Aadhaar, the first Digital Public Infrastructure project of the India Stack, transformed access to services for over a billion residents. However, it remains highly controversial, facing criticism over privacy, data security, and concerns about government surveillance.

India has arguably made the most significant strides in placing digital public infrastructure on the global map. Even before assuming the G20 presidency in 2023, India was actively promoting the dissemination of digital public infrastructure. The country is particularly renowned for its India Stack, a collection of digital public infrastructure components, with the most prominent being the Aadhaar identity system.

The Genesis of Aadhaar

Launched in 2009 by the Unique Identification Authority of India (UIDAI), Aadhaar, which is derived from the Hindi word for foundation, was conceived as a means to provide every resident of India with a unique 12-digit identity number.

This number is officially obtainable on a voluntary basis and is linked to an individual’s biometric and demographic data, including fingerprints, iris scans, and a photograph.

However, since access to a various governmental services is tied to an Aadhaar number, its voluntary nature may be considered questionable.

Before Aadhaar’s launch, approximately 400 million Indian residents, particularly in rural and economically disadvantaged areas, lacked access to any form of individual identification. This posed a significant challenge for the Indian state and its citizens , as these residents often struggled to claim public services and benefits due to the high costs associated with identity verification. Furthermore, this segment of the population was largely unbanked, hindering their ability to build assets and access credit.

The Success of Aadhaar

The rollout of the Aadhaar system has been remarkably successful. By the end of 2022, more than 1.3 billion Indian residents had registered for an Aadhaar card, representing 95% of the population. This achievement is even more impressive considering the vast size and diversity of India’s population. In many rural areas, Aadhaar became the first proof of identity for people who did not even have birth certificates. A key factor in Aadhaar’s successful rollout was its perception as a project transcending political cleavages and party lines. Often, policies and projects are terminated when a new government comes into power. However, the Bharatiya Janata Party (BJP) under Prime Minister Narendra Modi, initially critical of Aadhaar, quickly changed its stance after coming to power in 2014 and expanded the project.

Initially, Aadhaar was used to distribute subsidies for liquefied petroleum gas (LPG). By January 2014, 17 million beneficiaries across 291 districts were receiving LPG subsidies by proving their identity with their Aadhaar cards. Today, more than 20 welfare schemes are linked to Aadhaar. The scope of Aadhaar-linked service delivery quickly extended beyond welfare schemes. Banks began accepting Aadhaar numbers to open accounts, and mobile phone companies started enrolling economically disadvantaged individuals, previously seen as too risky.

Controversies Surrounding Aadhaar

Despite its success, the Aadhaar system has not been without controversy. Concerns about privacy, data security, and potential misuse have sparked significant debate. Critics argue that centralizing sensitive information could lead to breaches and surveillance . In fact, there have been numerous incidents where data has been breached. For instance, in 2019 a security researcher discovered that the Aadhaar numbers of nearly 6.7 million people were exposed on a website run by Indane, a state-owned LPG gas company. A particular prominent data breach case was exposed in 2018 by the newspaper The Tribune. A reporter from that newspaper was able to access Aadhaar data of over 1 billion Indians for just ₹500 (about $7 at the time). The access included personal details such as names, addresses, postal codes, photos, phone numbers, and emails. While biometric data (fingerprints, iris scans) were not compromised, the breach exposed a significant vulnerability in the system, sparking concerns about the ease with which unauthorized access could be gained.

Additionally, there has been considerable debate about how the right to privacy can be upheld when Aadhaar is tied to numerous services. In this context, a landmark judgment by India’s Supreme Court in 2018 was particularly important. The court upheld the constitutionality of Aadhaar but imposed restrictions on its use. It ruled that although Aadhaar cannot be mandatory for services such as banking and mobile connection an Aadhaar number can be mandatory for some welfare schemes and tax purposes.

The Future of Aadhaar

The debate over Aadhaar’s scope is far from settled. The latest controversy involves the government’s push to link Aadhaar with voter ID cards, raising fears that linking demographic information to electoral databases could be misused to profiling voters. On the other hand, proponents of Aadhaar point to improvements in welfare service delivery and financial inclusion, which they see as crucial pillars for India’s economic success in recent years. In conclusion, Aadhaar encapsulates the complexity and potential trade-offs inherent in digital public infrastructures related to identity, highlighting sensitive issues that require ongoing discussion.

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