Sabeer Bhatia Criticizes India's Aadhaar Project, Calls It An Expensive Misstep

India's Aadhaar project, initiated by the Unique Identification Authority of India (UIDAI), has been a significant investment. According to a cost-benefit analysis by the National Institute of Public Finance and Policy (NIPFP), the total expenditure on developing and maintaining Aadhaar, along with integrating it into various government schemes, was estimated to be around ₹37,186 crore (approximately $5 billion) over a ten-year period. 

Sabeer Bhatia, the co-founder of Hotmail, recently made a statement that the Aadhaar project could have been built for just $20 million. He criticized the project's reliance on biometric data and suggested that simpler, more efficient technological solutions, like video and voice print technology, could have been used instead.

Sabeer Bhatia made his comments about the Aadhaar project during an appearance on the podcast "Prakhar Ke Pravachan," hosted by Prakhar Gupta. This podcast episode was released on February 9, 2025.

 
Sabeer Bhatia criticized several aspects of the Aadhaar project during his podcast appearance.

Bhatia questioned the use of biometric data, asking, "Where is that being used?". He suggested that simpler technologies like video and voice prints could have been more effective. He criticized the technical expertise behind Aadhaar, stating, "Whoever did this is not a technologist They don’t know technology; they have never coded in their life — that’s why this problem exists.

Bhatia proposed using voice and video prints as unique identifiers, which he believed could be built inexpensively and would be more innovative.

He also compared Aadhaar to Venmo, suggesting that UPI (Unified Payments Interface) is not a groundbreaking invention.

Despite the substantial costs, the project was projected to yield significant benefits by reducing leakages and improving the efficiency of government programs. The analysis estimated an internal rate of return of 52.85% for the government.