Monday, Sep 16, 2024 23:45 [IST]
Last Update: Sunday, Sep 15, 2024 18:05 [IST]
While some individuals have access to the latest
technologies, others lack even basic information or resources. In India, this
divide is particularly stark. Urban areas, which constitute just 3% of the
country, contribute nearly 70% of India’s GDP, whereas more than 900 million
citizens in rural areas remain underserved and lack basic facilities such as
access to banking, investment, and credit.
Key Areas for Enhancing Digital Access in Rural Areas
Infrastructure Shortcomings: Rural areas often suffer from
inadequate infrastructure, making it difficult to establish reliable internet
connections. For example, in many parts of Bihar, electricity is unstable,
which directly impacts internet connectivity. Addressing these shortcomings is
crucial for enabling digital access in villages.
Enhancing Access: Even when digital infrastructure is
available, access to devices remains a significant barrier. Smartphones and
computers, although relatively affordable, are still expensive for many in
rural areas. Government schemes, such as Madhya Pradesh’s free smartphone
yojana for students, are essential to bridge this gap by providing affordable
or free devices to those in need.
Awareness: Digital literacy is another critical area that
needs attention. Many rural residents are unaware of how to effectively use
technology. Initiatives like Kerala’s Akshaya program, which has significantly
boosted digital literacy, serve as excellent examples. As a result of such
programs, Kerala is now among the top states in digital literacy.
Creating Economic Opportunities: Technology should also be a
tool for economic empowerment. For instance, Rajasthan’s e-Mitra kiosks allow
residents to pay bills and obtain certificates locally, thereby increasing
local employment and income opportunities. These kiosks not only make services
accessible but also create jobs, contributing to the economic development of
rural areas.
Solutions to Bridge the Digital Divide in Rural India
Innovative Distribution Models: Assisted Accessibility: To
bridge the digital divide, India needs innovative distribution models that
simplify access to advanced technology and leverage the trust of local
communities. The concept of assisted accessibility can play a pivotal role
here. Local retailers, who already function as business correspondents (BCs)
for basic banking services, can be empowered to serve as nerve centres for
financial accessibility in rural areas. By enhancing their capacity and enabling
them to offer advanced financial services like credit, insurance, and
investments, these local networks can ensure that last-mile citizens have
access to crucial financial tools. These services should be distributed in a
way that adheres to the principles of availability, applicability,
acceptability, and affordability. This model has seen success in some villages
and now needs to be scaled up across the country.
Tailored Services for Rural Channels: Services provided
through these rural channels must be specifically designed to meet the unique
needs of rural populations, rather than simply adapting urban solutions. For
example, while urban areas might benefit from comprehensive insurance plans,
rural regions would be better served by microfinance and microinsurance
options.
Successful examples: This approach has already been
demonstrated successfully by telecom companies and FMCGs through their sachet
packaging strategies, which cater to the smaller budgets and consumption
patterns of rural consumers.
Similarly, banks and non-banking financial companies are now
collaborating with corporate BCs to introduce innovative products like
microcredit, microinsurance, and goal-based flexible savings plans. For
example, SBI’s YONO platform offers personalised financial offers. This
can be tailored to the specific needs of
rural customers.
Jan Nivesh, Jan Suraksha, and Jan Credit: Initiatives like
the Jan Dhan Yojana have shown the potential for large-scale inclusion efforts,
and similar strategies are necessary to introduce and popularise programs like
Jan Nivesh (People’s Investment), Jan Suraksha (People’s Protection), and Jan
Credit (People’s Credit).
These initiatives can only be successful if they become part
of a broader movement driven by increasing demand for credit, loans, and other
financial services essential for full economic inclusion.
Bringing Villages Online: The Open Network for Digital
Commerce (ONDC) has the potential to bridge the digital divide by bringing
rural communities online. By enabling small retailers in villages to sell their
products through digital platforms, ONDC can significantly expand their
business opportunities and increase market access. This digital inclusion is
already evident in the mutual fund industry, where more than 400,000 new
portfolios are being created each month from Tier-II and Tier-III cities. This
burgeoning trend highlights the increasing financial engagement of rural
populations and underscores the transformative impact of digital platforms on
rural economic participation.
Content in Local Languages: To make digital tools and
resources accessible to a broader rural audience, it’s crucial to provide
content in local languages.
Companies like Google are leading the way by offering
services in nine Indian languages, which ensures that language barriers do not
prevent rural populations from engaging with digital platforms.
Cybersecurity Awareness: As more rural residents come
online, it’s important to raise awareness about cybersecurity. Educating people
about online safety, fraud prevention, and secure financial transactions will
protect them as they increasingly use digital services. This is especially
critical as financial inclusion expands, ensuring that villagers can trust and
safely use digital platforms.
Expanding 5G and Telemedicine: The expansion of 5G
technology into every village is essential for improving connectivity and
enabling advanced services like telemedicine. With better internet access, even
the most remote areas can benefit from healthcare services delivered through
digital platforms, making medical care more accessible and timely.
Blockchain Technology for Secure Transactions: Blockchain
technology can play a key role in securing financial transactions, especially
in rural areas where trust in digital financial systems needs to be
established. By using blockchain to enhance the security and transparency of
transactions, villagers can be more confident in using digital financial
services, fostering greater adoption and trust in the digital economy.
Conclusion
Bridging the digital divide in India’s rural areas is
crucial for ensuring inclusive development and empowering millions of citizens.
By addressing infrastructure shortcomings, enhancing access to devices, raising
digital literacy, and creating economic opportunities, India can significantly
narrow the gap between urban and rural areas. This approach is essential for
realising the vision of a “Viksit Bharat,” where every citizen, regardless of
location, is included in the nation’s progress and prosperity.
(Email: vkmalout@gmail.com)