India’s digital leap now hinges on data quality: NITI Aayog report

India’s transformation into a global leader in digital infrastructure has reached an inflection point, according to a new report released by NITI Aayog’s Frontier Technology Hub in partnership with data science firm Gramener. Titled “India’s Data Imperative: The Pivot Towards Quality,” the report warns that India’s next decade of digital governance depends not just on scale, but on precision.

This report underscores the urgent need for robust data quality to fortify digital governance, cultivate public trust, and ensure efficient service delivery. The report examines the pervasive challenges posed by poor data quality.

While platforms like UPI, Aadhaar, and Ayushman Bharat have revolutionised financial inclusion, identity verification, and healthcare access for millions, the report emphasises that poor data quality is now a frontline governance challenge. “Even a single incorrect digit can halt a pension, deny healthcare, or misdirect subsidies, profoundly eroding citizen trust and costing billions in fiscal leakage,” said Debjani Ghosh, distinguished fellow, NITI Aayog and chief architect, NITI Frontier Tech Hub.

“Data quality must therefore become a frontline governance imperative, integral to building Digital India on a robust foundation of trust. Trust is not merely a desirable outcome—it is the bedrock upon which our digital ambitions stand and scale,” Ghosh added.

“Strengthening data quality is foundational to realising our digital ambitions—whether enabling AI-driven governance, ensuring targeted welfare delivery, or driving cross-sector innovation. It requires collective action, clear accountability, and a shared commitment from every department and ministry,” Ghosh explained.

In April 2025, UPI processed 17.89 billion transactions, Aadhaar authenticated over 27 billion identity requests in FY 2024–25, and more than 369 million Ayushman Bharat cards are in use. But these achievements mask an underlying problem: legacy errors, fragmented data systems, and inconsistent standards that risk derailing the efficiency and trustworthiness of India’s digital architecture.

The report identifies key causes of poor data quality—from typos at the point of entry to inconsistent formats and siloed systems that prevent interoperability. Case studies show how these errors ripple through the system: a transposed IFSC code in a farmer's record can delay payments, while outdated or duplicate entries inflate welfare rolls and stall targeted interventions.

To address these challenges, the report introduces two new tools: a Data-Quality Scorecard and a Data-Quality Maturity Framework. These provide Ministries and Departments with a practical framework to assess current data integrity, prioritise corrections, and monitor progress.

Three immediate action strategies—Fix it at the Source, Keep it Clean, and Make it Matter—offer pathways for rapid improvement without the need for sweeping legislative change, the report said. These include real-time validation, assigning data stewards, linking grievance redressal systems to backend corrections, and rewarding high-performing teams for data quality.

The report calls for a shift in mindset, from speed-driven metrics to a culture of quality. It advocates for clear ownership, budget-linked incentives, and robust interoperability across systems as core to sustainable digital governance.

“As India enters a new phase of digital maturity, our ability to build trust into the system through clean, reliable data will determine whether digital governance remains inclusive and effective,” said Saurabh Garg, Secretary of the Ministry of Statistics and Programme Implementation (MoSPI).