therefore, the correct option is B.
Show 3 more PYQs
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?
Statement 1 is correct. A key aspect of Web 3.0 is the concept of decentralization, where users have more control and ownership over their personal data, rather than having it stored and controlled by centralized platforms. Statement 2 is correct. Blockchain technology is a core component of Web 3.0, and it can enable the creation of decentralized, user-owned social networks and platforms. Statement 3 is correct. The decentralized nature of Web 3.0 means that it is not controlled by a single corporation or entity, but rather operated and maintained collectively by the users and participants in the network. Therefore, all three statements regarding Web 3.0 are correct.
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:
Statement 1 is Correct: The National Quantum Mission (NQM) aims to develop intermediate-scale quantum computers with 50 to 1000 physical qubits within 8 years. Specifically, it targets 50–100 physical qubits in 5 years and scales up to 50–1000 physical qubits in 8 years using platforms like superconducting and photonic technology. Statement 2 is Correct: The implementation of the mission explicitly includes the establishment of four Thematic Hubs (T-Hubs) in top academic and national R&D institutes across India. These hubs focus on distinct technology verticals: Quantum Computing (led by IISc Bengaluru), Quantum Communication (led by IIT Madras), Quantum Sensing & Metrology (led by IIT Bombay), and Quantum Materials & Devices (led by IIT Delhi). Therefore, both statements are correct.
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:
Statement 1 is Correct: Real-World Asset (RWA) Tokenization is the process of converting the ownership rights of physical or traditional financial assets (such as real estate, gold, commodities, or bonds) into digital tokens on a distributed ledger or blockchain. Each token represents a proportional share or claim on the underlying asset. Statement 2 is Correct: Unlike traditional financial markets and real estate registries that have fixed operating hours, geographic limitations, and settlement delays, blockchain-based tokenized assets can be traded globally, 24 hours a day, 7 days a week, with near-instant settlement. Additionally, tokenization allows high-value, traditionally illiquid assets to be divided into smaller, affordable fractions. This lowers the barrier to entry, enabling retail investors and underserved populations to participate in wealth-building markets, thereby directly promoting financial inclusion. Statement 3 is Correct: In the Indian context, RWA tokenization democratizes access to high-growth, capital-intensive sectors (like commercial real estate, agricultural land, and infrastructure projects). Regulatory bodies like the IFSCA (in GIFT City) have already begun approving tokenization platforms under regulatory sandboxes to unlock these previously inaccessible investment opportunities for everyday Indian retail investors. Therefore, all three statements are correct, making the correct option A.