“Impact of Aadhaar on

different sectors of society”

Introduction:
Aadhaar is a 12-digit unique identification number issued by the Indian government to every individual
resident of India. The Unique Identification Authority of India (UDAI), which functions under the
Planning Commission of India, is responsible for managing Aadhaar numbers and Aadhaar identification
cards.
Currently the government is working on making the main basis of identification to be dependent of
Aadhaar card system. Thus it has become very common form of identity in India and is accepted across
all the major platforms where required.

Abstract:
What we call the actual potential is what is reflected in the study of Aadhaar System enabled in India.
India is currently the fastest growing economy in the world and also has the second highest population,
thus leading to a very high need of proper management and accountability of the people of such a huge
economy. Current Aadhaar System is not very advanced and thus has huge scope of advancement. Small
implementations such Aadhaar usage in voting or say linking Aadhaar to passports is somewhere we need
to reach fast for a better and stronger India. Aadhaar would lead to stability and accountability of the
people in our economy because it includes registering them and linking them with their incomes. Aadhar
also has huge scope of being linked to bank accounts and ATM’s because it will ensure more security.
Aadhaar overall is somewhat currently our government is focusing upon because it will create a better and
stable nation because the impact of Aadhaar will be on a huge scale, ignoring the costs associated the as
the benefits would surely be higher.

Literature Review: -

The feature of online voting system model is that the voter can confirm if his/her vote has gone
to correct candidate/party. In this model a person can also vote from outside of his/her allotted
constituency or from his/her preferred location. (Pandey, 2013)
Aadhaar helps in creating a trustworthy social identity of a citizen, whom everybody can trust.
This kind of identity is very helpful while making applications for bank loans, phone
connections, passports, visas and admissions at educational institutions. (Bhojak, 2015)
Aadhaar in terms of privacy protection seems to require an independent third party that can play
the role of an online auditor, study of several modern tools and techniques from computer
science. (Shewta Agrawal, 2012)

The current trend also suggests that the real attraction of Aadhar for this government (BJP) lies
in its potential as a tool for the Promotion of the interlinked agendas of neoliberal globalization
and militarized nationalism. The scope of reaching a higher level is somewhat that can achieved
with the help of Aadhaar as the major tool. (Sen)

The role of this system predicts that it is used to issue a unique identification number (UID) that
can be verified and authenticated in an online, cost-effective manner, and that it is robust enough
to eliminate the duplication of identities and also remove the fake ones.

Aadhaar card can be used as Voter’s ID and implementing a technology at election counter
where voter can type aadhaar number and match their iris. We can eliminate duplicates and avoid
fake votes thereby reducing rigging in elections. In Big data, large amount of data was collected
for each and every citizen of India which included storing basic information along with biometric
information like the fingerprints and picture of iris. (Phil)
Aadhaar also needs to become more ubiquitously accessible and relevant for urban and rural
population, and the rich and the poor, to realize its full potential as a game-changing tool that can
enhance transparency. (Banerjee, 2016)
Proper Aadhaar system implication will ensure that only the intended beneficiary can collect the
right subsidy. There are 3 major challenges that can impact Aadhaar in a big manner, once
implemented. They include Leakage of food grains, Complaint, Tracking and Lack of
Accountability. Thus the implementation would not be easy aspect if there upon tried. (Gupta,
2011)
Aadhaar as project has opened the doors for people to avail benefits of various government
sponsored schemes related to employment guarantee, access of public distribution system,
micro-banking, health insurance, free education for children, etc. (Sharma, 2011)
The universal adoption of identity cards is supported by law of enforcement to make vigilance
and identification of criminals easier. Most of the countries issued citizen ID numbers which
have become a de facto national identification number. An example of this would be the Social
Security Number (SSN) in United States of America. It was initially issued to track the
disbursement.
The unique identification project that India has initiated has to be seen in that context. Such a
project does not necessarily and directly result in compromising the ability of the poor to survive
and it does not necessarily mean loss of privacy across the board. (Maringanti, 2009)
There are various benefits that are claimed to be associated with the flow from linking the
Unique Identity number with the public distribution system and the National Rural Employment
Guarantee Scheme. A hasty linking of the PDS/NREGA with the UID can be very disruptive.
Thus the Aadhaar system will ensure that its benefits would impact at a huge level. (Khera,
2011)
The current UID project of India puts into a perspective to evaluate the set of issues and
concerns, as pointed by various stakeholders and try to understand the degree of criticality of
those arguments. In this light, the areas of concerns around the UID project in India are also
being pointed out. (Dass, 2011)
Taking into account the costs of developing and maintaining Aadhaar, and of integrating
Aadhaar with the schemes over the next ten years, it seems to be a genuine and easy to
implement plan if the government works with same efficiency. Even after taking all costs into
account, and making modest assumptions about leakages, of about 7-12 percent of the value of
the transfer/subsidy, Aadhaar project would yield an internal rate of return in real terms of 52.85
percent to the government.
There has been a rising need of secured platforms for using the Automated Teller Machines.
There has been a rising need to implement faster and secure sources for the same. Biometrics and
Aadhaar card can be defined as a measurable physiological and behavioral characteristic that can
be subsequently compared & captured with another instance at the time of verification. These
technologies are a secure way of authentication because data of both technologies are unique,
cannot be shared, cannot be copied and cannot be overlooked, thus much safer and convenient.
(Abhijeet S. Kale, 2014)
Aadhaar as a system is already very much in support of the rising need of mobile linking to
improve the authenticity of the people in our country. Aadhar card has been made a compulsion
to link via mobiles. Adoption of Aadhaar OTP authentication has improved the mobiles services
verification, also provides API’s for necessary functions. There is also a big scope for the
Aadhaar usage through Digital Signature which is legal in India. Aahaar has also the Notification
and Payment Bridge; most government applications send notifications through (sms/email) to
Aadhaar holders. (Mobile as digital identity)
The prime objective of the UID is to provide their basic identity i.e KYR (Know Your Resident)
to the mass, especially to the financially excluded people so that they can establish their identity
to public and also the private organization across the country. By this identification the
Government can provide the services to the specific persons concern who are actually eligible to
get that services.
There has been a large need for a system like Aadhaar card system as it is evident, the transactions have
been around 8.56 billion since its inception, and the average number of authentication transactions per
day is also around 26 million per day. This shows how the need and growth of Aadhaar is what India is
dependent on and will also be the future of our country. (Introduction to Aadhaar Card)

There are many problems of connectivity and accessing the Aadhaar server for transactions and they
need to be addressed. A law on privacy protection is imperative and would enable the future of Aadhaar
by making it more trustworthy and secure. Views seem to converge particularly on the value of UID in it
bringing greater “portability” or accessibility across the country. (digital inclusion, 2015)
There are many costs and benefits of Aadhaar. Substantial benefits would accrue to the government by
integrating Aadhaar with schemes such as pds, mgnrega, fertiliser and lpg subsidies, as well as housing,
education and health programs. The benefits arise from the reduction in leakages that occur due to
identification and authentication issues. The analysis takes into account the costs of developing and
maintaining Aadhaar, and of integrating Aadhaar with the schemes over the next ten years. Even after
taking all costs into account, and making modest assumptions about leakages, of about 7-12 percent of
the value of the transfer/subsidy, we find that the Aadhaar project would yield an internal rate of return
in real terms of 52.85 percent to the government. (A cost-benefit analysis of Aadhaar, 2012)

Research Design: -

Research Methodology: - This study is exploratory and analytical in nature. Hence, survey method is
used for the study. Primary data was collected with the help of questionnaire with close ended
questions posed on the universe. Secondary data was collected from journals, magazines, reports and
websites.

Selection of Sample Size: - Samples for the study consisted of students in IMNU, friends, acquaintances
and family members since the data about the universe is not certain. We have used convenience
sampling among the universe. Our definition of convenience sample includes only one dimension that is
easy access to the sample units as we have conducted open survey and not divided the population into
any strata. The data were collected using a structured questionnaire. Data were collected by floating
questionnaire as google form online. Due care has been taken to reduce possible biases in selecting
sampling units by posing close ended questions to them. Individual responses were kept confidential in
order to encourage openness and disclosure. In addition, a thorough analysis was done for each filled-in
questionnaire to see the consistency of data provided by targeted sampling units. In many cases,
incomplete responses were found by the authors. Such questionnaires were not considered worthy for
analyses and were rejected. The questionnaire had the following dimensions: -

o Demographics of respondents like age, gender, occupation, etc.

o Perceptions about aadhaar card, UIDAI, data leaks and Government.
o Media for source of information about aadhaar card registration.
o Comfort Level regarding sharing of personal information and data leaks.
o Linking and usage of aadhaar card to various services like bank accounts, equity linked
securities, etc.

Sample Size: - Since it is an exploratory study and considering the problem of time availability for the
study, a sample size of 200 thought to be adequate one. Accordingly, 200 respondents from the target
population were approached to fill in the questionnaire. Out of 200 only 140 respondents responded
and their data is valid.

Limitations of the study: - This exploratory study has some limitations that however do not liquidate the
purpose of the study. Data for the study is collected through convenience sampling, which could be
biased and incomplete. Sampling units are mainly of students from IMNU and young people of age up to
25 years. One more limitation could be the survey group consists of young, urban and educated people.

Aadhaar is what has become the most important identification system currently in our country and is
what our future of the country is dependent on. Aadhaar offers many benefits about which many people
are still not aware such availing the benefit of LPG subsidy or getting passport in just 10 days are all
achievable with the help of Aadhaar card. Government seems to be appreciating the benefits of Aadhaar
and wants to share the same with the public, recently they also initiated online security of data through
Aadhaar linkage. From its birth till death, the 12-digit Aadhaar is going to become the most important
number for Indian residents in coming years. Nowadays you need an Aadhaar number to get a bank
account, a PAN card, to file tax returns, to apply for a ration card or open a new company. Aadhaar is
also essential for you to get government scholarships, cooking gas subsidies or for availing pension
schemes. There seems to be clear vision of the government in making it mandatory to initiate a common
platform for effectively controlling the country as whole. The vision of the government is so huge in
perspective of Aadhaar that it seems it may become the only identification system in the future for our
country.