Varanasi's Digital Chasm: How India's Tech Leap Leaves Millions Behind, Yet Empowers Others

Varanasi, Uttar Pradesh – In the labyrinthine lanes leading to Varanasi’s iconic Dashashwamedh Ghat, the ancient and the modern coexist in a delicate, often contradictory, dance.

Here, the aroma of incense and marigolds blends with the distinct chirp of QR code scanners, as street vendors, barbers, and tiny tea stalls effortlessly accept payments via Unified Payments Interface (UPI).

Yet, just a few dozen kilometres beyond the city's bustling core, in the villages fringing this spiritual hub, a starkly different reality unfolds, where the promise of a 'Digital India' remains a distant echo for millions grappling with basic access and digital literacy.

This ground report uncovers the dual face of India's rapid digital transformation: a powerful engine of convenience and economic empowerment for a digitally savvy segment, contrasted sharply with a widening chasm of exclusion for those on the wrong side of the digital divide.

While the government champions its digital public infrastructure (DPI) as a global model, the human cost and benefits are unevenly distributed, creating what many term a 'two-speed India'.

Key points

* **Paradoxical Progress:** India leads the world in digital transactions, yet millions, particularly in rural and semi-urban areas, struggle with basic digital literacy and access to reliable internet.

* **Economic Empowerment:** UPI has revolutionised micro-transactions, boosting incomes and formalising payments for small businesses and street vendors, reducing reliance on cash.

* **Exclusion from Services:** Lack of digital access and skills often bars citizens from government welfare schemes, education, healthcare, and financial services increasingly moving online.

* **Infrastructure Gaps Persist:** Despite ambitious projects like BharatNet, last-mile connectivity, particularly reliable broadband, remains a significant challenge in many remote areas.

* **Digital Literacy Imperative:** Beyond access, comprehensive and localised digital literacy programmes are critical to bridge the knowledge gap and ensure true inclusion.

Mr.

Dinesh Gupta, who runs a small electronics repair shop near Lanka Gate, proudly displays his UPI QR code. “Earlier, customers would sometimes leave if they didn’t have exact change, or if I couldn’t break a big note,” he recounts, adjusting his spectacles. “Now, it’s instant.

Even for ₹20, they scan.

My daily collections are clearer, and I spend less time at the bank.” Gupta's experience is mirrored by countless small entrepreneurs across Varanasi, where the penetration of UPI is visibly high.

National Payments Corporation of India (NPCI) data shows that UPI processed over 13.4 billion transactions worth ₹19.99 lakh crore in February 2024 alone, a testament to its pervasive adoption.

However, the narrative shifts dramatically as one ventures into villages like Harahua or Koiripur, located on the outskirts of the district.

Here, the challenge is not just the absence of QR codes, but often the very devices and skills required to interact with the digital world. “My old father needs to verify his pension online every few months, but he doesn't have a smartphone, nor does he know how to use one,” shares Ms.

Gayatri Devi, a homemaker from Harahua. “We have to take him to the Common Service Centre (CSC) in the block office, which is 10 kilometres away, and sometimes the network is down there too.

It’s a full day’s work for what should be simple.”

Such struggles highlight a critical aspect of the digital divide: it's not merely about internet connectivity but also about digital literacy, affordability of devices, and access to reliable, user-friendly services.

According to a recent report by the Internet and Mobile Association of India (IAMAI), rural India lags significantly in internet penetration, with only around 40% of its population having active internet users, compared to over 70% in urban areas.

The quality and reliability of this access also vary wildly.

“While we have made tremendous strides in expanding digital infrastructure, especially through projects like BharatNet, the last-mile challenge, particularly in ensuring consistent broadband speed and reliability, persists,” admits Mr.

Rajiv Kumar Singh, District Magistrate of Varanasi. “We are actively promoting digital literacy campaigns through our CSCs and schools, targeting senior citizens and women specifically, but behavioural change and overcoming inherent hesitancy take time.”

Local non-governmental organisations are also stepping in. “Connectivity is one thing, but understanding *how* to use a smartphone effectively, protecting oneself from online fraud, and even identifying relevant online services, is another battle altogether,” explains Ms.

Ritu Sharma, programme coordinator at ‘Digital Saathi’, a Varanasi-based NGO working on digital inclusion. “Many government services are now primarily online, from land records to applying for a ration card.

If people cannot access these, they are effectively cut off from their entitlements.

We also find a significant language barrier; much of the digital content is still predominantly in English or Hindi, neglecting local dialects.”

Background

India launched its 'Digital India' programme in 2015 with a vision to transform the country into a digitally empowered society and knowledge economy.

Central to this vision has been the development of a robust Digital Public Infrastructure (DPI), including Aadhaar (digital identity), UPI (real-time payments), DigiLocker (digital document wallet), and BharatNet (rural broadband connectivity).

These initiatives have garnered international praise for their scale and impact, facilitating financial inclusion and enabling cashless transactions on an unprecedented scale.

The government's push has been relentless, aiming to bring every aspect of governance and citizen services online, from banking to healthcare and education.

This rapid digitisation, however, has often outpaced the capabilities and readiness of a significant portion of the population, particularly in areas with limited infrastructure and lower literacy rates.

What it means

The emerging 'two-speed India' poses significant challenges to equitable development.

While urban and digitally savvy populations benefit from unparalleled convenience, efficiency, and new economic opportunities, the digitally excluded face heightened barriers to accessing essential services, education, and economic participation.

This can exacerbate existing socio-economic inequalities, potentially creating a class of citizens who are effectively disenfranchised from the modern economy and governance.

It also places a burden on local administrative bodies to bridge this gap, often with limited resources.

The success of Digital India will ultimately be judged not just by transaction volumes, but by its ability to genuinely uplift *all* sections of society.

Reactions

The digital transformation elicits mixed reactions across the country.

Enthusiasts laud the convenience and transparency brought by digital payments and online services, citing reduced corruption and increased ease of doing business for small enterprises. “My father, a farmer, now receives subsidies directly in his bank account, no middlemen,” says Anjali Singh, a university student in Varanasi. “That’s real empowerment.”

However, concerns about digital exclusion are frequently voiced by civil society groups and opposition parties.

Mr.

Prakash Tiwari, a local political activist, states, “The government announces a new online portal for every scheme, but what about the farmer who doesn’t even have a basic phone, let alone internet?

These policies are creating an elite digital class and leaving the most vulnerable behind.

There’s a risk of creating digital illiteracy as a new form of poverty.” Experts also point to data privacy concerns and the potential for a surveillance state, though these are often secondary to the immediate issues of access and literacy for most citizens.

What happens next

The government is expected to intensify its efforts in rural digital infrastructure development, with BharatNet Phase III aiming to connect all villages.

Focus will likely shift further towards digital literacy and skill development, potentially through expanded partnerships with NGOs and local educational institutions.

Initiatives like ‘PM-WANI’ (Wi-Fi Access Network Interface) aim to boost public Wi-Fi hotspots, enhancing affordability and access.

However, the true test will be how effectively these programmes adapt to local linguistic and socio-cultural nuances.

Policies may also need to consider hybrid models, ensuring offline alternatives remain robust for those who cannot transition digitally.

The ongoing dialogue between policymakers, tech innovators, and grassroots organisations will be crucial in navigating India’s complex digital landscape towards a truly inclusive future, ensuring that the benefits of technological progress reach every citizen, from the bustling ghats of Varanasi to its remotest hamlets.