India’s rapid expansion of digital connectivity over the past decade is often celebrated as a development success. Internet coverage has widened, data costs have fallen, and the rollout of 5G networks has increased mobile download speeds across much of the country. As the world marks UNESCO's International Day for Digital Learning on March 19, the next policy challenge in India is no longer about expansion of internet networks, but assessing whether citizens have the ability to use digital technologies effectively for communication, financial transactions, and access to public services..
India’s Infrastructure Success Story
Recent data from the Ookla Speedtest Intelligence dataset illustrate the scale of India’s infrastructure gains. Internet speeds have risen steadily across the country, with particularly sharp improvements following the nationwide rollout of 5G services in late 2022. Mobile download speeds have increased by 145.50 Mbps across large parts of India between 2019 and 2025, while. upload speeds have also risen significantly. Taken together, this marks one of the fastest expansions of mobile broadband infrastructure globally.
Connectivity Does Not Ensure Capability
Across Indian states, however, improvements in network infrastructure coexist with significant variation in how people actually use digital tools.
Consider the contrast between states such as Bihar and Tamil Nadu. Despite having broadly comparable mobile download speeds of around 55 Mbps, the share of people able to use smartphones differs significantly. In Bihar, roughly 47 percent of the population reports the ability to use a smartphone, compared with 57 percent in Tamil Nadu.
This comparison highlights that while connectivity can expand rapidly, actual use depends on the social and institutional contexts in which technology is learned and practised.
Regional Gaps in Digital Adoption
Patterns of device ownership reinforce this point. Data from the Comprehensive Annual Modular Survey show that smartphone usage varies widely across states. Maharashtra records usage rates of about 66.3 percent, while several eastern states such as Jharkhand, West Bengal and Assam report significantly lower levels – below 55 percent.
In parts of eastern India, reliance on basic mobile phones also remains considerably higher than in western and southern states. These differences reflect deeper regional disparities in income, education, and access to digital services.
They also highlight an important transition in India’s digital journey. During the early phases of expansion, the primary challenge was network access. Today, the more significant constraint is the ability to navigate online interfaces and participate meaningfully in the digital economy.
Gender, Caste and Digital Finance
The capability gap becomes even more visible when examined through a gender lens. Across India, familiarity with digital financial tools remains limited, and women continue to lag behind men in the adoption of digital banking and payment platforms. Data from the Comprehensive Annual Modular Survey (CAMS) suggests that approximately 34 percent of women report familiarity with digital financial transactions in southern states, well above the all-India average of 25.3 percent, while in northern states the corresponding statistic pales even further at 15 percent.
Disaggregated data by caste reinforce a similar pattern. Among Scheduled Castes and Scheduled Tribes, levels of familiarity with digital financial tools differ across regions and states. In Tamil Nadu, for example, 47.6 percent of Scheduled Tribe women report familiarity with tech-enabled banking, significantly above the national average for ST population. Such outcomes are often linked to long-running community-based initiatives, including women’s self-help group networks and financial inclusion programmes.
Community Institutions Drive Capability
These patterns reflect an important policy implication: meaningful digital participation grows through institutions that help people learn, experiment with, and trust new technologies.
Community-based platforms – including self-help groups, panchayat institutions, schools, and community learning centres – often serve as the first interface through which citizens engage with digital services. These institutions reduce barriers that frequently prevent first-time users from adopting digital platforms by enabling peer learning, assisted access, and trust-building.
Where such institutions are active and digital training is integrated with financial inclusion and welfare delivery, adoption tends to be faster and more inclusive.
From Connectivity to Capability
The next phase of India’s digital transformation will require a shift in emphasis. Infrastructure expansion must be complemented by investments in digital capability. This includes targeted programmes to improve digital literacy, affordable access to smartphones and data services, and locally accessible digital platforms that respond to linguistic and regional needs.
Crucially, these initiatives are most effective when embedded within institutions that citizens already interact with and trust. Access alone is not enough; it must be converted into capability.
As India’s digital economy continues to expand, the central question is no longer whether citizens can connect to the internet. It is whether they have the capabilities to use that connection to improve their economic and social opportunities. The policies that shape this next phase will determine whether the digital economy deepens existing inequalities or becomes a genuinely inclusive engine of growth.
