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QEP - Theme 6 - Good Governance

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QUALITY ENRICHMENT PROGRAMME: TARGET 2018


Under the Guidance of M K YADAV

GENERAL FACTS : DIGITAL CONNECTIVITY

Benefits of Broadband 10% increase leads to a 1.4% growth in GDP


Penetration
Share of Digital Information 98% is digital information. 2% is printed
[of the total information
available in the world]

Internet Penetration in India 31% of population [450-465 million users]

Rural-Urban Divide for Urban areas have 269 / 444 million users [60%]
Internet Usage Rural areas have 163 / 906 million users [17%]

Mobile Phones as primary 77% of urban users


devices for accessing the 92% of rural users
Internet
Recent growth for Internet 7% between Oct-2016 and June-2017
user base 22% between Oct-2016 and June-2017

Growth rate of Smartphones 18% for rural and urban between December 2016-17
in India 3% growth is the world average in the same period

India is now the world’s 2nd largest smartphone market]


Active Mobile Subscriptions 931 million as of August 2016 [74% of population]
in India ~350 million don’t have cellphones
~350 million have regular “feature” phones
~250 million have smartphones

Electricity in India 45.1% Indians had access in 1990.


79.2% Indians have access in 2014
Power is unaffordable, inadequate or non-existent for 304 million people in
India

Transitioning Government Cost of Transition - ₹60-70,000 crore


Payments to Electronic Savings annually - ₹100,000 crore
Platforms
Savings under DBT - Overall in 2016-17 - ₹57,029 crore
- Pahal [LPG subsidy scheme] - ₹29, 769 crore
- PDS [Public Distribution Scheme] - ₹14, 000 crore
- MGNREGS - ₹11,741 crore
- National Social Assistance Programme - ₹399 crore

Till March, 2017 there are 140 schemes under the DBT net. The beneficiary
base has also reached 35.62 crore in 2017-18.

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QUALITY ENRICHMENT PROGRAMME: TARGET 2018


Under the Guidance of M K YADAV

1.1 DIGITAL INDIA CAMPAIGN


Introduction

Digital India is a central programme of the GoI that aims to transform India to a digitally empowered society and
a knowledge economy. The focus of the mission is to use technology to create a participative, transparent and
responsive government. It aims to do this by pulling together existing schemes, restructuring and re-focusing
them, and implementing an overall vision in a synchronized manner.

It is an umbrella programme covering many departments and is being coordinated by Department of Electronics
and Information Technology [DEITY].

Vision of Digital India

It is centred on 3 key areas

VISION OF DIGITAL INDIA NITI AAYOG ACTION AGENDA


1. Enhancing Digital Infrastructure
1. Digital Infrastructure as a utility to
2. Developing software for services that
every citizen
can be provided digitally
2. Governance and Services on
3. Empowerment citizens digitally
Demand
3. Digital Empowerment of Citizens.

Each of these is elucidated in the table below


Digital Infrastructure as a Utility to Governance and Services on Digital Empowerment of
Every Citizen Demand Citizens
(Soft & Hard Infrastructure)

- Network & cloud computing - Services to be made available - Create universal digital literacy
- Fiber Optic Cables in real time from online and - Universally accessible digital
- High Speed Internet & Wireless mobile platforms resources
Connectivity - All citizen entitlements to be - Make all documents and
- Mobile network penetration & Bank available on the cloud certifications available on the
accounts for participation in the - Services to be digitally cloud
digital and financial space transformed so as to improve - Availability of digital resources
- Cradle to Grave Digital Identity with Ease of Doing Business and services in Indian languages
unique, lifelong, online and - Making financial transactions - Collaborative digital platforms for
authenticable identification. electronic and cashless participative governance
- Easy access to a Common Service - Leveraging GIS for decision - Portability of entitlements via
Centre support systems and cloud
- Safe and Secure Cyber-space development
- Regulatory framework, including
digital standards

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Under the Guidance of M K YADAV

9 PILLARS OF DIGITAL INDIA

Broadband Highways Universal Access to Mobile Public Internet Access Programme


Connectivity
BharatNet - CSC 2.0 [Common Service Centre]
- Aim - to provide broadband to 2.5 lakh - Aim - Mobile connectivity to – A self-sustaining network of 2.5
gram panchayats all inaccessible regions of the lakh CSCs at the Gram Panchayat
- Implemented by - Bharat Broadband country to be established. level under Digital India
Network Limited [BBNL]. - Nodal Agency - Department - Aim - to use CSCs to deliver
- Funded by - Universal Service of Telecommunications is the citizen centric services to rural
Obligation Fund. nodal agency for areas.
implementing it. - Envisaged as the transaction-
SWAN [State Wide Area Network] - As of March, 2017 roughly based and service delivery-based
- It is the converged backbone for data, 55,000 villages don’t have model.
voice and video communications mobile connectivity.
throughout a state / UT.
- Implemented in a vertical hierarchical
structure with a minimum bandwidth
of 2 Mbps per link.

E- Governance e-Kranti – Electronic Delivery of Information for All


Services
SWIFT [Single Window Interface for OGD [Open Government Data] –
Trade] Mobile Seva App Store – - This platform allows ministries /
- Aim – To provide online single window - It is for better development departments & other
for importers and exporters to lodge and deployment of mobile organizations to publish
their clearance documents online at a applications for delivery of datasets, documents, services,
single point only. public services through mobile tools & applications collected
- Implementation by - Central Board of devices. by them.
Excise and Customs [CBEC].
Meghraj – UMANG [Unified Mobile Application
PAHAL [DBTL] - To harness the benefits of for New-Age Governance]
- Aim – direct benefit transfer to cloud computing. - Aim - to develop a common,
beneficiaries’ accounts to reduce IHIP [Integrated Health unified platform to facilitate
diversion and eliminate duplicate or Information Platform] single point access to all services
bogus LPG connections. - Set up by - Ministry of of the centre, state and local
Health & Family Welfare. bodies. It integrates around 200
Aadhar Enabled Payment System - Aim- creation of standards applications and offers 1200
- A bank led model that allows complaint EHR’s [Electronic services.
interoperable financial inclusion Health Records] along with
transactions at PoS [MicroATM’s] ensuring interoperability by Sugamya Pustakalaya –
using Business Correspondent of any creating a comprehensive - An online platform that makes
bank using Aadhar authentication Health Information content accessible to print-
Exchange as part of a disabled people.
MyGov - Created by - Department of
centralized accessible
- A unique initiative launched by PMO as Empowerment of Persons with
platform.
a participatory governance initiative,

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involving the common citizen at large Disabilities, Ministry of Social


to promote a healthy exchange of ideas SWAYAM Justice and Empowerment.
- Aim - to bridge the digital
CCTNS [Crime and Criminal Tracking divide for students who NKN [National Knowledge Network]
Network and Systems] have hitherto remained - A multi-gigabit NREN [National
- An integrated system to increase untouched by the digital Research and Education
efficiency and effectiveness of policing. revolution Network]
14,000 police stations and 6000 higher - It facilitates hosting of - Aim - to provide a unified high
offices in the police hierarchy to be courses from 9th class to PG speed network backbone for the
automated level. educational institutions in India.

Electronics Manufacturing IT For Jobs Early Harvest Programmes

- Target - NET ZERO IMPORTS by Udaan BHIM [Bharat Interface for Money] –
2020 - It is a special initiative to - A payments transaction system
- Methods - taxation, incentives, address the needs of the that leverages the power of UPI to
economies of scale, elimination of educated unemployed in enable direct bank to bank
cost disadvantages, incubators, J&K. payment.
clusters, skill development etc.
Indian BPO Promotion Scheme eNAM [National Agricultural
- Aim - to incentivise Market]
entrepreneurs to establish - A pan-India electronic trading
48, 300 seats in BPO portal that networks existing
operations across the APMC mandis to create a
country. unified national market for
agricultural commodities.

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NITI AAYOG 3 YEAR ACTION AGENDA: DIGITAL CONNECTIVITY (SUMMARY)

 DIGITAL CONNECTIVITY  facilitates Communication + Commerce  Economic growth


 ISSUE : Low Digital Connectivity
- Only 151 million broadband subscribers vis a vis 1060 million telephone subscribers
- Tele-density – only 83 per 100 individuals. Rural area tele-density = 1/3rd of urban area
- Nearly 55, 000 villages don’t have mobile coverage
 NITI ACTION AGENDA:
1. Enhancing Digital Infrastructure
2. Developing software for services that can be provided digitally
3. Empowerment citizens digitally
 ACCESS TO BROADBAND INTERNET TO RURAL HOUSEHOLDS
- ISSUE: Current progress of BharatNet is less than satisfactory
- SOLUTION:
 To speed up bringing optic fibre to Gram Panchayats, option to carry cable on existing electric poles
should be more aggressively pursued eg. Andhra Pradesh
 WIRELESS CONNECTIVITY
- NEED FOR Wi-Fi:
 Offers more affordable, flexible option than mobile internet or broadband services in order to scale
up Internet access
 Important for last mile connectivity
 From the point of view of ISPs, Wi-Fi reduce production costs  lower cost to end consumer
- SOLUTION:
 Goal – to bring 15kbps connections to at least 30% of rural household by Dec 2019
 Complete BharatNet project rapidly
 Provide policy support to ISPs fo reg. Right of way permission and permission to promote access at
select places
 Explore commercial models to deploy Wi-Fi – eg. Infrastructure sharing between ISPs, etc.
 ENABLING INFRASTRUCTURE FOR CONNECTIVITY IN RURAL AND REMOTE AREAS
- ISSUE:
 Rural population, that accounted for 68% of population, make up 73% of offline population
 High cost of internet deters usage of low income households for eg. In 2013, even the cheapest data
plan cost about 13% of their total spending  unaffordability
- SOLUTION:
- To increase rural residents’ connectivity need for enabling infrastructure such as reliable &
continuous access to electricity, increase mobile network penetration, improve access to mobile
devices and data plans by lowering costs, keeping regulatory barriers to minimum to promote
healthy competition  drive down costs of devices & data plans
 DIFFERENTIAL PRICING
- ISSUE: Differential pricing for data services has been a controversial issue. Esp. issue of Net
Neutrality
- Net Neutrality presents a tradeoff between promoting competition and providing individuals with
access to data services
- SOLUTION:
 Prioritize resolving this debate and issue a clear policy on net neutrality
 Look for creative ways to marry net neutrality with free or low price access to internet
 DIGITAL LITERACY AND AWARENESS
- ISSUE: 69% of Indian respondents cited aby:
Published lack of awareness of Internet as key reason for not being
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QUALITY ENRICHMENT PROGRAMME: TARGET 2018


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NITI AAYOG 3 YEAR ACTION AGENDA: DIGITAL CONNECTIVITY (SUMMARY)

- SOLUTION:
 School, Gram Panchayat, vocational institutions should provide basic training in using digital
services an Internet and Cyber Security awareness
 Curriculum should be developed in accordance with focus area of Digital India campaign. Must
include use of digital financial services
 Aim – to implement the curriculum in more than 30% of school by beginning of academic year 2018
 ELECTRONICS MANUFACTURING
- ISSUE: 65% of demand of electronics products is fulfilled buy imports
- SOLUTION:
 By 2020, India should lower duties on key inputs of final electronics, reduce administrative burden
in obtaining tariff exemptions, work with states to offer electronics specific tax incentives and
facilities
 CYBER SECURITY & DATA PROTECTION LAWS
- ISSUE: currently India has no comprehensive privacy or data protection laws that cover digital
payments specifically
- SOLUTION: explore coverage of existing data protection laws, assess the extent of their applicability
to different services, put in place measures & clear guidelines to prevent misuse of data, esp. for
digital financial services
 DIGITAL FINANCIAL SERVICES
- Maintain the current regulatory structure of providing payment bank licenses
- Increase financial literacy through specific programmes
 E-GOVERNANCE
- ISSUE:
 Despite India’s progress in e – governance, the pace of adoption lags in technologies such as mobile
phones, and messaging applications
 Globally India ranked 107 out of 193 countries in E – Governance Development Index (EGDI) in
2016. In contrast, Brazil & China ranked 51 & 63 resp.
 Challenges of E Governance
1. No end to end solutions
2. Interfaces not available in vernacular languages
3. Technologies are limited in scale in terms of infrastructure and adoption by public
authorities
4. Limited connectivity and enabling infrastructure to access e-services
5. Poor digital literacy
- SOLUTION:
1. Create reliable IT infrastructure up to Gram Panchayat level – broadband, wireless internet
2. Enhance digital literacy to encourage take up by citizens of govt. e-services
3. Interoperable e – governance platforms among different ministries & departments
4. Set up grievance redressal portals at state levels
5. Ensure adoption of e-office by different ministries and departments (the DAPRG is central
nodal ministry of implementation of e-office Mission Mode Project)
6. Central govt. ministries should provide services electronically where possible by Dec 2018 eg
like e Mitra in Rajasthan
7. Develop end to end service delivery through common back end applications. Adoption of 3
main pillars
i. Aadhar no. – ensure reaming population receives Aadhar
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ii. Use e- sign for authentication
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iii. Use digital locker to store and share information
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Impact of Digital India

1. Expanding Trade –
a) New products can be exported to more markets, often by newer and younger firms.
b) A 10% internet use increase in the exporting nation leads to an increase in the number of products
traded by 0.4%. These statistics play out similarly for states as well.
c) Online platforms overcome trust and information problems through feedback and rating systems and by
offering escrow and dispute resolution mechanisms.
d) It has also allowed an “unbundling” of production processes in both the markets for goods and services.
2. Improving Capital Utilization –
a) By making better use of existing capacity, improving efficiency and labor productivity, optimizing
inventories, cutting downtime of capital equipment and reducing risk, utilization increase dramatically.
b) An example of this comes from the airline industry in USA where sophisticated pricing and reservation
algorithms have led to an increase in load factors by 33%.
3. Advancing Competition –
a) Facilitating market entry and scaling up quickly with relatively less staffing or capital investment allows
more firms to emerge and exist.
b) By reducing start-up costs, and allowing firms to add capacity as the need arises, it reduces the overall
risk to the investor.
c) The domain of competition extends to offline as well as online players as markets become integrated
and people evaluate “offline vs online” options.
4. Job creation and higher productivity – While the better off are able to leverage digital technologies for
jobs in a more commanding manner, the poor also benefit from it via indirect job creation and better
access to work and markets.
5. Increases consumer surplus – Numerically, the average user [world] realises a consumer surplus of around
$500 a year from services available freely on the internet. This increases the funds available at the
discretion of the consumer, thus moving his focus from subsistence activities to capital formation ones.
6. Governments become capable and responsive –
a) Better tools for communicating with citizens, providing information for greater participation, feedback
and monitoring of public officials are some of the ways that digital tech has made government’s more
responsive.
b) Digital identification has also removed barriers to participation from the poorer sections of population
including the curtailment of fraud and intimidation. Rigging of elections, risk of media capture and
censorship have become much harder as tech is introduced.
7. Improving public sector capability – Automation of routine tasks, data-driven management, monitoring the
performance of workers, and providing citizens the ability to give specific feedback are some of the benefits
that tech allows here.
8. Advancing Voice – This is done by opening up avenues for participatory governance, data analytics for
better law making, and reduction of cost of communication [allowing it to break barriers to citizen’s
collective action].

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Sectoral benefits of Digital India


1. Agriculture and rural development –
a) GM crops, precision farming [using GIS-based soil, weather and water data], and mobile Internet based
farm-extension and information services, can provide $45 billion additional value per annum from 2025.
b) Higher income to 100 million farmers, better nutrition to 300-400 million consumers can be provided.
c) Cash insurance can be provided in a more streamlined manner. As a further step, the amounts realized
from such insurance can be sent directly as transfers.
d) Land records can be better maintained and transferred.
e) Several avenues can be opened up where existing businesses service the rural markets.
2. Manufacturing – The most dramatic overhaul that digitization has provided, has been on the manufacturing
sector. Some of the several benefits that Digital India can provide to are
a) Creation of new value chains by either creating different value-addition systems or merging value chains
of different industries.
b) ERP [Enterprise Resource Planning] for better capital allocation
c) More intimate and detailed interactions with customers which leads to a more targeted product
d) Fuller utilization of human resources
e) Provision of new tools for product and process design
f) Modelling and simulation of the entire spectrum of factory operations
g) Better linking to the market and distribution channels
3. Education and Skill Formation – Weak learning outcomes, low employability of workers with higher
education, large vocational training gaps etc. are some of the many areas where India is lacking presently.
Some of the ways this is addressed by tech are –
a) Creation of instruction tools for individualized student learning.
b) Adaptive and Peer learning
c) Increasing access to trainers and mentors
d) Interactive and fun learning through gamification
e) Addressing the diversity of languages in sate curricula.
f) Programmes that allow competency based teacher learning
g) Blended learning with MOOC’s [Massive Open Online Courses] can bring high-quality courses to
students
h) E-labs can help simulate environments and address a lack of infrastructure.
i) Data-analytics can be used to record, maintain, track and analyse student level performance data.
4. Health Care Services – Technology is particularly relevant here since India has only half the numbers of
doctors, nurses and health care centres as per international standards.
a) Remote Health Services
b) Digital tools that allow health-workers with modest skills to carry out basic protocols
c) Low-cost diagnostic devices that work with smartphones
d) Data about patients can be shared in real time to get the best possible solutions
e) Using logistical and handling data to assess the quality and safety levels of disposables.
f) Awareness campaigns for certain diseases so that contamination levels are controlled

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5. E-governance –
a) The transformational impact of e-governance will be that it brings citizens closer to the government,
removes red tape, intermediaries, corruption and rent-seeking.
b) Initiatives like computerization of land records, Bhoomi project of Karnataka [Online delivery of land
records], Common Entrance Test [CET], MCA 21 [by Ministry of Corporate Affairs] demonstrate a few
ways by which technology can be used as a facilitator by the government.
c) Under the 5th pillar of Digital India [e-Kranti] the government has initiated 44 mission mode projects
and is presently offering more than 3325 services.
6. Less-Cash Economy – There is ample evidence that India is a non-tax compliant society. One of the major
factors for this is that it continues to deal primarily in cash, allowing for easy evasion. Digital India will aid
the move towards a less cash economy and therefore provide several benefits including –
a) Convenient mode of payment [including a reduction in transaction cost of carrying & doing business].
b) Lower risk [with proper cybersecurity infrastructure in place]
c) Reduction in the cost of printing money [In 2015, RBI spent ₹27 billion in printing currency]
d) Decrease in crime rate in areas like drug trafficking, prostitution, terrorism, and money laundering.
e) Ease the burden on the banking sector as it will have to hold less cash.
f) Cleaning up the election process
g) Wider tax-base and therefore revenues for the government.
h) Indirectly aid mobile penetration and create a demand for internet infrastructure
i) Promote financial inclusion
7. Tax Evaluation and Collection –
a) The economic survey has pointed out that there is a huge differential between the property tax
potential that municipalities have and the tax that is actually collected [the gap stands at 80-95% for
cities like Jaipur and Bangalore].
b) This can be extended to individual taxes, corporate taxes, racketeering and corruption of officials as
well. Harnessing the potential that Digital India offers, better budget estimates can be made by
municipalities, state governments and the central government.
c) This will allow a more targeted post-mortem analysis of shortfalls in collection and thus identify officials
and sectors where evasion and shortfalls are most rampant.
8. Promote Financial Inclusion –
a) While the Jan-Dhan Yojana has provided banking accounts to nearly all of the nation’s households, there
are abundant reports of non-utilization of these accounts, or worse, usage of these accounts for
nefarious purposes.
b) Financial inclusion brings with itself several dividends like services for business opportunities, education,
savings for retirement, insurance against risks, better standards of living and income, direct benefit
transfers, and a platform on which the transition to a less-cash economy can be based.
9. Making Growth Inclusive –
a) Digitization provides several disruptionist technologies that allow firms and businesses to overcome the
challenges associated with economies of scale. This allows creation of markets and entrepreneurs where
no viable business model could be created previously.
b) By making use of such technology, talent and creativity in the hinterland of India can be accessed.

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QUALITY ENRICHMENT PROGRAMME: TARGET 2018


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c) Further, it is seen that a lack of social protection schemes and exclusion errors were disproportionately
impacting the destitute. Digital India will allow better coverage and service delivery to these sections
along with superior legislation in the future due to data analytics.
10. Tourism – Tourism as a sector accounts for around 10% of the world’s GDP and 9% of the world’s jobs.
Here, technology has become an all-weather partner by providing benefits like
a) Online enquiries, bookings, payments, and ratings.
b) Brand promotion and marketing
c) Development of ancillary services like transportation, eateries, hotels, adventure sports etc.
d) Allowing involved agents to understand the demands and expectations of visitors.
e) Addressing a larger market than could be possible via only analog means.
f) Providing a larger market to domestic artisans and craftsmen.
g) Diversification of services provided so as to cater to different demographics.
11. Disaster Management – In a world marred by global warming, the frequency and intensity of natural and
man-made disasters are constantly on the rise. Here, IT can be used successfully for mitigation as well as
adaptation measures –
a) Remote sensing can be used for identification of hazardous areas, monitor areas of the planet for its
changes on a real time basis, and give early warning to many impending disasters.
b) Communication satellites can be used for emergency communication and timely relief measures.
c) Due to the diversity of India’s topography and various types of disasters that affect them, IT allows for
tailored solutions better, as opposed to a one-size-fits-all approach.
d) Advance warning systems can be deployed so as avert loss of life and property.
e) Funds can be better disbursed among the affected population and relief workers.
f) Digital simulations can expose the vulnerabilities of available structures and response mechanisms
g) Assessment of damage and requisite financing can be better estimated.
12. Local Governance – Panchayats are the 1st level of government interaction and cater to roughly 60% of the
population. IT can serve as an enabler of people, businesses and government. Some of the ways are –
a) Issue of trade licences and other Certificates.
b) Dissemination of internal processes of Panchayats like agenda, voting and resolutions
c) Better accounting of finances
d) Constant updation of census and other demographic data
e) Tagging of assets under MGNREGS
f) Sharing of best practices and joint implementation of tasks like creation of watersheds, pooling land for
introducing mechanization, collective solutions for pest and drought control etc.

Challenges to Digital India

1. Cybersecurity – Although India ranks 23 out of 165 nations in the UN Global Cybersecurity Index, it is
mostly due to a poor cybersecurity base among competing nations, rather than any explicit acquirement of
India. Some of the challenges that India faces on this regard are
a) Legacy systems are deployed in India and this makes them particularly vulnerable to attacks since
backward compatibility / improvements of these systems have long stopped.

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b) Digital understanding of people is poor and thus they become victims of petty cybercrimes that can be
easily avoided by simple knowledge such as phishing, identity theft, spamming, and grooming [making
sexual advances to minors].
c) Fragmented and Incoherent cybersecurity policy deployed at present
d) Under-reporting and late reporting of cybercrimes take place, even by MNC’s. In 2015, 1,11, 083
security incidents were handled by CERT-In but less than 10% of those were registered with law
enforcement agencies.
e) Regulatory authorities and cyber-professionals only being deployed in a post-mortem manner
f) With the Digital India campaign ongoing, as several more avenues become accessible to the internet,
the propensity of hackers to target India is going to increase.
2. Human Resource Crunch –
a) CERT-In, NIC, DEITY etc are is woefully understaffed for the scale of problems that they address
b) Ministries need a Chief Information Officer / Chief Technology Officer.
3. Huge financial crunch exists to implement the provisions of this campaign in the allocated timeline.
a) For grandiose visions like Electronics manufacturing and Skilling India, the amount of money that has
been sanctioned by the government is not enough. Further, private investment is not at the levels
required.
b) Middlemen and Corruption – the very problems that Digital India seeks to redress – are further limiting
the amount of funds available. Time delays are also leading to slower integration of various components
and adding to the cost of the campaign.
4. Coordination between Departments - With more than 22 schemes, 44 mission mode projects, 3325
services all spread across several ministries of the government, there is a huge challenge of coordination
5. Bedrocks of the campaign such as Aadhar, Right to Privacy and Data collection are being challenged on
judicial platforms. Thus, the validity of several components of this campaign are yet to be verified.
6. Insufficient incentives for the start-up ecosystem - This leads to several new ideas not reaching their
culmination and unserved areas getting excluded.
7. The backbone of Digital India – Literacy and Electricity – are problems that still need to be addressed.
Without these, the true potential of a “knowledge empowered society” will never become reality.
8. Massive price anomaly in India - The cost of residential broadband at even modest speeds like 1 Mbit /
second are 6-10 times higher than they are in China.
9. With disruptions occurring in the existing company structures, economies are heading to a more freelance
based / gig-economy. This puts several people at the risk of social security deprivation.
10. Digital technology will generate e-waste at a much larger scale than previously present. Without proper
mechanisms to tackle such waste, Digital India can turn into a public health risk

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