Context matters
This article wastes time contextualizing this IT plan against the experience in the west. It would do better to compare against what has been built in India in the past 7 years.
Ever heard of something called Jan Dhan-Aadhaar-Mobile (JAM) infrastructure ? Almost every Indian adult resident has a unique ID (Aadhaar) now, 450 million new bank accounts to rural adults since 2014, 600 million debit cards called RuPay and currently ~800 million smartphone holders. There are ~925m adults in India.
Upon this, the UPI digital payments infrastructure has been built. It did 36 billion transactions in the past year, and will total ~$1.25 trillion in transactions this year. Second placed China did 18 billion transactions. UPI volume has doubled each year the past 4 years, and today accounts for 20% of M1 data and will likely overtake cash transactions in under 2 years. Pushcart vendors offer QR codes for epay.
The same infrastructure also hosts the CoWin vaccination registration and reporting platform. At the onset of Covid, the government transferred $25 billion directly into the accounts of those below poverty line. No middlemen.
Several states no longer issue paper certificates (birth, death, marriage, vaccination) but QR-based digital records. There's no interaction with anyone to bribe.
Numerous departments now have dashboards tracking progress. CoWin, rural electrification, the national piped water connection program, and more. Connecting departments together to manage coordinated activity is simply further integration of an already vast platform.
You talk about some siloed IT platform being trouble to upgrade. You missed the news about the entire transactional economy and interface to government being replaced with a far more pervasive digital interface these past 7 years.