India's digital public infrastructure enters connected, AI-enabled phase

An IIM Bangalore report says the next phase of DPI will link identity, payments, health care, agriculture, commerce and education, with AI adding an intelligence layer

India’s digital public infrastructure (DPI) is entering a new phase. The next decade shifts from building standalone digital rails to connecting them into networks spanning identity, payments, health care, agriculture, commerce and education, according to a report by the Center for Digital Public Goods at IIM Bangalore. The second edition of its State of DPI in India 2026 report describes this transition as a move from “DPI 1.0” to “DPI 2.0”, in which interoperable systems are designed to work across institutional boundaries. The report also outlines a potential “DPI 3.0”, where artificial intelligence (AI) could help digital infrastructure anticipate needs and coordinate services.

 

 

Commissioned by Protean eGov Technologies Ltd. and authored by CDPG at IIM Bangalore, the report states that India has demonstrated its ability to build and scale digital infrastructure to the population level.

 

“Through comparative analysis and interactive visualizations, the 2026 edition of the ‘State of DPI in India’ report builds on the Center’s efforts to develop an evidence base on India’s evolving DPI landscape and contribute to the global discourse on how open, reusable and interoperable DPI can advance inclusive growth, institutional coordination and resilient public-service ecosystems,” R Srinivasan, chairperson, Center for Digital Public Goods (CDPG), IIM Bangalore, said.

 

V Easwaran, executive director and chief operating officer, Protean eGov Technologies Ltd., said DPI has always been about more than technology; it is about building trusted systems that make everyday interactions simpler, more inclusive and more accessible. “The ‘State of DPI in India 2026’ report captures that transition beautifully, from building foundational rails to creating connected, interoperable ecosystems that can unlock the next generation of public and private innovation,” said Easwaran.

 

A central theme of the report is the transition from DPI 1.0 to DPI 2.0. The first phase of India’s DPI journey was primarily focused on building foundational rails for identity, payments and digital service delivery. The emerging phase is characterised by greater interoperability among identity systems, payments, credentials, registries, consent frameworks, data-sharing systems and sector-specific infrastructure.

 

The five sectors examined in the report illustrate different dimensions of this evolution. Financial services demonstrate the scale and maturity possible through interoperable digital transactions. Health care is developing connected health information infrastructure through shared registries and consent-based systems. Agriculture is using interoperable infrastructure to address fragmentation across farmers, markets, advisory services and government programmes. Commerce is seeing the emergence of interoperable digital marketplaces, logistics and procurement systems. Education is developing shared infrastructure for learner identity, portable credentials, digital learning and continuity across the learning journey.

 

Technology can create the infrastructure for interaction, but its effectiveness depends on institutional arrangements. As digital infrastructure expands, the challenge increasingly involves enabling governments, businesses and citizens to interact across institutional boundaries through common standards, trusted data exchanges, shared registries and appropriate governance arrangements.

 

In the future, the report considers how emerging technologies, particularly AI, could add a new intelligence layer to DPI. As digital infrastructures become increasingly interconnected, AI could potentially draw on multiple trusted infrastructures to support decision-making, anticipate needs and enable more personalised and coordinated services.

 

The report cautions that the proliferation of AI and its deeper integration into digital ecosystems must be accompanied by governance mechanisms that embed privacy, accountability, transparency and interoperability into digital infrastructure. Techno-legal frameworks that underpin these pillars will also be critical to maintaining trust.

 

The report looks beyond DPI 2.0 towards DPI 3.0, in which digital institutions could increasingly support intelligent coordination across governments, markets and society.