CAER Report 2025: Digital Access Expands, but Inequality in Opportunities Persists

India is expected to have more than one billion internet users by 2025. However, the recent report, “The Evolving Landscape of Digital Inclusion in India”, released by the National Council of Applied Economic Research (NCAER), highlights that despite the country's digital revolution, the journey toward true digital inclusion remains incomplete.

According to the report, India has achieved near-universal access to mobile phones. Nevertheless, significant challenges remain in ensuring equal digital access to education, employment opportunities, financial services, and government schemes.

Mobile Access Has Increased, but Computers Remain Rare

The report reveals that:95.1% of Indian households own a mobile phone. 74.8% of households use a smartphone or internet-enabled phone. 

In contrast :

• Only 8% of households own a computer or laptop. 
• Just 2.3% of households have a tablet. 

As a result, the internet experience for most Indians remains limited to mobile devices, which are often insufficient for quality education, online work, and advanced skill development.

Rural-Urban and Economic Gaps in Internet Access Continue

The report notes that :

• 27.5% of Indian households still have no internet access. 
• In rural India, 32.2% of households remain offline. 
• In urban areas, the figure stands at 17.2%. 

The divide is even more pronounced among poorer households :

• 52.1% of households in the lowest consumption group lack internet connectivity. 

These figures underline the persistence of deep digital inequalities across regions and income groups.

Internet Usage Remains Largely Entertainment-Oriented

According to the study :

• About 66% of users access the internet for watching movies, television programs, and news. 
• 53.8% use social media platforms. 

By comparison :

• Only 16.1% of households use the internet for online education. 
• Merely 11.4% access government services online. 

This suggests that the benefits of digital connectivity have not yet fully translated into productive and developmental uses.

The Challenge of the “Hidden Digital Divide”

The report identifies a new concern termed the “Hidden Digital Divide.”

• Around 20.4% of households depend on someone else to use digital services. 
• This dependence is significantly higher among households with limited formal education. 

The findings indicate that internet access alone is not enough; digital literacy and technological skills are equally important for meaningful participation in the digital economy.

Women and Elderly Citizens Are Most Affected

Gender inequality in digital access remains substantial :

• 57.6% of working-age men use the internet. 
• Only 35.6% of working-age women do so. 

Similarly-Just 9.4% of individuals aged 60 years and above use the internet. 

These statistics show that the benefits of India's digital transformation have not reached all sections of society equally.

India’s Next Digital Challenge

The report concludes that India's first digital challenge was to provide mobile connectivity to the population, a goal that has largely been achieved.

The next and more critical challenge is to ensure that citizens can effectively use digital technologies for :

• Education 
• Employment 
• Financial inclusion 
• Government services 
• Social and economic opportunities 

Without addressing these issues, digital transformation could deepen existing social and economic inequalities rather than reduce them.

Key Recommendations of the Report

The report recommends :

• Expanding affordable broadband services and public Wi-Fi networks. 
• Increasing access to computers and shared digital devices. 
• Strengthening digital literacy at the school level. 
• Launching targeted digital inclusion programs for women and rural communities. 
• Establishing assisted digital service centers for elderly citizens. 

Conclusion

• The NCAER report makes it clear that the next phase of India's digital revolution is not merely about expanding internet access but about ensuring meaningful digital participation.
• Mobile phones have opened the door to the digital world, but genuine digital empowerment will only be achieved when every citizen can use digital resources equally for education, employment, governance, and economic advancement.