Rural Internet Connectivity

GS3 – Science & Technology

Context

As part of the Digital India campaign, the Government of India is actively enhancing rural internet infrastructure and supporting startup ecosystems to bridge the digital divide between urban and rural populations.

Present Status of Rural Internet in India
  • Digital Divide Reality:
    Although rural populations make up the majority of India, only around 42% of the country’s internet subscribers reside in rural areas, highlighting a clear access disparity.
  • Uneven Penetration:
    Despite recording a 17% increase in internet usage since 2021, progress remains inconsistent across different regions and states.
  • Future Outlook:
    It is estimated that rural internet users will grow to 504 million by 2025, potentially surpassing the urban internet user base.
Why Rural Internet Access Matters
  • Social and Economic Inclusion:
    Connecting villages digitally empowers farmers and MSMEs by providing access to online markets, digital payments, and formal credit systems.
  • Education:
    Internet penetration facilitates e-learning, especially in government schools in remote areas through digital classrooms and learning platforms.
  • Delivery of Governance:
    Initiatives like Direct Benefit Transfer (DBT), telemedicine, and other citizen services are increasingly being delivered via Common Service Centres (CSCs).
  • Startup and Innovation Ecosystem:
    Improved connectivity supports decentralized entrepreneurship, particularly promoting innovation among rural youth and women entrepreneurs.
  • Climate and Disaster Resilience:
    Access to timely climate data, weather alerts, and early warning systems enhances disaster preparedness in vulnerable regions.
Persistent Challenges in Rural Connectivity
  • Infrastructural Deficiency:
    Many rural locations still lack last-mile fibre optic connections, consistent electricity, and adequate telecom tower coverage.
  • Profitability Constraints:
    Low internet penetration and usage rates make rural regions commercially unattractive for private telecom providers.
  • Digital Literacy Gap:
    A significant portion of rural youth lacks the required digital skills to utilize available platforms effectively.
  • Cost Factor:
    High prices of internet plans and digital devices act as barriers for low-income rural households.
  • Policy Incoherence:
    Misalignment and slow execution of Information and Communication Technology (ICT) programs between the Centre and States hinder seamless implementation.
Key Government Initiatives Enhancing Rural Internet
  • GENESIS (Gen-Next Support for Innovative Startups):
    Aims to incubate and fund around 1,600 startups in smaller towns with mentoring and support for digital innovation.
  • IBPS (India BPO Promotion Scheme):
    Promotes BPO units in 104 non-metro towns using viability gap funding and basic infrastructure assistance.
  • NEBPS (North East BPO Promotion Scheme):
    Focuses on generating IT employment in the Northeastern states by providing training subsidies and support to BPOs.
  • STPI (Software Technology Parks of India):
    Establishing 67 new STPI centers—most in Tier-2 and Tier-3 cities—to drive IT exports using plug-and-play setups.
  • 4G Saturation Drive:
    Targets full mobile network coverage in previously unconnected villages through BSNL and public-private tower deployment partnerships.
  • BharatNet Overhaul:
    Revamping BharatNet to deliver fibre-to-home internet to every village through a Public-Private Partnership (PPP) and open-access approach.
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