A Study on Impact of Digital Inequality on Economic Stability in India

In less than two decades, advancements in information technologies have transformed governmental, scientific, educational, and commercial infrastructures. The proliferation of powerful personal computers, high-bandwidth and wireless networking technologies, and the widespread adoption of the Internet have converted previously stand-alone systems and predominantly closed networks into a nearly seamless fabric of interconnectivity. The information technology (IT) and IT-enabled services (ITeS) sectors contribute to India's image as a youthful and resilient global knowledge powerhouse but being a highly diversified country geographically and culturally, India has digital divide and inequality. The digital divide in India refers to the disparity between individuals, communities, and regions that have access to modern information and communication technology (ICT) and those that lack such access. This study aims to identify the dimensions of digital disparity that impact the stability of the Indian economy. The findings indicate that bridging the digital divide within the Indian economy is contingent upon ensuring equitable access to ICT. The analysis concludes that addressing the digital divide by providing access to mobile communications and broadband Internet is crucial for fostering sustainable economic development. Additionally, an increase in the proportion of the population utilizing the Internet positively influences economic stability, while developing the skills necessary for creating digital economy products also contributes to stable economic growth in India. It is concluded that uniting the essential aspects underlying the current digital divide—namely, access, intensive use, and the availability of digital skills—is essential for establishing the conditions necessary for sustainable economic development. A targeted state policy aimed at addressing the causes and consequences of the digital divide will facilitate further economic development and enhance the quality of life for the country's population. In this study, the dependent variable is annual GDP per capita, while the independent variables include the number of mobile cellular subscriptions per 100 people in India, the number of fixed broadband subscribers per 100 people in India, the number of fixed telephone subscribers per 100 people in India, imports and exports of ICT goods, number of Internet Subscribers In INDIA , personal computers Per 100 populations, internet penetration rate in India and annual revenue and net income generated by meta platforms.