Digital inclusion is more than access—it’s about agency, equity, and ensuring India’s transformation lifts everyone
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This article is part of the essay series - Nations, Networks, Narratives: World Telecommunication and Information Society Day 2025.
World Telecommunication and Information Society Day underscores the critical importance of digital technologies as drivers of economic and social transformation. Despite their transformative potential, these technologies remain inaccessible to a significant portion of the global population. Over 2.6 billion individuals remain unconnected, with women and girls constituting most of this digitally excluded demographic. This disparity is not merely a numerical gap but a structural inequity that limits opportunities for inclusion, empowerment, and agency. In an increasingly digital global economy, the absence of equitable access directly translates into exclusion from participation in civic, educational, and economic life. Addressing this divide is therefore not only a matter of infrastructure or affordability but a prerequisite for fostering inclusive development and enabling individuals to shape their futures in the digital era. India has recognised the internet's potential as a catalyst for economic growth and has taken significant steps to harness its transformative power. This challenge has been met with both ambition and scale through BharatNet—a national infrastructure initiative aimed at delivering broadband to every Gram Panchayat—which rests at the bedrock of rural self-governance. However, the impact thus far has been uneven, highlighting the need for renewed attention and strategic focus. Reinvigorating the discourse around this is essential to advancing its development and enhancing the delivery of public services and technology-enabled solutions.
In today’s rapidly digitising global economy, equitable access to the internet is no longer a luxury, it is foundational to inclusive growth and socio-economic participation.
The Indian government has adopted an inherently multifaceted strategy in this area—encompassing dark fibre leasing, the deployment of public Wi-Fi access points, and Fibre-to-the-Home (FTTH) connectivity across key public institutions such as schools and healthcare facilities. These are not ancillary conveniences but foundational necessities. Without reliable access to essential digital grids such as education, finance, and information, individuals and communities remain effectively excluded from meaningful participation in society.
Complementing these efforts, mobile connectivity has seen significant progress. As of December 2024, over 625,000 villages are covered by mobile networks, with 618,000 receiving 4G services. This development represents more than a mere technological progression; it constitutes the foundational infrastructure necessary for operationalising equitable access to digital services and participatory governance.
At a more systemic level, institutional collaboration plays a critical role in fostering a cohesive digital ecosystem. The partnership between the Digital Bharat Nidhi (DBN) and the National Bank for Agriculture and Rural Development (NABARD) exemplifies a model of coordinated institutional synergy—facilitating data-sharing, enhancing capacity-building efforts, and extending the reach of public digital services to underserved and remote regions.
The internet has emerged as the critical infrastructure underpinning the rise of fintech and digital financial services in India. In a country defined by geographic sprawl, high population density, and historically low levels of financial inclusion, internet connectivity enables both reach and efficiency. It bridges physical and economic divides, allowing financial innovation to scale far beyond the limitations of traditional brick-and-mortar banking.
Digital channels, primarily mobile internet, have unlocked access to services such as Unified Payments Interface (UPI), Aadhaar-based e-KYC (or Know Your Customer), and digital lending, particularly in India’s Tier 2, Tier 3 cities, and rural regions. This digital leapfrogging reduces costs, facilitates customer onboarding, and expands the financial footprint into areas previously considered commercially unviable.
For India, a country navigating both its demographic dividend and regional disparities, universal connectivity is indispensable.
At a systemic level, the internet facilitates interoperability across India’s evolving Digital Public Infrastructure (DPI). Key platforms such as DigiLocker, Aadhaar, and the Account Aggregator (AA) framework depend on stable, secure connectivity to function as intended. These integrations allow fintech firms, banks, and government agencies to interact seamlessly and create a cohesive, data-driven financial ecosystem.
In essence, the internet functions not merely as an enabler but as the foundational substrate upon which India's digital financial architecture is being constructed. Its role is indispensable; without reliable and equitable internet access, the broader vision of fostering a cash-light, financially inclusive, and innovation-driven ecosystem would remain largely aspirational rather than attainable. For instance, UPI transactions in early 2025 surpassed 16.99 billion (INR 23.48 lakh crore), which is the highest recorded in any month, underscoring UPI’s centrality in India's digital payments ecosystem. Currently accounting for approximately 80 percent of retail transactions nationwide, UPI has emerged as a foundational component of the country’s financial infrastructure. However, this growth trajectory, while impressive, also highlights the untapped potential in regions that continue to face inadequate internet connectivity. Expanding reliable digital infrastructure to underserved areas could substantially increase transaction volumes and deepen financial inclusion. The transformative potential of digital payments in such contexts extends beyond mere convenience. It holds the capacity to formalise local economies, enhance financial services accessibility, and foster economic resilience in historically marginalised communities.
India’s digital ambitions have, in many ways, laid the groundwork for transformative change. Yet, regional disparities in access persist, particularly in rural and remote areas, highlighting the need for more tailored interventions. The introduction of the DBN under the Telecommunication Act, 2023, replacing the Universal Service Obligation Fund, is one such measure. By broadening the scope of services and outlining clearer mechanisms for implementation, monitoring, and funding, it signals a more structured and inclusive approach. Still, policy alone is not enough. The programme requires rigorous impact assessments, where data-driven decision-making will be vital to course-correct and ensure long-term value to rural economies and public service delivery.
In essence, the internet functions not merely as an enabler but as the foundational substrate upon which India's digital financial architecture is being constructed
Government efforts, though necessary, have yet to reach their full potential. Increasingly, it is the private sector that is stepping in to fill the gaps. Reliance Jio, for instance, is expanding internet access to rural India through satellite broadband alongside its 4G and 5G networks. Bharti Airtel announced a partnership with SpaceX to bring Starlink’s satellite internet to India, subject to regulatory clearance. Such developments are promising and underscore the reality that the task of bridging India’s digital divide cannot rest with the state alone.
In today’s rapidly digitising global economy, equitable access to the internet is no longer a luxury, it is foundational to inclusive growth and socio-economic participation. The inability to access digital infrastructure creates structural exclusions, barring individuals from essential services such as digital banking, online education, e-governance, and telemedicine. This not only limits personal advancement but also constrains productivity and innovation. As economies increasingly rely on digital platforms to deliver public services, drive commerce, and stimulate entrepreneurship, internet access becomes a critical enabler of both human capital development and economic resilience.
For India, a country navigating both its demographic dividend and regional disparities, universal connectivity is indispensable. Government-led initiatives such as BharatNet represent significant steps in this direction. Yet, the complexity and scale of the challenge demand collaborative models, where public policy is reinforced by private sector innovation and investment. As companies such as Jio and Airtel expand rural connectivity through satellite and 5G technologies, the contours of a digitally inclusive economy begin to emerge. The task ahead is to ensure this progress is sustained, equitable, and impactful. Ultimately, bridging the digital divide is not only about cables and coverage, but about securing India’s place in the future global economy.
Sauradeep Bag is an Associate Fellow at the Observer Research Foundation.
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Sauradeep is an Associate Fellow at the Centre for Security, Strategy, and Technology at the Observer Research Foundation. His experience spans the startup ecosystem, impact ...
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