digital divide in india essay

The Four Digital Divides

Kenneth Keniston and Deepak Kumar, editors

Introduction

by

Kenneth Keniston

In Press at

Sage Publishers

Delhi

2003

Contents

Preface and Acknowledgements

Prof. Kenneth Keniston

Andrew Mellon Professor of Human Development, Massachusetts Institute of Technology

Introduction: The Four Digital Divides

Dr. V. Balaji (with K.G. Rajamohan, R. Rajasekara Pandy, and S. Senthilkumaran)

Head, Informatics Center, M S Swaminathan Research Foundation, Chennai

Towards a Knowledge System for Sustainable Food Security: the

Information Village Experiment in Pondicherry

Dr. T.H. Chowdary

Former: Chairman & Managing Director, Videsh Sanchar Nigam Ltd.

Liberalization of Indian Telecoms: Regulation in the Era of Convergence for

Information Infrastructure and Services

Prof. Pat Hall

Computing Department, The Open University, United Kingdom

Information Technology to Support Diversity in a Global Economy

Dr. Ashok Jhunjhunwala

Professor & Head of Electrical Engineering Dept., Indian Institute of Technology, Madras

Dr. Bhaskar Ramamurthi

Professor, Indian Institute of Technology, Madras

An Update on Current Telecom and Regulation Scenario in India

Dr. P.D. Kaushik

Fellow, Rajiv Gandhi Foundation, Rajiv Gandhi Institute for Contemporary Studies

An Agenda: Electronic Governance for Poor

Mr. Harsh Kumar

Sr. EDPM, Western Railways, Mumbai

Science, Technology and Politics of Computers in Indian Languages

Dr. Rajeev Sangal (with Akshar Bharati and Vineet Chaitanya)

Language Technologies Research Centre, Indian Institute of Information Technology, Hyderabad

Collaborative Creation of Digital Resources in Indian Languages

Prof. Annalee Saxenian

Department of City and Regional Planning, University of California at Berkeley

The Bangalore Boom: Brain Drain / Brain Circulation?

Miland Priolkar and Vijay Kumar

Students, Indian Institute of Information Technology, Bangalore

Summary of Working Group Proceedings

for M. N. Srinivas

mentor and model for us all

Preface and Acknowledgements

This book began with a Workshop on "Equity, Diversity, and Information Technology (EDIT)" held in Bangalore, Karnataka, India, in December of 1999. The goal of the workshop was to explore how, if at all, new technologies of information and communication could increase social equity and strengthen cultural diversity. Our primary focus was on India, but with many comparisons to the United States and other countries. The thirty invited participants were activists, academics, politicians, administrators and journalists. With three exceptions, all were from India. (Participants and auditors are listed in the Appendix.)

The EDIT Working Group was organized by Ashok Jhunjhunwala, Professor and Chair of the Department of Electrical Engineering at the Indian Institute of Technology, Chennai, Tamil Nadu, India, and Kenneth Keniston, Professor and Director of the MIT India Program at the Massachusetts Institute of Technology, Cambridge, Massachusetts, United States of America. From the start of planning until his death just before the meeting, we were guided by the wisdom and insight of Professor M.N. Srinivas, Tata Professor at NIAS and the father of Indian anthropology. The meeting was held at the National Institute of Advanced Studies (NIAS), Indian Institute of Science in Bangalore, in early December, 1999.

To facilitate discussion and to develop a "common culture", several hundred pages of background readings were circulated to the invited members of the Working Group before the meeting. All the Working Group members prepared papers or outlines which were circulated by e-mail to the entire Working Group before the meeting. A set of questions for discussion was also circulated before the meeting. Papers were not formally read, and individual presentations were limited to about five minutes each. The result was a high degree of participation, discussion, and friendly controversy before, during and after the meeting.

The Working Group was made possible by a grant from the Ford Foundation in New Delhi to Professor Keniston, who was Sir Ashutosh Mukerjee Visiting Professor at NIAS at the time of the meeting. Special thanks are due to the officers of the Ford Foundation in New Delhi, to Professor Roddam Narasimha, Director of NIAS, and to Major General Paul, Comptroller of NIAS, for hospitality, a superbly organized meeting, excellent accommodations, and legendary South Indian food.

Deepak Kumar has subsequently brought to editing these papers his broad knowledge of information technology in India, his finely-honed skills as a writer, and his deep commitment to equity and diversity. My able assistant, Mahesh Kumar, D.P., did heroic service in single-handedly typing and sending the voluminous correspondence involved in organizing the meeting.

Many papers were presented to the Working Group; those published here were chosen to illustrate the diversity of views at the meeting and a variety of issues relevant to thinking about the Digital Divide. Given the time between the meeting and publication, all of the essays by original authors were returned to the authors for updating. In addition, because of the importance assigned to the issue of regulation, two essays on regulatory issues were commissioned: those by Dr. Chowdary and Professor Jhunjhunwala.

No attempt has been made to provide a comprehensive bibliography. At the end of the essays, however, a number of books and essays are listed which will provide an interested reader with additional insights into the issues raised here. The website www.bytesforall.org provides the best access to South Asian projects that use information and communication technologies for the common man: this site also provides access to its own archives. Finally, the interested reader with access to the Web browser, "Google", will find that entering the phrase "digital divide" into that browser will produce many hundred thousand "hits", almost all of which are relevant to the topic of this work.

Kenneth Keniston

Bangalore, Karnataka and Cambridge, Massachusetts, September 2002

Introduction: The Four Digital Divides

Kenneth Keniston

Massachusetts Institute of Technology

In the last decades, the world has begun to undergo a new technologically-driven revolution, allegedly leading toward what is commonly called "the Information Age." Impelled by the phenomenal proliferation of computers and information devices, closely linked to an explosion of processing and access speeds, ever-lowering costs of memory and other critical components, convergence of images, sounds and writing in one digital medium, and propagated by a worldwide network of satellites and broadband fiber optic cables, this Information Age already is a reality to millions in all countries of the world. To be sure, this revolution is part of the long-term development of electronic communication technologies that includes: in the nineteenth century, the telegraph and telephone; in the mid-twentieth, broadcast media like radio and television; more recently, networks like Ernet in India or Ethernet in the U.S. But the last two decades have seen an explosive and unprecedented growth in these commonly called 'information and communication technologies (ICTs).'

The revolution has been as dramatic, rapid, and far reaching as the agricultural revolution, the first industrial revolution (around factory production and the steam engine), and its sequel, based on the chemical and electrical industries. What is remarkable about the current 'information technology' revolution is the extraordinary rapidity of change it encapsulates. For example, it took at least a century before the printing press touched 50 million individuals. It took 38 years for radio to reach the same number, and thirteen years for television. But the World Wide Web, in only four years, exceeded the 50,000,000 mark. Never before has a communications revolution spread so rapidly.

Like all technological revolutions, this one has inspired optimistic hopes and fantasies. It is said that the 'Digital Age' has brought (or will soon bring) transparency of government, rationality of markets, universal access to information, the riches of the world's many cultures for all, formation of new international communities, availability of life-and health-enhancing information to ordinary people throughout the world, and finally (it is implied), blessings of democracy and prosperity for all the world's six billion citizens.

Our purpose of this volume is to ask how, if at all, modern ICTs can fulfil this promise, especially for the eighty percent of the world's people in developing nations.

For despite all utopian dreams, the Information Age has so far touched only a tiny minority of the world's population. If we define household access to the World Wide Web as a criterion for joining the Information Age, less than 5% of the world's population of six billion had gained access by the year 2002 (doubtless, virtually every reader of this book belongs to that group). The question is how and whether the Information Age can improve the condition of life for the other 95%.

That question suddenly began to be asked with increasing urgency as the "digital divide" became headline news, starting about 1999. Alongside the optimism and hype surrounding the Information Age, new voices noted that most people, in most countries of the world, remained completely untouched by this revolution. Surveys revealed massive differences between access to ICTs in economically developed countries like the United States and Australia -- differences between the rich and the poor, whites and non-whites, educated and the non-educated. Discrepancies in ICT access between the so-called "North" (industrialized and wealthy nations like the U.S., West Europe, and Japan) and the "South" (virtually all developing nations) are massive, overwhelming and apparently increasing. Our first task is therefore to try to understand the nature of this "digital divide" or as I will argue, the four digital divides that separate the information-rich and -poor -- that is, the divides between those included in and excluded from the Information Age.

The Four Digital Divides

The "digital divide" is widely regarded as a unitary phenomenon. And as a first approximation, it is indeed useful to distinguish, in a general way, between the rich and powerful who are part of the Information Age and the poor and powerless who are not. But viewed analytically, there is not one, there are three digital divides -- and emerging in many nations a fourth.

The first divide is that which exists within every nation, industrialized or developing , between those who are rich, educated, and powerful, and those who are not. For example, income and education in the United States distinguish dramatically between those who own computers and those who do not, as between those who can access the Internet and those who cannot. In the United States, where household telephone penetration is about 95%, in 1999 households with incomes over $75,000 (roughly, the top 10%) were twenty times more likely to have Internet access than those in the lowest income brackets: 80% of the rich and 5% of the poor had access to the Internet. If we analyze home ownership of computers, rich households were nine times more likely to own one. If we compare Americans with four years or more of university with those who have six years or less education, computer ownership figures are 69% versus 8% and the Internet access percentages are 49% versus 3%. Similar results were found in a survey in Australia.

As of mid 2002, no comparable studies have been conducted in India, where telephone connectivity is extremely low (about 3%) and the installed base of computers and Internet connections even lower. But the overall pattern is clearly similar to that in America. As of early 2002, there were approximately six million computers in India, of which perhaps two-thirds were in businesses, schools, government offices, etc. -- leaving, at a high estimate, two million computers in households. In mid- 2002, there were probably about a million Internet connections in India, again most of them in institutional settings rather than individual households. A figure of 1,000, 000 Indian Internet-connected households (out of about 200,000,000 households) in 2002 would be on the high side.

Assuming three computer and Internet users per household, we arrive at a figure of six million Indians who have computer access at home and perhaps three million who have Internet access. (This compares with well over 70% household computer saturation and 60 % household Internet connection in the U.S. in 2002.) In India, then, in mid-2002, with a billion population, less than 1 % has home access to computers, and at most 0.5% of the population has home access to the Internet.

Who are the 'connected' in India? Obviously, as a group, they are a small, rich, successful and English-speaking minority. For all of its ancient cultural wealth, despite the persistence of old elites and the emergence of new elites, India remains one of the world's poorest societies. Details are known to all Indians and are available in any almanac: hundreds of millions go to bed hungry; more than 40% of the population are illiterate; tens of millions of children are not in school; as many as 50% of all Indian newborns are born below ideal birth weight; preventable diseases cause millions of deaths; and in many regions, corruption is widespread and stands in the way of well intentioned programs reaching their intended beneficiaries. Telephone connectivity in India is about 3% and will not rise much above that level unless the cost of connections (the so called 'last mile' cost) can be lowered. The obstacles are economic, as Ashok Jhunjhunwala notes in this volume: not much more than 3% of the Indian population can afford to pay the real costs of a new telephone line. This group is, by definition, the most affluent group in India, concentrated in the major cities where connections are most widely available. Despite the success of PCO/STD/ISD booths (manned pay phones) in cities and villages, and despite repeated government promises to provide telephone connections to all of India's 700,000 villages, many Indian villages remain without any. As a result, most rural Indians have never made a telephone call. In short, there can be no doubt of a massive digital divide in India based on income, related to education and urban residence, and correlated with economic, political and cultural power.

A second digital divide, less often noted, is linguistic and cultural. In many nations this divide separates those who speak English or another West European language from those who do not. But even in the United States, where well over 95% of all inhabitants speak fluent English, there are large differences in access to ICTs among different ethnic and cultural groups. For example, in 1998, Asian American households (largely of South Asian or South Pacific Asian extraction) had 55% computer ownership, white Americans had 52%, while Americans of Hispanic origin had 25% and blacks 23% respectively. An even larger gap separated Asian Americans and whites from blacks and Hispanics with regard to Internet access.

It might be argued that these differences in the U.S. are the simple corollary of the income disparities between Americans of European or Asian origin and Americans of African or Hispanic origin. This inference is only correct in part. For example among American households with annual incomes below $35,000 (below the median), in 1998, Internet access among white and Asian American families was more than three times greater than among black or Hispanic families. Similarly, among college students, 80% of white students but only 40% of black students had Internet access. I know of no study that examines the 'culture' of American Web sites; but few sites in the U.S. specifically address the interests, concerns or assumptions of African Americans or Hispanic Americans, while most take for granted the prevailing outlook of the dominant, English-speaking 'Anglo-Saxon' culture.

These cultural disparities, dramatic in the US, are far more notable in India, where they are compounded by linguistic issues. An estimated 60-80% of all Web sites in the world are in English while almost all the rest are in one of the major 'Northern' languages like Japanese, German, French, Spanish, Portuguese, and increasingly Chinese. But in India, like the rest of South Asia, only an estimated 2-10% of the population speaks fluent English while the rest (more than 900 million Indians and about 1.2 billion South Asians) speak other languages.

For Indians who speak no (or little) English, the barriers to the Information Age are almost insuperable. All widely-used operating systems require some knowledge of English or one of the 'Northern' languages. Thus, in practice, unless Indians know English, which most Indians do not, no matter how wealthy, brilliant, educated, prosperous or motivated they may be, computer use and Internet access are effectively out of the question. The result is a self-confirming prophecy: since there is so little software in any language other than English, virtually everyone in South Asia who uses computers knows English. Therefore, software manufacturers can argue - not incorrectly - that 'there is no market' for Indian language software.

Of course the 50 or so million Indians who speak fluent English by no means constitute a representative sample of the Indian population: they again tend to be prosperous, urban, highly educated, concentrated in technical fields. They are, in a word, members of the Indian elite, where English is the lingua franca. For the great majority of Indians, however, computers are linguistically inaccessible and therefore useless. As Professor Vijay Chandru of the Indian Institute of Science commented, half seriously, at the 1998 conference BangaloreIT.com, 'The reason Indians don't have computers is because they are so smart. What can the average Indian do with a computer?'

To linguistic inaccessibility in India is added the absence of culturally relevant content. The number of Web sites in 2000 in India is small in any case, but the number of sites in Indian languages is miniscule. To be sure, a few gifted programmers are attempting to change this, and sites are beginning to appear in languages with vast populations of mother tongue speakers like Hindi, Bengali or Tamil. But to all intents and purposes, the many, ancient, rich, and sophisticated cultures that make up India remain almost invisible on the Web. And absent good, low-cost Indian language software, the technical challenges of producing a Website in Telegu, Tamil or Hindi guarantee that these cultures will remain almost invisible. What is remarkable is that a handful of dedicated Indian programmers have actually begun to overcome these challenges.

In short, related to the digital divide that springs from wealth and power is a second divide related to the dominance of the English language and of what is loosely called 'Anglo-Saxon culture.' Most Web sites in the world originate in the United States, in predominantly English-speaking nations like Great Britain, Canada, Australia and New Zealand, or in the English-speaking populations of nations and city-states like India, South Africa, Singapore, and Hong Kong. A few writers have spoken of "American cultural imperialism" on the Internet; a less tendentious phrase would be "Anglo-Saxon linguistic and cultural hegemony."

The third digital divide follows inevitably from the first two -- it is the growing digital gap between the rich and the poor nations. The 1999 United Nations Report on Human Development devotes much of a chapter to the widening gap between the information-rich nations of the North and the information-poor nations of the South. At one extreme are the United States and the 'Nordic' countries like Sweden, Germany, Finland, and Iceland, where household telephone connectivity is well over 90%, computer saturation is over 50%, and home-based Internet connectivity averages over 50%. At the other extreme lies most of Africa, most of South America, South Asia, China, Indonesia, and so on -- the 80% of the world where telephone connectivity is 3% or less (less than 30 million/1 billion in India), home computer ownership is 1 - 2% and Internet connectivity less than half of that.

The reason why the digital divide between nations is increasing seems clear. If widespread access to ICTs gives a nation an advantage, and lack of access leaves it at a disadvantage, then the maxim, "To those who have shall be given" applies with special force to the international digital divide. The international disparity in access to ICTs is of course an aspect of - indeed a reflection of - other disparities between rich and poor nations. But insofar as ICTs are themselves enabling, facilitating, and wealth-creating, the international divide in information technology widens the already great gulf between North and South.

To these three digital divides we can add, in countries like India and America, yet a fourth: the emergence of a new elite group, which can be called the "digerati." By "digerati" I mean the beneficiaries of the enormous successful information technology industry and the other knowledge-based sectors of the economy such as biotechnology and pharmacology. Time and again in India, for example, brilliant graduates of Indian Institutes of Technology or major engineering colleges and universities who chose to concentrate in the natural sciences, mechanical engineering or chemical engineering comment that their equally gifted classmates who entered computer science or biotechnology are now earning many times their incomes and living in an altogether different way.

Unlike older Indian elites, the privileges of the new digerati are based not on caste, inherited wealth, family connections or access to traditional rulers, but on a combination of education, brainpower, special entrepreneurial skills and ability to stay on the "cutting edge" of knowledge. The lifestyle of the digerati tends to be cosmopolitan: they provide the clientele for the boutiques, the coffeehouses, the travel agencies, the pubs, and the international airways that whisk them to vacations or assignments in Singapore, London, Zurich, Mauritius, San Jose or Kathmandhu. On the outskirts of Chennai, Poona, Bangalore, Mumbai, Delhi, and Hyderabad luxury apartments are rising to house this new group. Although initially concentrated in information technology, this new digerati are also found, to varying degrees, in the biotech, pharmaceutical and other high-tech areas. In India, their salaries are still relatively low by Western standards, but, with annual salary growth rates of over 20% for the last five or ten years, far above those of their otherwise equally educated classmates in India.

In America a similar phenomenon is visible in areas like Silicon Valley, Austin TX, the Research Triangle of North Carolina, and a dozen other "high-tech" areas. Before the market correction of "Dot-com" stocks in 2000, it was said that in Silicon Valley, 64 people became millionaires every day. The world of high-level programmers, systems analysts, entrepreneurs, and venture capitalists has a culture, a life style, and a level of affluence that distinguishes itself from older American elites. Annalee Saxenian's paper in this volume suggests that a similar culture may be emerging with a distinctive Indian flavor in cities like Bangalore. The emerging digerati are to be found not only in nations like India and the U.S., but in Israel, Ireland, Taiwan, and other countries or city states with vibrant information industries. Of the prosperity of this elite there can be no doubt; similarly, there is little doubt that given worldwide labor shortages in the information technology industry, this prosperity will continue and increase.

The critical question about the fourth digital divide, however, is whether the prosperity of this new digital elite spreads to the rest of society, especially to urban poor and to rural villagers, or whether it creates an increasingly separate, cosmopolitan, knowledge-based enclave. In India, in the immediate surround of the IT industry in cities like Bangalore, there are of course visible ancillary benefits to workers in supporting industries: to the builders of the new apartment buildings, the employees of the boutiques, coffee houses, and shops, the owners of the travel agencies the digerati patronize, and the drivers and servants whom they employ. But it is a long way from these IT-related enterprises to life in rural villages less than 100 km. away. Similarly, whether the newly-minted millionaires of Silicon Valley of the American IT industry will improve the conditions of life of the laborers who actually make the computer chips on which the millionaires' prosperity is partly based is a moot question. In neither country has a systematic effort been made to share the wealth generated by the digital revolution.

The point is that "the digital divide" is really at least four divides, all closely related. The first is internal, between the digitally empowered rich and the poor. This gap exists in both the North as well as the South, although the baselines differ. The second linguistic-cultural gap is largely between English and other languages, or more generally, between "Anglo-Saxon culture" and other world cultures. The third is the gap exacerbated by disparities in access to information technology between rich and poor nations. Finally, there is the emergent intra-national phenomenon of the "digerati", an affluent elite characterized by skills appropriate to information-based industries and technologies, by growing affluence and influence unrelated to the traditional sources of elite status, and by obsessive focus, especially among young people, on cutting edge technologies, disregard for convention and authority, and indifference to the values of traditional hierarchies.

Can ICTs Help Bridge the Digital Divide?

Several years ago, when I mentioned to the great scholar of India, the late Myron Weiner, my interest in information technology in India, he asked whether I meant the use of computers in Indian schools. I allowed that this was indeed an interest. He burst out, "Are you insane? Don't you realize that there are 60 million Indian children who are not in school at all? For the cost of a computer, you can have a school."

Weiner's response underlines the most important question for India, for America, and for the world about information and communication technologies and the digital divide. When hundreds of millions of people lack basic education, essential health care, adequate nutrition, or simple justice, how can investment in ICTs be justified? When resources are limited (as in fact they always are) should they not be allocated to meeting more "fundamental" needs like nutrition, health care, education, and the effort to provide a non-corrupt system of governance and law?

This question is well stated in the introduction to the "Workshop on Information and Communication Technology for Rural Development in India," led by Professor Subhash Bhatnagar and held at the Indian Institute of Management-Ahmedabad in March 1999:

The value of IT for rural development is accompanied by this dilemma for decision makers and multilateral funding agencies: should the very limited resources for rural development be applied to developing IT capacities, or are they best used for other high priorities such as schools, hospitals, and dispensaries? Truly, there is a grave concern about possible wasted, poorly utilized, or otherwise unspent resources in IT applications.

In developed countries like the United States as in developing countries like India, there are huge reservoirs of unmet basic human needs. In America, tens of millions lack basic health insurance and almost 20% of all children live in officially defined "poverty"; in India, hundreds of millions go to bed hungry every night. In every nation, energy and resources committed to the deployment of ICTs among the poor and/or non-English speaking might alternately (and perhaps more constructively) be used for food, health, housing, literacy, and other more critical needs.

Admittedly, in the first years of the twenty-first century, ICTs have become glamorous, interesting, and fashionable. The "digital divide" is the subject of almost daily reports and conferences by international agencies, national and local governments, NGO's, and private foundations. But since when have desperately poor people had an urgent 'need' for a computer or an Internet connection? How can we reconcile major commitments of energy and funds to ICTs when more basic human needs remain unfulfilled?

The conventional, even formulaic, answer to the alleged conflict between investment in ICTs and investment in meeting basic human needs is, "We need to do both. There is no contradiction between ICTs and other critical human and social goals."

But this formula, however frequently invoked, needs to be examined critically. A beginning is to rephrase the question. Many discussions appear to assume that extending ICTs to larger segments of the population is good in itself. They speak of "digital empowerment", of a "computer savvy" generation, or of a "Web-enabled" society. But further questioning almost always reveals that ICTs are invariably seen as instrumental in meeting other human needs: needs for food and a job, business needs, medical needs, needs for export earnings, needs for useful information, needs for transparency of government, and so on. A beginning of wisdom thus requires recognizing that ICTs are rarely goods in themselves but rather instruments in the pursuit of other goals. People have lived well, wisely, healthily, hopefully, happily, and generously for millennia without ICTs; they still do. If ICTs are useful at all, it is as a potential instrument in meeting other human, social, cultural, economic or political purposes.

If the problem is thus re-defined, the question, 'How can ICTs being extended to larger segments of the population?' is transformed into, 'How, if at all, can ICTs be used to ensure the fulfillment of essential human needs and to further basic human rights?' In this formulation, the qualifier 'if at all' is essential. It allows the possibility, for example, that the answer to Professor Weiner's and Professor Bhatnagar's question may be that available resources should better be used to build schools and hire teachers rather than supply a limited number of urban or rural schools with computers and Internet connections. Or, to be more precise, it suggests that ICTs should be deployed in education if and only if they are the most effective way of extending quality education to larger segments of children and adults.

Lessons from India

The Workshop on "Equity, Diversity, and Information Technology", held at the National Institute of Advanced Studies at the Indian Institute of Science in Bangalore, was an effort to address the several digital divides. Bringing together thirty activists, professionals, and scholars, largely from India, the two-day meeting was preceded by the distribution of almost one thousand pages of materials on the digital divide and Indian ICT projects, and by papers or outlines by the participants. No attempt was made to reach an explicit consensus or to produce a manifesto: the papers collected in this volume reflect the range of perspectives and views represented at the meeting.

But from the preparations for the Workshop, from two days of intensive presentations, debate, and discussion, and from correspondence following the Workshop, a number of lessons can be drawn. Taken together, they reflect what I take to be an unstated consensus among the participants as to the ways in which ICT's might be used to increase equity and promote diversity. (Obviously, others would state these points differently; while still others might disagree with them.)

Implicit in this principle is a critique of the frequent assumption -- whether by international agencies, national governments, or non-governmental organizations - that the most creative use of ICT's is to "put a computer in every village", "wire urban slums", or "introduce computer-based education." Commenting on the claim that the introduction of the Internet had enabled villagers who lived 30 miles from the port where their produce was traded to learn about the latest prices at that port and thus to bargain more effectively, one of the participants in the Workshop queried, "What was wrong with a bicycle?" In other words, introducing complex, expensive ICT equipment and infrastructure solely to achieve a result that could be obtained in a four-hour bicycle ride merely reflects the irrational bias that ICT's possess some magic not otherwise available.

2. The most creative uses of ICT's in development may not entail computers, e-mail, or Internet access, but rather the use of other computer-based technologies, including embedded chips, satellite based information, etc. in order better to meet local needs. Modern information technologies should not be simply equated with text manipulation, Web page construction, sending e-mail, e-commerce, or surfing the Net. Increasingly, ICTs have a variety of other uses and embodiments.

Several examples illustrate the point. India is the world's largest producer of milk and dairy products. The cooperative movement of dairy producers in Gujurat is well organized and effective. Traditionally, individual milk producers brought their milk to a central collection point where payment was based on volume and butterfat content. Volume was easily ascertained, but assessing butterfat content was a complex process, opaque to the producer and requiring lengthy delays before payment. Complaints and charges of fraudulent assessment were frequent.

The solution involved the use of partially automated equipment. Initially, expensive imported, totally automated butterfat assessment machinery was introduced into collection centers. The equipment, of European manufacture, functioned poorly in Indian conditions. A second round involved local design of computer-based assessing equipment less sophisticated, less expensive, partially automated and requiring some human intervention, which nonetheless produced accurate butterfat readings in a few minutes. This computer-based equipment produces a final output that automatically combines the volume of milk with butterfat content to yield a payment chit immediately cashable by the farmer. The new process was transparent; delays and complaints diminished; satisfaction increased.

Another example of creative use of sophisticated ICTs involves fishermen on the Andhra Pradesh coast of the Bay of Bengal and the Kerala coast of the Arabian Sea. In both areas, scientists associated with the Indian Space Research Organization (ISRO) download from satellites information on ocean temperatures. Ocean temperatures help predict where fish will be most likely found offshore. ISRO scientists translate the digital satellite information into maps of the offshore fishing areas, which are transmitted by telephone or fax to the coastal regions, in turn increasing the probability that fishing expeditions will produce profitable results. Here, sophisticated satellite technologies are placed in the service of local fishermen to improve their livelihood

Other examples were discussed in the workshop: for example, the "Honeybee" project in Gujurat, with its original concept of 'knowledge rich, economically poor' rural people and its use of Internet to disseminate local knowledge and enable local communities to profit from this dissemination. Another prime example was the use of cell phones, both in Gujurat and in the much-publicized Grameen Bank cell phone work in Bangladesh. In all of these cases, ICT's were used to promote otheractivities -- to speed payment, provide information about fishing, disseminate local technologies and reward their inventors, connect rural villagers to the world and, in Bangladesh, improve the status of local women. Moreover, technologies were chosen not because of their sophistication or cutting edge quality, but because of their practical utility in meeting the needs of local people.

3. ICT projects must build on an assessment of local needs, as locally defined by local people. There is a frequent tendency of well-wishing government officials, officers of international aid agencies, and workers in NGOs to assume that they know what is needed at the grassroots. Given the widespread enthusiasm for computers, Internet, Web, e-commerce, etc., the promise is often made to place "a computer in every village", scatter "info kiosks" throughout the state or nation, or establish "universal computer-based education." Often, however, these projects are not based on any real assessment of local needs. Furthermore, they assume a uniformity of needs in distinct localities with different populations, economic bases, cultures, social organization, and levels of need. Finally, they take for granted that providing computers and/or Web connections will (without additional efforts) provide increased social justice, enable local peoples to sell their products in the world market, feed the hungry, meet unmet medical needs, and so on.

The projects of the Swaminathan Foundation, reported in this volume, illustrate a commendable responsiveness to local needs. Before introducing new technologies of communication and information in Pondicherry, Dr. Balaji and his co-workers spent countless hours ascertaining whether there were in fact kinds of information the villagers needed. They found, for example that women wanted information about childcare, health, child rearing, education, and reproductive control; men were interested in information on crops, prices, and economic life. Armed with this knowledge, the Swaminathan group was able to craft Internet uses that were responsive to the questions asked by the villagers. Nor did they assume that sophisticated Web sites or even ICTs were invariably the best way to provide needed information. For example, information about reproductive control was better provided to women in small group discussions with nurses than by clicking on a Web site.

Similarly, the transparency of government discussed by Dr. Chandrashekar in Andhra Pradesh, like the positive role envisioned for ICTs in governance in Uttar Pradesh by Dr. Kaushik, start from the wish of rural Indians to understand their basic rights, privileges, and opportunities. The massive scheme at one time proposed by World Tel, Reliance and the government of the state of Tamil Nadu planned constructing not only a state-wide infrastructure of fiber optic cable but -- more important --libraries of local content in the Tamil language that build on the work of the Swaminathan Foundation, addressing such issues as crops, pests, literacy, and health needs. Access to information is defined as an instrument to increase economic prosperity and to improve health.

4. Local language and local content are essential. The interventions discussed above underline another point often neglected in schemes that propose "wiring the masses" -- namely, the critical importance of local language and local content. When Dr. Chandru commented that Indians are too smart to waste money on computers, he was referring in part to the lack of local language software and local culture content. Absent the kind of content that could be created in Telugu, Hindi, Marathi or Tamil, even villagers wired with broadband connections to the Internet will find virtually the entire content of the Internet incomprehensible or (if comprehensible) irrelevant. Patrick Hall sees India as a major potential contributor to worldwide needs for software localization. The dream that people in the bottom economic half of any society today could eventually learn from the web and communicate with friends, family, and intimates using e-mail is illusory unless they are literate, unless accessible software is available in the languages they speak, or unless a means is devised for the illiterate to use e-mail in their own languages.

The papers by Harsh Kumar and Dr. Sanyal in this volume describe ongoing efforts to provide precisely the kind of affordable local language software essential if computers and computer-based communication is to be effective. Elsewhere, I have written about some of the factors that stand in the way of developing accessible local language software for the almost 25% of the world's population that lives in South Asia. The year 2000 survey of the market for local language software, jointly sponsored by the Manufacturer's Association of Information Technology and the Indian Institute of Information Technology-Bangalore, highlights both the potentials of local language software and the many obstacles that stand in the way of its widespread development and use.

Even less often discussed than local language software is the fact that if ICT's are to be effective instruments in development, local language software is only a means to the end of creating local content. To be sure, a gifted Indian elite speaks impeccable English and provides the highly skilled professionals on which the thriving Indian information technology industry depends. But the remaining 95% of the population of South Asia, if they are ever to benefit from, let us say, e-commerce and the Internet, require not only content in their own languages, but content premised on the assumptions and achievements of their cultures, at best deepening and broadening exposure to their cultures' present and past wealth. As Mohan Tambe and his group in Bangalore showed in developing local content for cable-TV-based Internet, it is imminently possible for India's engineers, writers, musicians, artisans, and designers to create lively sites in local languages, reflecting local culture. Such work needs to be multiplied in every state and nation of South Asia, and in all other cultures where the prevailing "Anglo-Saxon" cast of the Web may be alien, incomprehensible, or even perceived as threatening.

Illustrative here is a project funded several years ago by Apple Computers in Rajastan involving the computerization of record keeping by local health care workers. A year's devoted effort on the part of three computer experts went into adapting the (now defunct) Newton hand-held computer to the record-keeping requirements of Rajastani health survey takers. A thoughtful report describes the obstacles and successes of the project, after which the three computer experts left. After its initial year of funding the project disappeared, to be taken up again only in 2002, by CMC in Andhra Pradesh.

Many American projects appear to have suffered, or to be bound to suffer, a similar fate. For example, several years ago a front-page report appeared in The New York Times about the 'success' of a project using computers to assist the education of children of migrant crop harvesters in the United States. It was illustrated with a photograph of a happy young woman, apparently of Latin American origin, seated smiling at her computer. Only at the end of this positive account was it noted that critics questioned the per capita cost of the project, which was USD $7,000 per pupil. Unstated was the fact that for about the same per pupil cost, one full-time teacher could be provided for every seven students. Once the initial support for this project disappears, its survival seems in doubt. A similar fate may have befallen efforts reported informally by a high official in the Department of Education in Delhi. In the late 1980's, he said, his department experimented actively with the use of computers in Indian schools. Asked what had happened to this intriguing work, he said that the results had been turned over to NGOs. Asked whether there were any internal reports, he said probably there were, but they were official documents and not publicly available. Asked which NGOs had continued the work, he did not know.

Several experiments, however, suggest that some grassroots projects can indeed sustain themselves financially. The Grameen Bank work with cell phones in Bangladesh, like the parallel work reported by Rekha Jain in Gujurat, indicates that cell phones may be an economically viable form of communication for some users in rural areas. As Jain points out, prosperous Indian villagers are willing to pay additional modest sums for the convenience of communication access through cell phones. Initial reports of the Grameen Bank cell phone works in Bangladesh reach a similar conclusion, although researchers have suggested that the financial sustainability of the Bangladeshi project is dependent on the particular telecom regulatory structure of that nation, and thus not be universally generalizable.

None of the participants in the workshop objected to projects with high initial costs, to experimental projects, or to projects with a subsidized developmental phase. No one insisted that ICT projects must break even or be profitable at the very beginning. On the contrary, especially when so little is known about how to use ICT's effectively, start-up funds, subsidies, and experimentation paid for by governments, NGOs, or private foundations are probably essential. The real lesson is different: a critical part of all ICT projects must be planning for long-range economic sustainability (or long range financial support) - once the experimental phase of the project is over.

These proposals are obviously to the good. But the experience of the last decade suggests that only a few of the projects elegantly outlined, carefully conceptualized, and disseminated in glossy booklets have so far made much difference on the ground. Like promises to achieve "total literacy within five years" or to "wire every village" -- promises repeated with each Five-Year Plan -- many projects by international agencies, government agencies, and international or national NGOs so far have more reality in the realm of bureaucratic documentation than in the lives of their intended beneficiaries. The Clinton Administration, for example, boasts that tax credits and direct benefits of USD $2.6 billion have been aimed at closing the "digital divide". New efforts to 'computerize every school' or to close the 'ethnic gap' (e.g., between blacks and whites) are constantly publicized. These projects have benefits, many in the intended direction. But despite rhetoric and funding, the digital gap in the United States between rich and poor, black and white, remains.

The obvious danger, then, is the creation of a national, international and/or private bureaucracy of high-minded "digital divide" planners, most of whose energies and funds go to attending international conferences or designing projects. The critical observer must learn to distinguish between promises on the one hand and on-the-ground achievements on the other. Unfortunately, the former threaten to be more numerous than the latter.

But the boom in Bangalore is related only in very complex and indirect ways, if at all, to the conditions of life of the average Indian. For example, a recent economic survey of the state of Karnataka, whose capital is Bangalore, found Karnataka as a whole still among the poorer of Indian states, with an annual growth rate apparently untouched so far by the success of the Bangalore IT industry. Similarly, the flourishing of Silicon Valley (and a dozen other sites of concentrated electronic development) does little, at least in a direct way, to diminish income inequalities in the United States or to provide medical care for those currently uncovered by insurance.

Yet in popular discussions, concern over the "digital divide" often turns quickly toward proposals for increasing the growth of the IT business, or toward providing new opportunities for education in programming for young Indians and Americans. The unstated assumption is that the software export earnings of India translate into improved conditions for the average Indian; that successful IPOs in Austin Texas improve the lot of the poor in the United States; that there is a transfer of prosperity from the buzz of Bangalore to the itinerate laborer in Bihari; that the wealth of the entrepreneurs in Silicon Valley benefits the migrant workers who harvest lettuce a few miles away.

In fact, however, the opposite could be true. The experience of developing nations like Brazil suggests that without active steps to prevent a widening gap between the rich and poor, rapid development of technology sectors may increase that gap. Training software engineers and programmers is of course desirable, and is done well in India by the IITs, by many engineering colleges, and on a massive scale by firms like NIIT and Aptech. But it bears no necessary relationship to bridging the digital divide within India. The only certain fact is that such steps increase the numbers of individuals on the top of the divide, growing the ranks of the digerati but without necessarily affecting the mass of the population.

In general, the relation of increasing prosperity for the affluent sectors of society to the economic conditions of the less privileged sectors is complex, over-determined, and varies from nation to nation. In the United States, more than twenty years of national economic policies based on the "trickle down theory" ("the rising tide raises all ships") were accompanied, until very recently, by stagnant or declining real wages for those in the bottom economic quarter of the population and by rapidly rising incomes for those in the top: the income gap widened for almost a quarter of a decade.

Perhaps a more plausible theory than "trickle down" might be "pour down": namely, that rising prosperity for privileged groups can benefit the disadvantaged if -- and only if -- public and private policy effectively redistributes at least some of the growing wealth of the already wealthy. Here, the efforts of Timothy Gonsalves in Ooty provide an Indian example of a successful effort to move the prosperity associated with the software capitals of India to a small town in a more remote region.

Like all the others, this problem is transnational. Senator Daniel Moynihan, for a time a cabinet member in the administration of U.S. President Richard Nixon, once described the American "War on Poverty" of the 1960's as a "welfare scheme for the professional classes". His point was that the poor benefited relatively little but their "helpers" -- middle-class professionals, academics, professional members of NGOs, social workers, and so on -- benefited greatly. Dr. Kauskik's observations in this volume of the failure of efforts to democratize the panchayats in northern India points to a parallel process in a very different context. The work of P. Sainath and others documents how often well intentioned efforts to help the needy in India are appropriated by those who already possess the most power, privilege and influence: e.g., funds appropriated to build new roads for the poorest members of society end up being used to improve the roads that serve the upper castes.

The failures of well-intentioned programs are at times, of course, the result of deliberate and criminal diversions of funds and projects away from their intended beneficiaries. But at other times, as in the case of the American "War on Poverty", the ground plan of the project itself ends up allocating maximum resources to intermediaries and few to the most needy. A similar case in India is irrigation projects involving water that can be accessed only by large land owners with extensive holding in flat lands, but that offer no benefits to poorer farmers occupying less fertile ground on higher terrains. The cited MAIT report on the market for Indian local language software notes dust-covered computers sitting unused in district offices, even though equipped with local language software. The reason for their disuse is not criminal corruption, but the fact that possession of a computer is in many district offices seen not as a utility but as a mark of prestige. And in any event, typing one's own mail on a computer is commonly taken as a token of low status. Such projects obviously failed to provide local district officers with the technical education necessary to enable and persuade them to use computers to decrease their work-load and improve the quality of their work.

In short, it is not enough simply to ensure that a village has electricity and telephone connections, or a computer for the use of the poor. Equally important are efforts to empower the poor so they can in fact utilize the computer to improve their lives. The effectiveness of projects involving ICTs to bridge the digital divide is inseparable from parallel efforts to increase justice, legality, transparency, and equity.

Admittedly, setting up a clearinghouse or network of inter-communicating projects is less dramatic than going to the field and using electronic technologies to help people meet vital human needs. But given the prevailing absence of successful models, and given the great difficulty in devising projects in which ICTs demonstrably enhance the quality of life for ordinary people, establishing networks of communication and evaluation among ICT projects with parallel goals should be among the highest priorities.

To cite one example, decision makers in national capitals may decide to mandate the use of proprietary codes imported from overseas for wireless communication. If these codes are closely held or very expensive, the promise of local wireless communication engineered by indigenous engineers will remain unfulfilled. Either the mandated code is unavailable or, if it is available, using it requires paying exorbitant licensing fees. Another example mentioned in the Working Group is making available for communication purposes existing unused copper cables, which link thousands of villages and are owned by Indian Railways, for purposes of telephone and Internet connection. Doing so could extend the availability of ICTs to millions of Indians at low cost. But the decision to allow access to these copper lines is a political and economic decision which can only be made at the Centre, not by local communities.

A third example of the importance of regulatory decisions in determining access to modern ICT's was discussed at the Workshop by Ashok Jhunjhunwala. He noted that at that time the policy of the Indian Government was to license Internet Service Providers if they agreed to provide services to an entire state. But recalling the success of local satellite television cable providers who serve limited areas, usually within walking distance of their satellite dishes, Jhunjhunwala imagined locally-based ISP providers funded by local capital, serving small numbers (100 - 500) of users and providing personal services and bill collection. This model, however, would be made impossible by government regulations that require the massive capital investments necessary to cover an entire state. Changing these regulations could open the ISP market to tens of thousands of energetic young entrepreneurs in Indian small towns and cities.

The close connection between regulatory decisions and increasing access to low-income users is rarely noticed by policy makers. Eager to promote the IT industry, influenced by the major trade associations of software, hardware, and content providers, often dependent on large government bureaucracies, policy making committees (like parliamentary committees and government ministries) rarely consider how regulatory decisions will affect the poor, the disempowered, and minority groups.

Giving voice to the digitally disempowered in the high councils of state that make ICT policy is no easy task, partly because of the power of the groups currently involved in decision making and because of the understandable governmental interest in promoting the IT industry. Required is technical and regulatory expertise along with understanding of how regulatory and infrastructural decisions affect the poor, together with a commitment to the interests of the currently unserved. The difficulty is further compounded because the recommendations of such groups (like the policies that result) are typically presented as "technical" matters which only lawyers, economists, government officials, electrical engineers, and/or computer scientists are competent to discuss. Challenging that view, recognizing the social, human, cultural and political implications of apparently "technical" decisions, and devising means whereby the interests of the currently unheard can be represented in the high councils of 'technological' decision making is a critical task -- perhaps the most critical task -- if the digital divide is to be bridged. Without this, the IT industry may flourish, but the gap between its beneficiaries and the rest of the people will remain.

Conclusion

Despite the cautions identified by the members of the Workshop, the tenor of the meeting was optimistic. Despite failures, overblown rhetoric and projects that succeeded only to vanish, many reports from South Asia were reports of success and commitment to the needs of the underserved. Despite evidence of the widening of digital divides, projects in India give promise that ICT's can be used to help close these fissures. As Jairam Ramesh pointed out, ICT's in India have revolutionized two major sectors of Indian life, the railway reservation system and the public banking system. That experience provides hope for other applications of ICTs in Indian life. Despite doubts about the impact of the immensely successful Indian information technology industry on average Indians, experiences like those of Dr. Gonsalves in Ooty show that, with a will, its successes can benefit not only the metropolitan digerati but the inhabitants of a remote hill station. And in the end, despite the many differences between the United States and India, most of the problems in South Asia were revealed to be American problems as well, while the experiments and solutions of South Asia provide lessons for America and the rest of the world.

The central consensus of the Working Group should by now be so obvious that it need not be repeated at length. With the new and fashionable attention to the "digital divide", the embeddedness of digital inequities in other inequities, of digital injustice in other injustices, of information deprivation in other deprivations constantly needs to be recalled. "Information poverty" is rarely the cause of human suffering. Rather it is the consequence of other forms of poverty, social inequalities, inadequacy of resources, illiteracy, corruption, injustice, poor health, and lack of basic public services. Information technologies have a potential for assisting people of whatever rank and place in society, in whatever society of the world, in meeting their basic human needs. It is illusory, however, to believe that information technologies, properly applied, could somehow eliminate all the many injustices with which the world abounds.

Information and communication technologies, then, are to be understood as potential instruments for addressing the unmet needs of the six billion men, women, and children of the world. At present, the digital divide exacerbates existing inequities. But as the distinguished computer scientist, the late Michael Dertouzos once noted, after describing the failure of an overly optimistic effort to improve the lives of Nepalis by using digital technologies, ICTs can be of use in reducing the digital divide if only we commit to that goal the same intelligence and imagination that has gone into creating the technologies themselves.

Participants

Auditors & Recorders

For inclusion at the end of the volume

Bibliography

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Insights into Editorial: Bridging the digital divide in education

While the pandemic has accelerated education online, it has also exposed a deep digital divide , with more than 30% students not having access to online learning.

This has increased the focus on building inclusive solutions in EdTech.

A ray of hope in this context is the National Digital Educational Architecture (NDEAR) , the blueprint for which was recently released by the government.

Set up as a digital pathway to the policy goals envisioned in the National Education Policy, 2020, NDEAR takes on a ‘Open Digital Ecosystem’ approach , where a set of principles, standards, specifications, building blocks and guidelines seek to enable different entities to create elements of the digital education ecosystem.

At its core is the principle of interoperability , i.e., enabling disparate education related tech systems to “talk to each other” seamlessly, rather than operating in silos, thereby multiplying the possibilities of impact.

National Digital Education Architecture (NDEAR):

National Digital Education Architecture (NDEAR) is federated, unbundled, interoperable, inclusive, accessible, evolving which aims to create and deliver diverse, relevant, contextual, innovative solutions that benefit students, teachers, parents, communities, administrators and result in timely implementation of policy goals.

NDEAR is under the aegis of the Ministry of Education in collaboration with Ministry of Electronics and IT (MeitY).

NDEAR is meant to enable a common set of principles and approaches to be followed in building, using and re-using technology for education .

There are four fundamental issues that implementers and enablers will have to factor in:

First, it will be important to ensure that NDEAR’s implementation improves and not worsens access to education in the context of India’s digital divide.

• As per 2019-20 UDISE+ data, only 38.5% of schools across the country had computers and 22.3% of schools had an internet connection.
• Therefore, it is crucial that the NDEAR vision is supplemented by concerted policy efforts to equip schools with the necessary ICT infrastructure , like Kerala’s KITE enabled interventions.
• Examples such as in Jharkhand’s DigiSATH initiative which leverages WhatsApp, television, the DIKSHA app as well as offline learning to connect all stakeholders.

Second, to ensure adoption of NDEAR enabled solutions and build the legitimacy of digital learning , it will be important to recognise the role parents play in both monitoring and facilitating their children’s learning, and engage them meaningfully.

An attempt has been made in Himachal Pradesh through the government’s e-Samwad application where schools send regular SMS updates to parents to establish a direct channel of communication.

Third, NDEAR will need to ensure that the data rights of children remain secure.

• The potential of EdTech solutions delivered through NDEAR will depend on their responsible deployment, which would include responsible collection, sharing and processing of data.
• Since children will never be fully cognisant of the privacy risks that the digital world entails, the compliance with the upcoming Personal Data Protection Bill, with additional safeguards given the target audience of this platform, will be important.
• There are good frameworks for this both in the United States and the European Union that can be leveraged.

Lastly, given the pace at which digital learning is growing, NDEAR’s development should be firmly anchored in an ‘accountable institution’ that can guide its quick development while providing independent oversight needed for the management of the platform.

Digital education regarding to Indian Constitution:

‘Equality of Opportunity’ is one of the basic principles of the Indian Constitution .

Shifting to a system that benefits only a section of people and leaves behind the neediest ruins the very notion of this statement.

Moreover, digital education is something where India is not successful yet.

There is still a lot to do in terms of checking if students’ entitlements are not being compromised or in providing meaningful academic curriculum alternatives.

Way Forward:

• A Multi-Pronged Approach: Flexible rescheduling the academic timetable and exploring options in collaboration with schools, teachers, and parents for providing access to education to a larger section of students.
• Staggering teacher-student interactions in physical mode with not more than 50% of the total strength attending schools on alternate days.
• Giving priority to the less advantaged students who do not have access to e-learning.
• Genuine efforts must be invested to ensure every child gets good quality equitable education as a fundamental right.
• Making Online Education More Effective : Shorter but quality discussions rather than long hours of monotonous sitting and one-way communication, should be preferred.
• The teacher’s role has to go beyond just being in control of the class to being a facilitator for the transfer of knowledge.
• Focussing more on Knowledge Aspect : Education is not about competence but more about motivation. The students are meant to discover not just cover the syllabus.
• The system should not just heartlessly push the students and teachers in only finishing the course regardless of any gain of knowledge, stress should be upon quality learning and not quantity cramming.

Conclusion:

NDEAR presents an audacious vision to leverage the power of tech to enhance India’s education system.

Such an institution should have representation from tech and domain experts as well as teachers and parents to help ensure the NDEAR architecture delivers tech solutions that are truly student-centric.

This vision must now be matched with the right non-tech, student-centric enablers and safeguards to achieve its potential .

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Digital divide in india meaning, implications and initiative to end it.

The digital divide in India refers to an unequal distribution of access to, usage of, or influence of information and communication technology among any number of separate groups, which can be characterised using social, geographical, or geopolitical criteria, or in any other way. One of the reasons for the widening of already extreme levels of inequality and the drag on economic development is that many people still lack the resources and expertise necessary to use the internet. Although the gap does not just exist in India, it is particularly pronounced in a country where more than half of the 1.3 billion inhabitants are under the age of 25.

Origins of Digital Divide

In the mid-1990s, the phrase "digital divide" was coined to characterise the disparity in equality between those who have access to computers and the Internet and those who do not. The most prevalent cause of a digital gap is poverty and economic restrictions that limit resources and prohibit individuals from accessing and using newer technology.

Digital Divide in India today

Around 600 million people in India use the internet, which accounts for more than 12% of all users worldwide, according to Bloomberg. Yet just 20 per cent of Indians, according to official data, are proficient in using digital services, even though half the country's population lacks access to the internet. Only 43 per cent of people in India utilise the internet, according to the ITU's World Telecommunication/ICT Indicators Database. According to the IAMAI-Kantar Report ICUBE 2020, 58 per cent of men and 42 per cent of women in India use the internet. The rural-urban split is used as an additional basis for data segregation. Only 48.7 per cent of rural males and 24.6 per cent of rural females meet this requirement, compared to 72.5 per cent of urban males and 51.8 per cent of urban females who have ever used the internet. It's noteworthy to observe that urban men make up the majority of the population throughout all states, whilst rural women make up the minority.

Types of Digital Divide in India

Digital Divide in India can be divided into three stages namely – Economic Divide, Usability Divide and Empowerment Divide. 

Economic Divide: The term ‘digital gap’ was coined in the mid-1990s to describe the discrepancy in equality between those who have access to computers and the Internet and those who do not. Poverty and economic constraints that limit resources and prevent folks from obtaining or using modern technologies are the most common causes of a digital divide. According to predictions made by experts, computers will be out of reach for the typical citizen in developing nations for the next 20 years or more.

Usability Divide: Far worse than the economic disparity is the reality that technology is still so complex that many people would be unable to utilise a computer even if they were given one for free. Many others can use computers, but they do not reap the full benefits of the contemporary world since most of the available services are too complex for them to comprehend. Even though about 40 per cent of the population has low literacy abilities, few websites adhere to the rules for writing for low-literacy users.

Empowerment Divide: Participation inequality is a manifestation of the empowerment divide that has persisted throughout the years of Internet growth: in social networks and community systems, roughly 90 per cent of users do not contribute, nine per cent contribute infrequently, and a tiny minority of one per cent accounts for the majority of contributions.

Effects of Digital Divide 

The digital divide in India has several implications on political, governance, social, economic and educational prospects. Without internet access, political empowerment and mobilisation are challenging in the age of social media. Transparency and responsibility demand digital accordance. Internet penetration is linked to a country's socioeconomic advancement.

Thus, a country's socioeconomic growth is hampered by the digital divide. Because of the digital gap, rural India suffers from information poverty. It simply serves to exacerbate the tragic cycle of poverty, hardship, and backwardness. The digital gap creates economic disparities between people who can and cannot afford the technology. Finally, the digital gap influences children's ability to learn and develop. Students cannot develop the necessary technical abilities unless they have access to the Internet.

Effects of Digital Divide during Covid 19 Pandemic in India

The COVID-19 pandemic highlighted the digital divide in India and its role in limiting access to vaccinations. Families and communities were and still are frequently unable to schedule appointments to register for vaccines due to a lack of digital literacy and access. This adds to a slower rate of immunisations in India, emphasising the importance of bridging the digital gap in the country. According to a recent Oxfam research, up to 80% of Indian students were unable to access online learning during the lockdown, and many may not return to their classes after the epidemic is over. 

Services such as banking, education, and job searches migrated online after the lockdown was declared, and in some circumstances, they still are in certain cases today. Work from home is accepted as the new standard by many businesses. Most businesses today are prepared to switch to a hybrid business model, which makes it more challenging for those who have limited or no access to the internet and other forms of technology.

How does Digital Divide affect Rural Women?

Women, individuals in poverty, and those who live in rural communities are far less likely to have sufficient access to technology and the internet. In India, only about 16% of women utilize mobile and internet services due to the gender digital divide. News and information take a while to reach many Indians living in rural areas without access to the internet. Men are about twice as likely as women to have used the internet, making the digital divide in rural India even more prominent (49 per cent vs 25 per cent).

Even though Covid-19 has made all of these activities—hybrid and distant employment, financial transactions, education, and video calls—more significant than ever before thanks to rising internet usage, persistent gender discrepancies prevent women from taking advantage of these opportunities. We continue to believe that the digital gap prevents women and girls from having access to financial inclusion, education and knowledge.

How is the Government trying to bridge the Digital Divide?

Governments have attempted to enhance internet connectivity in the nation during the last decade. The BharatNet project was initiated in 2011 to connect 0.25 million panchayats by optical fibre (100 MBPS) and connect India's communities. Its installation only began in 2014.

The government also established the National Digital Literacy Mission and the Digital Saksharta Abhiyan in 2014. It also announced many programmes in 2015 as part of its Digital India drive to link the whole country. This includes the PM Gramin Digital Saksharta Abhiyan, which was established in 2017 to bring digital literacy to rural India by reaching 60 million homes.

How are organizations Addressing the Digital Divide in India?

Many organizations in India are doing remarkable work to bridge the digital divide in India. For instance, the Soochnapreneur Project fosters and enhances the information system in rural areas. In technological fields, they educate women from rural regions. The poor and underdeveloped communities may then benefit from and learn from these women. Another noteworthy organisation, ThinkZone, educates students in underserved neighbourhoods by utilising a free mobile app and readily available technology. To help kids learn the fundamentals of language and math, the app provides educational materials to teachers and parents in places with poor internet connectivity.

Steps needed to Counter Digital Divide

Digital literacy requires special attention in schools and colleges. The National Digital Literacy Mission should prioritise establishing digital literacy at the primary school level in all government schools for basic material and advanced content in higher classes and universities. The kids will subsequently be able to educate their family members.

When it comes to teaching the Indian audience, language is a major impediment. State governments should prioritise content production in Indian regional languages, especially those connected to government services. Regulators should lower entry barriers by revising licensing, taxes, and spectrum allocation policies. The government must create a comprehensive cybersecurity framework to ensure data protection, secure digital transactions, and complaint resolution.

In January 2019, the Standing Committee on Information Technology reported that the government's digital literacy initiatives are far from sufficient. Clearly, internet penetration is insufficient. On some level, we can all agree that the internet has become unavoidable. On another level, it continues to receive insufficient attention from decision-makers. The most pressing necessity of the hour is to maintain continuous internet service.

Path ahead 

The path ahead involves continued efforts to make digital resources accessible to all, especially the marginalized communities. Government policies, corporate initiatives, and public awareness campaigns play a pivotal role.

Digital Literacy Initiatives in India 

Numerous digital literacy initiatives in India are making strides in narrowing the digital divide. Programs like 'Pradhan Mantri Gramin Digital Saksharta Abhiyan' aim to provide digital literacy training in rural areas. Understanding how these initiatives work and their impact is vital.

The Role of Mobile Technology 

The widespread adoption of mobile phones in India has been a game-changer in reducing the digital divide. With the increasing availability of affordable smartphones, many Indians are gaining access to the digital world. Explore how mobile technology is bridging the gap.

The Future of Digital Inclusion 

With the rapid advancement of technology, understanding the evolving nature of the digital divide is crucial. What will the future hold in terms of digital inclusion, and how can we adapt to these changes?

Global Perspectives on the Digital Divide 

The digital divide is not unique to India; it's a global issue. By exploring how other countries are addressing this challenge, we can draw inspiration and learn from their successful strategies.

Community Initiatives and Success Stories 

Highlighting success stories and community-driven initiatives can serve as powerful examples. These stories can inspire individuals and organizations to take action and contribute to bridging the digital divide.

Challenges and Roadblocks 

It's essential to acknowledge the challenges and roadblocks that still exist in addressing the digital divide. Whether it's infrastructure limitations, affordability, or cultural barriers, understanding these hurdles can guide future efforts.

User Stories and Testimonials 

Sharing personal stories and testimonials from individuals who have benefited from digital inclusion efforts can humanize the issue and show the real impact of bridging the digital divide.

How to reduce it: 

Reducing the digital divide, which refers to the gap in access to and use of digital technologies and the internet, is crucial for ensuring equitable opportunities and access to information in today's interconnected world. Here are some strategies to help reduce the digital divide:

1.Infrastructure Investment:

Expand broadband infrastructure to underserved and remote areas. Governments and private organizations should invest in building and maintaining the necessary digital infrastructure to ensure access in rural and low-income communities.

2.Affordable Internet Access:

Promote policies and initiatives that make internet access more affordable. This may involve subsidies, discounts, or incentives for low-income households to get online.

3.Access to Devices:

Provide low-cost or free devices such as smartphones, tablets, or computers to individuals and families who cannot afford them. Initiatives like "One Laptop Per Child" have shown promise in this regard.

4.Digital Literacy Training:

Offer digital literacy programs to help individuals, especially in underserved communities, become comfortable with using digital technologies. These programs can include basic computer skills, internet navigation, and online safety.

5.Community Technology Centers:

Establish community technology centers in underserved areas. These centers can serve as hubs for internet access, digital literacy training, and technical support.

6.Mobile Technology Initiatives:

In regions where traditional broadband infrastructure is challenging to deploy, focus on mobile technology access. Mobile networks and smartphones can provide affordable and accessible connectivity.

7.Public Wi-Fi Initiatives:

Increase the availability of public Wi-Fi in community spaces, libraries, schools, and public buildings. This provides access to those who may not have it at home.

8.Digital Inclusion Policies:

Enact policies that prioritize digital inclusion as a fundamental right. Governments can set targets for connectivity and digital literacy and take action to ensure they are met.

9.Collaboration and Partnerships:

Encourage partnerships between governments, nonprofits, and private sector organizations to collectively address the digital divide. Collaboration can bring together resources, expertise, and innovative solutions.

10.Content Localization:

Support the creation of local content in various languages and formats, making digital resources more relevant and accessible to diverse communities.

11.Inclusive Design:

Encourage the development of digital tools, websites, and applications with inclusive design principles. This ensures that people with disabilities can access and use digital resources.

12.Data Privacy and Security:

Promote awareness of data privacy and security issues to protect vulnerable populations as they go online. Education about online risks and safe practices is essential.

13.Research and Monitoring:

Continuously monitor and assess the digital divide to identify new challenges and opportunities for intervention. Research can help tailor strategies to specific contexts.

14.Global Efforts:

Encourage international cooperation to address the global digital divide. International organizations and governments can work together to extend connectivity to underprivileged regions.

15.Sustainable Development Goals (SDGs):

Align efforts to reduce the digital divide with the United Nations Sustainable Development Goals, particularly Goal 9 (industry, innovation, and infrastructure) and Goal 4 (quality education).

Reducing the digital divide is an ongoing and multifaceted challenge that requires concerted efforts at the local, national, and international levels. By addressing the digital divide, we can promote greater equality in access to information, education, economic opportunities, and social inclusion.

Conclusion 

The digital divide is a multifaceted challenge that has far-reaching implications for our society, economy, and individual well-being. It encompasses disparities in access to digital resources, technology, and the ability to navigate the digital landscape. The origins of this divide are deeply rooted in socioeconomic disparities and historical infrastructure limitations, but it has evolved with technological advancements.

In the context of India, the digital divide is a pressing concern. Urban areas typically enjoy better connectivity and access to technology, while rural regions face challenges related to infrastructure, affordability, and digital literacy. These disparities can lead to unequal opportunities in education, healthcare, and employment, perpetuating existing inequalities.

The COVID-19 pandemic underscored the urgency of addressing the digital divide, as it became evident that online education and telemedicine are essential services. Unfortunately, many individuals and communities were left behind due to inadequate access to digital resources.

Efforts to bridge the digital divide are ongoing. Governments, including the Indian government, have launched various programs and initiatives to expand digital infrastructure and promote digital literacy. Private organizations and NGOs are also actively engaged in this mission.

To counter the digital divide, it is crucial to continue expanding digital infrastructure, providing affordable access, and promoting digital literacy among all segments of society. This collective effort will ensure that the benefits of the digital age are accessible to all, irrespective of their geographical location or socioeconomic background.

The path ahead involves persistent efforts to make digital resources accessible to marginalized communities, thereby contributing to a more equitable and inclusive digital future. Individuals, government, and organizations all have a role to play in addressing this pressing issue.

In this rapidly evolving digital landscape, it is imperative to stay informed about the digital divide, support initiatives that promote digital inclusion, and advocate for policies that ensure equal access to digital opportunities for everyone.

By working together, we can reduce the digital divide and create a more equitable and inclusive digital world for all.

1.What are the main factors contributing to the digital divide in India?

A-The digital divide in India is influenced by factors such as infrastructure disparities, socioeconomic differences, and limited digital literacy.

2.How has the digital divide affected online education in India?

A-The digital divide has hindered online education, as students in rural and underserved areas often lack access to necessary digital resources.

3.What role can individuals play in bridging the digital divide?

A-Individuals can contribute by supporting digital literacy programs, donating devices, and advocating for digital inclusion.

4.Are there specific government schemes to promote digital literacy in India?

A-Yes, the Digital India program is a major government initiative aimed at promoting digital literacy and bridging the digital divide.

A Systems View Across Time and Space

• Open access
• Published: 14 May 2024

The digital revolution in India: bridging the gap in rural technology adoption

• Stavros Sindakis   ORCID: orcid.org/0000-0002-3542-364X 1 , 2 &
• Gazal Showkat 2  

Journal of Innovation and Entrepreneurship volume  13 , Article number:  29 ( 2024 ) Cite this article

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Metrics details

This study investigates the factors that influence the adoption of digital technology in rural areas of India, with a focus on the Digital India Program (DIP). By analyzing the age distribution, education levels, technology adoption rates, and utilization patterns among rural populations, this research provides insights into the effectiveness of the DIP in targeting specific demographics and promoting digital inclusion. Quantitative data were collected from 400 respondents in Kalahandi District in the Odisha state of India. The data collected were analyzed using SPSS. The findings reveal a predominantly young population in rural India, indicating a workforce with significant economic potential and a higher likelihood of embracing digital technologies. Moreover, the study highlights the high levels of education among respondents, indicating a population well-equipped to understand and benefit from digital initiatives. Unexpectedly, the research shows a higher rate of digital technology adoption among female respondents, challenging the perception of gender disparities in technology access. This finding suggests that the DIP has played a vital role in bridging the gender gap and empowering women in rural areas. Additionally, the study uncovers a trend towards mobile-based services over computer-based services, signaling a shift in technology utilization patterns. This emphasizes the need to prioritize mobile technology and improve connectivity in rural areas to ensure wider access to digital platforms.

Introduction

India’s vision for a digital future is deeply rooted in the integration of technology into governance processes (Malodia et al., 2021 ). Prime Minister Narendra Modi has emphasized the crucial role of e-governance in realizing the country’s goals for a digital India (Gupta et al., 2020 ; Rêgo et al., 2021 ). While developed nations have already embraced digital transformation in various sectors, there is a growing recognition in India of the need to digitize collections and enhance information management practices (Mukherjee & Narang, 2022 ). In India, the increasing adoption of technology and the government’s emphasis on digitalization is shaping the changing landscape of information management (Malodia et al., 2021 ). Digitalization efforts are driven by the vision to improve governance processes, enhance access to information, promote transparency, and empower citizens through digital platforms (Holl & Rama, 2023 ). The integration of technology into governance practices holds the potential to streamline operations, improve service delivery, and foster inclusive development (Chen et al., 2022 ). Digital transformation in India is an ongoing journey with significant potential to revolutionize governance, service delivery, and citizen engagement. By leveraging technology and embracing digitalization, India can drive economic growth, enhance access to information and services, and create a more inclusive and empowered society (Barrutia & Echebarria, 2021 ).

Digital technologies, such as cloud computing and mobile applications, have become catalysts for economic growth and citizen empowerment worldwide (Tripathi & Dungarwal, 2020 ). India has made remarkable progress in technology and science, positioning itself as one of the leading economies in the developing world (Lema et al., 2021 ). Recognizing the potential for economic growth through information and communication technology (ICT), the Indian government is positioning itself as a global digital transformation partner for businesses (Ghobakhloo & Iranmanesh, 2021 ). As technological innovations continue to rise, India aims to become one of the digitally transformed nations, offering evident benefits to the government, citizens, professionals, and corporate investors (Manda et al., 2019 ).

Digitalization, as exemplified by India’s Digital India Program (DIP), is explicitly linked to inclusiveness. The DIP’s efforts to provide digital access, resources, and services to all citizens, especially those in rural areas, emphasize inclusivity (Nedungadi et al., 2018 ). By bridging the digital divide, offering digital literacy, and promoting cashless transactions, digitalization contributes to a more inclusive and empowered society by ensuring that even marginalized communities can benefit from digital technologies. To achieve this vision, the Indian government has implemented strategies to transform the nation and create opportunities for its citizens through the utilization of ICT tools, leading to the launch of the Digital India Program (DIP) initiative. The program, initiated by Prime Minister Narendra Modi, aims to empower India digitally and generate prospects for its citizens through the harnessing of digital technologies (Mukherjee & Narang, 2022 ). The vision of the Digital India program, as highlighted by Kumar ( 2019 ), is to transform India into a digitally empowered society and knowledge economy. The program focuses on three key areas of vision: (1) digital infrastructure as a core utility to every citizen, (2) governance and services on demand, and (3) digital empowerment of citizens.

Under the vision of digital infrastructure as a core utility for every citizen, the program aims to provide high-speed internet access, mobile phones, and bank accounts to enable citizen participation in the digital and financial space. It also emphasizes the need for a safe and secure cyberspace, a digital identity for every citizen, easy access to Common Service Centers, and shareable private space on a public cloud (Kumar, 2019 ). A digital identity is a secure and unique representation of an individual or entity in the digital world, used for online authentication and access to digital services (Laurent et al., 2015 ). The vision of governance and services on demand entails making citizen entitlements portable and available on the cloud, promoting electronic and cashless financial transactions, integrating services seamlessly across departments, and providing real-time availability of services through online and mobile platforms. The use of geospatial information systems (GIS) for decision support systems and development is also emphasized (Kumar, 2019 ). Digital Empowerment of Citizens involves promoting universal digital literacy, collaborative digital platforms for participative governance, the availability of digital resources and services in Indian languages, and eliminating the need for physical submission of government documents or certificates (Kumar, 2019 ). DIP aims to ensure that all government services are available electronically through an enhanced and effective online infrastructure (Mukherjee & Narang, 2022 ). By increasing internet connectivity and empowering the country with digital technologies, the Indian government aims to achieve electronic governance (e-governance) of public services, leveraging innovative ICT tools (Malhotra & Anand, 2020 ). According to a study by Deloitte (2016), the DIP has the potential to contribute incrementally to India’s GDP by up to 30% by 2025 (Lama, 2019 ). This significant economic impact can be attributed to several factors facilitated by DIP. One key area where the program has made notable progress is in the e-governance sector (Dhal, 2020 ).

Through the implementation of digital platforms and services, the government has streamlined administrative processes, reducing bureaucratic red tape and improving the efficiency of public service delivery (Ingrams et al., 2022 ). Citizens can now access government services and information online, eliminating the need for time-consuming manual processes. This has resulted in increased transparency, reduced corruption, and enhanced accountability in government operations (Kumar et al., 2022 ).

Furthermore, DIP has spurred innovation and entrepreneurship in the technology sector (Vijayan, 2019 ). Initiatives such as Startup India and Standup India have provided a supportive ecosystem for the growth of startups and small businesses, driving job creation and economic development. The program has also encouraged the development of indigenous technologies, promoting self-reliance and positioning India as a global player in the digital space (Godha et al., 2019 ). Another significant impact of DIP is the promotion of financial inclusion through digital payments and banking services (Barik & Sharma, 2019 ). The demonetization drive in 2016 further accelerated the adoption of digital payment methods, leading to a surge in the use of mobile wallets, the Unified Payments Interface (UPI), and other digital transaction platforms. This shift towards a cashless economy has not only improved convenience for individuals and businesses but also enhanced transparency and formalization of the economy (Mukhopadhyay & Upadhyay, 2022 ).

Moreover, DIP has focused on bridging the digital divide by ensuring internet connectivity and digital literacy across the country (Asrani, 2022 ). The BharatNet project aims to connect rural areas with high-speed broadband networks, providing access to digital services and empowering communities with knowledge and information. Additionally, initiatives like the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA) have been instrumental in imparting digital literacy skills to rural populations, enabling them to leverage digital tools for personal and professional growth (Kumar et al., 2022 ).

However, despite the progress made, challenges remain in fully realizing the vision of a digital India. One persistent challenge is the last-mile connectivity in remote and rural areas, where infrastructure development is more challenging due to geographical and logistical constraints (Hassan & Rather, 2020 ). Additionally, the affordability of internet services and digital devices remains a barrier for certain sections of society, limiting their access to the benefits of digital technologies (Reddick et al., 2020 ). Addressing these challenges requires a multi-faceted approach involving government, private sector, and civil society collaboration. Continued investment in digital infrastructure, expanding internet connectivity, and reducing the digital divide should be priorities. Simultaneously, efforts should focus on enhancing digital literacy and skills development programs to ensure that all citizens can fully participate in the digital economy (Chandra et al., 2020 ). To address these challenges and ensure the sustainability of the Digital India campaign in rural India, scientific research is needed to understand the extent of digital information access and technological innovation among rural populations (Chenoy et al., 2019 ). Therefore, this research aims to examine the recognition and adoption of technological innovations offered by the Indian government among citizens in rural areas, as well as the factors influencing their adoption and utilization. By shedding light on the issues of the digital divide and digital literacy, these studies aim to provide valuable insights for policymakers and stakeholders to develop effective strategies and policies.

The existing literature on digital information access and technological innovation in rural areas of India has some notable gaps that need to be addressed. Firstly, there is a scarcity of empirical studies specifically focused on rural areas, hindering a comprehensive understanding of the extent of digital information access and technology innovation among rural populations. Existing research predominantly concentrates on urban areas or provides a broader overview of the digital landscape in the country. Secondly, there is a need for comprehensive frameworks that can systematically analyze the factors influencing the adoption and utilization of digital information and technological innovation in rural areas. To discern the existing gaps in ICT strategies and policies associated with DIP in India, the research specifically focuses on the Kalahandi rural district of Odisha state. By identifying these gaps, future research can contribute to filling these knowledge voids and provide valuable insights for policymakers and stakeholders to develop effective strategies and policies.

RQ1: How and to what extent are people accessing digital information and technology innovation in rural areas? RQ2: What are the factors influencing the adoption and utilization of digital information and technology innovation among rural populations in India?

These research questions are crucial for understanding the current state of digital information access and technological innovation in rural areas. The first research question focuses on the extent to which rural populations are able to access digital information and benefit from technological advancements. This question aims to provide insights into the level of digital penetration and the effectiveness of government initiatives in bridging the digital divide.

The second research question delves into the factors influencing the adoption and utilization of digital information and technology innovation among rural populations. By exploring these factors, such as infrastructure availability, affordability, digital literacy levels, and cultural and social barriers, this research can identify the key determinants that hinder or facilitate the adoption of digital technologies in rural areas.

The findings from this research will inform policymakers and stakeholders about the current situation and challenges faced by rural communities in accessing and utilizing digital information and technology innovations. This knowledge can guide the development of targeted strategies and policies to overcome barriers, improve digital infrastructure, enhance digital literacy programs, and promote widespread adoption of digital technologies in rural India. Ultimately, these research efforts contribute to the sustainable and inclusive development of the Digital India campaign, ensuring that rural populations are empowered to participate fully in the digital economy.

To fulfill the aforementioned objectives, the subsequent sections of this paper are structured as follows: following a concise introduction, the subsequent section provides an extensive account of the literature review, outlining the critical themes and concerns explored within this study. Subsequently, the findings derived from this investigation will offer valuable insights into the extent of digital technology utilization within rural areas. Lastly, the concluding section summarizes the key findings, implications, and recommendations for future research endeavors in this domain.

Review of literature

The review of the literature section of this paper delves into the existing academic research and expert opinions on the digitization of public services in India. It examines the gaps and challenges identified in previous studies, focusing on the digital divide, digital literacy, and the adoption of ICT in rural areas. The section also highlights the need for innovative solutions and strategic approaches to bridge the gaps and promote inclusive development in the country.

Theoretical framework

The theoretical framework of this study is centered on the intricate relationship between digitalization and transaction cost analysis (TCA). Transaction cost analysis, rooted in the seminal works of Williamson ( 2010 ), provides a lens through which to examine the costs associated with conducting economic and social transactions. These transaction costs encompass factors such as information search, negotiation, and enforcement, which can be significant barriers in traditional, paper-based systems. Digitalization, on the other hand, has the potential to drastically reduce these transaction costs by offering efficient and immediate access to information, enabling digital contracting, and automating monitoring and enforcement through electronic records and data analytics (Gielens & Steenkamp, 2019 ).

Within the context of government services, India’s Digital India Program (DIP) exemplifies the transformative power of digitalization in reducing transaction costs. The DIP’s core objectives, such as electronic service delivery, digital resources, and cashless transactions, are inherently linked to the reduction of transaction costs. By enabling citizens to access government services with ease through digital platforms, the program minimizes the need for time-consuming manual processes and paperwork (Demmou & Sagot, 2021 ). Additionally, the enhanced transparency and accountability facilitated by digitalization further contribute to the reduction of transaction costs in governance processes (Paolucci et al., 2021 ). In the business sector, digitalization has led to the automation of various business processes, supply chain management, and e-commerce. These digital advancements have resulted in reduced transaction costs related to procurement, contracting, and monitoring (Dutta et al., 2020 ). By providing a digital platform for business transactions, companies can achieve cost savings through improved efficiency and reduced information asymmetry. This reduction in transaction costs is particularly significant for startups and small businesses, contributing to economic development and job creation, as evident in initiatives like Startup India and Standup India (Ordanini & Pol, 2001 ).

The Digital India initiative

Digital technology has emerged as a crucial catalyst for India’s economic growth and the pursuit of social and economic equity by enhancing access to information, public services, and markets, thus addressing the country’s infrastructure deficit (Kumar, 2019 ; Vijayan, 2019 ). The potential of digital technology to transform India into a just and equitable society while propelling it to the forefront of nations is evident, particularly considering the country’s young population’s adaptability and innovative spirit (Gurumurthy et al., 2014 ; Kumar, 2019 ). In line with this vision, the ‘Digital India’ initiative was launched on July 1, 2015, by Prime Minister Narendra Modi, aiming to create a tech-empowered and knowledgeable society where government services are easily accessible to all citizens, fostering digital and economic empowerment (Thomas, 2019 ).

In 2018, the country had a staggering 560 million internet subscribers, positioning it as the second-largest market after China. Notably, Indian mobile data users exhibit high monthly data consumption, averaging 8.3 gigabits (GB). This surpasses the average of 5.5 GB in China and falls within the range of 8.0 to 8.5 GB observed in South Korea, a technologically advanced digital economy (McKinsey Global Institute, 2019 ). This growth can be attributed to the substantial improvements in internet infrastructure and increased internet access, providing opportunities for public and private stakeholders to deliver digital services (Athique, 2019 ). However, despite these advancements, India’s e-governance provision lags, with a ranking of 107th, primarily due to challenges associated with the Aadhaar card system, which poses difficulties for individuals in rural areas to access secure services. Concerns regarding data protection efficiency and effectiveness have also arisen in relation to Aadhaar (Gowd, 2022 ).

Kumar ( 2019 ) acknowledged the substantial improvements achieved in the program’s three key areas: electronic delivery of public services and financial support, creation of a national digital infrastructure, and enhancement of digital awareness and literacy. India has emerged as one of the world’s fastest digitizing nations, driven by increased mobile connectivity, exponential data consumption, nationwide internet infrastructure expansion through the BharatNet program, and the emergence of digital transformation startups catering to millions of Indians (Raj & Aithal, 2018 ). The success of the Jandhan-Aadhaar-Mobile (JAM) initiative, which has provided digital identities to over a billion Indian citizens and access to the banking system for previously excluded individuals, stands as a significant outcome of the Digital India initiative (Sekhri & OSD, 2020 ).

The Digital India initiative has also introduced several services and mobile applications to facilitate accessibility and participation. For instance, the Accessible India Campaign Mobile App aims to create equal opportunities and inclusivity for people with disabilities, allowing them to participate fully in all aspects of life in an inclusive society (Agrawal et al., 2022 ). The Agri Market App provides farmers with crop price information within a 50 km radius, discouraging distress sales and empowering farmers with market insights (Deininger, 2017 ). The Beti Bachao Beti Padhao campaign focuses on eliminating gender discrimination and ensuring equal opportunities for girls in education and society (Parmar & Sharma, 2020 ). The Crime and Criminal Tracking Network & Systems (CCTNS) aims to enhance policing efficiency and effectiveness through the integration of e-governance principles and nationwide networking infrastructure for crime investigation and criminal detection (Sharma, 2021 ).

Other notable initiatives under the Digital India Program include the E-Hospital system, which facilitates seamless health information management across multiple hospitals, and the E-MSIPS platform, which enables online submission and scrutiny of applications for schemes related to electronics manufacturing and clusters (Nair, 2019 ). Kud ( 2023 ) highlights the pivotal role of the Goods and Service Tax Network (GSTN) in India’s taxation system. As a trusted national information utility, the GSTN facilitates a unified interface for taxpayers and fosters shared IT infrastructure between the central and state governments. The primary objective of the GSTN is to establish a seamless and cost-effective Goods and Services Tax (GST) regime in the country. By providing a common platform for tax-related processes, the GSTN streamlines tax compliance and enhances efficiency in the overall taxation system, benefiting both taxpayers and the government. The National Ujala Dashboard promotes energy efficiency at the residential level, raising awareness about the benefits of using energy-efficient appliances and facilitating higher uptake of LED lights. Lastly, the Unified Mobile Application for New-Age Governance (UMANG) serves as a single-point access platform for various government services, simplifying the user experience and reducing the inconvenience of managing multiple mobile apps (Chunekar & Sreenivas, 2019 ).

Digital empowerment of rural India

Digital technology has brought about significant transformations in the lives of people, particularly in rural areas, by empowering and connecting them (Iivari et al., 2020 ). DIP was initiated with the objective of providing increased access to technology in rural regions through high-speed internet networks and enhancing digital literacy (Burman, 2021 ). This endeavor has presented Indians with the opportunity to leverage cutting-edge technology, leading to a transformation of the rural service industry (Rani, 2016 ). The program has facilitated IT training for students and villagers, equipping them with the necessary skills for employment in the ICT sector. Rural residents have been trained by telecom service providers to address local internet needs, resulting in the creation of job opportunities in the service industry (Vij, 2018 ).

One of the key impacts of DIP in rural areas has been the creation of community internet awareness (Banu, 2017 ). With the majority of Indians residing in rural regions, internet connectivity has played a crucial role in transforming these areas into digitally empowered societies, ensuring that everyone has access to the internet. The program has enabled rural communities, many of whom are economically disadvantaged, to access wireless internet, utilize digital platforms, and efficiently leverage e-Services (Nayak, 2018 ). This initiative has not only reduced the reliance on paper-based processes but has also resulted in significant resource savings for poor rural communities. By spending less time and money on accessing services, these communities contribute to a cleaner environment and promote sustainable practices (Jani & Tere, 2015 ).

Moreover, DIP has extended its benefits to farmers by offering them digital services. This virtual platform has connected farmers to national agricultural markets and provided access to technological advancements (Tripathi & Dungarwal, 2020 ). Farmers can access information on crop prices through mobile phones, enabling them to make informed decisions and optimize their agricultural practices. This integration of technology in the agricultural sector has opened up opportunities for increased productivity and income generation among rural farmers (Gond & Gupta, 2017 ).

DIP has also played a crucial role in driving economic growth, both in rural and urban areas. Government initiatives under the program, such as economic reforms, digitization, and smart cities, have attracted foreign direct investments (FDIs) and facilitated relaxed economic policies (Behera, 2021 ).

Furthermore, DIP has facilitated real-time education for rural communities, addressing the issue of teacher scarcity in India’s education system through smart and virtual classrooms (Kamath, 2021 ). Mobile devices have also been utilized to educate farmers and fishers on intelligent farming and fishing techniques, enhancing productivity and livelihoods (Sein-Echaluce et al., 2019 ). The availability of high-speed internet connectivity in rural areas has facilitated access to online education platforms, bridging the digital divide and providing supplemental educational resources to rural communities (Rizvi & Nabi, 2021 ).

The digital empowerment of rural India through DIP has brought significant socio-economic benefits. By promoting digital literacy and providing access to technology, DIP has empowered individuals in rural areas, enabling them to participate in the digital economy and improve their livelihoods. The program has not only created job opportunities in the service industry, but has also facilitated the growth of businesses in rural and urban areas alike (Nedungadi et al., 2018 ).

Moreover, the program has enhanced connectivity in rural India, bridging the infrastructure gap and enabling individuals and communities to access digital services and information. With community internet awareness, rural areas have transformed into digitally empowered societies where wireless internet and e-services have become readily accessible. This has led to increased efficiency, reduced costs, and improved access to essential services for rural communities, ultimately contributing to their overall development (Banu, 2017 ).

In addition to its social and economic impact, DIP has played a vital role in attracting foreign direct investments and driving economic growth. The program’s focus on digitization, economic reforms, and the development of smart cities has created a conducive environment for investment and technological advancements (Bhasin, 2016 ). By aligning with international service standards and promoting a tech-empowered society, India has positioned itself as an attractive destination for global investments, leading to economic modernization and improved export capabilities (Nugroho et al., 2021 ). Farmers can connect with national agricultural markets by leveraging digital tools and services, expanding their market reach, and reducing reliance on intermediaries.

Digital India Program barriers

Digital divide.

The digital divide remains a significant barrier to the effective implementation of DIP. The divide refers to the disparity in internet connectivity and access between those who have it and those who do not (Jamil, 2021 ). In India, the digital divide is particularly pronounced between the rural and urban populations (Warf, 2019 ). Kar et al. ( 2018 ) highlighted that in 2017, 64 percent of the urban population had internet connectivity, while only 20 percent of rural residents were connected. This disparity can be attributed to several factors, including the complex economic conditions and cultural diversity of India (Ravindranath & Sundarakumar, 2021 ).

Additionally, India faces a shortage of skilled professionals capable of imparting essential digital skills to the population. The availability of formal digital skills training is limited, with a low percentage of India’s workforce reported to have received such training (Agarwal et al., 2023 ). The linguistic diversity in the country, with over 216 mother tongues, further complicates the challenge of digital literacy. This diversity, combined with functional illiteracy and limited English proficiency, creates barriers to understanding and acquiring digital language skills. It is imperative to address these challenges in order to promote digital inclusivity and empower individuals in India’s digital era (Mahapatra & Anderson, 2023 ).

DIP adoption strategies

To address the barriers to DIP adoption, two strategies/policies can be employed:

Right of way (RoW) policy: The implementation of an effective RoW policy can play a crucial role in bridging the digital divide and improving internet connectivity in rural areas. The RoW policy, introduced by India’s Department of Telecommunications in 2016, aims to facilitate the seamless acquisition of land for laying optic fiber cables and setting up mobile towers. By streamlining administrative processes and standardizing fees, the policy enables telecommunications companies to establish telecommunication infrastructure more efficiently (Dixit et al., 2022 ).

Under the RoW policy, telecommunication companies are required to electronically apply for laying down telecommunication infrastructure, ensuring transparency, cost-effectiveness, and timely deployment of optic fiber across India. The policy also allows telecommunication companies to install their infrastructure on government premises, such as post offices and administrative offices, further facilitating the expansion of network coverage (ESCAP, 2018 ).

To ensure the success of the RoW policy, close monitoring by both central and state governments is essential. Regular oversight can help ensure effective policy implementation, address any challenges that arise, and respond to issues raised in reports related to policy implementation. Additionally, the Indian government can encourage real estate developers to incorporate fiber access infrastructure when constructing new buildings, facilitating faster and more widespread fiber deployment by telecommunication companies (Dutta & Fischer, 2021 ).

Government sensitization: Government sensitization programs can play a vital role in addressing digital illiteracy and the digital divide. The Ministry of Electronics and Information Technology, along with other relevant ministries, can organize awareness programs to educate the population on digital technologies, their benefits, and how to effectively utilize them (Goedhart et al., 2019 ).

These awareness programs should be designed to target different segments of the population, including rural communities. They can include workshops, training sessions, and interactive sessions with government officials, industry experts, and technology providers. The programs can focus on various aspects, such as digital payments, access to online services, and government schemes and platforms like the Bharat Bill Payment System (BBPS) and Bharat Interface for Money (BHIM) (Bhatt, 2019 ).

The design of these programs can be based on the Theory of Reasoned Action (TRA), which aims to predict behavioral intentions and factors that influence individuals’ adoption of technology. TRA suggests that individual attitudes and subjective norms play a crucial role in determining behavioral intent. By addressing attitudes and societal expectations through awareness programs, the government can encourage individuals to embrace digital technologies and overcome barriers such as lack of knowledge and misconception (Raut et al., 2021 ).

Moreover, these sensitization programs should be ongoing and regularly updated to reflect the evolving technology landscape. Continuous efforts to educate and create awareness about digital literacy can help bridge the gap between rural and urban populations, empower individuals with the necessary digital skills, and promote the adoption of digital services and applications (Falloon, 2020 ).

The digitization of public services in India has made significant progress, but there are still gaps and challenges that need to be addressed. The existing literature highlights the digital divide and digital literacy as key factors affecting the adoption of ICT in rural areas (Acilar & Sæbø, 2023 ; Lythreatis et al., 2022 ). However, there is a lack of in-depth studies on how to effectively solve the digital divide problem. One suggested solution is establishing rural telecentre service centers that provide ICT access to remote areas, facilitating technological accessibility for rural citizens (Rosales & Blanche, 2022 ).

While India has experienced success in e-governance and ICT initiatives, there are still challenges to overcome. Capacity building to utilize e-governance services, investments in and access to ICTs, and promoting people’s participation in e-democracy are identified as key challenges. The goal is to improve access to information and services, stimulate social and economic development, facilitate decision-making processes, and empower marginalized groups (Saxena et al., 2019 ).

The literature also emphasizes the rural–urban disparities in India, which are the largest in the world. Bridging the digital divide and promoting digital literacy is crucial for creating digitally empowered societies. The introduction of wireless internet and digital platforms in rural communities can contribute to reducing paper usage, saving resources, and promoting a clean environment. Additionally, it helps narrow the gap between rural and urban areas and addresses the lack of digital literacy (Jia & Desa, 2022 ).

Exploring the socio-economic impact of digital financial inclusion initiatives in rural areas of India

Adoption Rates of the Digital India Program among Different Demographic Groups refers to an analysis or examination of the extent to which various demographic groups within the population have embraced and utilized the Digital India Program. DIP is a government initiative to promote digital inclusion and transform India into a digitally empowered society and knowledge economy (Reddick et al., 2020 ).

By studying the adoption rates among different demographic groups, researchers can identify patterns and disparities in the uptake of digital technology within DIP. Demographic factors commonly considered in such analyses may include age, gender, occupation, education level, and income level (Prabhakar & Weber, 2020 ).

Understanding the adoption rates among different demographic groups provides valuable insights into the effectiveness of the Digital India Program in targeting specific populations and promoting digital inclusion (Nayak et al., 2019 ). It helps policymakers and program implementers assess whether certain groups may require additional support, resources, or tailored interventions to enhance their engagement with digital technologies. Additionally, it sheds light on potential barriers or challenges specific demographic groups face in adopting and utilizing digital tools and services within DIP (Dutta et al., 2020 ).

Conceptual framework

The conceptual framework for this study aims to investigate the factors influencing the adoption and utilization of digital information and technological innovation among rural populations in India. It comprises three main components: access to digital information and technology, influencing factors, and adoption and utilization outcomes.

Access to digital information and technology:

Availability of digital infrastructure (e.g., internet connectivity, mobile networks)

Availability of digital devices (e.g., smartphones, computers)

Accessibility of digital platforms and services

Influencing factors:

Demographic factors (e.g., age, gender, occupation)

Perceived usefulness and ease of use of digital technology

Digital literacy and skills

Socio-economic factors (e.g., income level, education level)

Government initiatives and support

Adoption and utilization outcomes:

The extent of digital information access and utilization

Engagement in online activities and communication

Socio-economic impact and empowerment

This conceptual framework provides a structure for analyzing the data collected from the survey and helps establish connections between the variables under investigation. It helps understand the factors that influence the adoption and utilization of digital information and technological innovation among rural populations in India and how they contribute to the study outcomes.

Research methodology

Research philosophy.

The research philosophy adopted for this study is a combination of positivism and interpretivism. Positivism was employed to ensure a systematic and objective investigation of the factors influencing the adoption and utilization of digital information and technology innovation among rural populations in India. It provided a structured approach to data collection, analysis, and interpretation, allowing for the identification of patterns and generalizations.

On the other hand, interpretivism was also incorporated to acknowledge the subjective nature of human experiences and the social context in which these factors operate. It recognized that individuals’ perceptions, beliefs, and interpretations play a significant role in shaping their adoption and utilization of digital technologies. Interpretivism allowed for a deeper understanding of the lived experiences, motivations, and challenges faced by rural populations in India when it comes to digital information and technology.

By employing a mixed research philosophy, this study aimed to capture both the objective aspects of the digital divide and the subjective experiences of individuals in rural India. The positivist approach provided a foundation for quantitative analysis, while the interpretive perspective facilitated qualitative insights through interviews, observations, and contextual understanding. This comprehensive research philosophy enabled a more holistic exploration of the research question and the factors influencing technology adoption and utilization in rural India.

Research design

This research was conducted using a quantitative survey. The use of questionnaires in this research provided a structured approach to gathering information and ensured credibility, repeatability, and representation of the actual state of affairs among the respondents. Questionnaires are widely acknowledged in the academic community for their flexibility, practicality, and cost-effectiveness in gathering information from the public (Phillips et al., 2021 ).

The research’s epistemological focus on rural areas in India is essential because it acknowledges the distinct characteristics and challenges of rural settings compared to urban areas. Indian rural areas often face infrastructural limitations, limited access to education and healthcare, and different socio-cultural dynamics. The questionnaire was designed to embed these differences by including questions that specifically addressed the unique challenges and opportunities within rural contexts. For instance, questions related to access to healthcare services, digital infrastructure, agricultural practices, and local community networks were incorporated to capture the rural-specific aspects. This approach ensured the research was contextually relevant and provided insights tailored to the rural population’s needs and experiences, enhancing the study’s applicability and impact.

Geographical disparities in rural India show that areas near urban centers tend to have higher adoption of digital skills due to better infrastructure and access to education. In contrast, remote rural areas face challenges like limited connectivity, resulting in lower adoption rates. Bridging these disparities requires improved infrastructure, digital literacy programs, and awareness efforts in remote regions.

The sample size for this study was determined using Fisher’s formula, and a sample of 400 individuals was considered appropriate. The study focused on the Kalahandi area in Odisha, which was manageable for the researcher to reach out to the participants within the defined sample size. The use of closed-ended questionnaires in interviews allowed for comprehensive data collection without limiting the scope of the research or influencing participants’ responses. It provided valuable insights into the research topic and offered an opportunity for respondents to express what was most important to them (Easterby-Smith et al., 2012 ).

The research design aligns with the positivist epistemological stance, taking a relatively objective posture to examine quantifiable variables (Ryba et al., 2022 ). The emphasis was placed on evidence and justification, utilizing statistical analysis techniques to interpret the collected quantitative data. The surveys were conducted using pre-defined questionnaires with the assistance of research assistants employed by SurveyMonkey.com, an online survey development company known for customizable surveys and data collection and analysis services. The research assistants were trained to ensure non-interference with the respondents’ answers while gathering data.

The collected data were processed and analyzed using the Statistical Package for the Social Sciences (SPSS), a statistical software application widely used for quantitative data handling. The SPSS tool facilitated the interpretation of the quantitative data through statistical tests, presenting the findings in graphs and tables. Inferential statistics techniques were applied to generalize the findings from the sample to the larger population. As a way of making sense of statistical information, inferential reasoning plays a crucial role in analyzing and interpreting the data (Cooksey, 2020 ).

Research sample

In order to ensure the meaningfulness and generalizability of a research study, it is essential to determine a representative research sample. A sample refers to a subset of the population under investigation, while the population encompasses the entire group of individuals relevant to the study. The selection of an appropriate sample is crucial for the findings to hold value and provide comprehensive insights (Tate & Perdices, 2018 ). Researchers employ various methods to establish a sample that accurately represents the population, particularly when the population size is large or covers a wide geographic area that is challenging to cover entirely.

The rural population of Kalahandi, India, is substantial, as indicated by the 2011 population census, which reported a population of 1,573,054 individuals. Due to the impracticality of reaching out to every individual within this population, a sample was chosen by determining the number of participants required. The general formula for calculating the number of individuals to be included in the sample is as follows: n = N / (1 + N × e^2).

Here, n represents the desired sample size, N denotes the total number of individuals in the Indian rural population, and e is the significance level set for the study (Cochran et al . , 1962). For this study, the significance level was set at 0.05.

In this case, the population of rural India was utilized to determine the appropriate sample size. Considering the population of Kalahandi District in 2011 as the entire population (1,573,054 individuals), it was necessary to determine a representative sample. Using the aforementioned formula, the sample size (represented by n) was calculated as follows: n = 1,573,054 / (1 + 1,573,054 × 0.05^2) n = 1,573,054 / 3,933.635 n ≈ 399.89.

Since the formula suggested an interview sample size of approximately 399.89 individuals, it was rounded to 400, a whole number. Fractions of individuals cannot participate in interviews, hence the need for a whole number. Furthermore, all research variables in the surveys will be measured using reflective concepts based on a five-point Likert scale, ranging from 1 (‘totally disagree’) to 5 (‘totally agree’).

Ethics, consent, and permissions

In conducting this research study on digital technology adoption in rural areas of India, we place a strong emphasis on ethical considerations and obtaining informed consent from all participants involved. This includes respondents who took part in data collection.

Before initiating any data collection activities, participants were provided with clear and comprehensive information regarding the nature and purpose of the study, as well as their rights as research participants. This information covered topics such as the research objectives, the types of data to be collected, and how their information will be used and stored. Participation in this study was entirely voluntary, and participants had the right to withdraw their consent at any stage without facing any consequences. Additionally, all data collected are kept confidential and anonymized to ensure the privacy of participants. Only aggregated and de-identified data were used for analysis and reporting.

Furthermore, this research study complies with all relevant data protection and privacy regulations, including those outlined by local authorities in India. Any personal information collected was handled in accordance with these regulations to safeguard the rights and privacy of the participants. If participants had any questions or concerns about participating in this research study, they were encouraged to contact the researchers for clarification. Contact information for the researchers was provided in the consent materials. By participating in this study, respondents acknowledged that they had read and understood the provided information and voluntarily consented to participate in the research. Their contributions were invaluable in advancing our understanding of digital technology adoption in rural areas and informing policies and interventions to bridge the digital divide.

Findings, analysis and evaluation

The findings, analysis, and evaluation play a crucial role as they present and interpret the results of the study. This section involves analyzing the collected data, discussing the findings pertaining to research questions and hypotheses, and evaluating the significance and implications of the results.

In line with research objectives, three hypotheses have been formulated to extend the understanding of the research topic:

H1: Digital information and adoption of digital technology in rural areas are increasing, indicating high literacy levels among the rural Indian population.

H2: Access to digital information and technological innovation in rural areas is influenced by demographic factors such as age, gender, and occupation.

H3: The perceived usefulness and ease of use of digital information and technological innovation have a significant impact on adoption and utilization among rural populations in India.

Response rate

Achieving a response rate higher than 70% is considered significant for deriving valid and meaningful deductions from a study (Tiberious et al., 2016 ). In this study, the response rate exceeded 70%, with 87.5% of the collected questionnaires being correctly answered and only 12.5% containing errors or missing information. This response rate provides a sufficient basis for drawing valid conclusions from the study.

The high response rate observed in this study, despite its rural setting, can potentially be attributed to the high literacy levels among the rural Indian population, as indicated by the education levels of the participants. Notably, nearly half of the population held bachelor’s degrees, and a considerable proportion had post-secondary education, indicating their ability to read and write. This explains the minimal number of rejected questionnaires due to inadequate information. It is worth mentioning that India has faced gender disparity challenges, and this study reveals that males continue to dominate over females, evident from the educational status of the respondents. It can be inferred that males have achieved higher levels of education compared to their female counterparts, particularly among those with postgraduate qualifications.

Of the 350 respondents interviewed, 220 were male, while 130 were female, indicating a higher representation of males in the study. Typically, in most countries, the female population slightly exceeds the male population. However, in this study, the overrepresentation of males among the respondents may not reflect the general population in India but rather the population connected through digital devices. This gender ratio likely mirrors the gender distribution of individuals using smart devices and participating in online social networks.

Nationality

Since this study was conducted in rural India, the respondents who completed the questionnaires were likely to be natives. The findings indicate that 91.4% of the respondents were native Indians, while only 8.6% were considered foreigners. This distribution accurately reflects the rural population in India, suggesting that the respondents have a comprehensive understanding of the country’s dynamics over the years.

Table 1 presents the age distribution of the rural Indian population, demonstrating a typical population pyramid with a majority of youths. More than 70% of the respondents were below 50 years old, indicating a vibrant and growing population in rural India, as most individuals fall within the reproductive age brackets. Only a smaller proportion of the respondents were aged 50 and above, accounting for less than 20% of the population.

This age distribution holds economic significance as it implies a workforce capable of contributing to increased productivity in the economy. The youthful population is well-positioned to engage in various activities and play a crucial role in nation-building. Furthermore, young individuals are more adaptable to technology and possess higher computer literacy, enabling them to readily embrace the services offered by digital programs. This finding aligns with the observations made by Kar et al. ( 2018 ) regarding the sharp increase in internet usage in India. Moreover, the substantial level of education among the respondents indicates a readiness to embrace digital advancements. Hence, DIP has a solid foundation in the form of a young, educated, and dynamic population, which is vital for the program’s sustainability. Additionally, the study confirms that the DIP primarily serves the local native population, with only a small percentage of foreigners among the respondents.

Level of education

The study reveals that a significant portion of the participants had attained a high level of education. More than 70% of the population held at least a diploma, with 47% of the respondents having a bachelor’s degree (Table  2 ). This suggests that a substantial proportion of the rural Indian population possesses a good level of education. Notably, even in rural areas, nearly half of the population has achieved a bachelor’s degree. Furthermore, the data indicate that men have a higher representation in postgraduate education compared to women. This trend aligns with the broader pattern observed in the population, where males more commonly pursue postgraduate studies, while females often prioritize family responsibilities. It is important to highlight that the level of education significantly influences people’s awareness of current events and developments. With more than 70% of respondents having education beyond a diploma, they are likely to possess a good understanding of the success and potential of the Digital India Program.

Table 2 provides a breakdown of the education level distribution by gender. The data show that males and females both had a range of educational backgrounds, but there were slight variations. The participants with certificates consisted of 8 males and 10 females, accounting for 5.1% of the total. High school education was reported by 23 males and 13 females, making up 10.3% of the sample. A total of 81 individuals, comprising 53 males and 28 females, had a diploma, representing 23.1% of the respondents. Graduate-level education was achieved by 100 males and 66 females, totaling 166 participants or 47.4% of the sample. Lastly, postgraduate studies were pursued by 36 males and 13 females, amounting to 49 individuals or 14.0% of the respondents.

Research findings

The research findings presented in this section shed light on the key insights and outcomes of the study, providing a deeper understanding of the factors that contribute to the successful adoption and utilization of digital technology in rural areas. By examining these findings, we can uncover strategies and recommendations to enhance digital technology adoption and utilization, thereby empowering rural communities and fostering inclusive growth.

Trend Analysis of Awareness and Adoption Rates is a method used to examine the patterns and changes in the awareness and adoption of specific technologies or services over a given time period. This analysis provides insights into the growth or decline of awareness and adoption rates, allowing researchers and stakeholders to understand the evolving trends and make informed decisions.

In Table  3 , we have data on the awareness and adoption rates for e-voting, e-commerce, and mobile banking over a four-year period (2018–2021). By conducting a trend analysis on this data, we can determine the overall direction and magnitude of the changes in awareness and adoption rates for each service.

Table 3 represents the trend analysis of awareness and adoption rates for E-Voting, E-Commerce, and Mobile Banking over a four-year period from 2018 to 2021. It shows a consistent upward trend in awareness for all three services, with percentages increasing each year. Similarly, the adoption rates for these services also exhibit a positive trend, indicating a growing number of individuals adopting these digital technologies. The results suggest an increasing acceptance and utilization of E-Voting, E-Commerce, and Mobile Banking among rural populations in India, reflecting the expanding awareness and adoption of digital services in these areas over time; therefore, H1 is accepted.

Table 4 provides information on the adoption rates of digital technology among different demographic groups based on age group, gender, and occupation. In the age group of 18–25, the adoption rate is 0.65, indicating that 65% of individuals in this group have adopted digital technology. Among them, males have a higher adoption rate compared to females.

For individuals aged 26–35, the adoption rate increases to 0.75, suggesting that 75% of individuals in this age group, predominantly females, have embraced digital technology. In the age group of 36–45, predominantly males, the adoption rate is even higher at 0.82. This implies that 82% of individuals in this age group, primarily involved in entrepreneurship, have adopted digital technology. For individuals aged 46–55, predominantly females and retired, the adoption rate is lower at 0.50, indicating that 50% of individuals in this age group have embraced digital technology. Among individuals aged 56 and above, primarily males involved in farming, the adoption rate is 0.40, suggesting that 40% of individuals in this age group have adopted digital technology. These findings highlight the variations in adoption rates based on age, gender, and occupation. They indicate that younger individuals and those involved in professional or entrepreneurial occupations tend to have higher adoption rates compared to older individuals and those in retirement or farming occupations.

Table 5 presents the results of an analysis of variance (ANOVA) conducted to assess the differences in adoption rates among different demographic factors: age group, gender, and occupation.

For the age group factor, the sum of squares (SS) is 23.54, with 2 degrees of freedom (df), resulting in a mean square (MS) of 11.77. The F-value is 4.25, and the p-value is 0.023. Based on these results, the ANOVA indicates a significant difference in adoption rates between age groups. Similarly, for the gender factor, the sum of squares is 12.87, with 1 degree of freedom, resulting in a mean square of 12.87. The F-value is 6.71, and the p-value is 0.008. This indicates a significant difference in adoption rates between genders.

For the occupation factor, the sum of squares is 18.29, with 3 degrees of freedom, resulting in a mean square of 6.10. The F-value is 3.89, and the p-value is 0.015. These results suggest a significant difference in adoption rates across different occupations.

Table 6 presents the results of a logistic regression analysis conducted to examine the relationship between the adoption rate of digital technology (dependent variable) and three independent variables: age group, gender, and occupation. The coefficients represent the estimated effect of each independent variable on the adoption rate. Based on the results, the age group has a coefficient of 0.45, gender has a coefficient of 0.32, and occupation has a coefficient of 0.21. All three coefficients have associated standard errors and p-values. The odds ratio represents the likelihood of adoption based on each independent variable. The p-values for all three variables are below the significance level of 0.05, indicating statistical significance. A significance level of 0.05 is chosen as a solid foundation for hypothesis testing because it represents a commonly accepted threshold for determining the statistical significance of research findings. When p-values fall below this level, it indicates strong evidence in support of the research conclusions. Therefore, age group, gender, and occupation are found to be significant predictors of the adoption rate of digital technology, therefore accepting H 2 . This suggests that these demographic factors play a role in influencing the likelihood of adopting digital technology among the population.

Table 7 presents the correlation coefficients between three variables: perceived usefulness, ease of use, and adoption/utilization of digital technology. The correlation coefficient ranges from -1 to + 1 and indicates the strength and direction of the relationship between variables.

Based on the table, perceived usefulness is strongly positively correlated with ease of use, with a correlation coefficient of 0.67. This suggests that individuals who perceive digital technology as useful are more likely to find it easy to use. Similarly, perceived usefulness has a moderate positive correlation with adoption/utilization, with a correlation coefficient of 0.48. This indicates that individuals who perceive digital technology as useful are more likely to adopt and utilize it. Ease of use also has a moderate positive correlation with adoption/utilization, with a correlation coefficient of 0.34. This suggests that individuals who find digital technology easy to use are more likely to adopt and utilize it.

Table 8 presents the results of a regression analysis conducted to examine the relationship between the dependent variable, adoption/utilization of digital technology, and two independent variables, perceived usefulness and ease of use.

The coefficient represents the estimated effect of each independent variable on the dependent variable. In this analysis, perceived usefulness has a coefficient of 0.79, indicating that for every one-unit increase in perceived usefulness, there is a predicted increase of 0.79 units in the adoption/utilization of digital technology. Similarly, ease of use has a coefficient of 0.42, suggesting that for every one-unit increase in ease of use, there is a predicted increase of 0.42 units in adoption/utilization.

The standard error measures the precision of the coefficient estimates. A smaller standard error indicates a more precise estimate. Both coefficients in this table have relatively small standard errors, indicating a reasonable level of precision.

The p-values determine the statistical significance of each coefficient. In this analysis, perceived usefulness and ease of use have p-values less than the chosen significance level (typically 0.05), indicating that the coefficients are statistically significant. This suggests that both perceived usefulness and ease of use are important predictors of the adoption/utilization of digital technology.

The odds ratio provides an alternative interpretation of the coefficients. For perceived usefulness, the odds ratio of 2.20 indicates that individuals who perceive digital technology as more useful are 2.20 times more likely to adopt/utilize it. Similarly, for ease of use, the odds ratio of 1.52 suggests that individuals who find digital technology easier to use are 1.52 times more likely to adopt/utilize it. Based on the regression analysis, both perceived usefulness and ease of use have a significant positive impact on the adoption/utilization of digital technology. Higher levels of perceived usefulness and ease of use are associated with increased adoption/utilization rates, therefore accepting H 3.

The findings of this study shed light on the factors influencing the successful adoption and utilization of digital technology in rural areas, with a specific focus on the Digital India Program. The age distribution of the rural Indian population aligned with previous research observations and was expected (Gangotia & Pradhan, 2022 ; Roy, 2018 ). The pyramid-shaped age structure, with a majority of young individuals, signifies a youthful workforce that holds immense economic significance. The predominance of young respondents indicates their potential to actively contribute to the economy and suggests a higher likelihood of embracing digital technologies. This finding supports the notion that younger individuals are more adaptable to technology and possess higher computer literacy, as previously observed by Kar et al. ( 2018 ) and Soja ( 2017 ). Thus, the expected result reinforces the understanding that DIP can effectively target the younger demographic in rural areas.

Moreover, the high level of education among the respondents was also anticipated. The substantial proportion of individuals holding at least a diploma, with almost half possessing a bachelor’s degree, indicates a population with a good understanding of the potential and success of digital initiatives. These education levels in rural areas surpass expectations and underscore the prevalence of education and knowledge in the rural Indian population. The anticipated result reinforces the hypothesis that the rural population, even in remote areas, is equipped to embrace digital advancements and benefit from DIP (Karine, 2021 ; Mueller et al., 2020 ).

However, there were unexpected and profound findings that deserve closer examination. Firstly, the significantly higher rate of digital technology adoption among female respondents challenges the conventional perception of gender disparities in technology access and usage. The higher rate of digital technology adoption among female respondents suggests a promising shift in gender disparities in technology access in rural areas. This may be attributed to the impact of women-focused empowerment initiatives, which have enhanced digital literacy and confidence among women, as well as the tangible benefits that digital technologies offer for education, healthcare, and economic opportunities (Elliott et al., 2020 ). This finding signifies the potential for gender-inclusive digital development and emphasizes the effectiveness of targeted programs in empowering women and narrowing the technology gender gap in rural communities, contributing to more equitable and inclusive digital transformation. This unexpected result contradicts previous studies that have reported lower technology adoption rates among women in rural areas (Chatterjee et al., 2020 ; Smith et al., 2015 ). The finding suggests a potential shift in gender dynamics and highlights the empowering effect of DIP in bridging the gender gap and promoting gender equality in technology access.

Secondly, the higher utilization of mobile-based services compared to computer-based services was an unexpected trend. Previous literature has emphasized the role of computer-based services in promoting digital inclusion (Heeks, 2010). However, as indicated by the survey results, the dominance of mobile-based services suggests a paradigm shift in technology utilization patterns. This unexpected trend may be attributed to the affordability and accessibility of mobile devices, enabling a wider range of rural individuals to engage with digital platforms. These findings challenge existing notions and highlight the need for a comprehensive understanding of technology usage patterns to effectively tailor digital programs for rural areas.

Comparing our results with previous studies reveals both similarities and discrepancies. The unexpectedly higher adoption rate among female respondents challenges the findings of Smith ( 2015 ), who reported lower technology adoption rates among women in rural areas. Our study’s findings indicate a positive shift in gender dynamics and underscore the potential of digital programs, such as DIP, in promoting gender equality in technology access.

Additionally, the trend toward mobile-based services aligns with the observations of Kar et al. ( 2018 ), who noted a significant increase in internet usage in India due to the widespread availability of affordable smartphones. Our study’s findings reinforce the need to recognize the importance of mobile-based platforms in digital inclusion efforts and highlight their potential to reach a wider audience in rural areas (James, 2020 ; Pal & Vanijja, 2020 ).

The findings of this study have several practical implications for policymakers, government agencies, and organizations involved in promoting digital inclusion in rural areas. Firstly, the unexpected finding of higher technology adoption among female respondents emphasizes the importance of gender-inclusive strategies in digital initiatives. Policymakers and organizations should focus on providing equal opportunities and resources for women in rural areas to enhance their participation in digital programs (Davey & Davey, 2014 ). This can be achieved through targeted awareness campaigns, skill development programs, and ensuring access to affordable and reliable digital infrastructure (ElMassah & Mohieldin, 2020 ).

Furthermore, the dominance of mobile-based services suggests the need to prioritize mobile technology in the design and implementation of digital programs (Fabregas et al., 2019 ). Policymakers should invest in enhancing mobile connectivity, improving network coverage, and promoting the affordability of smartphones in rural areas. Additionally, initiatives should be undertaken to improve digital literacy and provide training on mobile-based applications and services, ensuring that rural communities can fully leverage the benefits offered by mobile technologies (Fennell et al., 2018 ; Mishra et al., 2019 ).

To facilitate the effective implementation of digital initiatives, partnerships and collaborations between government agencies, non-governmental organizations (NGOs), and private sector entities are essential. By pooling resources and expertise, stakeholders can develop comprehensive strategies, share best practices, and address the unique challenges faced by rural communities (Montgomery et al., 2012 ; Warner & Sullivan, 2017 ). Furthermore, involving local communities in the decision-making process and ensuring their active participation can foster a sense of ownership and increase the likelihood of successful adoption and utilization of digital technologies (Lorenzi et al., 2009 ).

The trend analysis of awareness and adoption rates for e-voting, e-commerce, and mobile banking over a four-year period revealed a consistent upward trend, indicating increasing acceptance and utilization of these digital services among rural populations in India. This suggests a growing awareness and adoption of digital technologies in rural areas over time.

Furthermore, the analysis of adoption rates among different demographic groups based on age, gender, and occupation demonstrated variations in adoption rates, with younger individuals and those involved in professional or entrepreneurial occupations having higher adoption rates compared to older individuals and those in retirement or farming occupations.

The analysis of variance and regression analysis further supported the influence of demographic factors on the adoption rate of digital technology. Age group, gender, and occupation were found to be significant predictors of the adoption rate, suggesting that these factors play a role in influencing the likelihood of adopting digital technology among the population.

The correlation analysis indicated positive relationships between perceived usefulness, ease of use, and adoption/utilization of digital technology. Individuals who perceive digital technology as useful and easy to use are more likely to adopt and utilize it.

The regression analysis confirmed the importance of perceived usefulness and ease of use as predictors of the adoption/utilization of digital technology. Higher levels of perceived usefulness and ease of use were associated with increased adoption/utilization rates.

Overall, these findings contribute to the existing body of knowledge and emphasize the significance of digital literacy, demographic factors, and perceived usefulness and ease of use in bridging the digital divide and fostering the adoption and utilization of digital technology in rural areas. The study highlights the importance of enhancing literacy rates, addressing demographic variations, and emphasizing user-centric design and usability in promoting the adoption and utilization of digital technology in rural communities.

Theoretical implications

The research findings presented in this study have several theoretical implications for the field of digital technology adoption in rural areas. Firstly, the trend analysis of awareness and adoption rates provided insights into the changing patterns of technology adoption over time. The consistent upward trend in awareness and adoption rates for e-voting, e-commerce, and mobile banking indicates the increasing acceptance and utilization of digital technologies in rural populations. This highlights the evolving nature of technology adoption and the growing digital divide in rural areas. Secondly, the finding supports the notion that enhancing literacy rates is crucial in bridging the digital divide and promoting the adoption and utilization of digital technology. It emphasizes the importance of digital literacy as a facilitator of technology adoption and highlights the need for targeted interventions to improve digital literacy in rural areas. Thirdly, the findings revealed that factors beyond demographic characteristics play a more prominent role in influencing technology adoption in rural areas. It emphasizes the role of education and occupation in shaping individuals’ attitudes and behaviors toward technology adoption. Lastly, the role of education in digital literacy, showcasing the potential for gender-inclusive technology initiatives, and recognizing the growing importance of mobile technology in rural digital access, all of which inform the development of more inclusive and effective theoretical frameworks for rural digital transformation.

Managerial implications

The research findings also have important managerial implications for policymakers, organizations, and stakeholders involved in promoting digital technology adoption in rural areas. Firstly, the increasing trend in awareness and adoption rates indicates a growing market potential for digital services in rural populations. Policymakers and organizations can capitalize on this trend by developing targeted strategies to promote digital literacy and provide access to digital information in rural areas. This can involve initiatives such as setting up digital training centers, improving internet connectivity, and partnering with local organizations to deliver educational programs. Secondly, the significant relationship between digital information availability and technology adoption suggests that efforts should be made to improve the availability and accessibility of digital information in rural communities. Policymakers can work towards improving internet infrastructure and providing information through various channels such as community centers, mobile vans, or government programs. Organizations can also collaborate with local community leaders and organizations to disseminate digital information effectively.

Thirdly, the finding that literacy and occupation are significant predictors of technology adoption highlights the importance of educational and vocational programs in rural areas. Policymakers and organizations can focus on enhancing literacy rates and providing vocational training that includes digital skills. Technology adoption can be facilitated by empowering individuals with the necessary knowledge and skills, leading to increased access to digital services and economic opportunities.

Practical implications

The findings of this study have practical implications for policymakers and stakeholders aiming to promote the adoption and utilization of digital technology in rural areas of India. First and foremost, it underscores the importance of digital literacy programs tailored to different demographic groups, with a focus on older individuals, retirees, and those engaged in farming occupations. Recognizing these groups may have lower adoption rates, targeted efforts to enhance their digital skills and awareness are crucial.

Moreover, it emphasizes the need for user-centric design and usability of digital services. To encourage adoption, digital platforms, and applications should be designed with a focus on perceived usefulness and ease of use, making them accessible and valuable to users. This involves user-friendly interfaces, clear instructions, and features that cater to the specific needs of rural populations.

The study also highlights the ongoing positive trend in the adoption of digital services, suggesting that awareness and acceptance are growing in rural areas over time. Policymakers should leverage this trend by continuously promoting the benefits of digital technologies and expanding infrastructure and connectivity to reach more remote regions.

Ideas for future research

While this study provides valuable insights into digital technology adoption in rural areas, there are several avenues for future research. Some potential areas for further investigation include: conducting longitudinal studies to examine the long-term effects of technology adoption in rural communities. This could involve assessing the economic, social, and educational outcomes associated with digital technology adoption and exploring how these outcomes evolve. Investigating the influence of cultural factors on technology adoption in rural areas could involve exploring the role of cultural values, beliefs, and norms in shaping individuals’ attitudes and behaviors toward digital technology adoption. Examining the impact of infrastructure development, such as improved internet connectivity and access to electricity, on technology adoption in rural communities. This research could explore how infrastructure improvements affect individuals’ access to digital services and willingness to adopt and utilize technology.

Data availability

Data will be made available on request.

Abbreviations

Digital India Program

Information and Communication Technology

Geospatial Information Systems

Unified Payments Interface

Pradhan Mantri Gramin Digital Saksharta Abhiyan

Jandhan-Aadhaar-Mobile

Crime and Criminal Tracking Network & Systems

Goods and Service Tax Network

Goods and Services Tax

Unified Mobile Application for New-Age Governance

Foreign Direct Investments

Right of Way

Bharat Bill Payment System

Bharat Interface for Money

Theory of Reasoned Action

Statistical Package for the Social Sciences

Analysis of variance

Sum of squares

Degrees of freedom

Mean square

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Information and communication technologies (ICTs) provide new opportunities and new challenges for developing economies. ICT adoption, digitalization and automation provide formidable new opportunities in terms of increased efficiency and productivity, the creation of new services and occupations and increased connectivity among agents. However, the extent to which developing economies are able to reap these potential benefits is contingent on a set of other social, economic and institutional dimensions. While economic growth and rising productivity are the major expected outcomes of digitalization, digital divides and related forms of exclusion and inequalities are commonly observed too. India, one of the largest economies in the world, with a remarkable pace of ICT diffusion, represents a relevant case to investigate the impacts of digitalization on economic development. The present book collects a series of novel contributions on this theme, studying the Indian experience in an international cross-country perspective. This introductory chapter presents background information on the Indian case, introduces the main themes on the relationships between ICTs, socio-economic development and digital divides and provides a summary and road map to the chapters included in the book. On the whole, the main message of this book is that the impact of ICTs is contingent upon other assets, capabilities and institutional conditions. National policies should therefore not only promote digitalization as such but also ensure its co-evolution and complementarity with a variety of other country-specific factors.

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1 introduction.

Some of the initial text in Sect.  1 is based upon Castellacci ( 2006 ).

Innovations in information and communication technologies (ICTs) have brought revolutionary changes not only on the economic front but also in the social and personal areas of human life. ICTs initially originated from the fast technological developments in the semiconductor industry, in the telecommunication sector and, more recently, in a wide range of new services linked to multimedia and the Internet (Dalum et al. 1999 ; Castellacci 2006 ). Key technological trajectories within ICTs are currently represented by automation and the Internet. The convergence of these technological advances may arguably constitute the rise of a new “technological paradigm” (Freeman and Louça 2001 ).

A technological paradigm is a set of interrelated and pervasive innovations that increases productivity in many sectors of the economy (Dosi 1988 ; Freeman et al. 1982 ). The new technological paradigm based on ICTs may have important economic effects on growth, wealth and welfare in the near future, and it may lead to radical changes in firms’ production structure and organizations, in the patterns of consumption and in institutional settings. Innovation studies have extensively investigated the emergence and diffusion of ICTs and particularly focused on the pervasive economic effects that these general-purpose technologies have on different sectors of the economy (Castellacci 2006 , 2008 ).

One major question that is often discussed in this field relates to the consequences that the diffusion of ICTs has for catching up and developing economies. Does the new technological paradigm based on ICTs create new windows of opportunity or further obstacles for catching-up countries? The answer to this question is a matter of considerable controversy in the literature on innovation and economic development, and it is rather difficult to discuss because of the fundamental elements of uncertainty, complexity and unpredictability that it entails. It is possible to identify, by and large, two different positions.

The first is a more optimistic stand, which stresses the new windows of opportunity opened up for developing economies by the creation and diffusion of the new information and communication technologies. This position is founded upon the old argument in the catching-up literature of the “penalty of taking the lead” (Veblen 1915 ). According to this, developing countries may exploit their backward position by imitating and implementing advanced foreign technologies created by the leader economies and by rapidly investing in the new technologies. In the new era, less developed economies are less committed to the mass production technological paradigm prevailing in previous decades (in terms of investments in physical capital, machineries and infrastructures) so that they may find it easier to make the jump into the new technological system based on ICTs.

The rapid catching-up process of Asian NICs (Newly Industrialized Countries, such as Korea, Singapore and Taiwan) in the last few decades shows that the opportunities opened up by the diffusion of the ICT-based paradigm can indeed be successfully exploited by catching-up countries, provided that the development strategy that they pursue emphasizes the need to actively invest in the new technologies and in the related infrastructures and skills.

These successful cases, however, contrast with the general pattern of increasing disparities in income and technology levels that the world economy has experienced in the last few decades (Parayil 2005 ; Castellacci 2011 ). A large group of less developed economies, mostly in Africa, Asia and Latin America, have in fact been growing at a rather slow pace, and the technology and income gap has therefore significantly widened for many of them. Several countries have very low levels of technological capabilities, infrastructures and education and consequently find it hard to exploit their backwardness position by imitating ICT-related foreign advanced technologies.

There thus exists a second position in development research that is less optimistic with respects to the current and future prospects for innovation- and imitation-based growth. This is founded upon a strand of historically oriented studies on technological development, growth and catching up (Abramovitz 1986 , 1994 ). Historical evidence indicates that economic development is far from being an automatic and easy process and that it is on the contrary very demanding and costly. This second stand therefore looks with greater concern at the social and institutional factors that may hamper the catching-up process. In this respect, it is argued that the new paradigm based on information and communication technologies is creating as many new obstacles for development as the opportunities it opens up. The process of creation of new technologies and its international diffusion is currently more difficult to exploit for catching-up countries, due to the greater requirement in terms of skills, competencies and capabilities that modern ICT-based global competition requires (Fagerberg and Godinho 2005 ). In particular, the international diffusion of technologies, which has been a major factor of catching up in previous decades, seems to have become more “difficult” and demanding over time (Fagerberg and Verspagen 2002 ).

The present book conceives these two arguments as largely complementary to each other, rather than opposite, as they look at different relevant aspects of the development process. By taking these two previous positions as a general starting point, the book investigates the new opportunities and further obstacles that the emergence of the new ICT-based technological paradigm creates for developing countries, particularly focusing on the case of India.

India, one of the largest economies in the world, with a remarkable pace of ICT diffusion, represents a relevant case to investigate the impacts of digitalization on economic development. Not only has India become the world’s largest exporter of ICT-related services; the Indian Government has also made use of ICTs as a key policy strategy. For the sake of fast digitalization, the Indian government launched the important reform known as the “Digital India” project in July 2015. The project is having a total overlay of about 14 billion USD (or, Rupee 1 lakh crores) aimed at transforming the country into a knowledge economy by ensuring easy access to technology, infrastructure and government services to citizens. The Communications and IT Ministry sought to create business opportunities worth 1 trillion dollars through major impacts in IT/ITES, electronic, manufacturing and telecom sectors. The “Digital India” programme has sought to (i) provide high-speed Internet to common man, (ii) make all government services accessible to the population at large, and (iii) ensure digital empowerment of citizens. Besides, the “Aadhaar Scheme” was launched in January 2009 to integrate all citizens through the provision of biometric identification cards. Attempts were also made to provide direct benefits (like unemployment benefits, subsidies, public utilities, etc.) assisted by ICT in order to bypass intermediaries, avoid informality, detect cyber-crime, control border security and encourage online transactions so that the government could effectively pursue redistributive policies, preserve security and offer efficient public services delivery. Various other programmes have also been added to target and deliver specific programmes and group of people.

These recent development and policy efforts raise some important questions. First, to what extent does the access to ICT services enhance economic outcomes and performance in India? Second, how far has this reached across different social groups and regions of the country, and how has this affected economic and social inequalities in the country? Third, what is the success rate in terms of governance, control of corruption as well as contribution to social welfare and well-being? These issues are of crucial importance, and this book is set to investigate these questions by studying the Indian experience in a cross-country international perspective.

This introductory chapter is organized as follows. Sect.  2 provides background information on recent developments and economic patterns in India. Sect.  3 presents a brief overview of recent policy efforts and increasing trends towards the digitalization of the Indian economy, discussing why and how these are expected to affect economic growth, digital divides and social welfare in the future. Sect.  4 then summarises the themes and main results of the 14 studies collected in this book, and how these contribute to extant research and the policy debate on digitalization and development.

2 India’s Growth, Development and Well-Being

Some information for this section is drawn from Agrawal and Maiti ( 2019 ).

India has maintained a decent growth rate for the last two decades in spite of the global financial crisis. With an average Indian GDP growth rate about 7% in recent years, the current deceleration of growth in China has taken India from second tier to the top. The Indian growth rate was an impressive 8.2% in the first quarter of this financial year 2018 due to the strong performance of the manufacturing and agriculture sectors. This led to an increase in its lead over China to remain the fastest growing major economy of the world. According to a report by the Center for International Development at Harvard University, India, is expected to top the list of the fastest growing economies in the world for the coming decade, with a projected annual growth rate at 7.9%. Figure  1 shows India’s impressive increase in GDP growth rate, surpassing Brazil and China.

Source World Development Indicators, World Bank

GDP growth in India, China and Brazil, 2000–2017 (average of past 3 years).

Despite India’s remarkable growth performance, there are also some painful realities in terms of economic development. According to the World Bank, still one out five Indians is poor. According to the latest official figures in 2012, the poverty rate is 14% in urban areas but 25% in rural areas. More than 60% of poverty is concentrated in seven states in the country. According to the recent Global Hunger Index Report 2012 by the International Food Research Institute, India ranks 97th in Global Hunger Index. This suggests that the benefits of economic growth have not been percolated equally to every stratum of the income distribution.

Gainful and decent employment is the single largest problem in the country. According to the latest National Sample Survey Organisation (NSSO) report, more than 80% of the working population is still in the informal and unorganized sector, without having any right to obtain social security benefits. Unemployment is still a major issue in rural and urban areas, especially for unskilled workers, and hence, the term “jobless growth” has been defined as India’s growth story. The official unemployment rate was just below 5% in 2017, but a report by OECD found that over 30% of people aged 15–29 were not in employment, education or training. This is affected by high rates of illiteracy and poor infrastructures. Economic growth has not been uniform across all states and regions. Technological and corporate hubs like Delhi, Bangalore and Mumbai have attracted the maximum skilled and mobile workers leading to excessive urbanization and congestion, whereas other cities and rural areas have been lagging in employment generation and skill formation. Given the success of ICT in India, a key issue is how the ICT sector performs in terms of employment and wages. This book sheds light on the substantial job creation by the Indian ICT industries, but also the challenges ahead related to the fact that rapid technological changes also lead to higher demand for advanced skills.

For the labour market in India, the very low ratio of female-to-male labour force participation rate in India is also a serious concern. Especially in comparison with China and Brazil, gender inequality patterns show that women do not play yet a substantial role in the labour force as compared to men, and the ratio of female-to-male participation has even been declining (see Fig.  2 ). This can be taken to be a sign of low human progress in India despite healthy growth figures.

Ratio of female-to-male labour force participation rate 2000–2018 (%, ILO estimate).

Increased female labour participation represents a significant development potential not only at the individual level but also for India as a whole, by tapping the huge unexploited potential among women. In the book, we also address how ICTs affect the labour participation of women.

Inequality pervades India not just at a geographical level, but also at an individual level. The remarkable economic growth has only to a limited extent been able to narrow the gap between the haves and the have-nots, as many of India’s poor are yet to receive the fruits of India’s economic growth. According to a recent report by Oxfam (cited in Business Today 2019 , 30th January), India’s richest 1% held 58% of the country’s total wealth, which was higher than the global figure of about 50%. The wealth of this elite group increased by over about 293 billion USD (or, Rs. 20.9 lakh crore) during the period under review—an amount close to the total expenditure estimated in the Union Budget 2017. India’s top 1% of the population now holds 73% of the wealth, while 67 crore citizens, comprising the country’s poorest half, saw their wealth rise by just 1%. So, India’s economic growth has not been pro-poor, and trickle-down economics has not played its role as expected. Hence, taking into account India’s current position, it can be said that inequality is harming not only individuals but also adversely affect growth prospects and overall welfare. How do ICTs affect this pattern? This book sheds light on the exponential spread of ICT in India, partly also among the poor. Furthermore, ICTs are applied in public policies related to poverty, and some chapters address how these affect socio-economic outcomes and inequalities within the country.

India has also been plagued by corruption and a lack of transparency in institutions. One indicator of this is its score in the Corruption Perception Index. According to the World Governance Indicators, compiled by the World Bank, the figures on the control of corruption show a general improvement in both India and China in recent years, while Brazil shows opposite trend (Fig.  3 ). Still, corruption levels in China and India score well below the average. This has led to inefficient institutions that are unable to benefit the people to their full potential and are hampering India’s image as a lucrative place for business. In turn, this has also affected economic activity and employment generation in India, again reinforcing inequality. Corruption also manifests itself as development fees, particularly when funds allocated to various social welfare and developmental programmes such as those earmarked for building roads/schools/expanding infrastructure for public distribution system (PDS) in villages are misused. There is ample anecdotal evidence to show how corruption in the PDS system leads to grains not reaching the actual beneficiaries due to leakages. There has been much debate and discussion on how these issues can be resolved, and one remedy that has found some support is to replace transfers in kind by transfers in cash. This is possible and plausible only when there are well-developed digital channels capable of transferring money to bank accounts seamlessly, thus stressing the importance of ICT for development and welfare enhancement. Has ICT effectively reduced corruption in India? Two chapters of this book investigate specifically this issue.

Source Wold Governance Indicators, World Bank

Control of corruption index in major developing countries: 1996–2017.

Moreover, India has not performed at satisfactory levels when it comes to life expectancy as compared to China and Brazil, two economies that are good comparison points as far as economic development and growth are concerned (see Fig.  4 ). Even though life expectancy at birth has increased, India is still lagging behind China and Brazil. It is hence relevant to ask whether India has succeeded in using ICT efficiently in order to provide better health services and governance to the benefits of its large population.

Life expectancy at birth in India, China and Brazil, 1990–2016 (number of years).

Therefore, it is evident that in spite of the spectacular growth experienced during the last two decades, the related benefits have not percolated to every section of the society in India. The majority of workers are engaged in the informal sector, there are less for formal jobs with growing the formal sector, inequality has increased sharply even though poverty has reduced to some extent, the rural sector is lagging behind, corruption and inefficiencies are crippling the public delivery of welfare programmes and so on. These have been perennial problems of the Indian economy since independence and thereby have remained binding constraints.

Aware of these problems, public authorities and policy makers have recently pointed to digitalization of the economy as an important strategy to address the twin challenges of economic growth and social inclusion. The implicit understanding is that a faster pace of adoption of ICTs will enhance productivity and economic efficiency, bring greater transparency in the delivery of public services and welfare programmes, reduce the level of corruption, integrate remote places with cities and towns and improve the level of democratic participation.

However, as noted in Sect.  1 above, research on digitalization and development points out that socio-economic benefits of ICT adoption are far from being automatic and do often depend on a set of economic, social and institutional dimensions that characterize each national economy. Hence, it is relevant to ask whether digitalization will be the right strategy to foster socio-economic development in India in the coming years, and what complementary factors and capabilities the Indian economy will have to focus on in order to magnify the benefits of ICTs and limit the related risks. This book focuses on three major themes that are crucial to address the question of digitalization and development in India: (1) economic impacts of ICTs; (2) digitalization and inequalities; (3) governance and users’ well-being.

3 Digitalization and Development in India: Patterns and Questions

The ICT sector has been expanding rapidly in the last few years all over the world, as evident from its share of GDP and contribution to GDP capital (Fig.  5 ).

Source ICT-centric economic growth, innovation and job creation, ITU

ICT Sector as a share of GDP and contribution to GDP growth.

According to a recent report by the International Telecommunication Union, over 3 billion people are now online and ICT growth is buoyant across all countries. Latest data show that Internet use continues to grow steadily, at 6.6% globally in 2014 (3.3% in developed countries, 8.7% in the developing world). The number of Internet users in developing countries has doubled in five years (2009–2014), with two-thirds of all people online now living in the developing world.

More than 80% of the youth populations are online in 104 countries. In developed countries, 94% of young people aged 15–24 use the Internet compared with 67% in developing countries and only 30% in Least Developed Countries (LDCs). Out of the 830 million young people who are online, 320 million (39%) are in China and India (Fig.  6 ). Nearly 9 out of 10 young individuals not using the Internet live in Africa or Asia and the Pacific. This emphasizes the importance of ICT and the role it can play in affecting economic outcomes.

Source International Telecommunications Union (ITU). Note *Estimates

Proportion of youth (15–24) using the Internet (2017*).

A report on the new digital economy and development, compiled by UNCTAD (2017), notes that it is not straightforward to measure the impact of ICT growth on development due to its rapidly changing nature and a complex web of areas that are impacted by growth in the ICT sector. Nonetheless, the study considers a diverse range of impact areas such as economic performance, employment, innovation (including research and development), privacy and security, education, health, citizen participation, individuals and communities and the environment. The book will focus on the following three related themes.

3.1 ICTs and Economic Performance

The exposure to ICT raises efficiency and productivity, saves time, reduces hardship, eliminates information distortions, improves communication and more so (Oulton 2012; Castellacci and Tveito 2018 ). As a result, ICT adoption has positively impacted on economic outcomes, like capital formation, exports and government accounts. The impact of ICTs has been viewed as a driving factor contributing to the GDP of an economy by raising the level of TFP and labour productivity. Crafts ( 2004 ) argued that the impact of ICTs on labour productivity in modern society has been greater than that of the steam engine appeared in the mid-nineteenth century. The maximal impact of this technology on labour productivity was 0.41% per year during 1850–70, whereas the estimated effect of ICTs on US labour productivity growth over 1974–90 was 0.68% per year.

A recent report by OECD ( 2018 ) focuses on fostering growth through digitization in South-east Asia, China and India. It indicates that ICT services embodied in manufacturing and services account for a considerable share of the value of exports from these Asian nations. According to a report by the World Bank Development Research Group, the Better Than Cash Alliance and the Bill & Melinda Gates Foundation to the G20 Global Partnership for Financial Inclusion, digitizing payments and remittances are vital to achieving G20 Goals, contributing to its core goal of achieving strong, sustainable and balanced growth. The report shows how the widespread adoption of digital payments in all their forms, including international and domestic remittances, can be instrumental in reaching the goals of G20. Digitization can help overcome the costs and physical barriers that have harmed valuable financial inclusion efforts, offer the opportunity to rapidly scale up access to financial services and promote women’s economic empowerment by facilitating greater account ownership and asset accumulation.

Promoting digitalization has been the Indian government’s focus for many years now. This includes attempts made to provide most services to every citizen on their web portals or electronically and make the transactions transparent and smooth. The Indian government launched the revolutionary reform “Digital India” in 2015, under which it envisioned increased Internet connectivity and making India a digitally empowered nation. This was also seen as being an engine propelling the growth of businesses, employment generation and increasing transparency in major sectors of the economy. Increased Internet penetration, improved telecom services, availability of skilled IT workers, start-ups providing ICT services and the government encouraging ICT through various schemes, operations and services are important factors fostering economic performance.

Access to ICT products by Indian citizens has grown substantially (Fig.  7 ). Internet, landline and mobile telephones are the major three types of products that are commonly used. Mobile use accelerated since early 2000s. However, in contrast to the growth of mobile/wireless telephone, the growth in usage of landline telephone has been falling for the same period. While mobile telephone subscribers register a substantial increase to 87.3 per 100 persons, landline connections drop from around 5 per persons in 2006 to 1.7 per 100 persons in 2017. The growth in the Internet and broadband connections has been modest. The growth of Internet subscribers has been slightly better since 1999. The density of Internet users reached 32.9 per 100 persons in 2017 from 4 per 100 persons in 2007, eight-time rise in the last ten years.

Source Mohanty ( 2019 ) and Annual Report, Telecom Authority of India ( 2018 )

Density of ICT products (per 100 persons) in India, 1990–2017.

An even more recent trend relates to increasing patterns of automation, and the effects this may have by affecting labour wages and employment in developing economies. Further, digital communication technologies may also affect economic outcomes by enhancing business firms’ productivity and their ability to participate in international trade. However, while these recent patterns foster expectations of strong economic benefits for developing economies, extant research has not yet provided analyses and evidence to corroborate these optimistic expectations. Have recent digitalization patterns experienced by the Indian business sector fostered economic growth, employment and international competitiveness of the Indian economy?

3.2 Digital Divide and Inequalities

Despite the government’s efforts towards increasing ICT goods and services in the economy, there is a clear digital divide in the nation, as shown by data from the ICE 360° survey (2016), which gives insights into economic and social well-being of households, provides normative measures of social, political and financial inclusion and a degree of access to public goods, infrastructure and welfare measures.

A survey conducted by the People’s Research on Indian Economy (PRICE 2016 ), covering 60,360 households and studying digital networking by deep diving into the Internet usage, its patterns, mode and purpose of their access, reveals that 10% (27 million) households reported having an Internet connection at their home. But, there were 22% (62 million) of Indian households where at least one member was accessing the Internet (either at work or home or elsewhere and either through a computer or mobile). It also showed that while every tenth underdeveloped rural household—including those in districts such as Kalahandi (Odisha) and Bastar (Chhattisgarh)—has access to the Internet, in the metros every second household has Internet access, hence giving evidence of the rural–urban differences in access to ICT goods. Additionally, the survey results showed that the level of education and Internet access are highly correlated since every second graduate household has at least one member who accesses the Internet versus every hundredth in the case of an illiterate household. The digital divide becomes more palpable between the rich and poor. Nearly 47% of rich households (top quintile) have at least one member with access to the Internet in contrast to only 4% of poor households (bottom quintile). This shows that even though efforts have been made to increase Internet connectivity by the Government in India, the impact has not been uniform across all sections of society.

In addition to Internet connectivity, the government has also made efforts towards increasing mobile connectivity, as mobile phones can be important tools especially in poorer areas where Internet use is not as widespread. However, a gap in the provision and use of ICT goods and services is visible even in terms of mobile phones. The 2017 global survey by the Pew Research Center shows that only one in four Indian adults report using the Internet or owning a smartphone. Despite the booming economy, India’s progress in smartphone penetration has been slow. In 12 of the 22 emerging and developing nations surveyed, fewer than 50% report owning a smartphone, and in India and Tanzania, less than one-quarter report owning smartphones, the lowest among the countries surveyed. This slow adoption of smartphones in India has hampered the growth of the Internet in the country since most Indians tend to access the Internet on their mobiles. In addition to the rural–urban, rich–poor and regional digital divide, India is also lagging in Internet usage (see Fig.  8 ) when a comparison is made with other emerging economies, as shown by the Poushter et al. ( 2018 ).

Source Poushter et al. ( 2018 )

Internet use in BRICs countries.

To bridge the digital divide, the central government has disbursed Rs. 34,000 crore to lay high-speed Internet in 150,000 villages by 2019, but only about 70,000 villages have been covered until now.

Even though there has been a major increase in the use of ICTs, this has not been uniform among genders. As Fig.  9 shows, the digital gender gap persists, as the proportion of men using the Internet is higher than the proportion of women using the Internet in two-thirds of the countries worldwide. The proportion of women using the Internet is 12% lower than the proportion of men using the Internet worldwide. While the gender gap has narrowed in most regions since 2013, it has widened in Africa. In Africa, the proportion of women using the Internet is 25% lower than the proportion of men using the Internet. In LDCs, only one out of seven women is using the Internet compared with one out of five men.

Note * Estimates. Proportions in this chart refer to the number of women/men using the Internet, as a percentage of the respective total female/male population

Proportion of Individuals using the Internet, by gender (2017*).

More than 70% population still live in rural India. There is increasing concern that the access to ICT is rising at much slower rate than that of urban area leading to a rising digital divide between urban–rural areas in India. Tele-density, which denotes the number of telephones per 100 populations, is an important indicator of telecom penetration in a country. Tele-density in India, which was 10.37% in 2001, sharply increased to 167.17% at the end of 2012 in the urban areas, followed by a decline to 154.18% in 2016 (Fig.  10 ). However, the tele-density was 0.93% in 2001 in rural areas, and this shows much lower than the urban share. But, the share has gradually raised to 51.26%. The gap of tele-density has increased ten times during the period, and this shows an increased digital divide in India.

Source Annual Reports, Telecom Authority of India, 2018

Trends in tele-density in India during 2001–2016 (number per 100 populations).

Another current concern that will become increasingly important in coming years is that digitalization and automation of tasks may increase the skill gap in the labour market, and hence exacerbate wage and occupational differences between skilled and unskilled workers (Acemoglu and Restrepo 2018 ; Brambilla and Tortarolo 2018 ). Hence, there is the risk that increased firms’ productivity enabled by ICTs will go hand in hand with an increasing skill gap and inequalities in the labour market, which is an issue of serious concern for a large population country such as India. On the whole, current digital divide patterns make it relevant to ask to what extent India will be able to close these divides in the coming years, and what the effects of these inequalities will be for Indian households and consumption patterns.

3.3 ICTs, Governance and Users’ Well-Being

The impacts of ICTs on welfare go, however, much beyond than their effects on economic growth and income inequalities. ICT users and citizens can be affected in a number of ways by the increasing use of digital technologies. In particular, the socio-institutional environment that characterizes our society, such as governance structures, trust in other citizens, safety and security, is highly relevant for well-being (Dolan et al. 2008 ). Footnote 1 Helliwell ( 2006 ) point out that the ability of governments to provide a trustworthy environment is paramount for well-being, particularly in those countries with poor governance and low absolute income. Internet applications that improve in some way the socio-institutional environment can positively affect citizens’ welfare. Therefore, if governments are committed to providing more online public services, this will likely increase well-being too.

There are three distinct channels mechanisms that are relevant here (Castellacci and Tveito 2018 ). First, moving certain public services online can save citizens’ time and diminish the effort previously allocated to monotonous (and sometimes stressful) tasks. Second, through increased access to information, individuals can have better information about their society, increasing their sense of belonging to their community as well as their safety. For example, in India, citizens can register where they have been asked to bribe governmental officers, and their reports are sent to government officials and the media to increase transparency and the quality of life among citizens, who can learn where to go to avoid having to bribe someone (Ramanna and Tahilyani 2012 ). This can decrease the spread of bribery and corruption, increase trust and thus spur well-being. Third, digital communication tools enable more rapid and transparent interactions between citizens and public authorities, through, e.g. online portals for e-government services, or by improving civic engagement among citizens.

In the Indian context, the issue of arguably highest relevance is how ICTs can contribute to limit the extent of corruption and improve the country’s governance quality. Existence of a parallel economy that thrives and flourishes on cash-based businesses and entities can be undermined through digitalization. Most of the individuals running the parallel economy do not have proper bank accounts and avoid paying taxes to the government. Digitalization initiatives like taxation being brought online and steps like demonetization can aid the government to weed out corruption from our system. If administered and implemented correctly and efficiently, these can be major game-changers. ICTs are supposed to help reduce the activities falling within the ambit of the informal sector and hence increase growth and development in India, which is why there has been a growing focus on these by the Indian government in the recent years.

An interesting example is the Aadhaar system, the world’s most ambitious digital identity programme, which is becoming increasingly necessary for financial transactions and access to social welfare. The Aadhaar system has, however, also led to increased opportunities for corruption. Evidence from an arid village in Jharkhand shows the misery of families who were deprived of subsidized food from the vast public distribution system because their ration cards had not been linked to their biometric-based 12-digit personal identification numbers. Villagers travelling to the nearest town to submit the forms and papers necessary to get their ration cards linked to Aadhaar either had to shell out days of family earnings to bribe the government officers at the office or face rejection and the risk of having no food for many more days of the month.

Even though the government had made the linkage mandatory in order to avoid leakages and digitalize the process, it can be seen that a lot of people actually faced more hardships in getting access to food, hence hampering their well-being despite a well-functioning digital set-up. Similar issues have been faced by pensioners who are unable to get their pensions linked to Aadhaar. Many had to pay bribes to be eligible to receive their pensions and many genuine pensioners were excluded when 300,000 “fake” pensioners were removed from the list of beneficiaries (Biswas 2018 ). This happened due to mistakes made by data operators, resulting in discrepancies in name and age, highlighting the dangers of merely relying on the provision of ICT goods and services without ensuring a supporting institutional system to minimize risks associated with their provision.

These dangerous avenues that the increasing use of ICT has opened up need much more attention by policy makers. Various attempts have been made by the government to reduce informality and corruption through the adoption of ICT in its operations. But despite the many measures taken by the government to clean the system, India’s ranking in the global Corruption Perceptions Index, released by Transparency International, slipped two places to the 81st mark in 2017 (Transparency International 2017 ). The report also termed India as one of the “worst offenders” in the Asia-Pacific region in terms of corruption and press freedom, attributes that are indicators of well-being. In 2016, it was ranked 79 among 176 countries in the index. In 2017, India’s ranking stood at 81 with a score of 40 among 180 countries.

All the above evidences point towards weak institutions that are limiting otherwise positive prospects for the people. There is a dire need to shift the focus from a mere increase in the use of ICT goods and services to strengthening India’s governance and institutional set-ups, to make them strong enough to provide the requisite support for ICT to affect well-being through the channels mentioned in extant research. Without the supporting background of a strong institutional framework, the evils of corruption, informality and mismanagement shall continue to negatively affect growth and well-being and prevent the positive effects of ICT from percolating to the whole economy.

4 This Book: Themes and Contributions

The present book is centred on the three major themes and questions outlined in the previous section. The book is therefore organized in three parts, one focusing on ICTs and economic outcomes, the second on digital divides and inequalities and the third on governance and users’ well-being. The book collects on the whole 15 studies that present fresh empirical evidence and analyses on the issues raised earlier in this chapter. Before presenting these empirical contributions, though, the book includes a comprehensive survey of relevant literature on ICTs, economic growth and well-being.

Chapter “ ICT, Growth and Happiness ” ( Maurseth ) surveys extant research on ICT, growth and development in a cross-country comparative perspective. According to Maurseth, the diffusion of ICT typically follows an S-shaped development over time. This is also reflected in the sharply falling prices of computer equipment, where the so-called Moore’s law—i.e. that real price for computers halves every 18 months—has been largely supported. According to Gordon ( 2016 ), the improvement in the performance/price ratio is unprecedented in history. The impact of ICT should also be enhanced by its nature as a general-purpose technology with widespread application, the public goods nature of some of its infrastructure (especially the Internet), and the special nature of digital products, that are often non-rival in the sense that they can be accessed by many users without affecting the utility of the others.

Given the fundamental impacts of the ICT revolution and its pervasive and observed impacts, we would expect ICT to be heavily reflected also in the statistics on growth and development. In this light, we expect that the diffusion of ICTs should have a clear impact on growth and productivity. In the light of existing research, however, this is surprisingly unclear. According to Chapter “ ICT, Growth and Happiness ”, the macro-impact of ICT on productivity and economic growth is mixed, with an overall modest effect of ICT on growth so far. The spread of ICTs coincided with lower growth rates in industrial countries from the 1970s. Hence, the famous paradox of Solow ( 1987 ): “ You can see the computer age everywhere but in the productivity statistics ”. Higher growth rates in the 1990s contributed to renewed optimism, but the positive impact of ICT was more visible in the USA than in Europe and Japan, and slower growth after the 1990s dampened the ICT optimism. Results from studies using macro-data are therefore mixed and divergent, some suggesting a positive impact of ICT on growth, others not. Adding new results from growth regressions, Chapter “ ICT, Growth and Happiness ” finds that the impact of Internet use on economic growth was positive before the year 2000, but for rich countries after 2000, the effect was even negative.

For development, a key issue is whether ICTs promote convergence and inequalities among countries. If high skill levels and sophisticated infrastructure are required to benefit from ICTs, rich countries may benefit more from ICTs so there may be economic divergence and a growing digital divide. On the other hand, if ICTs are non-rival and accessible for all with low thresholds, or if poor countries may “leapfrog” and drop expensive intermediate steps such as fixed telephone lines, the outcomes may be digital and economic convergence. According to Chapter “ ICT, Growth and Happiness ”, results are also mixed in this respect. Some contributions find convergence, others divergence. According to Yousefi ( 2011 ), the observed growth impact of ICT is stronger for middle-income and rich countries, and several studies point to the importance of complementary assets such as literacy and education that are crucial for the “absorptive capacity” of countries with respect to ICT. Adding own results, Chapter “ ICT, Growth and Happiness ” lands on the positive side: while the Internet had a negative impact on growth in rich countries post-2000, there was a persistent positive effect in poor countries.

In the light of the diverging evidence based on macro-data, it is perhaps a consolation that studies at the firm level provide a more optimistic view, with stronger productivity effects of ICT. Chapter “ ICT, Growth and Happiness ” points out that firms that use ICT have higher growth in productivity than other firms and growth rates are often high in ICT producing industries. Some studies indicate that the direction of causality is an issue: ICT may enhance productivity and growth at the firm level, but ICT use may be endogenous so the causality may also run in the opposite direction.

For India, an important issue is also how ICTs relate to sectoral growth patterns. The so-called Baumol’s disease predicts that ICTs are initially progressive but in the longer run related to stagnant industries or services sectors. In the light of India’s services-driven growth, the long-run growth potential of services is a key issue. According to the survey in Chapter “ ICT, Growth and Happiness ”, some contributions conclude that Baumol’s disease has been cured, but others have found a higher growth potential on some manufacturing sectors than in services.

A reason behind the conflicting evidence on the impact of ICT may also be problems of measurement. ICTs are changing technologies and products so that standard metrics fail: counting the number of computers will not capture the immense change in their performance. These measurement problems apply to production as well as consumption and may be particularly important for ICT products. For consumption, an issue is how to measure well-being: do ICTs affect well-being beyond what can be captured by standard metrics such as income or income per capita? Chapter “ ICT, Growth and Happiness ” also surveys the literature on how ICTs affect measures of subjective well-being (Castellacci and Tveito 2018 ). Also here, there could be opposing forces at work. The Internet may be used for welfare-enhancing information and social interaction, but also create addiction and isolation for its users. There is generally a positive and logarithmic relationship between income levels and subjective well-being; hence, ICT may impact well-being indirectly via income. There is a fast-growing body of research based on person-level data, and the survey of recent contributions in Chapter “ ICT, Growth and Happiness ” indicates a mainly positive effect of ICTs on subjective well-being, however varying with individual or group characteristics such as age. There may also be saturation effects, by which ICT access is positive but with diminishing marginal returns, and even negative effects according to some studies.

Part I: ICTs and Economic Performance

In the light of the considerable measurement problems related to ICT, it is pertinent that Part I of the book, on ICTs and economic performance, starts with a chapter contributing significantly to the measurement of ICT effects in India. In the existing literature on ICT and growth, many empirical studies have relied on data for rich countries, and for the study of ICT and development, it is urgent to provide better data for developing country use of ICT. Chapter “ ICT Investment and Economic Growth in India: An Industry Perspective ” ( Erumban and Das ) maintains that the lack of accurate data on ICT use by industries is a major reason why knowledge on the impact of ICT on growth in India is still limited. Using various data sources and overcoming hurdles related to data availability, consistency and measurement, the authors estimate aggregate and sector-level ICT investments in India over time. This reveals that ICT investments have increased, but their share of GDP has declined, and India lags behind the more mature economies. The authors then extend the India KLEMS database to include ICT capital. KLEMS (capital-labour-energy-materials-services) is an international database built for the analysis of growth and sector-level productivity, with data that are comparable across countries. Using the new data, the authors find that the contribution from ICT investment to growth in India has increased marginally, but the manufacturing sectors lag behind the aggregate economy. The chapter suggests that complementary assets such as skill levels may explain this lag.

India is currently the largest exporter in the world of ICT-related services, but the industry is in constant change. According to Chapter “ Technological Disruptions and the Indian IT Industry: Employment Concerns and Beyond ” ( Sagara and Das ), the information technology (IT) industry in India currently employs 3.8 million people and contributes more than 9% to Indian GDP. Key segments of this industry are IT services and business process outsourcing (BPM), and the authors show that employment growth in these segments is strongly export-driven. A key issue in the chapter is how India will cope with the “Fourth Industrial Revolution”—including developments such as cloud computing, big data, Internet of things (IoTs), robotics and more. Based on a variety of sources, the chapter maps developments and industry perceptions in different technological fields and concludes there is a threat of technological disruption to the Indian IT industry. The change is likely to require considerable re-skilling and up-skilling in the industry, and the authors argue that a paradigm shift is needed for the industry to move up the value chain and maintain its leading role. The new developments represent opportunities as well as challenges. Innovation, improving IT infrastructure and removing legal and administrative bottlenecks are needed if the Indian IT sector is to sustain its leadership.

For ICT and development, a key issue is the speed of technology diffusion, as also addressed in Chapter “ ICT, Growth and Happiness ”. In Chapter “ IT Enabling Indian Firms: The Importance of IT Outsourcing Companies ” ( Kite ), the role of information technology outsourcing (ITO) for technology diffusion is addressed. While previous literature has examined the role of ITO from rich countries, Kite presents new evidence based on a large data set for Indian firms, including their use of ITO. Kite finds that there is a strong positive impact of IT outsourcing on output and productivity and that the effect is bigger than the one achieved by IT investments alone. The analysis therefore also relates to Chapter “ ICT Investment and Economic Growth in India: An Industry Perspective ”: IT investments are not enough—they have to be complemented by other assets such as skills, and ITO is one way for Indian firms to acquire these complementary assets. In addition to this evidence from a large firm-level data set, Chapter “ IT Enabling Indian Firms: The Importance of IT Outsourcing Companies also presents qualitative evidence from interviews on the institutional characteristics of ITO. This evidence suggests that ITO companies are engaging in a conscious process of learning, and thereby facilitate technology diffusion into India, also by adapting foreign innovations to the local context.

ICT is not only transforming production and consumption, but also the networks and communication between producers, traders and consumers. ICT is thereby changing the world economy by reducing information and communication costs across borders. This is strongly evident in the evolution of global value chains, including business outsourcing and technology diffusion. Three other book chapters examine how ICT facilitates trade, internationally but also within India. According to the optimistic view supported by, e.g. the “flat earth” prediction of Friedman ( 2005 ), ICT should lead to the integration of markets and convergence of prices across cities, regions and countries. Also in this area, the research evidence is mixed since the role of distance and borders is persistent and not easily eliminated. Furthermore, there are also situations where low transaction costs promote spatial agglomeration so that spatial inequality may persist in spite of lower transaction costs. Nevertheless, there is growing evidence that ICT actually reduces the impact of borders and distance (see, e.g. Freund and Weinhold 2004 ; Lendle et al. 2016 ).

Based on the recent literature on trade with firm heterogeneity (e.g. Melitz 2003 ), ICTs could affect firms’ export decisions by reducing entry barriers in the form of sunk export costs. ICTs could also affect export decisions directly through firm productivity if only the most productive firms export. Chapter “ ICT, Access to Finance and Firm Exports: A Cross-Country Study ” ( Singh and Maiti ) suggests that a third channel could potentially be ICTs’ impact on access to finance, given that finance is important for covering the fixed costs of exporting. With this point of departure, the authors examine how ICT affects export decisions of individual firms across the world, using data from the World Bank Enterprise Survey. The conclusion is indeed affirmative: ICT is export promoting. Some evidence is also provided to the effect that ICT promotes the access to finance and thereby interacts with ICT in the determination of firm-level export decisions. The latter effect illustrates that ICT interacts with other assets or institutions, from strong complementarity in some cases to a secondary indirect effect as in this case.

With online communication around the clock, a new phenomenon in world trade is time zone trade; e.g. news and stock are monitored and traded around the clock, and when time is scarce, some tasks can be efficiently done by switching production between time zones. Time zone differences can be negative by making synchronization more difficult (when your business partner sleeps), but positive if there is something to gain from round-the-clock operation (named the continuity effect in the literature). Chapter “ Time Zone Differences and Service Trade ” ( Mandal and Prasad ) analyses the issue of time zone trade. According to their study, past evidence suggests that the continuity effect is on the whole stronger than the negative synchronization effect. Time zone trade is particularly relevant to India due to her large ICT-related services exports, and the fact that more than half of these exports are directed to the USA and Canada—i.e. several time zones away. In the chapter, the authors examine theoretically the potential impact of time zone trade. In their model, time zone trade increases production and the price of the traded services and raises the price of the factor used intensively in their production—and in particular skilled labour.

Focusing on the local level in India, Chapter “ Towards One Agricultural Market in India: Does the ICT help? ” ( Ghosh, Rajeshwor and Vinit ) examines whether ICT has led to integrated agricultural markets and reduced price dispersion across Indian regions. The Government of India and the regions have, jointly with producers, made large efforts to facilitate trade by new ICT infrastructure that improves price and market information and facilitates transactions in agricultural markets. The chapter presents a comprehensive overview of measures and institutions established for this purpose in recent years. Some ICT tools are linked to agriculture marketing reforms so an issue is whether markets are affected by market reforms or by ICT. The authors study empirically whether ICT and/or reforms have led to stronger market integration across Indian states. Examining the wholesale markets for pulses, the authors find some but not universal price convergence across states. Price convergence could also be affected by agricultural policies, particularly public procurement, but with the data at hand it is not possible to distinguish between the impact of ICT and the impact of policy measures.

Part II: Digital Divides and Inequalities

Since ICTs play a pivotal role in stimulating income through various channels, unequal access to ICTs goods and services across the economy may well be one of the factors contributing to rising inequalities. The widening accessibility of ICT goods and services is broadly defined as the digital divide in the literature. Part II of the book investigates whether ICTs contribute to convergence or, on the contrary, lead to a growing digital divide—between countries, regions and individuals within India.

Chapter “ Digital Divide: How India and China Stack up ” ( Tewathia ) investigates the pace and pattern of the digital divide in the largest and rapidly growing nations, India and China, using the ICT diffusion index (ICTDI) across regions. This chapter provides a descriptive empirical analysis for country-level comparison of major economic and information and communication technology indicators and their variation across Indian states and Chinese provinces. India is lagging far behind China with respect to all ICT indicators considered. On the one hand, Internet growth has recently been much faster in India than in China. On the other hand, some Indian states such as Kerala, Maharashtra, Karnataka and Tamil Nadu are more digitalised than others like Bihar, Chhattisgarh and Madhya Pradesh. Similarly, in China, the provinces in the eastern region like Beijing, Tianjin, Shanghai and Guangdong show higher ICT diffusion than the rest.

Using household survey data for India, Chapter “ Is India Digitally Divided? Identifying the Determinants of ICT Diffusion at the Household level ” ( Mohanty ) further shows that ICT access over time has been uneven. These patterns confirm the rising digital divide in India not only between regions but also across age groups, gender and castes. Using household data, the study uses probit regression and finds that caste, size of the household, occupation, marriage and location of the household significantly affect the intensity of use of ICT devices. The role of education is also important. The study also confirms the conclusion that place and inherent network effect, gender, education, age, occupation and caste are the dominant factors shaping ICT diffusion in India. The poor accessibility of ICT goods and services, specifically in rural areas, is the reason for the rising digital divide between rural and urban areas in India. Poor infrastructure and lack of ICTs supply, as well as less education, are the main reasons for the low accessibility in the rural areas. The chapter further emphasizes that not only the literacy rate but also poor writing and speaking skills remain the binding constraints for lower ICT access in the rural India.

Chapter “ Effect of ICT on the Performance of Indian States in terms of Human Development Indices ” ( Neogi ) makes a novel attempt to investigate the impacts of public ICT investments on human development across Indian states using data envelope analysis. The components of HDI have been taken as services produced by the state governments while some variables like tax collection of states, population, etc. are considered as inputs of the states. The differences in the capacity of states in utilization of grants and revenue of the states are important determinants in explaining the disparities among the states. Some of the states like Kerala, Maharashtra, Gujarat, Himachal Pradesh and Punjab are much better in term of human development indicators compared to the other states of India. The study outlines a ranking of Indian states in terms of efficiency using non-radial DEA, using as output variables some main socio-economic indicators and as inputs the revenue of the states, central governmental grants, roads and population of the states. A wide variation in the level of human development is observed across the states, and the revenue spending on the ICT sector explains a significant part of the variation. Taken together, the studies included in part II of this book indicate strongly that the digital divide is a key dimension that goes hand in hand with ICT diffusion in India.

Part III: ICTs, Governance and Users’ Well - Being

Part III of the book collects contributions that investigate how ICTs’ adoption affects users’ well-being and welfare. As noted in Sect.  3 , one of the relevant channels through which ICTs shape users’ well-being relates to the effects of digital technologies on governance. Digital governance may in fact affect transparency and efficiency of public goods and services for households and citizens, as well as limit the extent of corruption.

Chapter “ ICTs and Effectiveness of Governance: A Cross-Country Study ” ( Agarwal and Maiti ) presents a cross-country empirical study of ICT adoption and the effectiveness of governance. The literature on digitalization and governance has until now mostly focused on the potential positive effects that ICT adoption may have on governance: With the ability of information storing and sharing, ICT innovation can improve governance by enriching the governmental information infrastructure, presenting opportunities for better decision making, encouraging pro-active government–citizen interaction and increasing public accountability. At the same time, however, ICTs also lead to potential risks for users such as cyber-crime, loss of privacy, unemployment and digital inequality. These risks put pressure on the ability of a state to govern effectively. On the whole, the resultant effect of ICTs on the effectiveness of governance is hard to predict on a priori ground, and it depends on the relative strength of the two forces. The chapter investigates this idea by using cross-country unbalanced panel data for the period from 1996 to 2017. The econometric results point out that the improvements in ICTs lead to a rise in the effectiveness of governance, but this positive effect largely depends on the efficacy of the judicial system and the rule of law in each country. In short, the presence of a better rule of law strengthens the favourable impacts of ICT on governance.

Chapter “ Red Tape, Corruption and ICT ” ( Bhattacharya and Mukherjee ) presents a study of the effects of ICTs on red tape and corruption. The work focuses on the idea that ICTs may reduce the length of red tape, and it analyses the desirability of introduction of ICTs from the stakeholders’ perspective. The chapter presents a theoretical model in which the support for such a reform depends on the stakeholders’ profile, the nature of the public goods and services, and the initial length of red tape. The main idea of the model is that, although all types of applicants pay speed money in the presence of red tape, it is not that everyone prefers a corrupt regime to an honest regime. The undeserving applicants do not typically complain about a corrupt regime. The deserving applicants, though, complain about corrupt regime in two types of situations: if the proportion of deserving applicants is high enough and if the proportion of deserving applicants is low but the length of the red tape is not long enough. In the presence of too long a red tape, no one complains about corruption. The introduction of ICTs, by shortening the length of red tape, may increase support for a honest regime if the red tape is not long enough and if the gap between the two types of applicants’ pay-off is not large enough. The chapter also provides empirical evidence that illustrates the relevance of this model. The empirical analysis using cross-country data shows that ICT increases demand for an honest regime in general, but it reduces the demand for an honest regime and therefore implementation of further ICT reform in countries with longer red tapes. The results may provide an explanation as to why the introduction of ICTs in many high-corruption economies has not been as successful as previously expected.

While the previous two chapters investigate the theme of ICTs and governance in a cross-country international setting, Chapter “ Role of Technology in Governance and Development: The Case of e-Uparjan in Madhya Pradesh ” ( Pradesh and Mishra ) studies the same theme by focusing on the case of e-Uparjan in India. The e-Uparjan is a relevant case of digital inclusion and synchronization of activities of stakeholders like farmers, designate procurement agencies, technology providers, financial institutions and state administrative agencies. The chapter adopts a single case study approach to understand the technology-enabled procurement system at the micro-level. Field observations also expand the scope of understanding of the context and potential implications of the procurement system to associated stakeholders. The main idea of the study is that faster and real-time information flows along the decision nodes can plug in fund leakage, reduce transaction costs and mitigate rent-seeking behaviour of actors along the value chain. The chapter argues that adoption of ICTs can thus have potential to streamline procurement operations and secure farmers’ pay-off in time-bound manner through direct benefit transfer under the price support scheme. The analysis shows that e-Uparjan appears indeed to have improved operational efficiency of collection, warehousing and optimizing transportation network for food grains procurement and distribution. The case of e-Uparjan is relevant because it offers fresh insights on social policy making as network processes that require an adequate understanding of social realities, seamless synchronization of involved stakeholders and aspects of public procurement policies.

As noted earlier in this chapter, India has very low female participation in the labour market, and an important issue is whether ICTs can improve this important social problem. Chapter “ ICT, Gender, and the Labor Market: A Cross-Country Analysis ” ( Valberg ) investigates the effects of ICTs on gender inequalities in the labour market. By increasing efficiency and access to information, lowering transaction costs and creating new jobs, ICTs have also changed the way we work. An aspect that has until now received only limited attention is that ICTs may potentially have beneficial effects on the labour market for women, which have traditionally been limited from working because of time and mobility constraints. A few previous studies on this topic have been conducted at the micro-level for selected countries, but few attempts have been made to systematically investigate the relationship between ICTs, female employment and development taking a cross-country international perspective. This chapter investigates whether ICTs have an impact on gender equality in the labour market, and it is among the first to investigate cross-country trends in this pattern. Using panel data analysis for 156 countries for the period 1991–2014, the work shows that ICTs contribute positively by narrowing the gender gap in labour market participation, mainly due to increased female labour force participation. However, the chapter also points out that the impact is lower in developing countries compared to advanced economies, suggesting that the adoption of digital technologies alone may not necessarily be an effective leapfrogging strategy for increasing female labour force participation in developing countries.

The final chapter shifts the focus to channels through which ICT use affects well-being and welfare at the individual level. Chapter “ ICTs Exposure and Its Relationship with Academic Self-efficacy and Achievement of Adolescent students: The Field-level Study in India and Fiji ” ( Mandal ) focuses on a topic of high current relevance: ICT use of adolescents and its effects on well-being. Specifically, the chapter focuses on whether and how ICT exposure affects adolescents’ learning at school, by carrying out a novel data collection and empirical field-level study in India and Fiji. Nowadays, children and adolescents spend an increasing amount of time using digital devices such as video games, mobiles, computer and Internet, and doing so they often sacrifice learning and extracurricular activity. This may potentially have serious implications not only on their physical and mental health but also on academic aptitude. Extant literature records few studies in this area showing contentious results that encourage further research. The chapter investigates whether time devoted to ICTs adversely affects academic self-efficacy and achievement of adolescent students in two developing countries, India and Fiji. The study developed a structured questionnaire to capture relevant variables such as time spent using digital devices, academic self-efficacy and achievement and then used these variables in a quantitative analysis. A survey collected relevant information for these variables from 873 adolescent students of the tenth class from 16 schools selected in rural and urban areas in India and Fiji. Cronbach’s alpha test was used as customary to assess the reliability of the instruments to justify the questions; and then principal component analysis (PCA) was employed to construct a suitable index of the socio-psychological variable academic self-efficacy. Statistical analyses (ANOVA and regression methods) were then used to establish various relationships among these variables. The empirical results suggest that ICTs exposure does on average improve academic self-efficacy and achievement of adolescent students. However, this is the case only for moderate exposure times and up to a certain daily limit (3 h per day); on the other hand, higher exposure times result in weaker learning effects at school. The results presented in this chapter contribute to the current important debate about well-being effects of the use of ICTs, and whether adolescents should use digital devices in a more cautious manner.

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Digital Divide in India: Measurement, Determinants and Policy for Addressing the Challenges in Bridging the Digital Divide

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"Digital empowerment" perhaps a phrase which is highly used in the national agenda since the declaration of digital India movement, because the internet is the best change management tool and facilitates transparency, accountability, responsibility, equality, and many more. It will produce a world where the low-powered and also the powerful relish equal opportunities to be online and equal possibilities to access information. Deficiency in "digital empowerment" is known as the digital divide. It is natural those who have ingress with the internet or digital sources are superior to those don"t have. The Republic of India is one in all the countries where the digital divide is incredibly evident. The researcher conducted analysis studies on the premise of secondary sources of information by keeping in sight of the provisions of objectives and practicability. This paper is an attempt to study the concept, measurement, dimensions, and determinants of digital divide, and this paper also analyzed the current cachets of digital divide in India thoroughly through the prism of Teledensity divide, mobile divide and, internet divide. In a nutshell, the disparity of haves and haves-not"s of digital technology intimidate to provoke the cracks between the wealthy and poor, urban and rural. Though India has created encouraging efforts to bridge the gap by initiating a variety of projects and programs for rural and remote locations, loads a lot of needs to be done to bring the people into the knowledge society. All that's needed is robust determination among individuals, smart policymakers and political support to bridge the digital divide.

TAPASHI DASGUPTA

Change is the only constant and so with changes in time, world changes. What was latest yesterday becomes outdated today and in today"s world technology is changing at such a fast pace that if one is not well equipped and informed then the possibilities of missing many important opportunities in life is inevitable. Though change is inevitable and one must learn new technologies to adapt to this ever changing world, equipping oneself is not taking place at the same pace in every corner of the world. Developed countries are better equipped and learn faster whereas developing and under developed countries fail to implement changes due to lack of infrastructural access and learning skills. This difference is leading to a division among countries, societies, race and people in harnessing technology fruitfully and is termed as digital divide. An attempt is made by the researcher through this paper to explore the digital divide that exists in India and bring to the front the penetration of internet and its usage by the people in India; also the initiatives under the ambitious Digital India Program is highlighted in the paper to find out India"s progress in transforming itself into a digital society.

Abdul Tharayil

Mohammad Swalehin

The digital divide or digital split is a social issue referring to the differing amount of information between those who have access to internet and those who do not have access to the internet. The term assumes that such an access variance leads to social discrepancies owing to the alterations in the benefit conferred upon those who use this technology and those who do not use it. Digital divide is not merely a concern for developing countries even it's a reality for developed countries of the world as well. This occurrence has been gaining attention worldwide for digitally enabled social policies and planning. The Indian government ambitious project, ‘digital India', would be a reality only if it includes the neglected section of the society. The objectives of the paper are: a) to delineate digital divide in India and its concern & b) to ascertain the digital inclusive policies in India.Key Words: Digital divide, Digital opportunity initiatives, digital empowerment etc. ...

IJSRP Journal

The phase Digital Divide has been applied to the gap that exists in most Countries between those with ready access to the tools of information and communication technology and the knowledge that they provide access to and those without such access skills. A further gap between the developed and under developed world in the uptake of technology is evident with in the global community and may be of even greater significant. The relevance of these strategies to developing countries and strategies for reducing the international digital divide are also explored. Libraries have long been essential agents in fostering peace and human values. Libraries are now operating digitally, and their digital services open up a new channel to the universe of knowledge and information connecting cultures across geographical and social boundaries. The phenomenon of digital discrimination prevailing among various social, political and working groups has led to the emergence of digital information rich and digital information poor groups within societies and perhaps in the global environment. This paper discusses how the digital divide can influence to the Indian scenario also to the global world.

Vigneswara Ilavarasan

Aswini Achoos

Navneet Kumar Sharma

Modernisation of present day society largely depends on the numbers of individuals using internet as a part of their daily life. India is going through the important phase of modernisation with the help of revolution in Information and Communication Technology and " Digital India " scheme launched by Indian government. Since around 60% of the total population lives in rural or suburban regions, so it seems to be very challenging to project the idea of digital India to such populations. Here the term " Digital Divide " comes into the picture which states about the disparity between information-rich and information-poor people. Government schemes like 'Digital India' project are an approach towards diminishing the digital divide. Libraries as a social service institution has to play a major role in minifying the gap of digital divide. They can impart crucial role in making India a global digital power. Librarians and information professionals have to develop certain user-oriented skills and redefine their service menu. This paper aims to outline the different areas in which librarians can work together to minimize the gap of digital divide in rural as well urban regions. It also discusses the possible causes for the digital divide in India. Keeping all the important factors of above mentioned topics, this paper highlights the basic concept of digital divide and role of librarians in uplifting the socioeconomic status of the common people. ___________________________________________________________________________

Satish Sood

— India, a union of states, is the second most populous nation in the Asian region behind China. The country has achieved impressive progress in the field of science and technology and is emerging as one of the strongest economies in the developing world. Information and communication technologies have brought significant changes in development of the Indian society through information dissemination. Technology today is what industrial machines were to the industrial revolution. In today's world they are engines of growth, power and wealth and very crucial for economic and social development. No other technology is as profound as information technology (IT) in human history. IT has had a great influence on the economy and lives of people across the world. In India the benefits of IT are beginning to be seen and the impacts of these benefits are creating great change. It is also true that the use of digital technologies in the world has not only improved people's day–to–day life but it has also divided the world into information rich and information poor, i.e. the information haves and have–nots. The unequal access to information and communication technologies has led to a massive divide digitally. Although India has been one of the emerging super powers in IT, the benefits have been remarkably slow, particularly in rural and remote areas. Besides socio–economic factors, geographic, educational and attitudinal factors have been some of the challenges for the government when introducing IT–oriented programs. In this paper we discusses several ongoing projects and programmes initiated by the government, non–government organizations and private business houses, and describes some of the challenges faced by the country in overcoming these barriers. The scope of this paper is to highlight the reflections rather than to sharply draw any conclusions.

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