Digital inclusion: Strong strides but distance to go

Latest findings reveal commendable progress made by India, but gaps across gender, age, and income persist.

In the dynamic landscape of a rapidly digitising India, recent data presents a compelling narrative of progress, shifting from the cautionary tale of a few years ago to an optimistic view of widespread adoption. The country’s strategic investments in digital infrastructure and public initiatives, which once revealed a sobering reality of exclusion, now show remarkable success in bridging the digital gap.

Data from the NSSO’s Comprehensive Modular Survey, Telecom (CMST), 2025 highlights a monumental leap in digital banking capabilities, with the national average of people who are capable of performing online transactions soaring from 37.76 per cent in 2022-23 (CAMS 2022-23) to a substantial 69.33 per cent by 2025.

This leap suggests that the digital revolution, once seen as a risky leap into the unknown for many, is now being embraced across regions, genders, and generations. It also signifies that the well-intentioned digital revolution is increasingly becoming a tool of inclusion, improvements in digital literacy, user-friendly interfaces, smartphone affordability, and wider internet reach. But while digital banking usage has increased significantly, large gaps remain across gender, age, and income, highlighting that access alone does not ensure ability or inclusion.

While urban areas continue to lead the charge, the most dramatic progress is evident in the rural parts of the country, where the digital promise is finally being realised. In 2022-23, digital inclusion was a distant dream for nearly three-quarters of the rural population, with only 30% capable of performing online transactions. Fast-forward to 2025, and that figure has more than doubled to 64.11%. Urban India, already on a more advanced footing, also saw a significant jump from 50.57% to 77.62%. While a 13.5 percentage point disparity remains between urban and rural areas, the overall adoption rate has dramatically improved for both segments, suggesting that connectivity and access are no longer the exclusive domain of cities. The data indicates a national-level transformation rather than a simple success story limited to the urban centres.

The CMST 2025 data also reveals a hopeful, if still incomplete, story of gender parity in the digital world. The once-stark “gendered fault-line” has begun to heal, with a substantial increase recorded in digital literacy among women. In 2022-23, only 25.16% of women in the country were able to perform online transactions. By 2025, that number had more than doubled to 58.15%. Meanwhile, the digital proficiency of men also climbed, from 47.10% to 78.34%. Although the absolute gap has slightly widened in terms of percentage points, the sheer scale of female inclusion is a powerful indicator that targeted interventions and increased access are making a tangible difference. The challenge now lies in ensuring this momentum continues until the gap is fully eliminated, reflecting a more equitable society where technology empowers all, regardless of gender.

The stereotype of digital exclusion among the elderly population is also being challenged by the latest findings. While youth remain the most digitally fluent demographic, the most striking growth has occurred at the margins. The 15-25 and 26-35 age groups have shown impressive capabilities in digital transactions, at 71.99% and 73.84% respectively, reflecting the natural integration of technology into the lives of working-age individuals. However, the true testament to the revolution’s reach is the elderly population.

The “more than 60 years” age group, which was largely sidelined with a mere 18.4% proficiency rate in 2022-23, has made a monumental leap to 52.67%. But it also, still, means that nearly half of the country’s elderly device users remain digitally excluded – this statistic presents a serious concern in a country where
the welfare delivery system is becoming increasingly cashless. Without inclusive design, support systems, and security mechanisms that are tailored
to meet the seniors’ needs, their exclusion will persist.

Switching lanes: From access to capability

While the numbers paint a picture of undeniable progress, the journey to universal digital inclusion is far from over. Nearly 30% of the population, a staggering number in absolute terms, remains digitally excluded. This persistent divide is not just a matter of access to devices or connectivity, but a complex interplay of systemic barriers that include linguistic diversity, digital illiteracy, and socioeconomic constraints. These impeding factors necessitate a shift in approach. The focus must now shift from simply providing access to building trust, creating intuitive interfaces in local languages, and developing dedicated support systems for those who still struggle.

The true success of India’s digital revolution will not be measured in terms of the total volume of transactions or the number of new users, but by its ability to leave no one behind. The CMST 2025 data shows that the nation has made incredible strides, transforming a “two-speed” digital economy into one with accelerating adoption across all demographics. However, the final push requires targeted, nuanced interventions such as specialised training for senior citizens, dedicated digital literacy drives for women, and inclusive policies that ensure the benefits of the digital economy reach the last person in the last village.

The ultimate measure of this digital revolution will be its power to truly empower every Indian, making technology a great equaliser rather than a new source of disparity.

(Palash is a fellow at National Council of Applied Economic Research – NCAER, New Delhi; Wankhar is a retired Government of India officer)