Digital India’s Unseen Divide

There has been a surge in internet adoption particularly in rural India post pandemic, but most migrant workers are yet to use their smartphones for upskilling or managing money. Will digital skills define who thrives? 

Almaas Masood

A migrant worker speaks on a video-call after work outside a construction site in Hyderabad, Telangana, India. Almaas Masood / The Migration Story.

HYDERABAD, Telangana: Bibhuranjan Raut did not imagine a smartphone could change his life.

A hotel steward in Bengaluru, Raut had migrated from Odisha’s Bhadrak district when he was 18. Like thousands of other workers, he, too, lost his job, and helplessly watched his savings dwindle during the first COVID-19 lockdown. Back home in Bhadrak, in an idle pursuit, the 25-year-old explored his smartphone, which he had only sparingly used since he bought it in 2019.

"During the time that I worked in Bengaluru, I felt isolated. I did not know how to speak the local language, nor English properly," Raut, 25, told The Migration Story during his break. He now works at an upscale restaurant in the affluent Jubilee Hills area of Hyderabad.

Like thousands of migrant workers across India, Bibhuranjan was stranded without food or savings when the first lockdown was announced in India in March 2020. He survived briefly on a reduced salary until the money ran out. His journey home hinged on 1,000 rupees that the police asked for to arrange travel home. Desperate to return, he risked sneaking out amidst lockdown restrictions to borrow money from a relative.

“How was I supposed to arrange money when stepping out itself was a risk,” Bibhu said, breaking down even now, the journey back home five years ago still fresh in his mind.

Once back home, he started learning to book bus tickets, transfer payments via UPI, and access online banking through his phone, all of which he is adept at now. This has given him a newfound freedom, and confidence that he lacked before the lockdown, he said.

“I no longer have to rely on others for transactions. I didn’t suffer as much during the second lockdown either,” said Raut.

In 2022, Bibhuranjan returned to Hyderabad to work at the restaurant. He has since been promoted to ‘Senior Captain’ which is a supervisory role, and speaks fluent Telugu, Hindi, English, and Odiya; language skills he honed through lessons he took on various YouTube channels.

But now his eyes are set on securing his future.

"I want to secure my future financially,” he added, checking his smartphone for updates.

STAYING CONNECTED

Bhiburanjan is a rare case study among migrant workers, as digital literacy levels among them remain low.

Digital literacy as well as access to the internet are essential not only for financial inclusion but also for accessing emergency services and information from authorities during times of crisis. During the lockdowns, considerable information was being put out on social media by local and federal authorities, in addition to television and radio. Social media played a key role for real time updates on restrictions and travel advisories.

In fact, there has been a surge in internet adoption particularly in rural India post pandemic, according to the "Internet in India Report 2024," jointly compiled by the Internet and Mobile Association of India (IAMAI) and Kantar. The number of active internet users across India went up to 886 million in 2024, up from 622 million in 2020, marking an increase of 264 million users over this period. This growth is largely attributed to the surge in internet adoption in rural areas, which accounted for 55% of the total internet population in 2024.

But unlike Bhiburanjan, most migrants are yet to use their smartphones for upskilling or managing money, their core activities often linked to staying connected to their families back home, and with labour networks who post requirements on WhatsApp.

For instance, at a construction site in a Hyderabad suburb, TMS caught up with some migrant workers who were wrapping up work. Some were listening to news in their regional languages on their smartphone, while others caught up with family and friends through voice and video calls.

Avadhesh Shah, a migrant worker, from Bihar who works as a supervisor at a construction site, takes a call on his smartphone in Hyderabad, Telangana, India. Almaas Masood / The Migration Story.

“I do not use UPI, I only use cash. I ask someone I know to transfer payments back home,” said Avadhesh Sha, a migrant worker from Bihar.

A 2022 study by the International Labour Organization (ILO) noted that mobile phones and digital tools are critical for migrant workers to stay connected with their families, access financial services, enable freedom of movement, and receive critical information on labor rights, healthcare, and legal support.

“But migrant workers use smartphones for communications, but receiving wages to their accounts and spending money using digital tools has not happened yet. Even their wages are usually paid in cash,” said Umi Daniel, Director, migration and education at nonprofit Aide et Action International.

THE RURAL-URBAN DIVIDE

A vast majority of India’s migrant workforce comes from rural parts of the country. However, unlike urban India where digital literacy is 61%, according to government data, digital literacy level in rural India is only 25%. Just about 38% of households across India are digitally literate.

A household is considered digitally literate if at least one member aged five and above of the household is able to use a computer and the internet.

India has over 1.2 billion mobile phone users and 600 million smartphone users as of 2022 according to a government report. Despite growing connectivity, 630 million Indians (40%) remain non-active internet users, with rural India accounting for 500 million of them. Key barriers to accessing the internet include a lack of awareness (25%), difficulty in usage (21%), and restricted access (20%).

Despite the growing push for digital literacy in India, access remains deeply unequal. In rural areas, those engaged in casual agricultural labor struggle the most with only 13% of their population being digitally literate.

“More than 90% of people are still in the informal sector. That means only a small number are engaged in the organized sector. Of which casual workers in the organized sector are the workers who receive their payments to their accounts, who have an understanding of it,” said Daniel.

While internet usage is rising, millions still struggle with affordability, device ownership, and awareness.

In urban India, casual workers also face challenges, with only 30% having basic digital skills. However, the picture shifts significantly among salaried and regular wage earners. In rural areas, 53% of households with a steady non-agricultural income report digital literacy, while in urban spaces, a much larger 73% of salaried workers are digitally literate.

These numbers highlight a stark divide, where stable employment often determines whether a person can access and navigate the digital world.

“I use my phone mainly for WhatsApp and phone calls. I do follow the news on YouTube and also check out recipes on it. My daughter tells me I will not understand digital transactions. I do believe it would be helpful if I learn transferring money online, but it is fine for now,” said Usha Sawant, a domestic help in Mumbai, who migrated from Ratnagiri to the city more than a decade ago.

Rural India leads in online engagement for activities such as watching videos and music streaming, online communication such as chat, email, and calls, and social media usage, surpassing urban users in these areas. However, the use of digital tools to access education, upskilling, or financial transactions has not caught on yet, according to the IAMAI-Kantar report.

“I ask my friends and colleagues to start investing and make complete use of a smartphone, but they shun the idea. They are afraid of losing the little money they make,” Bibhuranjan said.

The report also highlights a growing trend of shared device usage in rural areas. In 2021, only 11% of rural users accessed the internet through a shared mobile device. By 2024, this number had more than doubled to 24%, indicating that while internet penetration is increasing, personal device ownership remains a hindrance for many.

NEW FEARS

Two migrant workers engrossed in their phones walk leisurly after work outside a construction site in Hyderabad, Telangana, India. Almaas Masood / The Migration Story.

The growing reliance on digital platforms, however, has also made users more vulnerable to cyber frauds and online scams, as first-time internet users, especially from rural areas, may lack awareness of digital security risks. This makes them easy targets for phishing, financial fraud, and online scams. As technology advances, so are the tactics of cybercriminals.

“Those who have been out of schools and colleges due to migration are rarely covered under any programmes aimed at cyber fraud awareness. Cyber fraud is a major threat at the moment,” said Daniel.

The minute people with lower awareness buy SIM cards and handsets, their information becomes part of databases that are prone to data breaches – either through insider involvement or careless storage systems, cybercrime experts said. Many of them might not even be aware of SIM cards, internet connections or fraudulent loans being taken in their name after their details are exposed in data breaches.

“And how do you explain data breaches to someone who hasn’t had the privilege of higher education?” said Gautam S Mengle, assistant vice president and security awareness strategist, CyberFrat, a Mumbai-based firm that specialises in cybersecurity awareness across target audiences through solutions such as posters, videos, comic strips and in-person awareness sessions.

“The biggest risk faced by groups such as migrant workers is that they may not even be aware that they are being targeted by cybercrimes. Apart from data breaches, there are also rigged gaming apps, QR-code based frauds and myriad such crimes to deal with,” he added.

Mengle cites the example of a 2022 case, when the Maharashtra Cyber police busted a ring of predatory fraudulent loan app racketeers. The police had found that the accused had set up WhatsApp accounts in the name of vegetable sellers and other such people all over Maharashtra, by hoodwinking them into revealing OTPs.

“These people weren’t well versed with technology and weren’t even using WhatsApp, but accounts in their name were being used to perpetrate the crime. The need of the hour is awareness but in a language that they understand,” he said.

WAY FORWARD

Several initiatives have been launched in recent years to help plug the digital literacy gap.

The Kerala government, for example, launched the Akshaya project with the aim to make at least one person in each household computer-literate in the Malappuram district of Kerala, making Malappuram the first e-literate district in India.

Abner Manzer, from Digital Empowerment Foundation (DEF), said, “whether workers choose to use their digital skills for entrepreneurial endeavours back in their villages, or find other employment opportunities in cities, digital skilling will improve their opportunities.” DEF is a Delhi-based NGO that works with marginalized communities to help them gain access to better healthcare, education, skills, and livelihood opportunities through digital literacy and digital tools

DEF’s SoochnaPreneur programme, implemented across 24 Indian states, is designed to equip young women in rural India with essential digital skills. Through this initiative, 1000 women have turned digital entrepreneurs, enabling them to generate a sustainable income helping people in their localities access crucial services such as financial literacy, banking assistance, and digital documentation for government schemes and policies.

India in 2017 launched Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISHA), the world’s largest digital literacy programme aimed at making 60 million rural households digitally literate by training one member per household. The initiative focuses on equipping individuals aged 14 to 60 with essential digital skills, including operating devices such as computers and smartphones, browsing the internet, accessing government and financial services, and performing cashless transactions.

As of March 2024, 4.78 crore individuals have been certified as digitally literate under the scheme, according to the Ministry of Electronics and IT. The program also promotes digital inclusion through ‘Wi-Fi choupals’ or Wifi hubs in remote areas, collaborations with rural schools for training and certification, and community engagement efforts. By enabling digital access, PMGDISHA aims to improve livelihoods and bridge the digital divide in rural India.

Back in Hyderabad, meanwhile, Raut now earns twice as much since he switched careers. He watches videos on stock market investing and financial management to leverage his improved financial condition. He even discovered an unclaimed Provident Fund of Rs 25,000 during a conversation with his old colleagues and explored it further.

“I came across investing in the stock market via a hindi-influencer on Youtube. I put my PF money into the stocks-market through the Zerodha trading app, which I learnt through Youtube tutorials as well,” said Bibhuranjan enthusiastically.

He now invests a portion of his salary in the stock market every month toward his long-term savings plan. A huge leap for someone who did not know how to use a smartphone before COVID-19.

As technology continues to evolve, access to digital services and the ability to navigate them will play a crucial role in shaping economic and social opportunities.

DIGITAL WORLD

• English language is the most common mode of relaying and consuming information online globally, but the use of regional languages to consume the internet in India is growing steadily. 

• According to the report, 98% of internet users access content in regional languages, with Tamil, Telugu, and Malayalam being the most popular.

• In urban areas, 57% of users prefer consuming content in regional languages, highlighting the increasing demand for local language content across digital platforms. 

• One in five internet users rely on voice-based commands to navigate the internet. 

• This trend is even more pronounced in rural areas, where 55% of users prefer voice commands for online access, bridging literacy gaps and enabling seamless interaction with digital services. 

• As per a press release by the Indian Ministry of Communications on February 1, 2025, “over 95% of banking payment transactions are now digital and digital platforms are expanding at 30% annually.” 

• Migrant workers employed in various metro cities across the country are touted to be the major population dominating the next billion users in India accessing digital mediums through internet-enabled phones.

• In her book, The Next Billion Users – Digital Life Beyond the West, author Payal Arora (2019) asserts that “leisure continues to be a central motivating force behind low-income communities’ adoption and use of digital media 

• SWAYAM, a Government of India initiative, now offers Massive Online Open Courses (MOOCs) for leveraging e-learning through a platform that facilitates hosting of all courses taught in classrooms from Class 9 till post-graduation with open access. 

• The scheme aims to provide 20 hours of basic training on digital devices and how to avail government-enabled e-services with a special focus on cashless transactions. 

• Till date, approximately 2.76 crore candidates have been certified as digitally literate under Pradhan Mantri Gramin Digital Saksharta Abhiyaan schemes to expand the objective to enhance livelihood of beneficiaries through usage of technology

Almaas Masood is a journalist and photographer based in Hyderabad, India. She reports on the intersections of geopolitics, environment, and the unorganized sector.