UID-AADHAAR

Opportunities from people’s perspective

 UIDAI to Create Employment Opportunities
The UID project is estimated to create3,50,000 new jobs and
commercial opportunities to the tune of $20 billion in the first 5
years and $10 billion annually thereafter, according to a CLSA
report analyzing the impact of this mega project.
 UIDAI will provide an identity to many who don’t have
one.
A large proportion of population is affected by lack of identity.
it certainly runs into hundreds of millions. Internal migrants in
India, for instance, are estimated to be between 100 and 120
million. They have no mobile identity. At best, they may have
got [some form of identification] in their village; but that may
not be recognized in a different state or city. The vulnerable
are the biggest beneficiaries of this.
Challenges from people’s perspective
 Privacy issues
The proposed UID project may violate a number of basic rights
guaranteed under Part III of the Constitution of India including
Articles 14, 15, 17, 19 and 21 viz., the Rights to equality,
dignity, privacy, expression and the right not to be
discriminated against.

 Potential discrimination
The project seems to be aimed at profiling people by pooling
in biometric and retinal data pertaining to an individual and
could be potentially discriminatory in a country where caste
identity is the most predominant socio-political marker.
Opportunities from Industries perspective
( 1/3)
 Banking: Financial Inclusion
1. UID will open up a whole new market for banks and other
financial services providers. UID enrollees that don’t have
bank accounts could have them, thanks to an agreement
UIDAI has reached with the Reserve Bank of India that the
data collected would meet requirements.
2. Given our demographics, Indian banks will be bankers to the
largest working population in the world. Bringing all of them
into the banking network will be the greatest opportunity.
3. Banks can do customer acquisition without any cost.” (The UID
is yet to figure out the best way to apportion these account-
opening mandates to banks; it may do that through
competitive bidding)
Opportunities from Industries
perspective(2/3)
 Education
1. Human Resource Development Ministry expects to use UID numbers on
school records to help track student mobility, stem dropouts by monitoring
student attendance and performance, prevent spurious certificates and
enable employee verification.
2. The HRD ministry can also ink the UID numbers to education loans and
scholarships. DAI signed a deal with India’s ministry of human resource
development to create an electronic registry for all students
 Health
1. in the Health sector, medical service providers can benefit by accessing up-
to-date medical records that uphold data integrity, which could ultimately
lead to more accurate diagnosis and medical prescriptions.
2. Patient information can be kept and shared within the medical ecosystem
e.g. doctors, insurance companies, etc.
Opportunities from Industries
perspective(3/3)
 Mobile Industry
1. Mobile operators can use the authentication service to conduct KYC
(know Your Customer)
2. Device vendors would benefit from the demand of authentication
enabled devices, the mobile operators would carry the authentication
data between the server and the device and the developers would
benefit from developing applications that use the authentication APIs
3. The APIs would be easily available to any developer for embedding
them into a mobile application or an internet application. The opening
up of APIs is the most interesting part of the UID project. This would
enable the developers to create innovative applications which in turn
would put the UID database to maximum use.
4. The overall opportunity for the various players is said to be around
$4-5 billion.
Opportunities from Government’s
perspective(1/2)
 Managing subsidy burden
The biggest benefit of the Aadhaar project will be that it will help in managing
the subsidy burden of the government better, which runs into lakhs of crores
every year, freeing up significant funds by eliminating the leakage and
undeserved beneficiaries.

 Additional Tax Revenues

Various departments, based on their needs, will refer to the UID number. This
will help remove duplicate names from their service lists. While this would help
clean up lists for NREGS, senior citizen pension schemes, PDS, etc, it may also
help clean up benami bank accounts, etc. Informally, the Income Tax
Department is known to have projected an additional tax collection of about
Rs40,000 crores annually!

 Easier provision of services

In becoming a single source of identity verification, UID could enable easier
roll out of services such as passports, driving licenses, and LPG connections
Opportunities from Government’s
perspective(2/2)
 Improved efficiency in schemes such as PDS, NREGS

1. Over a period of time, as Aadhaar numbers in ration cards become

nearly universal, duplication will cease to exist.
2. The most important benefit from the UID could be that you could
have a “portable” PDS. In other words, you could have a system
where you (say, a migrant worker) could buy your PDS quota from
anywhere in India .
3. Proof of identity could lay the basis for checking fraud and
corruption, thus targeting only the intended beneficiaries in a
range of programs such as NREGA and PDS.

 UID can transform India's administrative mechanism, making

it more responsive and all pervasive. Accurate data of UID will
enhance the efficiencies of government welfare schemes.
Increased coordination among government departments, in turn,
will facilitate sharing of real-time information
Challenges from Government’s
perspective(1/2)
 Challenging project in terms of implementation and adaptation-

1. UID Mission is one of the most difficult tasks as the population of India is the
second largest in the world.
2. Biometric-based unique ID system is going to be the first move by any
country in the world at the national level.
 Deciding Base Database to build UID

1. As of date, there are multiple databases (manual or digital or combination

of two) exists in the Country like Passport, Census, Election Commission, BPL
(Below Poverty Line), Ration card, Driving License, Border area id card). Each
of these databases have been created  over time with certain perspective,
hence each database is influenced by certain factors. Hence one of the
challenges is to decide the base database to build UID.

2. Creating onetime UID database is one challenge, but managing such a

database on continuous basis will be yet another challenge.
Challenges from Government’s
perspective(2/2)
 Identification of Illegal Migrant and track them
Identification and isolation of illegal migrants onetime and on
continuous basis will continue to be a challenge from Border security and
political perspective.
 Allocation of UID to BPL people having no permanent place to
stay
  This is a huge challenge from the perspective of being misused, accused
& abused by power centers. Even in the current context, there is a
massive mafia in the Country managing the system to mismanage the
socio-economic benefits.

 Controlling the issue of duplicate/multiple UID for same

individual