By Onkar Sharma

In my journalistic career, the Aadhaar programme has been one of the cult things that has always held a special place, because not only did I have the opportunity to write many stories about it, but I also interacted with two key individuals who architected, conceptualized, drove, and implemented the programme – Nandan Nilekani and RS Sharma. Both remained at the helm of affairs to set this in motion. In 2013, I met Mr Nilekani (then chairman of UIDAI) in person in his UIDAI office as I was gathering information for a story. Humble and welcoming, as he always was, he ran me through the nitty-gritties of the project and demonstrated through a biometric-based system installed at their office how it would work and ensure transparency. Similarly, Mr Sharma, who was the first Director General, was a quick contact for us to get his views about the programme and its overall progress from time to time. Right from its conceptualization stage in 2009 to its nationwide roll out, I saw this massive programme go through different stages while setting many new examples and achieving what was considered impossible a few years before for a country of this size.  

People queuing up at the various enrolment centres is still fresh in my mind but not for negative reasons. Friends in my circle and folks who I came in contact with, to my surprise, had taken up this move positively and chosen to happily stand for hours in long rows. Although there was a pile of scepticism at the start of the programme, its early signs of success set the stage for mobilizing opinion faster than imagined. Despite all questions about its necessity, its positive impact has reinforced in us a strong belief that technology transforms people for the better. Particularly, in a world increasingly marked by digital transformation, India has emerged as a pioneering force with the Aadhaar programme, a groundbreaking initiative that has revolutionized governance and service delivery across all classes in the country.  

Aadhaar, which means “foundation” in Hindi, is indeed the bedrock upon which India’s journey towards efficient, inclusive, and transparent governance has been built. But the idea for Aadhaar did not hit the government overnight. There was a long-standing demand from various government agencies as well as political parties to have a central system in place that helps in the identification and verification of citizens. Many were vouching for a system that was much like the US’ Social Security Number (SSN). However, emulating a model that worked well in a certain country was an option but there had to be more. Given the way technology had matured to handle and support the needs of more than a billion people, it was imperative for us to think differently and build a system that could address leakages and was hard to temper. The use of biometric technology – fingerprint and iris scan – was a bold decision that sounded straight out of the science fiction at that time. Turning this into a reality required a fat investment and expertise of a core technologist like Mr Nilekani who had the experience of running Infosys and making it a global brand. Prior to Aadhaar, the government had invested in technology but in bits and pieces through various computerisation programmes, that include e-governance projects in different states, SDWAN, etc. India had taken a piecemeal approach to adopting technology at the government level. Aadhaar, however, was just one big shot and a leapfrog that would change everything. 

Understanding Aadhaar and its Core Objective  

The Aadhaar project was officially launched in 2009 by the Unique Identification Authority of India (UIDAI), a statutory authority established by the Government of India, under the stewardship of Mr Nilekani. The primary objective was to provide a unique identification number to every resident of India, irrespective of their socio-economic status, religion, caste, or gender. This 12-digit Aadhaar number, linked to an individual’s biometric and demographic data, was envisioned as a tool to streamline service delivery, reduce fraud, and enhance financial inclusion.  

Enrollment and Scaling Up 

One of the most remarkable aspects of the project’s journey has been its rapid scaling up. Within a few years of its inception, the project achieved a milestone by enrolling over a billion individuals, making it the world’s largest biometric identity system. Enrollment centers were set up across the country, and residents were encouraged to register. This extensive reach ensured that even remote and marginalised populations could benefit from Aadhaar. 

Keeping Aadhaar On Track 

Even though it was a mammoth task, enrolling residents marked the beginning of a long journey. The litmus test where Aadhaar’s efficacy had to be tested was yet to happen. Its ability to transform governance and benefit citizens was to be seen at a broader level. The launch of the project in a few pockets across different states had paved the way for a smooth ride ahead. However, a major political event – 2014 Parliamentary elections – was actually to decide the future course of the programme. After the new government was formed, scepticism hung over the future of the programme. I recall, through my interactions with a few experts in the government and industry, that the programme could undergo a big change. But the bigger doubt – whether the programme could be dropped – was also doing the rounds. Among the most worried was Mr Sharma, who along with Mr Nilekani, had strove to bring this project this far. Mr Sharma recounts in his book ‘The Making of Aadhaar: World’s Largest Identity Platform’ that given the election rhetoric against Aadhaar in the run up to the election, he was “extremely fearful of the project being abandoned.” Mr Nilekani and Mr Sharma were able to persuade the PM of the project’s transformative power and broader impact. 

Transforming Governance 

Once the new government was convinced of harnessing the power of Aadhaar to eliminate leakages in government-led welfare schemes and remove duplicates, the Aadhaar programme got a fresh lease of life. There was renewed vigour in embedding it into the core of everything. It was going to set new standards for governance by proving to be a tool of transparent and speedy governance.  

Here’s how the Aadhaar project brought about a paradigm shift in India’s governance structure: 

1. Financial Inclusion: 

Today, a farmer in rural India can open a bank account without any documentation and use it to receive payments from the government for his crops. Similarly, a migrant worker can send money back to his family in his village via a mobile wallet. Aadhaar, with the help of a popular government scheme, Pradhan Mantri Jan Dhan Yojana (PMJDY) launched in 2014, made it possible. 

• Aadhaar-enabled bank accounts and Direct Benefit Transfer (DBT) schemes have helped reduce leakages in subsidy distribution, ensuring that government benefits reach the intended beneficiaries directly. 

• Before Aadhaar was introduced in 2009, India had a low rate of financial inclusion. According to the World Bank, only 37% of Indian adults had a bank account in 2011. This was due to a number of factors, including: 

• Lack of documentation: Many poor and marginalised people did not have the necessary documentation to open a bank account, such as a passport or driver’s license. 

• High cost of opening and maintaining a bank account: The cost of opening and maintaining a bank account was too high for many low-income people. 

• Lack of access to bank branches: Bank branches were often concentrated in urban areas, making it difficult for people in rural areas to access them. 

• Impact of Aadhaar on financial inclusion: 

The introduction of Aadhaar has had a significant impact on financial inclusion in India. According to the World Bank, the percentage of Indian adults with a bank account increased from 37% in 2011 to 80% in 2021. 

Aadhaar has also helped to reduce fraud and corruption in the financial system. For example, banks can use Aadhaar to verify the identity of customers before opening an account or providing a loan. This has helped to reduce the number of fraudulent accounts and loans. 

2. Public Distribution System (PDS): 

During my visits to my rural home,  I now see how people are able to get subsided ration from fair price shops. Aadhaar authentication has streamlined the PDS, curbing corruption and reducing food grain diversion. It has also facilitated the introduction of innovative models like “One Nation, One Ration Card.” Aadhaar authentication has streamlined the PDS in the following ways: 

• Curbing corruption: Aadhaar authentication has helped to curb corruption in the PDS by eliminating fake and duplicate ration cards. It has also made it more difficult for ration dealers to divert food grains from the PDS. 

• Reducing food grain diversion: Aadhaar authentication has helped to reduce food grain diversion from the PDS by ensuring that only eligible households receive subsidized food grains. This has helped to improve the efficiency and transparency of the PDS. 

• Facilitating innovative models like “One Nation, One Ration Card”: Aadhaar authentication has facilitated the introduction of innovative models like “One Nation, One Ration Card” (ONORC). ONORC allows ration card holders to purchase subsidised food grains from any PDS outlet in the country, irrespective of their state of residence. This has made it easier for migrant workers and other people, who move frequently, to access subsidised food grains. 

Aadhaar has helped reduce the number of fake and duplicate ration cards in different states. According to an article on the UIDAI’s website, Aadhaar helped weed out 3 crore fake and duplicate ration cards across the country. It also underlines how out of 23 crore ration cards in the country, 82% (19 crore) are linked with Aadhaar. In states such as Jharkhand, Rajasthan, and Gujarat, Aadhaar has helped to reduce the number of fake and duplicate ration cards and helped to distribute food grains to the real beneficiaries, thereby infusing transparency into the PDS system.  

The basic premise of the ONORC scheme is hence Aadhaar, which has successfully made it easier for people to access subsidised food grains. For example, a migrant worker from Bihar can now purchase subsidised food grains from any PDS outlet in Maharashtra, where he is working. 

3. Healthcare: 

In 2011, during my research for a healthcare-related cover story slated for publication in Dataquest, I uncovered the harsh realities of India’s healthcare system. It became evident that many experts were advocating for the establishment of a foundational technology to address these challenges, unaware that Aadhaar would eventually emerge as that very cornerstone. The significant potential of Aadhaar lies in its capacity to bolster healthcare access through the integration of patient data management systems, creating links between hospitals, pharmacies, blood banks, medical insurance firms, and healthcare-focused non-governmental organizations (NGOs). This transformative potential has been exemplified by initiatives like the Ayushman Bharat programme. 

Aadhaar plays a crucial role in enabling Ayushman Bharat’s health insurance coverage. The Ayushman Bharat scheme uses Aadhaar as a primary identifier for beneficiaries. Today, through the Ayushman Bharat programme, a health cover of Rs. 5 lakhs is provided per family per year for secondary and tertiary care hospitalisation, covering over 12 crores of poor and vulnerable families (approximately 55 crore beneficiaries) i.e. the bottom 40% of the Indian population.  

In addition, Aadhaar facilitates efficient tracking of patient records and health services delivery. The Ayushman Bharat programme has created a digital platform that enables end-to-end digitisation of service delivery, obviating systemic bias. Apart from an internal monitoring system, the National Health Authority (NHA) has deployed a public dashboard where the scheme’s implementation can be tracked on a day-to-day basis. 

4. Education: 

Aadhaar usage in various education-related initiatives, including school attendance tracking, scholarship disbursement, and ensuring access to quality education for all, are examples of its contribution to the education system.  

In 2015, the Government of India introduced ‘Shaala Siddhi,’ a programme that utilises Aadhaar to monitor school attendance and evaluate school performance across several states in India. This initiative is designed to enhance the quality of education by offering valuable feedback to schools and educators. 

Also, in the transparent disbursal of scholarships, Aadhaar has played a pivotal role. The Central Sector Scheme of Scholarship for College and University Students, managed by the Department of Higher Education since 2008, utilises Aadhaar to facilitate the smooth transfer of scholarships. 

Besides, Aadhaar has been used to ensure access to quality education for all. Today, various government-related initiatives such as ‘Sarva Shiksha Abhiyan’ and ‘Rashtriya Madhyamik Shiksha Abhiyan’, which aim to provide free and compulsory education to all children between the ages of 6 and 14 years using Aadhaar, are succeeding in the fulfilment of their goals. Aadhaar has been used in these initiatives to ensure that every child receives education by tracking enrollment and attendance. 

5. Digital Identity and E-Governance: 

Enabling seamless access to a wide range of government and private services, including mobile SIM card issuance, digital lockers, and e-signatures, has brought a transformational shift in ensuring faster access to these services. Perhaps this is the reason that Indians could easily sail through the COVID-19 period where they were forced to stay at home. 

Prior to Aadhaar, there was a huge problem of fake or unregistered SIM cards resulting in crime and fraud. With Aadhaar, there has been a significant reduction in the use of fake or unregistered SIM cards. Though it’s not the only ID one can use to get a SIM card, the speed it promises in activation of the SIM card makes it the de facto ID for most users.  

It can also be used to create digital lockers, which are online repositories for storing and sharing documents such as educational certificates, PAN cards, and passports. The digital locker service is linked to the Aadhaar card, which serves as a unique identifier for each user. 

6. Election and Voter Verification: 

The very foundation of a democracy is its electoral process. Contributing to this, Aadhaar is now being utilised for voter verification. This way it is helping reduce voter fraud and ensuring the integrity of the electoral process. 

Challenges and Concerns 

In all these years, while the Aadhaar project has transformed the country’s social and economic landscape through enormous changes in public service delivery, the highs and lows of success and scepticism have also been its closest companions. Etched deep in my memory are the instances that triggered debates on the importance of digital privacy that resulted in the Supreme Court issuing a verdict on the ‘right to privacy’ and making it a fundamental right in 2017. Besides, deep-seated concerns related to security breaches and data leaks have often raised eyebrows among privacy advocates. It doesn’t stop here and makes critics even more concerned when the point of centralization of sensitive information is highlighted because they fear that this can be a possible tool of surveillance and misuse.  

In my quest for answers, I encountered a paradox: a groundbreaking initiative striving to empower citizens while grappling with the weighty responsibility of safeguarding their personal data. The Aadhaar project, in all its promise and challenges, exemplified the delicate balance between technological advancement and the protection of individual rights – a story that continues to unfold on India’s digital frontier. 

Since I’ve at one point worked very closely with the consulting firm that was involved in managing and handling the UIDAI’s security, I believe that the UIDAI has been really swift in managing security and privacy of the data. But it needs to continuously evolve and reinvent ways to keep threat actors at bay and ensure that the citizen sentiment is always on their side for long-term success.  

Conclusion 

The Aadhaar project stands as a testament to India’s commitment to leveraging technology for the betterment of citizens. Its journey from inception to becoming the world’s largest biometric identity system showcases the potential for transformative governance in the digital age. While challenges persist, the Aadhaar project has undoubtedly paved the way for a more inclusive, efficient, and accountable governance framework in India, setting an inspiring example for the world to follow. As India continues its journey toward becoming a digital and knowledge powerhouse, the Aadhaar project remains an indelible cornerstone of its success. 

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Onkar Sharma, the Consulting Editor for Technology at Gyan Muse, brings over 17 years of expertise in managing media brands and magazines. In addition to his editorial prowess, he is an accomplished writer of fiction and poetry. You can learn more about it here