According to a World Bank report, a 10% increase in broadband penetration can boost GDP growth by 1.38%. With only 37% of rural households in India having internet access (National Family Health Survey, 2019-21), the BharatNet initiative offers a monumental opportunity to transform rural India.
In the digital era, connectivity forms the backbone of economic growth and societal transformation. Recognizing the transformative potential of high-speed broadband, the Modi government has undertaken pioneering initiatives to bridge the digital divide between urban and rural India. A significant step in this direction is the Memorandum of Understanding (MoU) signed between Digital Bharat Nidhi (DBN), under the Department of Telecommunications (DoT), and the National Bank for Agriculture and Rural Development (NABARD). This partnership underscores the government’s commitment to leveraging digital infrastructure to drive rural development and achieve the vision of Viksit Bharat by 2047.
Enabling Rural Digital Empowerment
The MoU aims to empower rural institutions supported by NABARD by providing them access to high-speed broadband connectivity under the BharatNet program. BharatNet, envisioned as the world’s largest rural broadband initiative, connects over 2.5 lakh Gram Panchayats (GPs) through high-speed optical fiber networks. This partnership focuses on:
1. Digital Access to Governance
High-speed broadband through programs like BharatNet enables rural institutions to access e-governance services, making public service delivery more transparent and efficient.
Example: Common Service Centers (CSCs): With over 500,000 CSCs operational across India, rural citizens can now access over 300 digital services, including land records, birth certificates, and subsidies. This initiative saves time and reduces corruption by eliminating intermediaries.
Impact of E-Governance on Efficiency: A study by NITI Aayog shows that e-governance has reduced processing times for rural services by 40%. For instance, the DigiLocker platform has issued over 14 billion digital documents to date, simplifying citizen access to official records.
DBN-NABARD MoU Role: Rural institutions like Primary Agriculture Cooperative Societies (PACS) can now utilize e-governance platforms to streamline their operations and enhance transparency in disbursement processes for loans and subsidies.
2. Integration of Digital Services
High-speed broadband integrates digital applications and portals, bringing inclusivity to governance and ensuring services reach remote areas.
Direct Benefit Transfers (DBTs): With broadband-enabled banking systems, the government has facilitated DBTs, transferring over ₹6.3 lakh crore (FY 2022-23) directly into beneficiaries’ bank accounts, reducing leakages in welfare schemes.
Jan Dhan, Aadhaar, and Mobile (JAM) Trinity: Broadband access has strengthened the JAM infrastructure, enabling seamless delivery of benefits like PM-KISAN payments to over 11 crore farmers annually.
Government Portals: Initiatives like the PMGDISHA platform have trained over 4 crore rural citizens in digital literacy, ensuring they can access online services such as banking, healthcare, and education.
3. Capacity Building for Rural Entrepreneurs
Broadband connectivity facilitates training programs and equips rural entrepreneurs with digital skills to thrive in a technology-driven economy.
Digital Skilling Initiatives: Programs like PMGDISHA have made over 6 crore people digitally literate, with a significant focus on rural women and youth. These initiatives enable entrepreneurs to access digital marketplaces and financial platforms.
E-Marketplaces: Platforms like the Government e-Marketplace (GeM) and eNAM (National Agriculture Market) allow rural entrepreneurs and farmers to directly market their products, bypassing middlemen. eNAM has connected 1.74 crore farmers and facilitated transactions worth ₹2 lakh crore.
Awareness and Training Programs: Under the DBN-NABARD MoU, awareness programs for rural entrepreneurs will promote ICT-based business opportunities, fostering a new generation of digitally skilled entrepreneurs.
4. Promotion of the Digital Economy
Broadband-enabled initiatives in e-commerce, fintech, and digital banking are transforming rural India into a vibrant part of the digital economy.
Fintech Growth: With broadband access, rural citizens increasingly use fintech solutions like UPI, which recorded over 8 billion transactions worth ₹13.89 lakh crore in January 2025 alone. This penetration supports financial inclusion and reduces dependency on cash.
Rural E-Commerce: Platforms like Amazon Saheli and Flipkart Samarth have empowered rural artisans and women entrepreneurs, enabling them to sell their products nationally and internationally. Rural e-commerce penetration has grown by over 30% annually.
Digital Banking Access: High-speed broadband has brought banking services to the doorstep of rural households. According to the Reserve Bank of India (RBI), rural bank accounts grew by 46% in the last decade, driven by digital banking solutions and initiatives like India Post Payments Bank (IPPB).
Driving Socioeconomic Transformation
Data underscores the transformative potential of digital connectivity. According to a World Bank report, a 10% increase in broadband penetration can boost GDP growth by 1.38%. With only 37% of rural households in India having internet access (National Family Health Survey, 2019-21), the BharatNet initiative offers a monumental opportunity to transform rural India.
Key Benefits:
1. Agricultural Modernization
High-speed broadband empowers farmers with real-time access to critical agricultural information, modernizing farming practices and improving productivity.
Weather and Crop Data: Digital platforms like Meghdoot and Kisan Suvidha provide farmers with weather forecasts, pest control measures, and crop advisory services. For example, the Indian Meteorological Department (IMD) delivers daily weather updates to over 20 million farmers.
Market Linkages: E-platforms like eNAM (National Agriculture Market) connect 1.74 crore farmers to 1,000+ mandis across India. With broadband access, farmers can check market prices, negotiate directly with buyers, and reduce dependence on middlemen, increasing their income by 20-30%.
Smart Farming: Broadband enables precision farming through IoT devices, soil sensors, and drones. NABARD’s Digital Ecosystem for Agriculture (DEA) initiative is integrating these technologies with high-speed connectivity to promote data-driven farming.
2. Education and Skill Development
Broadband connectivity bridges the educational gap in rural India by providing access to quality learning resources and skill development programs.
Digital Classrooms: Initiatives like PM eVidya and Diksha offer online courses to students in rural areas, ensuring uninterrupted education. By 2024, these platforms have reached 23 crore learners, providing content in 15+ languages.
Skill Development: Under Skill India Mission, broadband-enabled training centers have imparted employable skills to over 50 million youth. Programs like eSkillIndia offer courses in IT, healthcare, and retail, boosting rural employability.
Women’s Education: Digital initiatives like Mahila Shakti Kendra focus on skilling rural women, with over 10 lakh women gaining financial literacy and entrepreneurial training.
3. Healthcare Accessibility
Telemedicine services, powered by high-speed broadband, address the healthcare needs of rural India, reducing disparities in health outcomes.
eSanjeevani Telemedicine Platform: This initiative has facilitated over 15 crore teleconsultations, connecting rural patients with doctors in urban hospitals.
Digital Health Records: Programs like Ayushman Bharat Digital Mission (ABDM) ensure that rural citizens have access to portable digital health records, simplifying access to healthcare services.
Mobile Health Units: Broadband enables mobile healthcare vans to operate efficiently in remote areas, providing real-time diagnostics and consultations. A 2023 NITI Aayog report found a 25% improvement in health indicators in villages served by telemedicine.
4. Rural Entrepreneurship
High-speed broadband enables rural entrepreneurs and MSMEs to access markets, financial services, and training, fostering economic growth and job creation.
Market Access for Startups: Platforms like Flipkart Samarth and Amazon Saheli have empowered rural entrepreneurs, particularly women, to market their products globally. Flipkart reported a 35% growth in rural sellers joining its platform in 2023.
Financial Inclusion: Rural entrepreneurs leverage broadband to access fintech platforms like UPI and Aadhaar-enabled payment systems. UPI recorded 83 billion transactions in 2023, with significant growth in rural regions.
MSME Growth: Broadband connectivity is driving the growth of MSMEs in rural India. According to the Ministry of MSME, rural MSMEs contributed 45% to India’s GDP in 2023, employing over 100 million people.
Startup Ecosystem: Initiatives like Startup India and NABARD’s Rural Innovation Fund support rural entrepreneurs in scaling their ventures, aided by broadband-enabled access to training and resources.
Policy Initiatives: A Gender-Inclusive Approach
The Modi government’s focus on inclusivity in digital initiatives, especially targeting women, is driving significant societal and economic transformation in rural India. High-speed broadband access amplifies these efforts by enabling women to participate in e-commerce, digital marketing, and online education, fostering gender parity in the workforce. Here’s how:
1. Digital Literacy for Women
PMGDISHA (Pradhan Mantri Gramin Digital Saksharta Abhiyan): Under this flagship initiative, over 6 crore rural citizens, of which 52% are women, have been trained in basic digital skills, enabling them to access online services and opportunities.
CSC Women Digital Entrepreneurs Program: More than 1 lakh women have become Village Level Entrepreneurs (VLEs), offering digital services like Aadhaar enrollment, online banking, and e-governance solutions to their communities.
2. Participation in E-commerce and Digital Marketing
E-commerce Growth: Platforms like Amazon Saheli and Flipkart Samarth empower rural women entrepreneurs to sell products online. For instance, Amazon Saheli supports over 2 lakh women sellers, providing training, logistics, and marketing assistance.
Self-Help Groups (SHGs): Broadband access helps women in SHGs promote their products digitally. NABARD reported that 25% of SHG members have adopted e-commerce, resulting in a 30-40% increase in their income.
3. Online Education and Skill Development
Digital Learning for Women: Initiatives like Diksha and PM eVidya provide online courses tailored to rural women, helping them gain skills in IT, healthcare, and other sectors. By 2023, over 12 crore women learners accessed these platforms.
Skill India for Women: Digital platforms under the Skill India Mission have trained more than 10 million women, enhancing their employability in fields like digital marketing, coding, and customer service.
4. Economic Empowerment
Fintech Access: High-speed broadband enables rural women to use fintech services like UPI and Aadhaar-enabled payment systems. As per NPCI, UPI transactions in rural areas grew by 25% in 2023, with women being significant contributors.
Remote Work Opportunities: Digital connectivity allows women to participate in remote jobs, freelancing, and online tutoring, giving them financial independence. A NASSCOM report indicates that remote work for rural women grew by 18% in 2023.
5. Gender Parity in Workforce
Women in Startups: Programs like Startup India and Stand-Up India have provided financial and technical support to women entrepreneurs, with 80% of beneficiaries being women in 2023.
Employment Growth: According to the International Labour Organization (ILO), digital skilling and connectivity could increase women’s workforce participation in India by 10% by 2030, adding approximately 70 million women workers to the economy.
NABARD and DBN Collaboration: A Step Towards Digital Transformation
Under the MoU, NABARD and DBN will work collaboratively to share reference data, digital content, and information on citizen-centric applications. High-speed broadband will be extended to rural institutions such as Primary Agriculture Co-operative Credit Societies (PACS), enabling them to integrate with the digital economy. This effort will modernize rural banking and financial institutions, making them more efficient and accessible.
A Vision for Viksit Bharat
The Modi government’s push for high-speed broadband in rural areas aligns with its broader vision of a self-reliant India. By empowering rural communities with digital tools and connectivity, the government is laying the foundation for sustainable and inclusive growth. This initiative will not only bridge the urban-rural divide but also position India as a global leader in digital innovation.
In conclusion, the DBN-NABARD collaboration under BharatNet is a transformative step towards rural digital empowerment. By integrating technology with governance, agriculture, education, and healthcare, high-speed broadband will act as a catalyst for India’s rural development, paving the way for Viksit Bharat by 2047.
