How Digital Connectivity Opens Doors For Rural Poor To Lift Themselves Out Of Extreme Poverty
I am old enough to remember the pre-Internet era. This one instance from those times is clearly etched in my memory: when we were planning to visit the Taj Mahal during the holidays. My dad was stressed because of the usual travel-related questions: how do we reach Agra (there was no direct train from our place), which hotel is affordable and safe (luxury and convenience were not considered ☹), which places do we visit apart from Taj Mahal? To find answers to these questions, my dad looked for folks in our town who had been to Agra. The next step was to put up with the ego trip of these gentlemen. Because they had this specific knowledge, they felt superior and wanted to be recognized for that!!
Thankfully, now on the internet, we have hundreds of itinerary suggestions and thousands of user reviews of every possible place in Agra. All available in a few clicks. That’s what the internet has done. A handful of people can no longer have a lasting privilege. The Internet has democratized knowledge. It has fostered connections. people-to-place connections. People-to-people connections.
Income Inequality in India
India is a country with extreme inequality in income. The top 10% earns an average income of over 20 times more than the bottom 50%. In the absence of a quality public education and healthcare system, the majority of the poor find it difficult to break out of generational poverty.
The poor cannot afford quality education for their kids, and hence, the younger generation is also forced to labor away in less productive, low-paying tasks. One medical emergency in the family — or a bad crop season — pushes them into a debt trap. Caste, ethnic, religious, and gender-based discrimination is deep-rooted in the hinterlands of the country, and that makes it even more difficult for one to break out of the poverty cycle.
Can digital connectivity help solve some of these problems?
India has seen a smartphone revolution like no other country. With one of the lowest data tariffs in the world, internet users in India have more than doubled to 765 million users over the past 5 years.
This is fuelled by cheap smartphones and cheap internet data. However, there still exists a divide between urban and rural India. Internet penetration is only 33% in rural India, as compared to 99% in urban India. While mobile data is cheap and affordable, network quality and network coverage in rural areas remain inconsistent.
Secondly, most smartphone use in rural India is restricted to consuming entertaining content and communicating via WhatsApp (due to its simple interface).
With a nudge and a bit of training, the rural audience can start using the internet for more complicated use cases like selling their produce or searching for specific information.
Interestingly, some encouraging trends are being observed with respect to the adoption of online platforms:
Aadhaar and UPI (referred to as the Indian stack) have catalyzed digital financial transactions in rural India. QR codes installed for online payment is not an uncommon sight in small shops in rural areas. Children are using Youtube to consume educational content and skills-enhancing sachet-sized videos in local languages.
Through our investments, Upaya is betting that digital connectivity can empower families in poor rural communities by providing dignified jobs and increased income opportunities.
One of Upaya’s portfolio companies Haqdarshak is using digital connectivity to make the rural and urban poor aware of the government benefit schemes. Governments run various schemes, however, these schemes remain under-utilized as the target segment is either unaware of these schemes or finds it difficult to understand the eligibility criteria. With the Haqdarshak mobile app, users can enter their demographic details and check all the schemes that they are eligible for. It also guides them through the process to apply for the applicable schemes.
Lal10, another Upaya investee company, is empowering rural artisans to earn a better living by helping them with designing their products and finding buyers for their products with the help of WhatsApp and the company’s CRM system.
In 2021, Upaya invested in Bharat Rohan, a company that is helping farmers get technical support and advisory for their crops. Through the company’s SMS and voice messages channels, they are given actionable advice on the type and quantity of pesticide to be used, when to harvest the crop, etc. Farmers can also order seeds and other agri-inputs for doorstep delivery. It saves farmers from potential crop loss, saves their time, and helps them get a better price.
Pick My Work, a company that Upaya recently invested in, is helping youth from small towns and migrants from rural parts find gig work with large companies. Job-seekers can download the Pick My Work app and start picking up suitable tasks listed in their locality. They can also train themselves by consuming capsule-sized courses on the app.
Looking Ahead
Digital connectivity has helped level the playing field for the rural population. With solutions such as natural language processing (NLP), voice-based search, low network area compatibility, etc, adaptability for the rural audience can be further enhanced. Digital connectivity can help unlock the true potential of the rural population.
MEDIA CONTACT:
Madlin D’silva
mdsilva@upayasv.org