NCAER Report: Hidden Digital Divide Persists Despite Rapid Digital Expansion in India

NCAER Report: Hidden Digital Divide Persists Despite Rapid Digital Expansion in India

The National Council of Applied Economic Research (National Council of Applied Economic Research) has released a report highlighting that despite the rapid expansion of digital infrastructure and increasing mobile penetration in India, significant “hidden digital divides” still persist across the country.While India has made major progress in digital connectivity, the benefits are not being evenly distributed across all sections of society.

Key Findings of the NCAER Report

Access Divide: Mobile Penetration High, Advanced Device Ownership Low

¨     Mobile ownership has become nearly universal, with 95.1% of households owning a mobile device and 74.8% possessing a smartphone or internet-enabled device. However, only 8% of households own a computer/laptop, and merely 2.3% own a tablet, revealing significant disparities in access to advanced digital tools.

¨     Device ownership remains strongly linked to socio-economic status. Computer ownership ranges from 1.2% among the poorest households to 23.1% among the richest households, highlighting persistent inequalities in the quality of digital access.

Connectivity Divide: Many Households Remain Offline

¨     India’s internet ecosystem remains overwhelmingly mobile-first, with 71.4% of households accessing the internet through mobile devices, while broadband and fixed-line internet remain limited.

¨     Despite widespread mobile penetration, 27.5% of households still lack internet access, including 32.2% of rural households and 17.2% of urban households. Connectivity gaps are most pronounced among economically disadvantaged households, where over half remain offline.

Usage and Skills Divide: Connected but Not Empowered

¨     The report identifies a significant digital skills deficit. About 20.4% of households using digital services require assistance from someone outside the household, indicating that connectivity does not necessarily translate into digital empowerment.

¨     Computer literacy remains uneven, with only 21.9% of rural households reporting at least one computer-literate member compared to 43.6% in urban areas.

Gender, Age and Social Inequalities

¨     Among working-age adults (15–59 years), 57.6% of men use the internet compared to only 35.6% of women, indicating a substantial gender gap that persists even with rising incomes.

¨     Digital exclusion is particularly severe among the elderly. Only 9.4% of individuals aged 60 years and above use the internet, raising concerns regarding access to increasingly digitalised public services and welfare schemes.

¨     Among children aged 13–16 years, 65.3% have access to a mobile device, but only 37.8% actively use the internet, suggesting that digital inequalities may be transmitted across generations.

Understanding India’s Hidden Digital Divide

The report conceptualises digital inequality as a three-layered challenge:

1.First-Order Divide: Access

¨     Concerns ownership of devices and digital infrastructure. While mobile ownership is widespread, access to advanced devices such as computers and tablets remains highly unequal.

2.Second-Order Divide: Connectivity

¨     Relates to internet access and quality of connectivity. A significant share of households remain offline despite living in a digitally connected economy.

3.Third-Order Divide: Meaningful Outcomes

¨     Refers to the ability to convert digital access into educational, economic, financial and governance benefits. The report finds that internet use remains largely entertainment-driven, limiting transformative developmental outcomes.