India continues to make progress toward widespread access to technology. Still, there are significant gaps that disproportionately affect its population. According to a National Family Health survey, 72.5% of males and 51.8% of females in urban areas have internet access. Comparatively, only 48.7% of males and 24.6% of females have access to the internet in rural areas. These numbers expose the fact that a large number of individuals across the country are unable to use the internet. 

Digital Gaps and the Risk of Poverty

Lack of connectivity leads to hindered education opportunities, unemployment and reduced digital literacy. For example, without access to technology, it is more challenging to enroll in online courses and use tools like Zoom and this makes education less accessible. Digital literacy is increasingly a requirement for many jobs. Online communication and media navigation are important for most positions, putting those without internet access at a significant disadvantage. Overall, people without reliable access to technology are less likely to seek further education, get a job and face a greater risk of living in poverty. 

The 2025 Budget and How It Helps

The 2025 budget is making four notable efforts toward reducing the digital divide in India. 

• Expanding Reach to Digital Education. The new allocation of funds for the postal network is making this goal possible. This well-established system in the country is using additional funding to deliver educational resources to remote areas in need. This is effectively reducing the digital divide in India by providing necessary learning material, creating more equitable opportunities for education.
• Atal Tinkering Labs and Technology Fellowships. Programs are also reducing the digital divide in India by fostering skill development, creating jobs and sparking long-term innovation. The goal, as established by India’s 2025 budget, is to create 50,000 Atal Tinkering Labs. The plan is to set up these labs in government schools across the nation to promote a future in science. Additionally, the budget provides the funds to create 10,000 fellowships to train youth in tech. Overall, creating these jobs means opening up opportunities for innovation and greater digital access.  
• Bharatiya Bhasha Pustak Scheme. This scheme is reducing the digital divide in India by bringing educational content to populations that speak regional languages. These populations are at greater risk of living in poverty because their native language provides limitations. However, the 2025 Budget aims to implement long-term educational empowerment. The plan is to do so by providing educational content and making key resources accessible in the native languages. This initiative uses these resources to teach necessary skills. Ultimately, this grants beneficiaries a greater chance of joining the workforce. 
• Investing in AI and Innovation. The 2025 Budget is also reducing the digital divide in India by investing in research and technology. In 2025, there is an increase in funding for AI research and implementation, which creates the potential for new jobs. Also, the increased funding allows the possibility of using digital solutions. AI can potentially create development and improve the standard of living in the country.

From Access to Opportunity

At first glance, efforts to reduce the digital divide in India may seem modest. However, digital inclusion is more than a tech initiative — it is a pathway to poverty reduction. By bringing tech-based educational resources to more people, ongoing efforts create better job opportunities. By creating programs rooted in job creation, unemployment rates drop and regional income increases. Improving the availability of technology promises better access to digital banking, health care and government services.

Granting more people access to the internet could result in long-term economic development, especially among women and in rural regions. India’s 2025 Budget marks a significant step toward inclusive digital growth. Continued funding for such programs could help reshape the country’s digital landscape, create jobs and improve financial security for the estimated 75 million people living in extreme poverty.

– Caroline May

Caroline is based in Denver, CO, USA and focuses on Good News for The Borgen Project.

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