Digital innovation in welfare delivery: a qualitative case study-based assessment of Aadhaar-based automation and rural exclusion in India

Aadhaar is a twelve-digit individual identification number involving four demographics, three biometrics and one unique numeric, which serves as proof of identity and proof of address for residents of India. India’s Aadhaar-based digital identity system has enabled revolutionized welfare delivery to targeted beneficiaries and reduced leakages. Integration of digital automation has highlighted gaps in welfare delivery, particularly in rural areas. This paper conducts a qualitative assessment of Aadhaar-enabled welfare automation and its impacts. Through in-depth interviews, focus groups, and document analysis from diverse rural districts, it investigates how Aadhaar integration has reshaped subsidy access. The paper observes the extent of rural inclusion, coverage, and leakage and assesses the efficacy of technological innovations in improving welfare access. It has been found that while Aadhaar seeding has reduced ghost beneficiaries however it has also uncovered technological and infrastructural vulnerabilities, which involve poor biometric authentication accuracy, irregular internet connectivity, banking failures, and delays, which disproportionately affect the beneficiaries, especially the elderly, women, tribal populations, and differently abled persons. The study shows the efficiency gains and exclusion challenges while highlighting narratives of inclusion and localized adaptations to mitigate exclusion. The patterns observed offer actionable insights for policymakers aiming to balance digital efficiency with equitable access.