India’s Data Imperative – The Pivot Towards Quality
- 28 Jun 2025
In News:
In a significant policy intervention, NITI Aayog has released the report titled “India’s Data Imperative: The Pivot Towards Quality”, calling for urgent reforms to enhance the integrity, interoperability, and usability of India’s public data systems. The report underscores the critical role of data in governance, welfare delivery, and digital innovation.
Understanding India’s Public Data Ecosystem
India's data ecosystem constitutes a vast digital public infrastructure that powers governance and service delivery across sectors. It integrates identity, finance, health, and welfare through data-centric platforms:
- Aadhaar: Over 27 billion authentications in FY 2024–25; foundational for identity-linked services.
- UPI: Handles transactions worth ?23.9 trillion monthly — the world’s largest real-time digital payment system.
- Ayushman Bharat Digital Mission: 369 million health IDs issued; enhancing interoperability in healthcare.
- Direct Benefit Transfer (DBT): ?5.47 lakh crore transferred in FY 2024–25 across 330+ schemes.
- Aadhaar e-KYC: 1.8 billion transactions, significantly reducing onboarding costs and time.
- Digital Inclusion: Over 1.2 billion mobile subscribers and 800 million internet users reflect the scale of India’s digital penetration.
Why India Needs a Quality-Driven Data Ecosystem
- Curb Fiscal Leakage:Inaccurate or duplicate data inflates welfare expenditure by 4–7% annually.
- Enable Evidence-Based Governance:Data-driven insights power AI-led service delivery, improve beneficiary targeting, and strengthen accountability.
- Foster Public Trust:The legitimacy of digital governance depends on accurate, timely, and reliable data systems.
- Strengthen India’s AI & Innovation Ecosystem:Clean, validated data is essential for building AI applications in healthcare, agriculture, and citizen services.
- Enhance Cross-Ministerial Coordination:Interoperable data frameworks help break silos and improve policy coherence across ministries.
Key Challenges in India’s Data Governance Landscape
Challenge Description
Fragmentation Departmental silos with non-standardised data formats hinder seamless integration.
Lack of Ownership Absence of clear data custodians leads to accountability gaps.
Legacy Systems Outdated IT systems impede real-time updates and data sharing.
Incentive Mismatch Existing frameworks reward speed over accuracy, eroding data quality.
Poor Quality Culture A prevailing acceptance of “80% accuracy is good enough” weakens long-term integrity.
NITI Aayog’s Recommendations for Reform
- Institutionalise Data Ownership:Designate dedicated data custodians at national, state, and district levels to oversee quality.
- Incentivise Accuracy:Incorporate data quality metrics into performance appraisals and financial allocations.
- Promote Interoperability:Adopt standards like IndEA (India Enterprise Architecture) and NDGFP (National Data Governance Framework Policy) to ensure consistency.
- Use Practical Tools:Implement tools like the Data Quality Scorecard and Maturity Framework for ongoing assessment.
- Build Capacity:Train field-level personnel and managers to prioritise data fidelity as a core administrative function.
Significance of the Report
This report arrives at a critical juncture when India is rapidly expanding its digital public infrastructure but faces risks from data inaccuracy, siloed systems, and erosion of trust. By shifting focus from quantity to quality, NITI Aayog envisions a resilient, inclusive, and innovation-friendly data regime—essential for achieving Digital India goals and Sustainable Development Objectives.