India Transitions to DPI 2.0 to Integrate Digital Networks Across Key Sectors

India's Digital Public Infrastructure (DPI) is shifting from the construction of isolated digital tools to the creation of integrated networks. According to the 'State of DPI in India 2026' report by the Center for Digital Public Goods (CDPG) at IIM Bangalore, the country is transitioning from 'DPI 1.0' to 'DPI 2.0'. While the first phase focused on building foundational rails for identity and payments, the second phase prioritises interoperability across institutional boundaries.

The report, commissioned by Protean eGov Technologies Ltd., identifies a move toward systems where identity, payments, credentials, and data-sharing frameworks function as a unified ecosystem rather than separate silos. This evolution is currently manifesting across five primary sectors:

• Financial Services: Leveraging mature, interoperable transaction systems to maintain scale.
• Healthcare: Establishing connected information infrastructure via shared registries and consent-based data access.
• Agriculture: Reducing fragmentation between farmers, markets, and government advisory services.
• Commerce: Developing interoperable digital marketplaces and procurement logistics.
• Education: Creating portable credentials and shared learner identities to ensure continuity in education.

R Srinivasan, Chairperson of CDPG at IIM Bangalore, noted that the report provides an evidence base for how open and reusable DPI can improve institutional coordination. V Easwaran, COO of Protean eGov Technologies Ltd., added that the transition focuses on creating ecosystems that allow both public and private entities to innovate on top of these connected rails.

The analysis suggests that the technical infrastructure alone is insufficient; its success depends on institutional arrangements, common standards, and trusted data exchanges. Looking further ahead, the report posits a 'DPI 3.0' phase. In this stage, Artificial Intelligence (AI) would act as an intelligence layer, drawing data from multiple trusted infrastructures to anticipate user needs and coordinate public services proactively.

However, the integration of AI introduces structural risks. The report warns that for DPI 3.0 to be viable, India must implement governance mechanisms and techno-legal frameworks that guarantee privacy, transparency, and accountability to maintain public trust in the system.