Wiring India’s growth through rural connectivity and digital inclusion

By Sujith Babu

India’s digital economy is expected to grow nearly twice as fast as its overall economy, contributing almost a fifth of the nation’s income by 2029–30. Rapid advancements in mobile connectivity and digital payments have transformed industries ranging from e-commerce to financial services. Government initiatives like Digital India and the expansion of 5G infrastructure have further accelerated the adoption of digital services, bringing more businesses and consumers into the digital fold.

The booming e-commerce and quick-commerce industries have redefined the country’s retail landscape. Digital growth is primarily facilitated by the ease and ubiquity of the Unified Payment Interface (UPI) system. In 2024, India recorded a massive 208.5 billion digital payment transactions. Apart from retail, urban India also uses digital infrastructure for learning and healthcare needs.

The Urban-Rural Connectivity Gap

High-speed, reliable broadband connectivity forms the foundation of a digital economy. Expanding India’s digital economy will require high-quality network coverage and seamless connectivity beyond major cities like Mumbai and New Delhi, a crucial step in connecting India across the region.

According to the latest IAMAI-Kantar report, India is set to surpass 900 million Internet users by 2025, with rural users outnumbering their urban counterparts two to one. Greater connectivity can strengthen the rural economy and enable businesses in rural areas to expand their reach. It creates opportunities for local enterprises to grow their businesses and reach new customers both nationally and globally.

Despite these opportunities, expanding rural connectivity comes with some challenges. Service providers often prioritise urban areas due to higher population density and the expectation of quicker returns on investment. In rural areas, underdeveloped infrastructure and higher deployment costs contribute to longer monetisation cycles. Additionally, rural network expansion projects often involve multiple third-party implementation partners or system integrators, resulting in longer lead times.

With just 40.97 million fixed broadband subscribers at the end of 2024, expanding coverage presents a significant opportunity to bridge India’s digital divide.

Public Sector Push to Bridge the Divide

Over the past few years, the Government of India has introduced several initiatives aimed at addressing the digital divide. It has also proposed providing broadband connectivity to all government secondary schools and primary health centres in rural areas through the BharatNet project. This massive initiative aims to bridge the digital divide by delivering affordable high-speed Internet to every Gram Panchayat in the country. As of December 2024, around 2.14 lakh Gram Panchayats have been connected through BharatNet.

Such initiatives have contributed to expanding the digital infrastructure in rural areas. Out of 6,44,131 villages in the country, over 6,22,804 villages have mobile coverage, of which more than 6,14,564 villages were covered with 4G mobile connectivity as of September 2024, according to the government’s data. Around 8,730 mobile towers have been installed, and over 1.99 lakh villages have been covered by Bharat Broadband Network Limited.

Delivering Rural Connectivity with Tech

Communities beyond Delhi and Mumbai must have equitable access to the government’s schemes and initiatives. Resilient communications infrastructure is essential in rural areas for everyday connectivity and to support public disaster response efforts.

Rural communications projects must prioritise adaptable, scalable and user-friendly technologies. Advanced networking solutions can help promote a long-term, sustainable upgrade path and improved monetisation opportunities.

Additionally, having a scalable architecture is essential to accommodate growth without rebuilding from the beginning. Adaptive networks that scale efficiently, along with network monitoring and automation solutions, ensure the network is highly efficient, reliable, and easy to manage.

Considering India’s vastness, going beyond the traditional hub-and-spoke model will likely be more effective in developing customised connectivity initiatives that align with each region’s specific demographics and geographical needs.

Rural Connectivity: A Pillar of Viksit Bharat

India’s vision, Viksit Bharat 2047, aims to transform the country into a developed nation by 2047, marking the 100th year of its independence. While India’s digital economy has witnessed remarkable growth, driven by innovations in mobile connectivity, digital payments, and government initiatives, for this growth to scale to greater heights, it is essential to include rural and remote regions. Expanding digital infrastructure through projects like BharatNet and 5G rollouts, as well as promoting broadband connectivity, will be pivotal in bridging the urban-rural divide and realising Viksit Bharat 2047.

Expanding and strengthening rural connectivity through the use of adaptable networking technologies is crucial to sustaining the momentum of India’s digital economy and driving long-term, inclusive growth. Simple and scalable networks that are easy to deploy and manage can significantly contribute to fostering inclusive growth in both urban and rural areas.

The author is the Director for Enterprise and Government Verticals in India at Ciena.