Pattern of Digital Divide and Convergence in Access to ICT Facilities among the Indian States

Abstract

Information and communication technology (ICT) such as Internet, mobile phones, computers and related network interfaces facilitate promotion of economic growth by improving the allocation and productivity of labour and capital, and also by promoting trade and competition in market. But these regional developments led by ICT technologies are not realised if there is a digital divide. In India, uneven digital developments may lead to uneven economic developments. Unless ICT developments grow faster in low-income states, they cannot catch up with high-income states, economically. In this context, this article aims to analyse the changing pattern of the digital divide and empirically examines the convergence in access to ICT facilities across the Indian states. The secondary data for 15 major states of India is used for the time period 2008–17 by considering three ICT variables, namely, telephone users, mobile phone users and Internet users per 100 populations. Principal component analysis (PCA) is used to construct ICT access index. With PCA scores, the Indian states are ranked at two data points and convergence is verified by using sigma and beta convergence techniques. Findings suggest that there is an uneven access to ICT facilities across the Indian states. In the last decade, the low-income states are growing on a better pace than the high-income states in providing access to facilities such as telephone and mobile phones. However, there is evidence of the divergence in the use of Internet facilities. So the governments’ attention in improving these facilities in the low-income states, particularly in rural areas and lagging districts, is important. Special policies and schemes need to be devised to promote the access of Internet services in the lagging states.