Do you think 'Aadhaar' initiative has promoted inclusive governance and administrative credibility? Throw light.

Aadhaar and Inclusive Governance

Inclusive governance ensures that all segments of society, especially the vulnerable and marginalized, have equitable access to government services and benefits. Aadhaar has significantly contributed to this by:

• Universal Identity and Access: For millions who previously lacked formal identification, Aadhaar has provided a recognized proof of identity and address, enabling them to access a myriad of services for the first time. This includes opening bank accounts, obtaining mobile connections, and enrolling in various welfare schemes, thus fostering financial and social inclusion.
• Direct Benefit Transfer (DBT): Aadhaar-linked DBT has revolutionized welfare delivery by directly crediting subsidies and financial assistance to beneficiaries' bank accounts, eliminating intermediaries and reducing leakages. This ensures that the poor and vulnerable receive their rightful entitlements without corruption. Schemes like LPG subsidies (PAHAL), MGNREGA wages, and pensions have seen enhanced efficiency. As of October 2025, over ₹47 lakh crore has been transferred to beneficiaries through Aadhaar-linked DBT, significantly reducing leakages and eliminating fake beneficiaries.
• JAM Trinity: The "Jan Dhan-Aadhaar-Mobile" (JAM) trinity has enabled the government to reach the last mile with financial services and welfare schemes. Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts, linked with Aadhaar, have seen a substantial increase, bringing millions into the formal banking system.
• Targeted Delivery of Subsidies: By linking Aadhaar to ration cards and other welfare programs, the system helps identify and remove 'ghost' beneficiaries and duplicates, ensuring that resources are allocated more effectively to those truly eligible. This has been particularly impactful in the Public Distribution System (PDS).

Aadhaar and Administrative Credibility

Administrative credibility hinges on transparency, accountability, efficiency, and reduced corruption in public administration. Aadhaar has bolstered this credibility through:

• Elimination of Duplicates and Fraud: The unique biometric de-duplication feature of Aadhaar significantly reduces the existence of fake or duplicate identities, which historically led to siphoning off public funds. This has resulted in substantial savings for the exchequer. The government estimates that Aadhaar-driven DBT has led to the elimination of over 4.15 crore fake LPG connections and 5.03 crore duplicate ration cards (as of December 2025).
• Enhanced Transparency and Accountability: Real-time identity verification and electronic record-keeping through Aadhaar have brought greater transparency to service delivery. It allows for better monitoring of scheme performance and resource utilization, making the system more accountable.
• Streamlined Service Delivery: Aadhaar has simplified citizen services, making processes like opening bank accounts, filing income tax returns, and accessing provident fund services faster and paperless. The Aadhaar-Enabled Payment System (AEPS) facilitates digital payments and interoperability across banks, promoting financial transactions even in remote areas.
• Digital Governance Foundation: Aadhaar serves as a critical digital public infrastructure for various e-governance initiatives, fostering a more efficient and responsive administration. The Aadhaar Good Governance Portal, for instance, streamlines authentication for multiple public interest services, including healthcare, financial services, and e-commerce.

Challenges and Concerns

Despite its benefits, the Aadhaar initiative has faced significant challenges and criticisms that impact its perceived inclusivity and credibility:

• Exclusion Errors: Authentication failures due to poor biometric capture, network issues, or issues with aged biometrics have led to the exclusion of genuine beneficiaries from essential services, particularly affecting the elderly, manual laborers, and those in remote areas.
• Privacy and Data Security: Concerns about the security and confidentiality of biometric and demographic data stored in the Central Identities Data Repository (CIDR) persist. While the Aadhaar Act, 2016, and Supreme Court judgments have laid down safeguards, fears of potential misuse, data breaches, and state surveillance remain.
• "Money Bill" Controversy: The Aadhaar Act was passed as a Money Bill, which bypassed detailed scrutiny and voting in the Rajya Sabha. Critics argued this was an attempt to avoid legislative hurdles, raising questions about parliamentary due process. The Supreme Court, in its 2018 verdict, upheld the validity of the Aadhaar Act, but with certain riders.
• Voluntary vs. Mandatory Debate: While Aadhaar was initially conceived as voluntary, its linkage to various essential services and schemes has often made it de facto mandatory, particularly for availing government benefits. The Supreme Court in 2018 struck down Section 57 of the Aadhaar Act, which allowed private entities to demand Aadhaar for verification.
• Digital Divide: Despite increasing digital penetration, a significant portion of the population, especially in rural areas, still faces challenges with digital literacy and access to necessary infrastructure for Aadhaar-based services. This can exacerbate existing inequalities.

Supreme Court's Stance on Aadhaar

The Supreme Court of India has played a crucial role in shaping the Aadhaar framework. In its landmark judgment in September 2018, a 4:1 majority upheld the constitutional validity of the Aadhaar Act, calling Aadhaar a "document of empowerment." However, it imposed several conditions:

Aspect	Supreme Court Ruling (2018)
Mandatory linking for Government Schemes	Upheld Section 7, making Aadhaar mandatory for state subsidies and benefits from the Consolidated Fund of India.
Mandatory linking for Private Entities	Struck down Section 57, prohibiting private companies from mandating Aadhaar for services like bank accounts, mobile connections, or school admissions.
Data Storage	Struck down Regulation 27, limiting the storage of authentication transaction data to six months, down from five years.
Disclosure of Information	Read down Section 33(1) allowing individuals to challenge court orders for disclosure. Struck down Section 33(2) that permitted disclosure in the interest of national security without judicial oversight.
Right to Privacy	Acknowledged Aadhaar's potential impact on privacy but held it passed the 'triple test' (legitimate state aim, proportionality, legal backing) for the specified purposes.