Unique ID Authority

India has commenced a major new project to establish a unique identification (UID) database for the country's 1.2 billion citizens. The UID database will store demographic (age, sex, address) and biometric information (photographs and fingerprints), providing reliable proof of identity for people to access government programmes, bank accounts, insurance, voting registration, and other services.

A key rationale for the policy is to more poor Indians to participate fully in the economy. Many poor people have no form of identification, making it difficult for them to access social welfare schemes and financial services like bank accounts and micro-loans. The database will also help to reduce waste and embezzlement in subsidy and poverty alleviation programmes, address security threats and illegal immigration, and clamp down on identity theft and fraud.

The UID scheme will provide a unique number to everyone enrolled, but will not provide and identity card. Rather, the number will be used in other documents like election identity cards and bank accounts.

The project is being implemented by the Unique identification Authority of India (UIDAI), part of the Planning Commission of India. In July 2009 Nandan Nilekani, co-founder of Infosys, India's second largest technology company, took over as head of the Authority.

The first UID numbers will be issued in about 12-18 months. UIDAI has a target of enrolling 600 million people over the next four years. Enrollment will initially be voluntary.

Various existing identification databases (such as passports, bank accounts, voter ID and ration cards) will be linked to the UID database as it is established. There will be a standard process to enrol people in the UID programme, though partner organisations, such as banks, will have the option to require additional forms of authentication.

The UID programme will be very challenging technologically and in terms of governance. It will be the largest national identity database in the world. The UIDIA will have to work with India's 28 State governments and 20-25 central government agencies.

Why is it important?

While India has a range of identity databases for administrative purposes many of these (such as passports or tax records) only capture the details of a small minority of Indians, leaving many people without formal identification. The UID programme will enhance the efficiency and quality of government programmes such as the distribution of food ration cards and the National Rural Employment Guarantee, which may be subject to diversion of resources.

It will also make it easier for poor and rural people and those in the informal sector to access important services, like bank finance and state support. It should also be easier for businesses to conduct transactions with less risk of fraud.

Reflecting the importance of the initiative to the Indian Government, Prime Minister Manmohan Singh is chairing a council to ensure coordination between Ministries, stakeholders and partners.

What are the opportunities?

Implementation of the UID programme will be a huge venture, estimated to create 100,000 jobs over the next three years, and ultimately cost as much as US$30 billion.

While Indian technology vendors are likely to be strong contenders, this could represent a major opportunity for companies with expertise in identification systems and processes.

We can help with realising the opportunities, please contact us.