Anthro Optional Mains 2024 – Paper 2

Q 1 (a): Digitisation of Rural Economy (10 marks)

Introduction

The digitization of rural India represents not just a technological shift but also a socio-cultural and economic transformation that influences traditional livelihoods, economic behaviors and power structures within rural communities. From an Anthropological Perspective, digitization can be viewed through technological diffusion theory propounded by Evett Rogers (1962). Contemporary scholars have highlighted the role of financial inclusion, e-governance, agricultural transformation and digital hierarchies in reshaping rural economies. While digitization enhances market access, financial security and state services, challenges such as digital illiteracy, infrastructural deficits and socio-economic exclusions limit its impact.

Body

• Financial Technology and Rural Economic Development: A pioneering study by Gautam et al. (2023) investigates the role of financial technology and digitalization in rural economic growth, based on data from 29 Indian states and two union territories from 2018 to 2020. Their study finds that digital banking, mobile wallets and online transactions have played a significant role in financial inclusion and economic sustainability in rural areas.
  • The research emphasizes that Farmer Producer Organizations (FPOs) have benefited from digitization, allowing farmers to access better market prices and reduce dependence on intermediaries. However, the study warns that inadequate infrastructure, lack of awareness and limited internet penetration still prevent full-scale adoption of digital financial tools in rural India. The researchers suggest greater integration between government, corporate and non-governmental sectors to enhance rural digital access.
• Digitalization and Economic Growth in Rural Uttar Pradesh: Dr. Satgur Pyari’s (2022) study focuses on the economic transformation in rural Uttar Pradesh due to digitalization. The research highlights that despite government efforts to promote digital transactions, rural communities still struggle with low digital literacy, infrastructure deficits and resistance to adopting online financial tools.
  • The study identifies unemployment, lack of digital training and internet connectivity issues as major barriers to full digital integration. Pyari’s findings suggest that rural populations require targeted digital literacy programs and financial security awareness to prevent exploitation and misuse of digital banking services. The research also stresses the need for policy interventions to create trust in digital transactions among rural populations.
• Digitization and Agricultural Transformation (Ahir & Jain, 2024): Ahir and Jain (2024) examine the impact of digital tools on agricultural practices in rural India. Their research identifies key technological advancements, including AI-driven weather prediction, soil analysis tools and digital marketplaces like the Electronic National Agricultural Market (E-NAM). These innovations have helped farmers optimize crop selection, manage risks and gain direct market access, reducing their dependence on middlemen.
  • However, the study also warns that digitization is exacerbating socio-economic inequalities. Wealthier farmers with better internet access and financial resources benefit disproportionately, while small and marginal farmers often lack the necessary infrastructure to take advantage of digital services. The researchers argue that policies promoting inclusive digital adoption should focus on providing affordable internet, mobile-based training programs and subsidized access to digital tools for small farmers.

Policy Recommendations for Inclusive Digital Transformation

• Localized Digital Literacy Programs: Community-based digital education in regional languages should be implemented through schools, self-help groups, and Gram Sabhas.
• Decentralized Digital Governance: Panchayat-led digital decision-making can ensure participatory governance.
• Affordable Digital Infrastructure: Investments in rural broadband, satellite internet, and subsidized smartphones can bridge the digital divide.
• Culturally Sensitive Financial Inclusion: Digital banking models should integrate traditional moneylending systems and social trust mechanisms.

Conclusion

From an anthropological perspective, digitization is not merely an economic tool but a cultural force that is reshaping rural identities, power structures and governance systems. While it has enhanced financial inclusion, transformed agriculture and improved governance, it has also reinforced existing social inequalities and created new forms of exclusion. Scholarly research confirms that digitization is reshaping rural India. However, infrastructural barriers, digital illiteracy, socio-economic disparities and cybersecurity concerns remain major challenges.