Ambassador Debnath Shaw
Introduction
What is the India Stack? It is a collection of open application programming interfaces (APIs) and digital public goods that form India’s foundational digital infrastructure. Together, its components enable governments, businesses and individuals to interact and conduct transactions digitally. Components such as Aadhaar (identity), UPI (payments), DigiLocker (documents), e-Sign (digital signature), e-KYC (know your customer), DBT (direct benefit transfer) and the Ayushman Bharat Digital Mission (healthcare) enable paperless, presence-less and cashless transactions and services for citizens, businesses and developers.
The Indian approach
The India Stack is a framework designed to accelerate India’s digital transformation and enhance financial inclusion. Although the project carries the name “India”, its vision is not limited to a single country; it can be applied in developed, developing and emerging economies alike.
Conceptualised early this century, the Stack was first implemented in 2009 through the Aadhaar unique identity programme. It provides a secure, interoperable platform for service delivery, leveraging technology and data to reach citizens at scale.
How does the India Stack work?
The India Stack operates through five layers:
The Cashless Layer supports an interoperable payments network owned and operated by the National Payments Corporation of India (NPCI). It includes platforms such as IMPS, which enables immediate electronic bank-to-bank transfers, and UPI, an instant real-time payment system for individuals and businesses. UPI surged during the Covid period and has since grown rapidly. Other platforms, including AEPS (Aadhaar Enabled Payment System) and APB (Aadhaar Payment Bridge), reduce the cost and risk of financial transactions.
The Paperless Layer enables real-time storage and retrieval of information. Owned by the Department of Electronics & Information Technology, it includes e-Sign, e-KYC and DigiLocker.
The Presence-less Layer provides unique digital biometric identities (Aadhaar) via open APIs, enabling real-time, anytime, anywhere verification without physical documents—reducing fraud and simplifying access to digital services.
The Consent Layer empowers individuals to control their personal data through secure, consent-based sharing. It features electronic data consent (EDC) with time- and purpose-bound limits, a consent artefact for transparency, and regulated entities such as account aggregators (AAs) to manage data flows. For example, when seeking a loan, an individual or entity can consent—via an AA—to share bank statements. The AA securely retrieves the data from the bank and shares it with the lender strictly under the permissions specified in the consent artefact.
The Commerce Layer is driven by the Open Network for Digital Commerce (ONDC), a Section 8 not-for-profit company. It uses open protocols for interoperability, standardised operations (inventory and cataloguing), strong data-privacy norms and a consent-based framework. By lowering entry barriers for MSMEs and neighbourhood kirana (grocery) stores, it promotes competition and curbs monopolistic tendencies. This layer is built on India’s digital public infrastructure, using Aadhaar, UPI, DigiLocker and the Consent Layer.
India’s experience with the India Stack
Hundreds of millions of Indian citizens and residents have onboarded components of the Stack-built digital public infrastructure to access secure financial, healthcare, education and other services. Key deliverables include:
- End-to-end service delivery to citizens
- A clear focus on improving everyday lives
- Outcomes shaped by years of innovation
- Paperless and cashless service provision
The Stack has catalysed innovation and startups that leverage digital technology to address societal challenges and broaden access to services. Its impact is evident across several outcomes:
Financial inclusion: The Stack plays a crucial role by enabling digital banking, payments and financial services, bringing previously unbanked or underbanked populations into the formal system.
Access to services: Citizens can access government, financial, healthcare and education services digitally, improving convenience and accountability.
Entrepreneurship and innovation: Open APIs have spurred a vibrant tech ecosystem, allowing startups and businesses to build atop shared infrastructure.
Reduced corruption: Through DBT and digital subsidies, government benefits now reach recipients’ bank accounts directly, reducing leakages and intermediary-driven corruption.
India’s model is increasingly replicated globally, with the Stack serving as a blueprint for inclusive growth and digital transformation in other developing countries. While challenges remain—particularly around data privacy, cybersecurity, digital inclusion and regulatory oversight—the India Stack has delivered tangible benefits at scale and is assisting partner nations in building their own digital public infrastructure for inclusive growth.
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