I found this last night on Slashdot - it was to important not to blog about. "India to Put All Citizen Info into Central Database"
Reading the article in The Independent this stood out for me
The creation of the ID or Unique Identification Number (UID) was a major plank of the manifesto of the ruling Congress Party during the recent election.
India is not a western democracy where "everyone" has papers and certificates of birth. As the article highlights
"This could be used as a security measure by the government which leaves migrant workers, refugees and other stateless people in India in limbo, without access to public services, employment and basic welfare."
Our identities don't come from government - they come from our social interactions and relationships.
The other issue that comes from this is "everyone in one database" is a giant honey pot.
Unconference.net
I think you need to look at this from a different perspective. US and many other countries have had a social security number or something similar for its citizens for decades. So this is really not a big deal in that sense. In fact I think this has come too late. I guess it is better late than never.