Goa, Maharashtra and Karnataka leads the panel in driving their businesses with digital connectivity

According to a recent government survey, informal firms in Goa, Maharashtra, and Karnataka are leading the charge in digital connectivity compared to the rest of India

This survey highlights a significant narrowing of the digital divide between urban and rural areas within these states over the past year. In 2022-23, informal firms in metropolitan areas of these states were using the internet for various entrepreneurial activities, such as taking and placing orders or using UPI, at a rate just over twice that of their rural counterparts. It marks a notable improvement from the previous year, where the gap was nearly three times as wide. The availability of affordable data has played a crucial role in increasing internet reliance among informal firms nationwide, with Goa, Maharashtra, and Karnataka reporting the highest usage rates. Interestingly, the survey notes that while these three states lead in digital adoption, significant strides have been made in Northeastern states, Haryana, and Gujarat, where internet usage among informal firms nearly doubled within a year.

Conversely, larger states like Uttar Pradesh and Odisha must catch up, with less than a tenth of their informal firms utilizing the Internet. The gap between urban and rural internet usage has also been substantially reduced. For instance, in states like Kerala and Haryana, urban areas only marginally outpace rural regions in internet usage, highlighting a more equitable digital landscape. However, the gap remains pronounced in states such as Odisha, indicating a need for targeted digital infrastructure development in rural areas. Computer usage remains relatively low nationwide, with only about 6.1% of informal firms, both urban and rural, utilizing computers. However, there has been a slight increase from the previous year, suggesting a gradual adoption trend. The findings underscore the growing digital connectivity among informal firms in critical states, driven by improved internet accessibility and affordability. Efforts to bridge the remaining gaps in digital infrastructure, particularly in rural areas, will be crucial for fostering inclusive economic growth and entrepreneurship across India.