Introduction

The Digital India Mission (DIM), launched in July 2015,^[1] has played an important role in India’s digital transformation journey. Over the years, the initiative has evolved from being a mere vision to becoming a transformative force that empowers citizens and redefines governance in the country.

The DIM’s aim is to transform the country into a digitally empowered society and knowledge-based economy. At its core, the mission promotes three interconnected goals: strengthening digital infrastructure, delivering government services digitally, and empowering citizens through digital literacy and employment.^[2] As India pursues its vision of Viksit Bharat (Developed India) 2047,^[3] DIM has emerged as a cornerstone policy effort, aligning national development with technological progress and aiming to ensure equitable digital access for all. By leveraging foundational digital infrastructure and services, the mission has laid the groundwork for India’s emergence as a global leader in digital governance and innovation.

The roots of DIM can be traced back to a number of precursor initiatives. The National e-Governance Plan 2006^[4] (NeGP) initiated efforts to electronically deliver public services through various Mission Mode Projects,^[5] paving the way for institutional reform. The establishment of Common Service Centres^[6] (CSCs) aimed to enhance last-mile connectivity in rural areas by democratising access to digital tools and government services. In 2011, the National Optical Fibre Network, later renamed BharatNet,^[7] sought to provide broadband connectivity to over 200,000  gram panchayats,^[8] to empower rural India through e-health, e-education, and e-governance. The Unique Identification Authority of India (UIDAI),^[9] created in 2009, enabled the issuance of Aadhaar: a biometric digital identity that has since reached over 1.39 billion residents.^[10] These initiatives fostered a robust and inclusive digital foundation upon which the DIM was conceptualised.

The architecture of the DIM was structured around nine pillars,^[11] each addressing a vital component of digital development. These include ‘Broadband Highways’, to ensure high-speed internet across rural and urban areas; ‘Universal Access to Mobile Connectivity’, which aims to expand mobile networks in under-connected regions; and the ‘Public Internet Access Programme’, which strengthens CSCs and post offices as digital service delivery points. The e-Governance pillar promotes reform through simplification and integration via platforms such as Aadhaar and PayGov. The e-Kranti initiative ensures the digital delivery of public services across sectors, including health, education, and agriculture.

Meanwhile, ‘Information for All’ aims to foster transparency and citizen engagement through platforms like ‘MyGov.in’. The ‘Electronics Manufacturing’ pillar promotes domestic production and seeks to achieve net-zero imports. ‘IT for Jobs’ focuses on digital skilling and employment generation, particularly in rural and underserved regions. Lastly, the ‘Early Harvest Programmes’ aim to deliver rapid results through initiatives such as wi-fi in universities, biometric attendance systems, and digitised greetings.

Figure 1: The Pillars of ‘Digital India Mission’

Source: Authors’ own

Over the past decade, DIM has grown both in scale and impact. India’s Digital Public Infrastructure (DPI) has matured from rudimentary access models into a sophisticated, interoperable ecosystem that enables scalable digital service delivery. According to government data, Aadhaar now reaches 99.9 percent of all adults^[12] and around 93 percent of the national population.^[13] It is widely used for accessing both public and private services.

With over 1.14 billion mobile subscriptions,^[14] 1.39 billion identities,^[15] and a record 181.21 billion digital transactions in 2024-25,^[16] India today ranks as the third largest digitalised economy globally.^[17] The advent of 5G technology,^[a] the expansion of high-speed broadband, and enhanced data affordability have increased digital penetration and improved service delivery. Platforms like UPI, DigiLocker, COWIN, and e-Sanjeevani have revolutionised digital interactions between the government and citizens while showcasing India's capabilities in building resilient, scalable platforms.

Overall, the digital economy contributed 11.74 percent of India’s GDP in 2022-23;^[18] this share could reach 20 percent by 2029-30^[19] and trigger a shift whereby digital sectors will outpace traditional ones like agriculture in terms of economic contribution. In this context, the mission supports India’s ambitions of becoming a US$1-trillion digital economy by 2028.^[20]

As DIM marks 10 years since its inception, this report explores how the mission has grown in programmatic reach, policy frameworks, and financial commitments. Budget allocations to digital initiatives have increased, internet penetration has surged, and mobile phone ownership and use is proliferating even in the rural regions. Yet, hurdles remain, including persistent digital divides, concerns over data privacy and cybersecurity, institutional bottlenecks in project implementation, and barriers to technology transfer and localisation. These issues affect user trust and adoption, and pose risks to the long-term sustainability of digital governance models.

A Decade of Transformation

DIM recorded notable achievements in its first decade in terms of improving digital infrastructure, public service delivery, and digital empowerment.^[21] High-speed connectivity, digital IDs, e-governance platforms, and cashless payments reached a scale that was unimaginable in 2015.^[22]

The Growth of DIM

In the early years, the focus of the Mission was on foundational elements like building digital infrastructure, providing digital identity via Aadhaar, and enabling access through the CSCs. These initiatives were designed to bridge the digital divide and bring basic services to the last mile. As they achieved scale, the mission evolved to encompass broader goals, including innovation, entrepreneurship, data governance, and frontier technologies.^[23]

Today, DIM includes many flagship programmes that cut across sectors: DigiLocker for secure document access, Unified Payments Interface (UPI) for cashless transactions, Unified Mobile Application for New-age Governance (UMANG) for integrated mobile governance, CoWIN for vaccine management, and Government e-Marketplace (GeM) for procurement transparency.^[24] The India Stack^[25]—a set of Application Programming Interface (APIs) enabling paperless, presence-less, and cashless service delivery—has become the backbone of both public and private digital innovation. Digital skilling and capacity-building are other key focus areas. The FutureSkills Prime initiative,^[26] the successor of the Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA),^[27] and programmes supporting startups across the country show how the Mission has evolved from access to enablement.

Based on Budget 2025-26, DIM includes the following within its ambit: Electronic Governance, National Knowledge Network, Promotion of Electronics and IT HW Manufacturing, Promotion of IT/IteS Industries, Cyber Security Projects, Research and Development in IT/Electronics/CCBT, Promotion of Digital payment, Capacity Building and Skill Development Scheme and the Promotion of Digital Transactions.^[28]

Budgetary Expansion by the Government

The Mission’s growth is reflected not only in the number of programmes but also in the financial commitments being made by the government. In 2015, the Department of Electronics and Information Technology (DeitY) was allocated a budget of around INR26.3 billion.^[29] Subsequently, in 2016, DeitY was made into a full-fledged ministry known as the Ministry of Electronics and Information Technology (MeitY), separating it from the Ministry of Communications and Information Technology. Over time, the budgetary allocation for MeitY increased, reaching INR260.26 billion in 2025-26. Figure 2 tracks the growth of the MeitY budget from 2017-2025, and Figure 3 shows the budgetary allocations for DIM from 2017-2025.

Figure 2: Budgetary Allocations to MeitY by the Union Government (2017-2025)

Source: Authors’ own using information available on the Union Government’s Budget website.^[30]

Figure 3: Digital India Mission Budget Allocations (2015-2025)

Source: Authors’ own using information provided on the Union Government’s budget website.^[31]

* many sub-heads of Digital India split into separate heads in MeitY’s budget, which explains the apparent drop in the allocation of budget under the ‘Digital India’ head.

From modest beginnings,^[32] the programme now commands a substantial annual budget. A consistent upward trajectory in funding—from INR16.73 billion in FY 2017–18 to over INR100 billion in FY 2022-23 for MeitY—shows the government's commitment to expanding digital infrastructure, citizen services, and innovation ecosystems. However, the decline in the budget post-2022 can be attributed to the restructuring of various components into separate schemes.

The scope of DIM has also expanded over the years, with PMGDISHA and digital payments being added in 2018–19, the Champion Service Sector Scheme in 2019–20, and the Production Linked Incentive (PLI) for electronics in 2022–23. Recent budgets helped introduce schemes for capacity building and the promotion of digital transactions.

The structure of the budgetary allocations for the MeitY has also evolved. The downward trend visible in the graph post-2022 is because, until recently, most digital programmes were bundled under the umbrella of Digital India within the MeitY budget. However, since the Union Budget 2023–24, key components that were once part of this mission have been assigned separate budget heads. This includes high-priority schemes, such as the IndiaAI Mission, the PLI scheme for semiconductors, and dedicated allocations for cybersecurity, supercomputing, and skilling. These items now appear as separate entries in the budget rather than being subsumed under Digital India.

This shift marks a maturation of DIM. It also reflects the growing financial and administrative complexity of India's digital transformation efforts. While this reclassification of schemes under distinct heads makes year-on-year comparisons more difficult, the underlying story remains clear: the government is scaling up its digital ambitions, and the budgetary architecture is being restructured to give them dedicated focus and resources.

This surge in funding is not just about infrastructure. A pivotal Cabinet decision in 2023 earmarked INR149.03 billion over five years specifically for expanding the reach of Digital India.^[33] These funds are being channelled into building a future-ready workforce (with training targets of over 625,000 professionals), scaling cyber education, and launching 540 new services on UMANG.^[34] This financial support has enabled the growth of this programme across nearly every domain of governance and service delivery.

The Updated Focus of DIM

Over time, the focus of DIM has also evolved, and the new priorities can be understood from the updated pillars of Digital India, as articulated by the prime minister in October 2024. At the India Mobile Congress 2024, he enumerated four core pillars,^[35] which are depicted in Figure 4.

Figure 4: The Four Pillars of Digital India Mission

Source: Authors’ own

DIM’s original goal was primarily inclusion: ensuring that every citizen had access to digital tools, platforms, and services irrespective of how remote their location was. The emphasis was on reach and scale, with the government acting as a builder of public digital goods with assistance from private organisations. Over time, the Mission evolved to become more integrated and citizen-focused, aiming to make their experience meaningful and seamless.^[36] In the most recent phase, especially post-COVID-19, the priorities have shifted towards future-readiness and innovation.^[37]

Impact of the Mission

As the Mission marks its 10^th anniversary, it is an opportune moment to assess its progress and impact over the past decade. While a comprehensive evaluation is challenging due to various factors including the restructuring of the original nine pillars into a new framework of four verticals and the scale and scope of DIM, a set of proxy indicators are being used to assess the programme’s effectiveness across key dimensions such as connectivity, digital infrastructure and public services, and capacity building. This section also presents a summary of key findings on digitalisation from the modular survey.

Connectivity

Anchored in key pillars such as Broadband Highways, Universal Access to Mobile Connectivity, and the Public Internet Access Programme, the Mission has focused on extending high-speed internet and mobile coverage to underserved regions of the country. Over the past decade, a number of schemes have been introduced to enhance last-mile digital connectivity. This component examines the impact of these efforts through indicators like the growth in broadband and telephone subscribers, improvements in rural infrastructure, and shifts in national and regional tele-density. When taken together, these indicators help assess the reach and effectiveness of current connectivity initiatives and highlight priorities for future policy action.

Digital Bharat Nidhi

India’s commitment to expanding digital connectivity in rural and remote areas has evolved since the New Telecom Policy of 1999,^[38] when the concept of Universal Service Obligation (USO) was first introduced. The USO Fund was established to provide widespread access to basic telecom services at affordable prices.^[39] With the Indian Telegraph (Amendment) Act, 2006, the scope of the fund was broadened to include mobile services, broadband, and ICT infrastructure.^[40]

In a notable policy shift, the Telecommunications Act, 2023,^[41] and the Telecommunications (Administration of Digital Bharat Nidhi) Rules, 2024,^[42] redefined this initiative by renaming the USO Fund as Digital Bharat Nidhi (DBN), aligning it more closely with the objectives of Digital India. Under this framework, progress has been made with over 214,000 gram panchayats being connected via BharatNet, 693,000 km of optical fibre cable (OFC) laid, and 1,286,000 FTTH^[b] connections commissioned.^[43] Additionally, 100,000 wi-fi hotspots have been installed in gram panchayats, 110,000 km of dark fibre leased, 258,000 Mbps of bandwidth distributed, and 144,000 terabytes of monthly data consumed under BharatNet, demonstrating tangible strides in enabling last-mile connectivity.^[44]

BharatNet

BharatNet is one of the world’s largest rural telecommunication initiatives, launched by the Government of India to provide high-speed broadband connectivity to all gram panchayats across the country.^[45] Its objective is to offer non-discriminatory broadband infrastructure to telecom and internet service providers, cable TV operators, and content providers, thereby empowering rural communities and expanding last-mile service delivery.

As of 2025, BharatNet has made over 200,000 gram panchayats service-ready, with an extensive rollout of broadband infrastructure.^[46] Under the project, 692,000 kilometres of OFC have been laid, with the total network reaching over 4.213 million route kilometres. Additionally, 1.221 million lakh FTTH connections have been commissioned, and 104,000 public wi-fi hotspots installed across villages.^[47] While these milestones mark progress in strengthening India’s rural digital backbone and enabling digital inclusion at scale, challenges persist. These include problems with the quality of service, shifting deadlines that impact project targets, and inadequate or delayed engagements with the private sector.^[48]

Increase in Broadband Subscribers in India

The Telecom Regulatory Authority of India (TRAI) releases monthly subscription data, illustrated in Figure 5.

Figure 5: Broadband Subscribers in India (2015-2025)

Source: Authors’ own, based on data  from TRAI press releases^[c]

The graph shows that broadband subscriptions in India have surged from 99 million in 2015 to around 944 million in 2025—a tenfold increase driven by affordable data and expanding infrastructure. While growth was rapid between 2015 and 2020, it has since slowed, highlighting the need to address second-generation digital challenges. Policy focus must now shift from expanding access to deepening usage, building digital capabilities, and ensuring that connectivity leads to inclusive and equitable empowerment for all. 

Increase in Telephone Subscribers

Figure 6 summarises the data from TRAI on the trends of telephone subscribers in India.

Figure 6: Telephone Subscribers in India (2015-2025)

Source: Authors’ own, based on data from TRAI press releases^[d]

The data indicates an increase in telephone subscribers from approximately 996 million in 2015 to about 1.2 billion in 2025, marked by uneven growth patterns. Urban subscribers grew notably from 577 million in 2015 to 666 million in 2025, with rapid growth around 2017, followed by stagnation due to market saturation. Rural subscribers increased steadily from 419 million in 2015 to a peak of 537 million in 2021. There was a slight dip before the numbers stabilised at around 535 million by 2025. Despite narrowing over time, the persistent urban-rural gap highlights the ongoing equity challenges in telecom access. 

Tele-Density

Tele-density can be broadly defined as “the number of telephone connections per 100 inhabitants”^[49] and is a key indicator of telecom penetration in an area. Figures 7 and 8 track the patterns in tele-density in the country from 2015-25 and licensed service area-wise overall tele-density (as of 28 February 2025), respectively.

Figure 7: Tele-density in India (2015-2025, in %)

Source: Authors’ own, based on data from TRAI press releases^[e]

Between 2015 and 2025, India’s overall tele-density rose from 79.38 percent to around 85 percent, peaking at 92.98 percent in 2017 before stabilising. This trend reflects a maturing telecom market with new connections now largely offset by subscriber churn and consolidation. Urban tele-density reached a high of 171.80 percent in 2017 but declined steadily to 131.45 percent by 2025 as the market experienced saturation and rationalisation. The rise also indicated widespread multi-SIM usage. In contrast, rural tele-density showed gradual but resilient growth, increasing from 48.37 percent in 2015 to 59.06 percent in 2025. Despite progress, rural connectivity remains remarkably lower than urban levels, revealing persistent digital divides. The widening gap calls for renewed policy focus on rural infrastructure, affordable access, and targeted inclusion measures to ensure equitable digital development.

Figure 8: Overall Tele-density (by Licensed Service Areas, as of 28 February 2025

Source: Adapted from the Press Information Bureau^[50]

Figure 8 indicates that India’s overall tele-density stands at 84.85 percent, but the national average masks regional disparities. For example, states such as Bihar (56.9 percent), Uttar Pradesh (66.45 percent), and Madhya Pradesh (69.26 percent) fall well below the national level. Mid-tier states like Assam, Odisha, Rajasthan, and West Bengal hover around or are just under the national average, suggesting uneven but improving access. In contrast, southern and western states, including Maharashtra (100.68 percent), Tamil Nadu (102.27 percent), Karnataka (105.44 percent), and Gujarat (90.47 percent), demonstrate strong telecom penetration, likely driven by better infrastructure, higher urbanisation, and greater digital readiness. Regions such as Kerala (119.57 percent), Himachal Pradesh (119.96 percent), and Delhi (274.59 percent) report exceptionally high tele-density, reflecting widespread multi-SIM usage and advanced telecom maturity.

These variations call for region-specific policy interventions, including focusing on infrastructure expansion and digital literacy in low-access states, while prioritising service quality and advanced digital enablement in already saturated markets. To enhance equitable distribution and ensure that underserved areas get access, schemes focusing on coverage-linked disbursements or performance-based grants can be introduced.

Digital Infrastructure and Public Services  

A core objective of DIM is to institutionalise digital infrastructure for the efficient and inclusive delivery of public services. Pillars on e-Governance and the Electronic Delivery of Services reflect a clear policy shift toward enabling paperless, presence-less, and cashless governance. Over the last decade, platforms such as CSCs, Aadhaar-enabled e-KYC, UPI, DigiLocker, and UMANG have become instrumental in expanding citizen access to government services. This section evaluates the growth and uptake of these platforms as indicators of progress in digital service delivery.

CSCs

CSCs are a pillar of India’s e-governance strategy, launched under the NeGP in 2006. Designed to serve as last-mile access points, CSCs deliver essential government-to-citizen services through a decentralised Information and Communications Technology (ICT) infrastructure, reducing bureaucratic hurdles and enhancing transparency.

As of April 2025, India has 534,000 operational CSCs, including 417,000 in rural areas and 116,000 in urban areas.^[51] These centres facilitated over 33.58 million transactions, with 14.079 million through Digital Service Providers (DSPs) and 19.5 million via non-DSP channels, reflecting their growing role in inclusive digital service delivery.^[52]

Aadhaar and e-KYC Adoption

Aadhaar, a cornerstone of the Digital India Mission, is the world’s largest digital identity programme, with over 1.39 billion^[53] biometric and demographic-based records. It supports secure, real-time online authentication and is engineered to eliminate duplicate and fake identities.^[54] Figure 9 shows the year-wise growth of Aadhaar from 2010.

Figure 9: Aadhaar Generation (2010-2024)

Source: Adapted from the UIDAI Annual Report 2023 – 24^[55]

Between 2015–16 and 2023–24, Aadhaar enrolments in India grew from approximately .99 billion to 1.39 billion, adding nearly 40 crore digital identities over the Digital India decade. While this expansion reflects the consolidation of Aadhaar as a foundational layer of India’s digital infrastructure, the pace of enrolment has steadily declined over the years. From 194.5 million new Aadhaar numbers in 2015–16, the annual additions dropped to 29.1 million by 2023–24, indicating near-saturation with the DPI now covering over 99 percent of the population.^[56]

Aadhaar-based Electronic Know Your Customer (e-KYC) has helped accelerate India’s digitalisation by enabling instant, paperless identity verification. It has streamlined service delivery across banking, telecom, and government schemes, reducing costs and onboarding time. Figure 10 illustrates the growth of e-KYC transactions from 2013.

Figure 10: e-KYC Transactions (2013-2024)

Source: Adapted from the UIDAI Annual Report 2023 – 24^[57]

Aadhaar e-KYC transactions have surged from just 100,00 in 2013–14 to over 4.16 billion in 2023–24, with a cumulative total nearing 1,887 crore. This exponential growth reflects the centrality of Aadhaar in digitalisation. While growth slowed briefly after the 2018 Supreme Court ruling in Justice K.S. Puttaswamy (Retd.) v. Union of India,^[58] which restricted private sector use, e-KYC adoption rebounded strongly in the post-pandemic years, driven by the expanding digital service delivery.

However, there are concerns regarding data privacy and equity governance. There is a need to ensure accountability through regular audits and a stronger enforcement of privacy principles to ensure continued user trust in such solutions.

UPI Adoption

UPI is a real-time payment system that links multiple bank accounts to a single mobile app, enabling instant 24x7 money transfers, bill payments, and merchant transactions.^[59] With a secure virtual ID and single-click authentication, it eliminates the need for card or account details. UPI also supports QR code payments, peer-to-peer requests, and in-app purchases, offering a fast, secure, and convenient alternative to cash. Figures 11 and 12 track the growth of UPI over the years.

Figure 11: Volume of UPI Transactions (in Millions)

Source: Adapted from NPCI data ^[60],[f]

Figure 12: The Value of UPI Transactions (in Crore)

Source: Adapted from data from NPCI^[61][g]

UPI has witnessed phenomenal growth over the past decade, evolving from just 7.2 million transactions worth INR 22.71 billion to nearly 17.9 billion transactions valued at over INR 23.9 trillion in 2025. This surge reflects UPI’s transformation from a peer-to-peer transfer tool to a widely adopted digital payment solution for both consumers and merchants. The sharp acceleration post-2019 was driven by factors such as COVID-19-induced digitization, growing smartphone use, and government support for cashless payments.

The previous year witnessed disruptions and UPI outages, revealing underlying systemic vulnerabilities.^[62] There are also concerns regarding a gender gap in UPI usage in the country.^[63]

The extraordinary success of the technology in India has led to its adoption in other geographies as well. Today, UPI is available in at least seven other developed and developing nations, and India is in talks with several African and South American countries to help them build their UPI-like payment systems.^[64] However, to sustain this growth, it is important to enhance rural adoption, fraud detection, and create adjacent products such as solutions focused on micro-credit.

DigiLocker Usage

DigiLocker is a key initiative by MeitY that enables secure, consent-based access to authentic digital documents that are the legal equivalent to physical copies.^[65] It supports real-time verification, reduces administrative overhead, and advances paperless governance, streamlining service delivery across sectors. Figure 13 demonstrates the growth of registered users over the last decade.

Figure 13: Yearly Users Registered on DigiLocker

Source: DigiLocker^[66]

DigiLocker has experienced exponential growth in user adoption over the past decade, expanding from just under 1 million (10 lakh) registrations in 2015 to over 200 million (20 crore) in 2024. While the uptake was modest in the initial years, registrations began accelerating significantly from 2019 onwards, coinciding with the deeper integration of key documents such as driving licenses, academic records, and insurance policies. The COVID-19 pandemic further catalysed usage by reinforcing the need for digital access to official documents.

This trend highlights the growing role of DigiLocker as a key pillar of India’s DPI. Its linkage with Aadhaar and e-KYC has streamlined onboarding, while real-time access to verified documents has enabled faster service delivery across sectors like education, transport, and health. DigiLocker has issued over 8.46 billion documents till date.^[67] However, concerns regarding privacy and the lack of a nomination facility persist.^[68]

UMANG

UMANG, developed by MeitY and the NeGD, is a flagship initiative to advance mobile governance in India. It offers citizens a unified platform to access a wide range of e-governance services across central, state, and local government departments through a single and convenient mobile application. As of June 2025, UMANG has emerged as a key digital gateway for public service delivery in India, with a user base of 82 million citizens.^[69] The platform integrates over 2,300 services, covering 3,543 government schemes and enabling access to 1,426 types of official documents. This scale reflects UMANG’s growing role in simplifying access to diverse e-governance services across sectors.

Capacity Building

Capacity building is another key focus of the DIM. To assess the Mission’s Impact of DIM on capacity building, this section analyses the PMDISHA and FutureSkills Prime programmes.

PMDISHA

The PMGDISHA was launched in February 2017 as a flagship scheme aimed at promoting digital literacy among rural citizens. With the ambitious goal of digitally empowering 6 crore rural households, the scheme provided basic digital skills to help citizens use computers, smartphones, access e-governance services, browse the internet, and perform cashless transactions. The broader vision was to equip rural citizens with the technology and know-how required to engage actively in the digital economy and national development.

To ensure reach and effectiveness, the government implemented a multi-pronged approach that comprises awareness campaigns, mobile digital vans, training via rural schools, community engagement through MPs/MLAs and district officials, and infrastructure support like Wi-Fi choupals in remote areas. By the time the programme concluded in 2024, over 74.2 million individuals had registered, 64.5 million were trained, and 48.3 million were successfully certified, making PMGDISHA one of the world’s largest digital literacy initiatives and a critical enabler of inclusive digital empowerment in India.^[70]

FutureSkills Prime

FutureSkills Prime, a joint initiative by MeitY and NASSCOM, is India’s flagship digital skilling programme aimed at building a future-ready workforce and transforming the country into a digital talent hub. Designed as a dynamic, industry-aligned learning ecosystem, it offers cutting-edge courses in emerging technologies, aligned with the National Occupational Standards and the National Skills Qualification Framework.^[71] The initiative focuses on empowering individuals with high-demand digital competencies that are directly linked to employment opportunities across sectors.

As of 2025, FutureSkills Prime has empowered over 2.2 million learners, with more than 1.3 million course enrolments across 2,200+ certified learning pathways.^[72] The programme has strong institutional backing, partnering with 15 state governments, 2,100+ academic institutions, and 160+ corporate entities.^[73] Importantly, it has reached 720 Tier 2 and Tier 3 cities.^[74] With over 15 million digital badges awarded, 640,000 unique badge holders, and 41.2 percent of learners being women, FutureSkills Prime stands as a transformative national effort in inclusive and scalable digital skilling.^[75]

Comprehensive Modular Survey: Telecom, 2025

The Comprehensive Modular Survey: Telecom, 2025 (CMST) ^[76] by the Ministry of Statistics and Programme Implementation highlights a strong uptake of digital technologies among India’s youth. This is the first focused survey to assess the usage of mobile phones, internet access, and ICT skills in the country. As per the Survey, among individuals aged 15–29, 97.1 percent reported using a mobile phone (including smartphones) in the past three months. However, smartphone ownership reveals a persistent urban–rural gap: in rural areas, 79.2 percent of males and 75.6 percent of females aged 15 and above who own a mobile phone reported using smartphones, compared to 89.4 percent and 86.2 percent, respectively, in urban areas.

Internet usage among youth is also widespread, with 92.7 percent in rural and 95.7 percent in urban areas reporting usage in the three months preceding the survey. However, only 68.7 percent of the youth reported being able to carry out online banking transactions, with a sharper divide between rural (63.4 percent) and urban (79.7 percent) respondents. In terms of communication skills, 85.1 percent of youth could send messages with attachments, though a gender gap persists whereby 88.8 percent of males versus 81.1 percent of females reported proficiency. These findings underscore the need to complement access with deeper investments in digital literacy for basic and advanced ICT curriculum, especially for financial and functional skills, and to address persistent rural and gender-based disparities.

While the survey provides interesting insights, it must be noted that it relies on self-reported ICT usage and skills without practical testing, which may overstate actual proficiency. Additionally, its three-month recall period may miss seasonal or occasional patterns in digital usage.

Challenges

A number of challenges impede the reach and effectiveness of India’s DIM.

The Digital Divide

As noted in the previous sections, a divide persists between urban and rural areas vis-a-vis telephone subscriptions and tele-density.

Of India’s 1.46 billion population, only about 37 percent (roughly 540 million people) live in urban areas.^[77] Despite this, urban areas see greater tele-density and telephone subscriptions. Figure 7 demonstrates that while urban tele-density is around 131.45 percent in 2025, rural tele-density is just 59.06 percent in 2025. Similarly, Figure 6 demonstrates that while there were over 666 million urban telephone subscribers in 2025, there were only 535 million rural telephone subscribers. This trend can be attributed to several factors, such as rural families owning one shared device, while urban families own individual devices, as well as the use of multiple SIMs by urban users. Additionally, having a telephone subscription doesn’t necessarily translate to digital proficiency.

Similarly, observations from the CMST demonstrate the gap in adoption. The following figure depicts the key findings from the survey.

Figure 14: Key Observations from the CMST

Source: CMST^[78]

Findings from CMST, as demonstrated in Figure 14, underscore the higher penetration of digital technology across both urban and rural India, particularly among younger populations. However, while access to digital infrastructure has expanded considerably, there remains considerable scope for further development. It is important to distinguish between access and actual usage, as these are not always congruent metrics. Although internet penetration is undoubtedly on the rise, additional surveys and in-depth analyses are necessary to gain a more nuanced understanding of usage patterns, especially across different socio-economic and demographic segments.

The survey highlights a persistent gender disparity in digital access and usage across both rural and urban India. Among individuals aged 15 and above, mobile phone ownership among rural women stands at just 48.4 percent, compared to 80.7 percent among their male counterparts. In urban areas, the gap is narrower but still evident, with 71.8 percent of women owning mobile phones compared to 90 percent of men. Similar trends are observed in internet usage and digital communication practices. For instance, only 57.6 percent of rural women used the internet in the three months preceding the survey, in contrast to 72.1 percent of rural men. These figures underscore the need for targeted policy interventions to address structural barriers that limit women’s participation in the digital ecosystem.

Data Privacy and Regulatory Gaps

India is gradually advancing toward a more structured and secure data governance framework, with notable progress in recent years and meaningful reforms underway. The Digital Personal Data Protection Act (DPDPA) 2023^[79] will significantly reshape the handling of personal data in India. It will introduce clearer rules for consent, data usage, and accountability, paving the way for stronger privacy protections and more responsible digital practices across sectors. In January 2025, the MeitY furthered this momentum by releasing the Draft DPDP Rules,^[80] which outline essential mechanisms, such as granular user consent, clear notice obligations, data breach reporting requirements, and the creation of a Data Protection Board.

While the absence of fixed implementation timelines and evolving compliance demands pose challenges, the trajectory reflects a growing institutional commitment to strengthening data protection. Crucially, public and private stakeholders are becoming increasingly aware of the need for robust privacy frameworks and responsible data management practices. Additionally, there are concerns around the structure of the Data Protection Board and its independence.^[81]

India’s experience with breaches, such as the 2018 Aadhaar incident,^[82] has catalysed serious introspection and policy recalibration. These events, while concerning, have intensified the push for cybersecurity reform, vendor accountability, and the introduction of stronger safeguards across digital infrastructure. To sustain this progress, India must prioritise the operationalisation of the Data Protection Board and foster transparent, participatory rule-making. With incremental reforms, enhanced public awareness, and cross-sector collaboration, the country is steadily building a resilient digital ecosystem: one that upholds privacy, builds trust, and aligns with the broader goals of the DIM.

Escalating Cybersecurity Threats

India’s cyber threat landscape has intensified sharply in recent years. According to the Centre for Strategic and International Studies, cyberattacks^[83] on Indian government entities surged by 138 percent from 2019 to 2023, escalating from 85,797 to 204,844 incidents. India’s Computer Emergency Response Team (CERT) has been increasingly dealing with cybersecurity incidents, and has handled 15,92,917 cyber incidents in 2023, as demonstrated in Table 1. These attacks increasingly include phishing, ransomware, and malware threats that now deeply permeate both public and private sectors.

Table 1: Cybersecurity Incidents Handled by CERT-In (2020-2023)

Year	Total Incidents
2020	1,158,208
2021	1,402,809
2022	1,391,457
2023	1,592,917

Source: Compiled Data from the CERT-In; The table first appeared in Patil et al.,‘”Strengthening the Quad’s Regulatory Diplomacy on Cybersecurity”^[84]

Despite notable progress in expanding digital access across India, cybersecurity awareness, particularly in rural regions, remains limited. According to government initiatives such as the PMGDISHA, while over 47 million rural citizens have been certified as digitally literate, much of the training emphasises basic device use rather than cybersecurity practices. Studies from MeitY^[85] have consistently highlighted that new internet users, especially in rural areas and among small businesses, are especially vulnerable due to low familiarity with cyber hygiene practices such as identifying phishing attempts, using strong passwords, or securing personal information. This gap highlights the urgent need for targeted, cybersecurity-focused training to be integrated into digital literacy campaigns, ensuring that digital expansion does not outpace digital safety.

The economic impact is significant. The Reserve Bank of India reported^[86] that the average cost of a data breach in India rose by 28 percent from 2020 to 2023, reaching an average loss of US$2.18 million. Reports^[87] indicate that predominant threat vectors in India’s cybersecurity landscape continue to evolve, with trojan horses accounting for approximately 43.38 percent of all threat detections. In the domain of mobile security, malware remains the leading concern, comprising 42 percent of identified threats, followed by potentially unwanted programs (PUPs) at 32 percent, and adware at 26 percent. Notably, a significant portion of these threats were detected through behaviour-based analysis, pointing to the emergence of novel and previously unidentified threat methodologies. This trend illustrates the growing sophistication of cyber threats and the need for adaptive and proactive defence mechanisms.

Institutional Bottlenecks and Coordination Failures

The DIM, encompassing key institutions such as the MeitY, the Department of Telecommunications (DoT), and the UIDAI, aims to create a cohesive framework for e-governance and digital infrastructure. Institutional coordination continues to present challenges in the deployment of digital public infrastructure in India. Overlapping mandates,^[h] fragmented administrative responsibilities, and uneven capacities across central ministries and sub-national bodies often hinder implementation. Due to the nature of priorities and the involvement of different departments and teams, the focus can vary; some may emphasise service delivery platforms while others concentrate on identity systems. This divergence could lead to delays in launching integrated services such as pension disbursement and grievance redressal mechanisms. However, with growing alignment on the importance of cohesive digital governance, there is cautious optimism that improved coordination and shared frameworks will drive more efficient and inclusive outcomes in the near future.

In the absence of institutional realignment, Digital India risks perpetuating fragmented architectures and service delays. Aligning mandates, investing in local capacity building, and formalising inter-agency governance can enhance rollout speed, reduce duplication, and improve user outcomes. This systemic realignment is vital for transforming India’s digital infrastructure from a collection of siloed initiatives to an integrated, citizen-centric ecosystem capable of delivering on Digital India’s transformative promise.

Tech Transfer and Local Innovation

The Digital India initiative has successfully catalysed public–private partnerships and deployed frontier technologies such as AI, blockchain, and IoT. However, local innovation and manufacturing capabilities continue to lag. The government recently announced^[88] a US$2.7 billion PLI scheme aimed at electronics production, signalling a strong intent to bolster domestic capabilities, particularly in components like camera modules, PCBs, display panels, and batteries. Yet, administrative and regulatory bottlenecks threaten its full realisation. Concurrently, RBI data^[89] shows that electronics output surged from US$37 billion in 2015–16 to US$115 billion in 2023–24, contributing roughly 3 percent to India’s GDP and positioning the country as the world’s second-largest mobile phone producer.

Similarly, while Digital India pushes for AI adoption, there are reports^[90] that reveal that India still faces gaps in talent, data infrastructure, and R&D capacity - factors essential for indigenous innovation. Despite policy thrusts under the India AI Mission, the ecosystem lacks coordination across public bodies and tech firms to nurture startups into deep-tech competitors. This misalignment perpetuates an innovation model heavy on license-based adoption and light on new IP creation and commercialisation.

Economically, this dynamic is suboptimal. Without local R&D, India risks value capture leakage where foreign firms retain profits and IP rights, while domestic actors serve primarily as service providers. Over time, this weakens technological sovereignty and reduces ecosystem resilience. To reverse this trend, India must build National Innovation Platforms, increase grants to research centres, incentivise private-sector R&D, and strengthen linkages between universities, startups, and industry. Focusing on commercialisation pipelines, and not just deployment, will position India as a true digital innovator rather than merely a digital adopter.

The Way Forward

Over the past decade, DIM has laid down foundational DPI, improved connectivity, and catalysed digital inclusion. However, there are still gaps in implementation due to factors such as fragmented implementation, constantly realigning budgets, unimplemented policies like DPDPA, and emerging technologies that remain unregulated.

The last decade witnessed the creation of critical DPIs like Aadhaar, UPI, and DigiLocker, but the 2030s must focus on building upon these innovations while ensuring robust governance and equitable access. These could include positioning India’s leadership in global AI discourses, expansion of UPI outside India, or positioning India as a leader in Global Capacity Centres.

The interplay between rapid digitisation and increasing vulnerabilities, including cyber threats, digital exclusion, and data misuse that call for proactive, forward-looking policy frameworks and institutional innovation. As the global digital landscape rapidly evolves, the forthcoming decade offers India an opportunity to shape the contours of technological development not only for domestic welfare but also for the global good.

The next 10 years will be pivotal for transforming this digital foundation into a global leadership position in ethical, inclusive, and innovation-driven technology deployment. This period is poised to be pivotal in shaping India’s global digital leadership; there is a pressing need to align development with ethical and inclusive technological progress. India’s aspiration to become a global hub for ‘Tech for Good’ hinges on sustained investments in emerging technologies like artificial intelligence, quantum computing, blockchain, semiconductors, and space tech.

A renewed focus on digital skilling, entrepreneurship, and public-private-civil society partnerships will be crucial in driving innovation and ensuring that the benefits of digitalisation reach every corner of the country. It is also important to develop a certain and enabling regulatory ecosystem that supports innovation, as well as the safety and security of the citizens.

India’s future leadership will depend on its ability to not only export DPI frameworks but also inspire trust through transparent governance, global standard-setting, and capacity building in the Global South. India must invest in mission-mode AI development anchored in public welfare: healthcare diagnostics, agri-advisory systems, and vernacular language models. MeitY’s National Program on AI and NITI Aayog’s responsible AI framework provide blueprints, but actual implementation will require capacity building, local data ecosystems, and privacy-by-design systems.

Through Quantum Technologies under the National Mission on Quantum Technologies and Applications (NM-QTA), India is making early strides. The next decade should see the translation of quantum research into commercial and public sector applications, including quantum cryptography for secure communications, and optimisation tools for logistics and finance.

With strategic investments through the Production Linked Incentive (PLI) scheme, India aims to build a domestic chip-making ecosystem. Focused R&D, skilled workforce development, and stable regulatory environments will be crucial to make India a resilient node in global semiconductor value chains. As the India Semiconductor Mission aims to build a strong semiconductor and display ecosystem, the country also needs to enhance its Intellectual Property development and ownership.

India’s digital story is no longer just about catching up; it is about shaping the future. The coming decade provides an opportunity to define what a truly inclusive, ethical, and globally relevant digital economy looks like. By harnessing innovation, strengthening institutions, and foregrounding equity, India can ensure that Digital India is not only for the country but also a model for the world.

Endnotes

^[a] “Prime Minister Modi said that India’s 5G rollout is among the fastest in the world, with 4.81 lakh base stations installed in just two years. The Prime Minister said high-speed internet has reached not just urban centres, but also forward military posts, including Galwan, Siachen, and Ladakh.” See: https://www.newsonair.gov.in/indias-5g-rollout-among-fastest-globally-digital-economy-empowering-millions-pm-modi/

^[b] Fibre to the Home, is a broadband internet connection technology that uses fibre optic cables to deliver internet directly to individual homes or businesses.

^[c] TRAI releases Telecom Subscription Data every month. To simplify the visualisation, data for March of the respective year has been used.

^[d] The TRAI releases Telecom Subscription Data every month. To simplify the visualisation, data for March of the respective year has been used.

^[e] TRAI releases Telecom Subscription Data every month. To simplify the visualisation, data for March of the respective year has been used.

^[f] To simplify the chart, data for April of each year has been used

^[g] To simplify the chart, data for April of each year has been used

^[h] For instance, the BharatNet project (under the Department of Telecommunications) aims to connect gram panchayats with high-speed broadband. The CSCs (under the MeitY) provide digital service delivery points in rural areas, offering services like banking, healthcare, and education. The PM-WANI initiative (under the DoT) aims to create an ecosystem of public Wi-Fi networks to ensure affordable and accessible internet connectivity in remote regions.

^[1] Digital India, “Digital India: Power to Empower,” Ministry of Electronics and Information Technology, https://www.digitalindia.gov.in/about-us/

^[2] G. Narsimulu, “Empowering Citizens Through Digital India: An Overview,” International Journal of Engineering Technology and Management Sciences, no.8 (2024), https://ijetms.in/Vol-8-issue-3/Vol-8-Issue-3-4.pdf

^[3] MyGov, Viksit Bharat@ 2047, Government of India, https://innovateindia.mygov.in/viksitbharat2047/

^[4] Comptroller and Auditor General of India, Government of India, https://saiindia.gov.in/uploads/media/PC-03-National-e-gov-plan-20210331115146.pdf

^[5] Ministry of Communications, Government of India, https://www.pib.gov.in/newsite/PrintRelease.aspx?relid=68736#:~:text=The%20National%20e%2DGovernance%20Plan,and%20are%20delivering%20services%20electronically

^[6] “Welcome to Common Services Centres,” MeitY, https://www.csc.gov.in/

^[7] Digital Bharat Nidhi, “BharatNet Project,” Government of India, https://usof.gov.in/en/ongoing-schemes

^[8] Digital Bharat Nidhi, “BharatNet Project,” Government of India, https://usof.gov.in/en/bharatnet-project

^[9] Unique Identification Authority of India, “About UIDAI,” Government of India, https://uidai.gov.in/en/about-uidai/unique-identification-authority-of-india.html#:~:text=UIDAI%20was%20created%20to%20issue,easy%2C%20cost%2Deffective%20way.

^[10] UIDAI, “Annual Report 2023 – 24.” https://uidai.gov.in/images/2023-24_Final_English_Final.pdf

^[11] Ministry of Electronics and Information Technology, “9 Pillars of Digital India,” Government of India, https://www.digitalindia.gov.in/our-pillars/#:~:text=9%20Pillars%20of%20Digital%20India,Broadband%20for%20all%20(Rural)

^[12] Unique Identification Authority of India,  Government of India, A Unique Identity  For The People, (2022),  https://www.uidai.gov.in/images/Aadhaar_Brochure_July_22.pdf .

^[13] Aman Sharma, “99.9% adults in India have Aadhaar number and ‘use it at least once a month’, says UIDAI,” Firstpost, July 23, 2022, https://www.firstpost.com/india/99-9-adults-in-india-have-aadhaar-number-and-use-it-at-least-once-a-month-says-uidai-10948761.html.

^[14] Ministry of External Affairs, “Telcos add 6.2 mn new 4G subscriptions in March: TRAI,” Government of India, https://indbi.gov.in/telcos-add-6-2-mn-new-4g-subscriptions-in-march-trai/.

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^[16]Ministry of Finance, Government of India,  https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2110405.

^[17] Ministry of Electronics & IT, Government of India, https://www.pib.gov.in/PressReleasePage.aspx?PRID=2097125#:~:text=According%20to%20the%20State%20of%20India’s%20Digital,the%20level%20of%20digitalisation%20of%20individual%20users.&text=Projections%20indicate%20the%20digital%20economy’s%20share%20will,GVA%20by%202029%2D30%2C%20outpacing%20agriculture%20and%20manufacturing.

^[18] Ministry of Communication, Government of India, https://www.pib.gov.in/PressReleaseIframePage.aspx?PRID=2098487

^[19] Indian Council for Research on International Economic Relations, Estimation and Measurement of  India’s Digital Economy, January 2025, New Delhi, Ministry of Electronics and Information Technology  Government of India, 2025, https://www.meity.gov.in/static/uploads/2025/01/5ff397f9e8152d5562ed4cef1a6b767b.pdf

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^[41] The Telecommunications Act, 2023, https://egazette.gov.in/WriteReadData/2023/250880.pdf

^[42] Telecommunications (Administration of Digital Bharat Nidhi) Rules, 2024, https://dot.gov.in/sites/default/files/Gazette%20Notification%20Telecommunications%20%28Administration%20of%20Digital%20Bharat%20Nidhi%29%20Rules%2C%202024.pdf

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^[48] Anirban Sarma, “Lighting up homes in villages': Will BharatNet live up to its promise?” 2021, ORF, https://www.orfonline.org/expert-speak/lighting-up-homes-in-villages-will-bharatnet-live-up-to-its-promise

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^[58] (2019) 1 SCC 1

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