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Index ofInternet Readiness of Indian States
March 2017
Disclaimer: © IAMAI 2017All Rights ReservedNo part of this report can be reproduced except for review, in any format without the written permission of the publisher. www.iamai.inPublished by Dr. Subho Ray, President, Internet and Mobile Association of India
Table of
ContentExecutive Summary 1
Introduction 3
Earl ier work on internet readiness 4
Objecti ve 6
Framework of the study 6
Methodology 10
E-infrastructure index 11
21
IT envi ronment 25
Government e-services 27
Internet-Readiness Index 30
Core Internet Index 39
Conclusion 40
E-parti cipation index
Appendix 41
Message from IAMAI i
Message from Nielsen ii
Message f ro m I A M A I
Iampleasedtopresentbeforeyoutheannual'IndexofInternetreadinessofIndianStates'report.The
reportinteraliahighlightsthestrengthsofeachstateinIndiainthetechspace.Thepurposeofthe
reportistwo-fold:a)toaccelerateadoptionofinternetandencouragestartupsineachstateandb)to
highlightpossibleareasofinvestmentinthetechsectorineachstate.
IamgratefultoNielsenforputtingtogetherthereportforIAMAIandtomycolleaguesatIAMAIwho
haveworkedonthisreportforoversixmonths.Thisreportwouldnothavebeenpossiblewithoutthe
cooperationofthestates,especiallyITsecretariesofeachstate.Iwouldliketothankallofthemfor
theirhelpandcooperation.
Ihopethestakeholderswill�indthisreportuseful.ItiswiththisobjectivethatIAMAIengagedinthe
processofbuildingtheInternetReadinessindexofStatessince2015;andweareproudtopresentthe
secondreportinthisseriesafter2016.
Theinternetreadinessdiffersfromexistinge-readinessindexinthesensethatthisindextriestotake
a more holistic view of internet penetration; where digital infrastructure, participation of the
populationindigitalactivities,ITservicesandgovernmente-servicesarealltakenintoconsideration
andanalysedindetails.Acompositeindexofallthesesubindicesformsthe�inalstateindexonthe
basisofwhichthestatescanberankedfortheirlevelofinternetreadinessforDigitalIndia.
Developingthisindexisasubstantialexercise,andcertainshortcomingmayremaindespiteourbest
efforts.I,onbehalfofIAMAI,takeresponsibilityforanypossiblediscrepanciesandwouldliketo
extendmyapologiesinadvance.
Dr.SubhoRayPresident,IAMAI
Message f ro m N i e l s e n
Competitivefederalismisaconceptthathasbeenidenti�iedbymanyasakeyfactorthatwillhelpIndiaattainafaster
degreeofdevelopment.Infact,theconcepthasgainedalotmoreprominenceintherecentpast.Incompetitivefederalism,
thestatescompetewitheachotheroverabroadrangeofissuestoprovidecitizensvariousservices,resultinginbetter
economicoutcomes.Thisreport“IndexofInternetReadinessofIndianStates”wasenvisagedkeepingthisconceptin
mind.Whiletherearemultipleareaswherethestatescancompetein,thisreportfocusesentirelyoninternetreadinessin
India,andstudiesthepreparednessofourstateswhenitcomestoplayingastrategicroleindrivingtheinterneteconomy.
Today,everyoneisjustaclickawayfromanyinformationlyinginanypartoftheworld.WhilesomeoftheIndianstatesget
easyaccesstosuchservicesowingtobetterconnectivity,largerpenetrationofmobilephones,industryconcentrationand
evengovernmententhusiasm,otherstatesfallshortandhaveamplescopetoimproveonthesemetrics.Thisreportranks
differentstatesbasedontheirinternetreadinessencapsulatingfourpillars:
e-infrastructure|Governmente-services|e-participation|ITservices
Inadditiontorankingthestates,wealsolookedattheInformationandCommunicationsTechnology(ICT)policiesofthe
topperformingstates,andcompareditwiththoselaggingbehind.Basedonthiscomparison,wehavecomeupwithalist
ofsuggestionsthatcouldserveasabenchmarkforstatesthatarelookingtoimprovetheirscores.
Itisapparentthatthefutureliesintheinternet.WebelievethatthestatesmustrevisittheirICTpoliciestoensurethatthey
haveprudentplanstosyncwiththerestofthenation,andtakestepstowardsbeingfuture-ready.Whilesomestatesare
movingintherightdirectionwithapplause-worthysteps,otherstatesneedtocatch-uptoachievedesiredeconomicand
socialdevelopment.
Wehopethatthisreportwillactasareadyreckoneroninternetreadinessofthestatesforthepolicymakers,researchers,
students aswell as industry experts.Wewelcome any comments and suggestions on the report, especially on the
methodology,�indingsandwayforward.
AREINDIANSTATESINTERNETREADY?
DriptoMukhopadhyayDirectorMicro-Marketing&EconomicsNielsenIndia
SanchitAroraSeniorManagerMicro-Marketing&EconomicsNielsenIndia
Executive S u m m a r y
Internet communication& technology is increasingly
de�iningrelationshipsbetweenindividuals,consumers
and enterprise, citizen and government. With this
objective,InternetMobileAssociationofIndia(IAMAI)
and IndicusAnalytics conducteda studyon 'Indexof
InternetReadinessofIndianStates-2015'thatdelved
intotheperformanceofthestatesinvariousmeasures
ofinternetreadiness.
With the launch of Digital India Programme, the
Government of India is taking a big step forward to
transform the country into a digitally empowered
knowledge economy. The other important aspect of
growing internet economy is the ease of opening or
functioning digital start- ups. With this background,
IAMAIdecidedtoconductastudyon'IndexofInternet
Readinessof IndianStates -2016'with the following
objectives:
l ontheDevelopastatelevele-Readinessindex
basisofdigitalinfrastructure,participationof
peop le in e -serv ices , d ig i t i za t ion o f
governmentservices,contributionofITinthe
stateeconomy,humancapitalresources,ease
ofopeningdigitalstart-ups.
l on the basis of e-ReadinessRank the states
index
l Apart from Central Schemes, list out the
various digitization programmes initiated
acrossStates
l ofimplementationofAssesstheeffectiveness
thevariousCentral/Stateservicesoffered
l forIdentify and evaluate the best practices
replicationinotherStates.
Theindicatorsareorganizedin4maincategories,with
arankingforeachcategoryandtheparameterswithin
the categories being discussed in details. The 4
categoriesare(a)E-Infrastructure,(b)E-Participation,
(c) IT Environment and (d) Government E-Services.
These4broadindicesarethenusedtoconstructthe
InternetReadinessIndexofthestates,whichgivesan
overallrankingofthestatestakingintoaccountallthe
parametersconsidered.
A�ifthIndex(namedtheCoreInternetIndex)hasbeen
createdthisyear,consistingofselectvariablesalready
usedinconstructingtheaboveindices.Thepurposeof
the index is to give a sharper perspective for digital
industries looking to expand their business in the
IndianStates.
Tomakeafaircomparisonacrossthestates,thestates
aredividedintothreesub-categories:1)LargeStates,
2)SmallStatesandUTsand3)NorthEasternStates.
Executive Summary 1
Theoveralltoprankersamongststatesaspertheirscoresinthevariousindicesareasfollows:
Besides undertaking a quantitative exercise of rating
andrankingstates,itwasfeltthataqualitativestudyof
theregulatoryspaceofthecountryisalsonecessary,as
many of the new initiatives are still in their nascent
statesandhencewillnotre�lectongroundintermsof
quanti�iablemetricsusedforconstructingtheindices.
Therefore,alongwiththeindexation,aprimarysurvey
wasconductedtoassesstheICTpoliciesofthestates.
The information from primary survey was analysed
alongwiththeinformationfromsecondarysourcesto
drawacomparisonofICTpoliciesamongstthestates.In
addition,wayforwardsaresuggestedforthestatesthat
lag behind at present based on the 'Best Practices'
identi�iedfromthesuccessstoriesofthetopstates.
The qualitative analysis will help state level
policymakers to device future roadmaps for the
Internetinfrastructureintheirrespectivestatessoasto
raise their scores in various indices considered for
mappingthestates.
Index BestLargeState BestSmallState/UT BestNEState
E-infrastructure Punjab Delhi Manipur
E-participation Kerala Delhi Mizoram
ITEnvironment Karnataka Delhi Nagaland
GovernmentE-services HimachalPradesh Delhi Manipur
Internetreadiness Karnataka Delhi Nagaland
CoreInternetIndex Kerala Delhi Meghalaya
Executive Summary 2
Canweimagineourworldwithouttheinternet,laptopsandmobile
phones?Pauseandthinkforamoment.Thetechnologyhasengulfeda
largepartofourlives.Wetalkaboutsmartphones,smarttelevision,
smartcars,andevensmarthomes.Whatdoesthismeaninessence?
Thattheworldweliveinhasincreasinglybecomeinternetsavvyand
connected.Thischangeisnotlimitedtourbanareasthatcomprisesof
32.74%ofthetotalIndianpopulation(asperWorldBank2015data).
Rural areas arebecoming connected and the companies across the
boardarevyingforthislargershareoftheIndianpie.
Intoday'sworld,wearejustaclickawayfrommanygoodandservices.
Ifweneedacab,wejustneedtolookforoneonourphone,thecabwill
betheretopickusupinafewminutes.Ifweneedgroceries,wecan
orderthemfromthecomfortofourhomesovermanygroceryapps.If
wewanttostayconnectedwithourfriends,wehaveplethoraofweb
andmobilebasedsocialnetworkingsitesthatcanputusintouchwith
them.IfwewanttotransfermoneytosomeoneinKanyakumarifrom
Jammu,itisjustaclickofabuttonaway.
Everybusinesshasanonlinepresencenow,be ita localbrandora
multi-million dollar MNC. Along with the private sector which is
leading the change, the public sector too is embracing the change.
Utilitybillspaymentsarenowpossibleonline,allmajorservicesallow
online interaction for their customers and e-governance at various
degreesareenabledbymoststatesforthecitizens.
To achieve greater traction at an all India level, the digital sector
requires proper infrastructure support. It also requires continuous
convictiontopushindividualsandbusinessestoembracethechanging
environmentwithanopenmind.
With the focusof thecurrentgovernment to transformIndia intoa
digital economy, it seems India has its heart in the right place and
wantstogrowwiththeworldasitbecomesincreasinglyelectronic.
However,Indiaslippedfromrank89thin2015to91in2016asperthe
globalrankingof144countrieson“NetworkedreadinessIndex2016”.
SinceIndiacomprisesof29statesand7UTs,theprogressdependson
howallthesegrowtogether.Withthisbackground,IAMAI(Internet
andMobileAssociationofIndia),hasundertakenthisstudytoassess
thestatusofinternetreadinessofthevariousstatesaswellastheir
progressinlastoneyear.
INTRODUCTION
Introduction 3
Many studies (see below) have been done so far to
formulate the internet readiness rankings by various
government and private institutions. However, the
rankings differ based on the methodologies, the
de�initionsofinternetreadinessorboth.
Theinternetreadinessindicesthatexistare:
a. The United Nation's e-Government Readiness
Index(2008)measuresreadinessofgovernment
to use ICT effectively for providing governance
serviceswithacitizencentricapproach.TheUNe-
GovernmentReadinessIndexisacompositeindex
of three sub-indices (a)WebMeasure Index, (b)
TelecommunicationsInfrastructureIndexand(c)
HumanCapitalIndex.
b. The statedEconomistIntelligenceUnit(EIU,2006)
that different corporate and international
organizations have developed a variety of e-
readinessmodelstoparticipateintheglobaldigital
economyatthelevelofe-Commerce,e-Government
andgeneral ICTdiffusion. Different indiceshave
beendevelopedfortheassessmentofe-readiness
and consequently to measure its component
indicators.TheseindicesincludeTheInternational
Telecommunication Union Digital Access Index,
World Economic Forum Networked Readiness
Index, United Nations Conference on Trade and
Development ICT Development Index, The
Economist Intelligence Unit e-readiness Index,
MosaicGroupIndex,ConferenceBoardofCanada
ConnectedIndex,ORBICOMInfostateIndex.
c. The de�inesaEconomistIntelligenceUnit(2014)
country's e-readiness as a, “measure of their e-
businessenvironment,acollectionoffactorsthat
indicate how amenable a market is to internet
basedopportunities”. TheEIUse-readinessStudy
is a measure of the quality of a country's ICT
infrastructure and the ability of its consumers,
businesses and governments to use ICT to their
bene�it. Thisindexmeasures(a)connectivityand
techno logy in f ras t ruc ture (b) bus iness
environment(c)socialandculturalenvironment
(d)legalenvironment(e)governmentpolicyand
vision(f)consumerandbusinessvision.
d. The WEFs Network Readiness Index (2008-09),
measurespropensity forcountries toexploit the
opportunitiesofferedbyICTsmorespeci�icallyto
c omprehend t he impac t o f I CT on t he
competitiveness of nations. The Networked
Readiness(NRI)Frameworkassessestheextentto
whichdifferenteconomiesbene�itfromthelatest
ICTadvances.Thisindexisacompositemeasureof
environment,readinessandusage. Environment
is measured in terms of market environment,
po l i cy env i ronment and in f ras t ruc ture
environment.Readiness ismeasured in termsof
individual, business and government. Similarly,
usage is also measured at various levels -
individual,businessandgovernment.
Earlier Work on Internet
Readiness
Earlier Work on Internet Readiness 4
IndianScenario
e. National Council of Applied Economic Research
(NCAER)isthe�irstorganizationinIndiatoassess
the e-readiness of Indian states and union
territories. As de�ined byNCAER, e-readiness of
state/UTsmeasuresitsabilitytoparticipateinthe
increasingly networkedworld as a composite of
ICTenvironment,readinessandusagewithinthe
state/UTs. The emphasis of this measure of e-
readiness was to capture capacity to provide
services that enabled (a) participation in the
provincialanddigitaleconomies,(b)equitableand
costeffectivegovernance,(c)abetterintegration
of the deprived segments of society and remote
regions. Thus e-readiness index as de�ined in
Indian context is based on the following broad
parameters:
a.TheICTenvironmentofagivenstate
b.ThereadinessofthepeopletouseICT
c.TheactualusageofICT
f. IAMAIalongwithIndicusAnalytics(NielsenIndia
now) created an index in 2015 to measure the
extentof internet readiness in the Indian states.
Thestudy identi�iedvariousvariables thatcould
help understand the progress on internet
readiness across the states. The variables were
categorised into 4 main categories – e-
infrastructure, e-participation, IT services and
governmente-services.ThestudyusedPrincipal
ComponentAnalysis(PCA)toformanindexbased
onthesevariables.
Earlier Work on Internet Readiness 5
ObjectiveGlobalrankingsoninternetreadinesslargelytalkabout
countriesasawholewithoutprovidinganyinsightsinto
therolesthatthestatesplay.Aspointedoutearlierin
theintroduction,Indiaslippedfromrank89in2015to
91in2016aspertheglobalrankingof144countrieson
“Networked readiness Index 2016”. Most of the
indicators either stayed stagnant or showed
deterioration for India. This is in contrast with the
objectiveofDigitalIndia.Inthisstudy,wedelvedeeper
and understand the contribution of the states. To
understand the entire picture, it is imperative to
understandtherolesofthestatesandhowtheyfarein
termsofinternetreadiness.Tomakeafaircomparison
acrossthestates,thestatesaredividedintothreesub-
categories:
1) LargeStates
2) SmallStatesandUTsand
3) NorthEasternStates.
Thestudyaimstodevelopaninternetreadinessindex
for the states in India. In brief, the objectives of this
studyare:
a. Developastatelevelinternet-readinessindex
b. Rankthestatesintermsofinternetreadiness
c. Identifyvariousdigitizationprogramsinitiatedby
thestates
d. Assess the effectiveness of the state level
programs
e. Identify and evaluate the best practices for
replicationinotherstates
Framework
Theindicatorsareorganisedintofourmaincategories
basedonsimilaritiesintheircharacteristics:
a. E-infrastructure
b. E-participation
c. ITenvironment
d. GovernmentE-services
of the StudyE-infrastructure
E-infrastructure comprises of tools, facilities and
resourcesthatarerequiredbythepublic for internet
readiness.Thiscategorymeasurestheextenttowhich
individuals and business organizations use mobile
networks and the internet to access voice and data
services.
Objective 6
This index measures the level of e-infrastructural
support present in each state to support internet
readiness.
E-Participation
Promoting participation of the citizens is the
cornerstoneofanysocially inclusivegovernance.The
goal of e-participation initiatives is to improve the
citizen'saccesstoinformation&publicservicesandto
promoteparticipationinpublicdecisionmaking.This
impactsthewell-beingofthesocietyingeneralandthe
individualinparticular.
Thisindexcapturestheinternetreadinessofthestate
population in terms of their present digital
engagement.
ITEnvironment
Information and Communication Technology (ICT) is
oneoftheboomingindustriesofIndianeconomytoday.
The Indian IT and ITeS industry is divided into four
major segments – IT services, Business Process
Management, Software products and engineering
services, and hardware. The revenue aggregate
(Exports+Domestic)ofIT-ITESindustryisexpectedto
growby9.2%andreachUSD130.0billionin2015-16
ascomparedtoUSD118.8billionin2014-15. Direct
employmentintheITservicesandBPO/ITeSsegmentis
estimated to growby 6.0% reaching 3.69million in
2015-16withnetadditionof2Lakhpeople(Ministryof
Information,Communication&Technology,2015-16).
This indexcapturestheextentof IT/ITES industry in
eachstate soas toascertainhowwelleachstatehas
managedtoharnessthegrowthpotentialfromoneof
themostdynamicindustriesofthecountry.
GovernmentE-services
Overtheyearsalargenumberofinitiativeshavebeen
undertaken by State Governments and Central
Ministriestousherinaneraofgovernmente-services.
Sustainedeffortshavebeenmadeatmultiplelevelsto
improvethedeliveryofpublicservicesandsimplifythe
processofassessingthem.TheNationalgovernmente-
services Plan takes a holistic view of government e-
servicesinitiativesacrossthecountry,integratingthem
intoacollectivevision.
In order to promote government e-services, various
policyinitiativesandprojectshavebeenundertakento
develop core and support infrastructure. The major
coreinfrastructurecomponentsareStateDataCentres
(SDCs), StateWideAreaNetworks (SWAN),Common
ServiceCentres(CSCs)andmiddlewaregateways,i.e.,
National government e-services Service Delivery
Gateway(NSDG),Stategovernmente-servicesService
Delivery Gateway (SSDG) and Mobile government e-
servicesServiceDeliveryGateway(MSDG).
Thisindexcapturesthee-servicesofferedbythestates
andtheextentoftheiradoptionbythelocalpopulation.
The selection of the categories (and the parameters
within each category) was based on the broader
understandingofinternetreadiness.Internetreadiness
encapsulates both the spread and the extent of the
digitalsectorindifferentaspectsofthesocio-economic
realitiesofeachstate.Thus,internetreadinessinthis
studyisnotlimitedtohowindustryfriendlyeachstate
isforinvestmentintheITsector,butalsoaimstogivea
more holistic picture of the digital ecosphere that
presently exists in the states. This stems from the
understandingthatonlyanorganiclinkagebetweenthe
digital world and the real world can lead to the
development and the wellbeing that digitalization
promisestodeliver.
The different parameters considered under each of
thesecategoriesandtheirrationalaregivenindetails
below.
Framework of the Study 7
Category Measure Rationale
E-Infrastructure Tele-Density Theextenttowhichthemobilenetworkisavailableto thepublicforvoiceservices.
Mobilesubscribersperperson Mobileusageismanifold.Ahigherpenetrationamong above15yearsofage adultsinare�lectionoftheavailabilityofthebasic infrastructure
Shareofprivateplayersin Privateserviceprovidersaredominantinthemarket. internetserviceproviders Therefore,thelargerthenumberofprivateplayersin themarket,thelargerwillbethecoveragein providinge-infrastructuretothepeople.
Mobilesubscriberswith Itdirectlyindicatestheinfrastructureavailablewith internetaccessperperson thepeoplethataccesstheinternetontheirmobiles. above15yearsofage
Percentageofhouseholds Itdirectlyindicatestheinfrastructureavailablewith usingcomputer/laptopwith thehouseholdstoaccesstheinternetconnectionin internetconnection computer/laptop.
Percentageofschoolswith Thisindicatestheinfrastructuralsupportprovidedto computerfacility thechildren.
Numberofpostof�icesunder Thisindicatestheinfrastructuresupportatthepost- 'ProjectArrow'–postof�icesthat of�ices. remodernizedandenabledwith ITservices
Wi�iinuniversities Thismeasurestheextenttowhichtheinfrastructure supportisprovidedtothestudentsatthegraduate andpost-graduatelevels.
Publicwi-�ihotspots Thismeasurestheinfrastructuresupportavailableto thegeneralpublictostayonline.
E-Participation RatioofNumberofadults Thisindicatesthebasicskillsthatpeoplepossessto completedprimaryorhigher participateinane-readyenvironment.Thehigherthe levelofeducationtototal numberofeducatedpeople,thehigherarethe population chancesofthemtoembracethenewtechnology.
Averagerevenueperuseron Re�lectstheextentofusage mobileservices
No.ofe-transactionsinUtility Itincludesthecitizenparticipationine-transactionsin Billpaymentsperlakhperson paymentofWaterbill,telephonebill,electricitybill, above15years e-municipalityservices,piped-gasbilletc.
No.ofe-transactionsin Itincludescitizenparticipationinbusinessservices, BusinesstoCitizen(B2C) like,bankingtransactions,mobilerechargeetc. Servicesperlakhpersonabove 15years
No.ofe-transactionsin Thisre�lectstheuseandawarenessofgovernment InformationalServicesperlakh e-servicesservices personabove15years
No.ofe-transactionsinStatutory Itincludescitizenparticipationinstatutoryandnon andNon-Statutoryservicesper -statutoryservices lakhpersonabove15years
FacebookUsers Itmeasurescitizenparticipationonlinefor recreationalpurposes.
Framework of the Study 8
Category Measure Rationale
ITEnvironment No.ofITcompaniesper'000 Itidenti�iestheeconomythathasscopeofgrowth population andemploymentinITsector
RatioofITWorkerstoTotal Itre�lectstheemploymentstatusofICTwhich Workers directlyimpactsane-readyenvironment
Numberofdigitalstart-ups TheITenvironmentthatleadsandpromotesdigital revolution.
Numberofdigitalstart-up Itre�lectsthewillingnessofastatetopromote incubators start-upsinordertorevolutionizepracticesand services.
Government %ofKiosksinstalledunder Re�lectstheachievementofthegovernmentinE-Services RuralWirelineBroadband meetingthetargetofNeGP SchemeinIndia
ExpenditureIncurredon Re�lectstheextentoffunctioningoftheCSCs OperationalCommonService Centersperperson
No.ofe-servicesrolledoutfor Re�lectsthegovernmente-servicesservicesprovided citizenparticipation bythegovernmenttothecitizen
NumbersofCSCs Re�lectsthewillingnesstoopenandoperateCSCsto ensuregreaterparticipationfromthepublic
NumberofJanDhanYojna Re�lectsthegovernmentoutreachtobring�inancial accountopened servicestothemasses
NumberofAadharCardissued Re�lectsthewillingnesstoidentifyandef�iciently provideservicestotheneedy
E-books Itmeasurestheextenttowhichbookshavebeen convertedintoe-books.
Framework of the Study 9
MethodologyThere are plethora ofmethods available that can be
usedtocreateanindex.PrincipalComponentAnalysis
(PCA) is one of the most popular methods used for
indexation. PCA transforms a large number of
correlatedvariablesintoasmallerandmorecoherent
setofuncorrelatedfactorscalledprincipalcomponents.
The principal components account for much of the
varianceamongthesetoforiginalvariables.
In mathematical terms, from an initial set of 'n'
correlatedvariables,PCAcreatesuncorrelatedindices
or components, where each component is a linear
weighted combination of the initial variables. For
example,fromasetofvariablesXn
PC = X X +……………+a X1 a11 1+a12 2 1n n
PC X X +……………+a Xm=am1 1+am2 2 mn n
Whereamnrepresentstheweightforthemthprincipal
componentandthenthvariable.Theweightsforeach
principalcomponentaregivenbytheeigenvectorsof
the co-variance matrix. There are two methods to
choosethenumberofcomponents–Kaiser'scriterion
andCatell's scree test.AsperKaiser's criterion, only
thosefactorswitheigenvalue1ormorethan1should
beretained.Anothermethodofselectingcomponentsis
thegraphicalmethodknownastheCatell'sscreetest.
Catell (1966) introducedscreeplotswhicharevisual
toolsusedtohelpdeterminethenumberofimportant
components.
Giventherangeofdimensionsandthelargenumberof
variablesunderstudy,PCAanalysiswasfoundtobethe
most suitable method for creating the internet
readinessIndex.Sometimes,astatescoresveryhighon
aparticularindicator,say,mobilesubscriptionbutvery
lowintermsofanotherindicator,i.e.,growthininternet
penetration.PCAanalysisisequippedtodeterminethe
relativeimportanceofeachindicatorinthemodel.
First,werunPCAfore-infrastructure,e-participation,
ITenvironmentandgovernmente-servicesseparately
toformacategorywiseindex.Later,thesesub-indices
arecombinedtocreateacompositeindexusingPCA.
Methology 10
ToconstructE-Infrastructureindex,9measureswere
considered;,a)Tele-density,b)Mobilesubscribersper
personabove15years c) Internetaccessbywireless
phonesperpersonofagegroupabove15yearsd)No.of
internetserviceproviderse)Percentageofschoolswith
computerfacility, f)Postof�icesperpersonupgraded
and modernized under project arrow, g) Grants
allocated by state governments to improve internet
connectivityinuniversitiesandh)Publicw-�ihotspot
zonesinastateand(i)Percentageofhouseholdsusing
computer/laptopwithinternetconnection. However,
only6were�inallyincludesintheindexbecauseofthe
following:
l Publicwi-�ihotspotzonesinastate,thoughan
important measure , was found to have
inadequate coverage across a l l s ta tes .
Accordingly,thismeasurewasdroppedfromthe
model. However, the report discusses different
initiativestakenbythestatesgovernmentsina
sub-section.
l Percentage of households using internet
connectionincomputer/laptopisanindicationof
the e- infrastructure avai lable with the
households. However, data on this indicator is
available for the year 2013-14. Since there has
been signi�icant growth in internetusage since
2013-14,thisvariablewasnotconsideredinthe
model.
l Wi-�i in universities is one of the proposed
indicators to capture government support in
promoting internet readiness in universities.
However, there were constraints in getting
uniform information across all states. While it
waspossibletogetinformationonsomecolleges
oruniversities ina state thatprovidesWi-Fi, it
was not possible to get comprehensive
informationofallcollegesanduniversitiesofthe
state. Incomplete information of any one state
could have mislead the results. Therefore, this
indicatorwasalsodroppedfromthemodel.
Computer technology has revolutionised the tele-
communicationsindustry.Variousvalueaddedservices
overandabovetheplainvoicecom-municationshave
resulted in the emergence of info-communication
industry.Consequently, infrastructuralnetwork tools,
like, telephone connections,mobile subscription and
internetaccessibilitytobestatisticallysigni�icantinthe
model.
IndexE-Infrastructure
:
:
:
:
:
E-Infrastructure Index 11
LargeStates
l Punjab, Kerala, Tamil Nadu, Maharashtra and
Gujarataretheleadersinthiscategory.
l Punjab, ranked 1, is way above other states in
terms of telephone connections with 104
telephoneconnectionsper100persons.Further,
forevery10personsinPunjabthereare7mobile
subscribersandforevery10mobilesubscribers6
subscribersaccesstheinternet.
l Kerala, at rank 2, has about 95 telephone
connectionsforevery100individualsin2015-16.
While this may not be the highest, Kerala
continuestoleadinmanyoftheothermeasures
usedinthiscategory.About93%oftheschoolsin
Keralahaveacomputerfacility.Alsoforeveryone
millionpersonsthereare4postof�iceswhichare
modernisedandupgradedunderProjectArrow.
Inaddition,about57%ofthemobilesubscribers
accesstheinternet(thesecondhighest).
l TamilNaduhasthehighesttele-densityamongst
the large states. In Tamil Nadu, the density of
telephoneconnectionsis118per100population
vis-a-vis238inDelhi(thehighest).
l Maharashtrawith35 internet serviceproviders
(per million population) is one of the most
competitive internet market. However, despite
the large population, access to the internet
remains at 38 per 100 mobile subscribers.
Surprisingly,Maharashtrahasthelowestnumber
ofmodernisedandupgradedpostof�icesunder
projectarrowpermillionpopulation.
KeyHighlights(Figure1)
Top 5 Large States
1.Punjab2.Kerala3.TamilNadu4.Maharashtra5.Gujarat
Top 3 Small States / Uts
1.Delhi2.Chandigarh3.Puducherry
Top 3 North-Eastern / States
1.Manipur2.Sikkim3.Mizoram
Legend
E-Infrastructure Index
Low(Upto0.26)
Medium(0.26-0.64)
High(0.64-0.84)
VeryHigh(MoreThan0.84)
Puducherry
Goa
Lakshadweep
Jammu & Kashmir
Himach Pradesh
Punjab Chandigarh
Haryana
Delhi
Uttarakhand
Rajasthan Uttar Pradesh
Arunachal Pradesh
NagalandAssam
Meghalaya
Manipur
Sikkim
Bihar
MozoramTripura
West BengalWest Bengal
Jharkhand
Odisha
Chandigarh
Madhya PradeshGujarat
Maharashtra
Telangana
Andhra Pradesh
Karnatka
Tamil NaduKerala
I N D I AE-Infrastructure Index
Andaman & Nicobar Islands
Figure1:E-infrastructureIndex
Source:Nielsen(India)estimates
E-Infrastructure Index 12
l Gujarat, one of the leaders in terms of e-
infrastructure, stands above the other states in
terms of providing network tools. Gujarat has
about 73 mobile subscribers per 100 person.
However, only 40 subscribers of the 100
subscribersaccesstheinternet.
l BiharandJharkhandaretheworstperformersin
thiscategory.Thebasictoolsofcommunication,
i.e.,telephoneconnectionscontinuetobeverylow
inthiscircleat51per100person. Whilemostof
theindicatorsareofconcern,themostworrying
pictureisthatoftheinadequatecomputerfacility
intheschools.Merely5%schoolsinBiharand9%
schoolsinJharkhandhavecomputerfacility-the
basic infrastructurerequiredtoacclimatisekids
withthetechnology.
SmallStatesandUTs
l Delhileadsinallthemeasuresofe-infrastructure.
TelephoneconnectionsinDelhiarealmostdouble
than that of the other states, about 2.4
connections per person. There are 191 mobile
subscribersper100persons,i.e.,morethanone
subscriptionperperson.Also, thestate leads in
termsofinternetaccess.About52subscribersper
100 mobile subscribers access the internet via
their mobile phones. 82% of the Delhi schools
have computers in school suggesting a growing
trendinfavourofinterneteducation.Thereare5
postof�icesforeveryonemillionpopulationthat
aremodernisedandupgraded.
l ChandigarhisrankedsecondafterDelhi,closely
followed by Puducherry. Internet access by
mobile subscribers stands at 47 per 100
subscriptionsinChandigarh,oneofthehighestin
this group. Besides, 96% of the schools in
Chandigarhareequippedwithacomputerfacility.
l Puducherry ranks high in terms of tele density
(118telephoneconnectionsper100persons)and
mobile subscribers (62mobile subscriptionper
100persons).Thereareatleast3postof�icesfor
everymillionpopulationwhichismodernisedand
upgradedunderprojectarrow.
l Andaman & Nicobar Islands, Dadra and Nagar
Haveli,andDaman&Diuarewaybelowinterms
of e-infrastructure measures. The number of
mobilesubscribersinAndaman&NicobarIslands
isabout44per100person,butonly16per100
mobile subscribersaccess the internet. In these
UTs, there are 1-2 post of�ice for everymillion
population that are modernised and upgraded
underProjectArrow.Thepercentageofschoolsin
theseterritoriesthathaveacomputerfacilityin
schoolslieintherangeof36%-58%.
NorthEasternStates
l AmongstNE states,Manipur leads; followed by
SikkimandMizoram.Manipuredgestothetopof
list mainly due to the presence of the highest
numberofinternetserviceproviderspermillion
population.Also,ithasthesecondhighestmobile
subscribers per 100 population. Sikkim,
outperforms Manipur in three out of the six
variable, however, Manipur maintains its lead
overalltostayatthetopofthetable.
DetailedAnalysisofKeyParameters
The composite indexprovidesa comprehensiveview
thathelpsustorankthestates.However,thenuances
get left out. This section discusses each of the
parametersindetailinordertoappreciatetheefforts
madebyeachofthestatesinthese�ieldsandidentify
theareasthatrequiremoreefforts.
A. Telephoneconnectionsareanessentialnetwork
tooltoconnectpeopleandtogivethemaccessto
voiceservices.
KeyTrends
l Delhihasthehighestmobilesubscribersper100
population, this hold true across all the state
118 115 105
105238
TOP 3 LARGE STATES
TOP SMALL STATES/UT TOP NORTH EASTERN STATE
TamilNadu HimachalPradesh WestBengal
Delhi Sikkim
Figure 2: Tele-density per 100 person
Source:TRAI,2015.
E-Infrastructure Index 13
groups, be it large states or small states. Each
individual in Delhi has about 2.38 connections.
Thisisalmostdoubleofthesecondhighestsmall
state/UT–Puducherrywith118connectionsper
100population.
l Amongstthelargestates,wehaveTamilNaduat
thetopwith118connectionsper100population,
followed by Himachal Pradesh with 115
connections per 100 population. West Bengal
completesthetopthreewith105connectionsper
100 population. Andhra Pradesh and Telangana
aretheweakstateswithonly49connectionsper
100population.
l Amongst the North Eastern States, Sikkim
outshinestheotherstateswith115connections
per100population.
Asper the press release of TRAI in June 2016,thetotal
number of telephone subscribers in India is 1058
million with an overall tele-density of 83 per 100
person.Thoughruralsubscriberswitnessedamonthly
growth of 0.65% and urban subscribers declined by
0.46% monthly. The tele-density in rural India still
standsat51.67whichis3timeslowerthanthatofthe
urban tele density (at 153). Between 2014-15 and
2015-16, the tele-density increased by 9 percentage
pointsfrom74per100personin2014-15to83per100
personin2015-16.Theincreaseisevidentinalltelecom
circlesbutatavaryingrate.
Himachal Pradesh had the highest increase of 23
percentagepoints.In2014-15,HimachalPradeshwas
thesecondhighestlargestate(afterTamilNadu)witha
tele-densityof105per100person.With23percentage
point increase in tele-densityHimachal Pradesh now
ranksafterDelhiinthismeasure.Thenextbeststatein
termsofgrowthinthismeasureisJammu&Kashmir
registeringagrowthof19percentagepoints.However,
thegrowthwasprimarilydrivenbyalowbase.Thestate
hasgrownfromaverylowbaseof61per100personin
2014-15to80per100personin2015-16. Delhiisthe
toprankedinthismeasurewiththetele-densityalmost
double that of any other states. Delhi registered a
signi�icantgrowthof16percentagepointsfrom219per
100 person in 2014-15 to 235 in 2015-16. Kerala,
AndhraPradesh,MadhyaPradeshregisteredagrowth
of 6-8 percentage points lower than the national
averagegrowthof9percentagepoints.Atthelowerend
oftheranking liesHaryanaandPunjab.Theyhadthe
lowestincrease,intherangeof1-2percentagepoints.
B. MobileSubscribersformthemaincomponentof
the telecom market. About 98% of the total
telecom subscription in India is mobile
subscription.Only2%ofthesubscribersare�ixed
orwire-linesubscribers.AspertheInternational
Telecommunications Union, India accounts for
about24%ofthetotalmobilesubscribersofall
Asian countries. In 2016, there are about 888
millionmobilesubscribersinIndiawhichmeans
that for every 10 person in India there are 6
mobilesubscribers.ThismakesIndiaoneofthe
largesttelecommarketwithimmensepotentialof
growth given its population and expanding
economy.
KeyTrends
l Amongstsmallstates,Delhiisrankedtopinterms
of the number ofmobile subscribers. Delhi has
192subscribersforevery100person.
l Amongst large states, Himachal Pradesh leads
with75mobilesubscribersforevery100person.
l Theotherstateswithmorethan6subscribersfor
every10personareGujarat,Punjab,Kerala,Tamil
Nadu,North-EasternstatesandKarnataka.
l At the other end of the ranking lie Madhya
Pradesh,Bihar, Jharkhand,WestBengal,Odisha,
Assam, and Uttar Pradesh & Uttarakhand. The
numberofmobile subscribers in these states is
lessthan50per100person.
C. AspertheTRAIIndicatorReport(2015),thetotal
internet subscribers in India are 302million of
which 203 million are wireless internet
subscribers.Further,99%ofthewirelessinternet
75
Himachal Pradesh
192
Delhi
73
Gujarat Punjab
69
Nagaland
63
TOP 3 LARGE STATES
TOP SMALL STATES/UT TOP NORTH EASTERN STATE
Figure3:NumberOfMobileSubscribersPer100Person
Source:CellularAssociationofIndia
E-Infrastructure Index 14
D. Internet service providers are crucial in taking
internet connectivity to themasses. The higher
the number of internet service providers, the
higheristhecompetition.Thehighercompetition
ismostlikelytoimprovetheinfrastructure,make
theconnectionsaffordableandreachtheremote
areasforexpansion.
Key Trends
l The states can be divided into four categories
based on internet service providers permillion
population. Maharashtra and Delhi have more
than30internetserviceproviders.
Figure4:NumberofInternetSubscribers
Per100MobileSubscribers
Source:TelecomRegulatoryAuthorityofIndia,2015.
Punjab
75 73
Kerala
69
Telangana
Lakshwadeep
57.345
Sikkim
TOP 3 LARGE STATES
TOP SMALL STATES/UT TOP NORTH EASTERN STATE
subscribers access internet through mobile
wirelessandonly1%ofthesubscribersare�ixed
wireless. With about 888 million mobile
subscribers in India, not even half of the
subscribershaveinternetaccess.Further,internet
densityinIndiaismere24.09per100population.
While,inurbanIndia,internetdensityiscloseto
50per100person,inruralIndiainternetdensity
ismere12.89per100person.
KeyTrends
l Punjabistheleaderstateinthismeasurewith63
internetsubscribersper100mobilesubscribers.
l Kerala,Telangana,DelhiandKarnatakahavemore
than 50 internet subscribers per 100 mobile
subscribers.
l At the other end, Bihar, Andhra Pradesh, Uttar
Pradesh,AssamandRajasthanhavelessthan35
internetsubscribersper100mobilesubscribers.
l Thestatesinthesecondcategory,onanaverage
have 21 internet service provider per million
population.The states included in this category
areTamilNadu,Haryana,UttarPradesh,Andhra
Pradesh, Gujarat, West Bengal, Karnataka and
Telangana.
l Inthethirdcategory,thestateshaveanaverageof
13 internet service providers per million
population. While in the fourth category, the
averageis7.
E. IT infrastructure forms the core of an e-ready
society. Without appropriate infrastructure
support, the movement of internet readiness
mightjustgetlimitedtoafewwhohavethefunds
andresourcestostayupdated. Inacountry like
India where 12.4% population lives in poverty
and many do not have access to basic needs,
infrastructuralsupportisrequiredtoconvertthe
e-readymovementintoamassphenomenon.We
considertwomain institutions-postof�icesand
schools.
Post Of�ices: Indian Post has undertaken a 'Quality
Improvement Project' called 'Project Arrow' to
transform India Post into a vibrant and responsive
organisation.Theprojectaimsatcreatingaconducive
environment providing IT enabled services through
secureconnectivityimprovingtheservicequalitylevels
in core business areas, such as, mail delivery,
remittancesandpostalsavingschemes.Itstartedwith
50postof�icesinApril,2008whichextendedto2615
postof�icesin2015.
24
TamilNadu
23
HimachalPradesh Uttarakhand
22
Goa
30
Manipur
35
TOP 3 LARGE STATES
TOP SMALL STATES/UT TOP NORTH EASTERN STATE
Figure5:NumberOfInternetServiceProviders
PerMillionPopulation
Source:TelecomRegulatoryAuthorityofIndia;http://www.trai.gov.in/Content/ProviderListDisp/3_ProviderListDisp.aspx)
E-Infrastructure Index 15
However,theimplementationofthisprojectacrossthe
statesisdismallylow.Onanaverage,inIndiathereare
only 3 modernized and upgraded post of�ices under
ProjectArrowforeverymillionpopulation.Ofthe2615
postof�icesthataremodernisedandupgradedunder
projectArrow,10%oftheseareinTamilNadu.Seven
states - Tamil Nadu, Rajasthan, Andhra Pradesh,
Maharashtra, Uttar Pradesh, Madhya Pradesh and
Karnataka together account for 52% of the total
modernizedandupgradedpostof�iceinthecountry.In
contrast, in the states like Uttar Pradesh and
Maharashtra,thedensityofmodernisedandupgraded
postof�iceislessthan1forevery1millionpopulation
[Figure6].
Schools:Topreparetheyounggenerationfortomorrow,
IT infrastructural facilitiesavailableatschools isvital.
Internet education in schools is possible only when
schoolsareequippedwithbasicinfrastructurethatisa
computer facility. A wide variation is seen in the
percentageofschoolswithcomputerfacilityacrossthe
statesandunionterritories. Inthreeunionterritories,
24
Himachal Pradesh
23
Kerala
22
Tamil Nadu
Nagaland
7.964.81
Delhi
TOP 3 LARGE STATES
TOP SMALL STATES/UT TOP NORTH EASTERN STATE
Figure6:NumberOfPostOf�icesModernizedAndUpgradedUnderProjectArrowPer1MillionPopulation
Source:MinistryofInformation&Technology
Lakshadweep,PuducherryandChandigarh,about95%
to100%of the schoolsareequippedwith computers.
Amongstthebigstates,Keralaleadswithabout93%of
the schools equipped with a computer facility. At the
otherend,Biharhasonly5%schoolswithacomputer
facility. In Assam,Meghalaya, Jharkhand, Chhattisgarh
less than 10% schools have a computer facility
[Figure7].
F. Public Wi-�i: Government of India with an
objective to develop 'Digital India' attempted to
easepublicaccesstotheinternet.Consequently,
many freeWi-Fi public spotswere identi�ied. A
fewinitiativesarepresentedbelow:
l In January 2016, Google’s free public WiFi
service went live at Mumbai Central. The
servicehasover1.5millionpeopleusersat19
railwaystations.
l In 2016, Gurugram announced free public
Wi�ihotspotsinthecityinpartnershipwith
Airtel.InGurugram,usersinselectedpartsof
thecitywillget30minutesoffreeWiFiaccess.
l InDelhi,theAAPgovernmenthadpromised
100percentWiFicoverage inthenational
capital in their electionmanifesto, however
theserviceshaven’trolledoutsofar. Indian
ExpressreportedinFebruary2016thattheIT
departmenthadidenti�ied3000‘hotzones’to
providethisfreeWiFi,buttheinitiativehasn’t
materialisedyet.
E-Infrastructure Index 16
93%
Kerala
54%
Tamil Nadu
Lakshwadeep
100% 53%
Sikkim
TOP 3 LARGE STATES
TOP SMALL STATES/UT TOP NORTH EASTERN STATE
Gujarat
73%
Figure7:PercentageOfSchoolsWithAComputerFacility
Source:DistrictInformationSystemofEducation,2014-15.
Source: Indian Express, July 17, 2016
AFewKeyInitiatives
Creating a hassle free IT environment in education
systemhasbecometheneedofthehour.Atalllevelof
education, government of India and the state
governmenthavetakenseveral initiativestopromote
ICTinfrastructureinthestate.
Keralawasamongstthe�irsttosuccessfullyimplement
ICTinschools.ITinfrastructurehasbeensetupin4071
schoolsinsecondaryandhighersecondaryeducation.
Broadbandconnectivity(2Mbps)isprovidedviaatie-
up with BSNL. Currently, the state has 160 trained
mastertrainersand5600schoollevelITcoordinators
( h t t p : / /mh rd . g ov. i n / s i t e s / u p l o ad _ � i l e s /
mhrd/�iles/upload_document/Annexure%20IV.pdf)
ThefollowingtablegivesthelistofcitieswithaccesstofreeWiFiconnectivity:
Table1:Wi�iConnectivityAcrossCities
Cities Location
Delhi l PartsofKhanMarket
l PartsofConnaughtPlace
l Delhi'sHauzKhasvillage(HKV)hasfreeWiFifor�irst20minutesoflogin.
l TheNewDelhiInternationalAirport(internationalanddomesticterminals)have
freeWiFifor�irst30minutes
l MetrostationsinDelhiincludingRajivChowk,andKashmereGate
Bangalore l MGRoad,BrigadeRoad,CMHRoad
l Yeshwantpur,KoramangalaandShanthinagarbusstations
Ahmedabad l GandhiAshram
l ScienceCity
l KankariaLake
l Madhupuramarket
Bihar l NIT-PatnaonAshokRajpathtoDanapur.This20-kmstretchoffreeWiFiisthe
world'slongestcorridoroffreeWiFiconnectivity.
Mumbai l ShivajiPark
l MumbaiMetrostations
l MumbaiInternationalandDomesticAirports
E-Infrastructure Index 17
Table2:IntiativesToPromoteICTEnvironmentByKeralaGovernment
NameoftheInitiative
Sampoorna–Aschoolmanagementsystem a. Moreef�icienthandlingofStudentinformation
b. Improvedservicedeliverytostudentsfromthe
schooladministration
SchoolWiki a. Createonlinecommunityofschoolstoenable
bettersharingofinformationbetweenschools
b. Decentralizethedataupdationprocesstoschool
level
Spark–AteacherHRMS a. Accurateandusefuldatabaseofteachers
b. Moreef�icientpayrollmanagement
c. Supporttoothercomplimentarysystemsthrough
moreaccurateandrelevantdata
TextbookIndentingsystem a. Accurate,fasterandmoreef�icientTextbook
indentingprocess
Extra-curriculareventsupport(3systems): a. Enableorganizerstomanageeventsmore
PortalsforKallolsavam,Sastrothsavam& ef�iciently
Schoolsports b. Increasevisibilityofeventsandparticipants
c. Supportentitlementmechanisms
SchoolGISmapping a. Provideaccurateandreliablegeographicdataofall
schools
Examinationsystems a. Completetransparencyinexaminationprocess
b. Fastturnaroundinlead-uptoexamsandresults
tabulationandpublishing
c. Protectreliabilityofcerti�icatesissuedbyreducing
fraud
SIET'sDigitalcontentdevelopment a. Learningsupportservices
Source:DepartmentofInformation&Technology,Kerala
KeralaGovernmenthavealsointroducedthefollowinginitiativestopromoteICTenvironmentinschools[Table2].
GujarathasinitiatedvariousICTinitiativesinschooleducation,includingalargescaleenablementofITinfrastructurein
schools. IT infrastructure has been set up in all 6000 secondary and higher secondary schools. Each school has 11
computersandallrunontheUBUNTUplatform.
E-Infrastructure Index 18
Source:DepartmentofInformation&Technology,GovernmentofGujarat
All India: Given the need of providing internet
connectivitytocollegesanduniversities,theMinistryof
Human Resource Development launched a new
programmecalledCampusConnectin2014.
As part of Government e-services, E-Of�ice has been
implemented in the UGC to create paperless
environment as regards to receipt andmovement of
�iles,etc.In2015,atrainingprogrammewasorganized
forUGCof�icialsuptothelevelofJointSecretary.NICis
developingwebbasedonline applications for theXII
PlanSchemesoftheUGC.
l For developing courseware e-content in post-
graduate subjectsacrossalldisciplines, theUGC
hasconstitutedaStandingCommitteetoprepare
blueprintsandtoobservetheentireoperationof
thescheme.Thetaskofdevelopmentofe-content
hasbeenentrustedtoINFLIBNET.Thee-content
sodevelopedwouldbe available in open access
throughaLearningManagementSystem(LMS)set
up at INFLIBNET Centre as well as through
Sakshat Portal. The total cost incurred in the
projectduring2014-15isRs.9.08crores.
Table3:GovernmentE-servicesInitiativesInSchoolsByTheGujaratGovernment
Nameoftheinitiative EnvisionedOutcome
BACALS(BiometricAttendanceand a. Real-timeandaccuratedatacollectionregarding
ComputerAidedLearningforSchools) TeacherandStudentattendance
b. Centralizedanalysisofattendancedatafordecision
support.
SchoolGISmapping a. Provideaccurateandreliablegeographicdataof
allschools
ExaminationsystemsforSSCboard a. Completetransparencyinexaminationprocess.
b. Fastturnaroundinlead-uptoexams,results
tabulationandpublishing
c. Protectreliabilityofcerti�icatesissuedbyreducing
fraud
Datamanagementfor‘Gunotsav’ a. Supportthelarge-scaleandrapidturnarounddata
entryrequirementsfortheannual'Gunotsav’
Contentdevelopmentanddeliveryfor a. ToimpartInformationTechnologyskillsinstudents
IT-enablededucation ofGujaratgovernmentschools.
b. TodevelopcontentforvarioussubjectsusingICT
toolstoenablefasterandeffectivelearningwithin
thenationalcurriculumframework
c. Tocomplementthecoursedeliveryinvarious
subjectsthroughICTbasedsimulationandother
tools
d. TomonitordeliveryofICT-enabledcontentacross
enabledschools
E-Infrastructure Index 19
l TheUGChastakenmappingoftheUniversitiesin
reference to (a) Universities connected with
Digital Fibre (b) Universities having LAN (c)
UniversitieshavingWi-Fifacility.636Universities
responded and it was found that (i) 89% of
universitiesareconnectedwithOpticalFibre(ii)
92% of universities have LAN and (iii) 85% of
universitieshaveWi-Fifacility.
l TheUGC'sInformation&StatisticsBureauisusing
theportal(http://aishe.gov.in)developedbyNIC
forCollection&CompilationofStatisticalDataof
Students Enrolment, Teaching Staff, etc. (UGC,
AnnualReport2014-15)
UNIVERSITY
E-Infrastructure Index 20
indexE-participation
Themostsigni�icantaspectofane-readysocietyisthe
abilityofitspeopletoutilizeITservicesandparticipate
inanITenvironment.E-participationisanindexof5
measures, i.e., a) average revenueperuserofmobile
subscribers, b) e-Tansactions in interactive services -
utility bill payments, statutory services etc per lakh
person,c)e-Transactions:ininformationalservicesper
lakh person, d) e-Transactions in business to citizen
servicesperlakhpersonande)Facebookusers.
Thestudyalsoconsidersenrolmentofadultsinhigher
educationasoneoftheparameters.Itisanindicationof
the ability and need of the people to access e-
information.However,giventheeaseandtherangeof
servicesthatcancanbeaccessedthroughtheinternet,
theinternetnolongerremainsaneliteeducatedneed.
Thisvariablewasnotfoundtobestatisticallysigni�icant
and therefore dropped from the model. The most
signi�icant indicator is thee-transactions recorded in
interactive services, i.e., utility bill payments,
registration, issuance of certi�icates etc. The next in
importanceise-transactionsininformationalservices.
Legend
E-Infrastructure Index
Low(Upto0.21)
Medium(0.21-0.43)
High(0.43-0.69)
VeryHigh(MoreThan0.69)
Puducherry
Goa
Lakshadweep
Jammu & Kashmir
Himach Pradesh
Punjab Chandigarh
Haryana
Delhi
Uttarakhand
Rajasthan Uttar Pradesh
Arunachal Pradesh
NagalandAssam
Meghalaya
Manipur
Sikkim
Bihar
MozoramTripura
West BengalWest Bengal
Jharkhand
Odisha
Chandigarh
Madhya PradeshGujarat
Maharashtra
Telangana
Andhra Pradesh
Karnatka
Tamil NaduKerala
Top 5 Large States
1.Kerala2.Telangana3.Gujarat4.Karnatka5.Maharashtra
Top 3 Small States / Uts
1.Delhi2.Chandigarh3.Daman&Diu
Top 3 North-Eastern / States
1.Mizoram2.Sikkim3.Manipu
I N D I AE-Participation Index
Andaman & Nicobar Islands
Source:EstimatesofNielsen(India)
Figure8:E-ParticipationIndex
E-Participation Index 21
LargeStates
l Kerala,TelanganaandGujarataretheleadersine-
participationindex.
l Kerala,themostliteratestateinthecountry,leads
in the number of e-transactions recorded per
person in information services. The extent of
mobile usage measured in terms of average
revenue per subscriber stands at Rs 199 per
person just next to Delhi. Though Kerala stands
behindsomeofthebigstatesintermsofthetotal
number of e-transactions recorded in utility
services, yet theaveragenumberof transactions
recorded per person is higher than the country
average.
l In Telangana, 21% people are Facebook users.
Though, Telangana records fewer number of e-
transactionsperpersonininformationalservices
butitrecordshighernumberofe-transactionsper
person in business to citizen services and
interactiveserviceslike,billpayments,registration
etc.
l Gujarat records the highest number of e-
transactions per person in both information as
well as in interactive services. This indicates
success in terms of spreading awareness and
backend infrastructural support. However, the
scoresofGujaratine-participationgetsasetback
asonly10%ofthestatepopulationuseFacebook.
l The poorest performers in e-participation are
Bihar and Jharkhand. Since the states havepoor
networkingtools,itisnotsurprisingthattheyhave
low participation in an e-ready environment. In
Bihar,merely2%populationareFacebookusers.
Only7 e-transactionspermillionpopulation are
recordedinutilitybillpayments.Jharkhandfares
slightlybetterthanBihar.Itrecordsabout366e-
transactionspermillionpopulationininteractive
services and 4% population in the state have
Facebookaccounts.
SmallStates/UTs
l Delhi leads in all measures of e-participation.
Average revenue per mobile subscribers that
re�lectstheextentofusageofmobileservicesisthe
highest inDelhi atRs. 200per person.Also, the
number of e-transactions in interactive services
andutilitybillpaymentspermillionpopulationin
DelhiissecondafterGujarat.Facebookaccountper
'00 population provides indication on usage of
internet services for entertainment or other e-
commerceservices.InDelhi,41outof100people
are Facebook users, the highest amongst all the
statesexceptforUTsandNEstates.
l DelhiisfollowedbyChandigarhine-participation.
About50per100populationinChandigarhhave
Facebookaccounts.Also,Chandigarhrecordsthe
highest number of e-transactions per person in
utilitybillpayments.
NorthEasternStates
l Mizoram,aliteratestateintheNE,recordshighe-
transactions per person in information services.
Also, 19 per hundred person in Mizoram have
Facebookaccounts.
l Meghalaya, Andaman & Nicobar Islands are the
weakstates in this category. Meghalayarecords
high e-transactions per person in business to
citizen services but lowest amongst all in this
category in e-transactions in informational and
interactiveservices.Also7per100populationin
MeghalayaareFacebookusers,clearlylowusageof
internetofinternetforentertainmentoronregular
sur�ing.
DetailedAnalysisofKeyParameters
A. EnrolmentinHigherEducation:Firstandforemost
criteriaofparticipatinginane-readyenvironment
is the ability andknow-how touse the available
information and technology. Given the ease of
usingtheinternet,itnolongerrequiresonetobe
technicallyequipped toparticipate inane-ready
environment. Nevertheless, with enrolment in
highereducation,theneedtoaccesstheinternet
service increases. In2014-15,about265.85 lakh
students were enrolled in higher education in
collegesanduniversities.Outofwhich16.27%of
the students were enrolled in Engineering and
KeyHighlights
E-Participation Index 22
660
TamilNadu
617
TelanganaUttarakhand
574
768
SikkimChandigarh
2064
TOP 3 LARGE STATES
TOP SMALL STATES/UT TOP NORTH EASTERN STATE
Figure9:EnrolmentinHigherEducation(ma/mphil/phd)
perLakhPopulation
Source:AllIndiaStatisticsofHigherEducation,2014-15
technology. Education content and research
materialsarenolongeratreasurehuntinlibraries.
Accessing non-traditional sources of information
has become the need nowadays for students,
lecturers,scientists,economistsetc.
Two UTs, Chandigarh and Puducherry, have the
highest enrolment state, followed by the north
easternstateofSikkim.Amongststates (excl.NE
and UTs), Delhi registers the highest number of
entrants (737) in higher education per lakh
populationofthestate.95%oftheuniversitiesare
Wi-Fienabled.TamilNaduandTelanganawithan
enrolmentrateof660and610perlakhpopulation
respectively.Bihar,OdishaandJharkhandhavethe
lowest entry in higher education (0.13%, 0.12%
and 0.11%) considerably below the all India
average.[Figure9]
B. Average Revenue per person: The internet is
increasinglygettingaccessedthroughmobile.The
range of services that are available through the
internetvaryfromgamestomusictoconvenience
appsetc.Thesehavecompletelyrevolutionisedthe
waynetworkserviceprovidersgeneraterevenue
from theirmobile subscribers. Thehigher is the
usageofmobilefortherangeofservices,thehigher
is the average revenue frommobile subscribers.
DelhileadsinthismeasurefollowedbyKeralaand
Maharashtra. Whereas, the average revenue per
subscriber is low in Bihar, Odisha and Uttar
Pradesh.[Figure10]
C. FacebookUsers:Facebookisundoubtedlyoneof
the largest socialmedia network today that has
attracted millions of people to connect across
geographies,age,etc.Thereareabout106million
people in India today that are Facebook users.
Maharashtraalonehasabout17millionFacebook
users.However,whencomparedinrelationtothe
populationofthestate,Chandigarhstandsatthe
topwith 52 Facebook users per 100 population
followed by Daman &Diu and Delhi with 41
Facebook users per 100 population each. The
lowest number of Facebook users is in Bihar
registering only 2 Facebook user per 100
population.[Figure11]
D. E-transactions in interactive and informational
services:Utilizingthee-servicesrolledoutbythe
governmentisoneofthemostcrucialaspectsofe-
participation.AttheallIndialevel,91%ofthee-
transactions are for interactive services and the
remaining only 9% of the e-transactions are for
informative services. In most of the states, e-
transactions in information services is almost
negligible. West Bengal is one exception
registering almost 65% of the e-transactions in
information services. Punjab follows next
registering45%ofe-transactions in information
21
Telangana
16.5
Kerala
Sikkim
20
Chandigarh
52
TOP 3 LARGE STATES
TOP SMALL STATES/UT TOP NORTH EASTERN STATE
17
AndhraPradesh
Figure11:FacebookUsersPer'00Population
E-Participation Index 23
410
Kerala
1076
Delhi Nagaland
227
347
Punjab
304
Karnatka
TOP 3 LARGE STATES
TOP SMALL STATES/UT TOP NORTH EASTERN STATE
Figure10:AverageRevenuePerMobileSubscriber
Source:CellularAssociationofIndia,2015
Source:http://www.soravjain.com/wp-content/uploads/2015/04/II-01.jpg
Lakshwadeep Lakshwadeep Dadar & Nagar Havel i
8 15 0.5
Meghalaya
0.02
Gujarat
2.7
Madhya Pradesh
0.6
Gujarat
0.8
Tripura
0.09
Meghalaya
1.3
North-EastStates
Large States
Smal l States/ Uts
Informative ServicesUtillity Bill Payments B2C Services
Figure12:UtilityBillPayments,BusinesstoCitizenServices&
InformativeServices(topStates/uts)
Source:DepartmentofInformation&Technology;ETAAL
services. Odisha and Gujarat are the other two
states with substantial proportion of the
e-transactionsininformationservices.
E-transactionsininteractiveservicesincludes:
a. Statutory services- and non-statutory services:
Statutory services include: a) certi�icates, b)
payment of taxes c) payment of subsidies,
scholarships and social welfare transfers. Non-
statutoryservicesincludeservicesdeliveredunder
agriculture/PDS/ruraldevelopmentschemesetc.
b. Business to citizen services: like, ticket booking,
bankingtransactionsetc.
c. Utility bill payments: like, water bills, telephone
bills,electricitybills,e-municipalityservices
d. Social bene�its: like repetitive government
disbursementtocitizens,like,pensions,MGNREGA
payment,DBTscholarshipetc.whichareperiodic
innature.
e. Mobilegovernance:endtoendservicesinmobile.
E-transactions in informative services include
information access from various governance portals/
websites, downloading of forms, enquiry related
servicessuchaspassportstatus,railwaysPNRenquiry,
resultsofexaminationetc.
Under interactive services, twokindof serviceswere
considered-'businesstocitizenservices'(aproxyfor
theoutreachofbusinesses toconsumers)and 'Utility
BillPayments'(aproxyforconveniencebasedservices),
sincetheseservicesdirectlypertaintoawideraudience.
Whereas, since interactive services form a very
negligiblepartofe-services,theyaretakenasawhole.
As per the analysis (�igure 12), Lakshadweep tops
amongst small and UTs on Utility Bill Payments and
informativeservices,whereasDadarandNagarHaveli
topsthelistintermsofBusinesstoCitizenServices.
Out of the large states, Gujarat leads in the �irst two
measures like Lakshadweep, however in the third
measure Madhya Pradesh takes the lead. Jammu &
Kashmir,BiharandAssamaretheweakstatesinterms
ofe-transactionsinutilitybills.Surprisingly,Telangana
is at the bottom in terms of informative services,
followed by Assam and Bihar. E-transitions in B2C
servicesarethelowestinKerala,followedbyJ&Kand
TamilNadu.
IntheNEstates,Meghalayaoutperformsothersinterms
ofUtilityBillPaymentsandB2Cservices,whileTripura
leadsinInformativeServices.
E. E-transactions per person: While the previous
pointusedasubsetofe-transations,hereallthee-
servicesarecombinedtogethertogetthebigger
picture.Pleasenotthatthisvariablewasn'tused
while indexation. These transactions include
statutory and non-statutory services, utility bill
payments , business to c i t izen services ,
informationalservices,socialbene�itsandmobile
governance. Thewide variation across states in
utilizing or participating e-services of the
government isevident from�igure15below. In
Telangana and Andhra Pradesh, the average e-
transactionsrecordedperpersonare27and23
respectively.WhereasinBihar,Jammu&Kashmir,
AssamandJharkhand,theaveragee-transactionis
lessthan1perperson.[Figure13]
27
Telangana
23
Andhra Pradesh
13
Kerala
Meghalaya
1.9
Lakshwadeep
20
TOP 3 LARGE STATES
TOP SMALL STATES/UT TOP NORTH EASTERN STATE
Figure13:E-transactionsPerPerson
Source:DepartmentofInformation&Technology,ETAAL
E-Participation Index 24
IT EnvironmentITenvironmentisanindexoffourcomponents:
a) No.ofITcompaniesregisteredwithNASSCOM
b) Ratiooftechnicalworkerstototalworkers
c) No.ofdigitalstart-upsand
d) No.ofstart-upincubators
AcloseinspectionofthepresentITenvironmenthighlightsthatthere
areafewhubs/statesinIndiawheretheinformationandtechnology
sectorislocated.
Legend
E-Infrastructure Index
Low(Upto0.24)
Medium(0.24-0.48)
High(0.48-0.62)
VeryHigh(MoreThan0.69)
Puducherry
Goa
Lakshadweep
Jammu & Kashmir
Himach Pradesh
Punjab Chandigarh
Haryana
Delhi
Uttarakhand
Rajasthan Uttar Pradesh
Arunachal Pradesh
NagalandAssam
Meghalaya
Manipur
Sikkim
Bihar
MozoramTripura
West BengalWest Bengal
Jharkhand
Odisha
Chandigarh
Madhya PradeshGujarat
Maharashtra
Telangana
Andhra Pradesh
Karnatka
Tamil NaduKerala
Top 5 Large States
1.Karnatka2.Maharashtra3.TamilNadu4.Telangana5.Gujarat
I N D I AIT-Participation Index
Andaman & Nicobar Islands
Figure14:ITParticipationIndex
Source:EstimatesofNielsen(India)
KeyHighlights
l Karnataka is at rank 1 in terms of the best IT
environmentinthecountry.Karnatakadominates
in terms of attractiveness with the city of
Bengaluru leading the charge. 22% of the IT
companies registered with NASSCOM are in
Karnataka.In2015-16,about1092digitalstart-
upswereopenedinKarnataka.Furthermore,11%
ofthedigitalincubatorsareinKarnataka.
IT-Environment Index 25
l Maharashtra gets rank 2 in terms of IT
environment primarily due to two reasons: a)
about17%of the IT companies registeredwith
NASSCOM are in Maharashtra, second after
Bengaluruandb)714digitalstart-upsopenedup
inMaharashtrain2015-16comparedto1092in
Bengaluruand966inDelhi.
l Since the data for other states/UTs is not
consistentlyavailable,werefrainfromdiscussing
them.Ratherwefocusontheoneswithdataand
theirranking.
DetailedAnalysisofKeyParameters
A. Concentration of IT companies: Figure 15
highlightsthattheITindustriesarelocatedonlyin
few locations in India. Karnataka, Maharashtra,
UttarPradeshandTamilNaducontainabout68%
of the total IT companies registered under
NASSCOM.Furthermore,tenstatescoveralmost
the entire IT industry. The other states not
reported either have no data or have no IT
companiesregisteredunderNASSCOM.
B. NumberofDigitalStart-ups:ThePrimeMinister
of India, Shri Narendra Modi in this year's
IndependenceDayspeechannouncedthe“Start-
upIndia”initiative.Thisinitiativeaimsatfostering
entrepreneurship and promoting innovation by
creating an ecosystem that is conducive for
growth of start-ups. In 2015-16, about 3612
digital start-ups materialised, however the
concentration remainedonly in a few locations.
[Table4]
Figure15:ConcentrationOfItCompaniesRegisteredUnderNasscom
Source:NASSCOM
Table4:NumberofDigitalStart-ups
State City No. of Digital Start-Ups
Karnataka Bangalore 1092
Delhi NCR 966
Maharashtra Mumbai 714
Telangana Hyderabad 336
Tamil Nadu Chennai 252
Maharashtra Pune 252
Others 588
Source:NASSCOM
C. Number of start-up incubators:As a part of the
start-uppolicy,thegovernmentaimsatcreatinga
policyandframeworkforsettingupofincubators
acrossthecountryinpublic-privatepartnership.
India currently lacks availability of incubation
facilities across various parts of the country.
Incubation facilities typically include physical
infrastructure,provisionofmentorship support,
accesstonetworks,accesstomarket,etc.
ofthetotal242start-upincubatorsinthecountry,
61start-up incubatorsare inTamilNadu.About
83%ofthetotalstart-upincubatorsinIndiaarein
10 states, i.e., Tamil Nadu, Karnataka, Uttar
Pradesh,Maharashtra,Kerala,Telangana,Gujarat,
West Bengal, Delhi and Rajasthan. In the North
East, Except for Manipur where 1 start-up
incubatorispresent,noneoftheotherstateshave
one[Figure16]
61
Tamil Nadu Karnatka
27
Manipur
19
Delhi
TOP 3 LARGE STATES
TOP SMALL STATES/UT TOP NORTH EASTERN STATE
Uttar Pradesh
25
Figure16:No.ofStart-upIncubators
Source:DepartmentofInformation&Technology
IT-Environment Index 26
e-servicesGovernment
The index captures the e-services rolled by the
governmentbyaggregatingfourmeasures:
a)%ofkioskinstalledoutofthetotaltargetedkiosks,b)
OperationalCommonServiceCentres, c)Expenditure
incurred per CSC and d) No. of e-services. We
considered threeothervariables for the index (given
below),howevertheyweredroppedforthefollowing
reasons:
a. AccountsopenedunderJanDhanYojna:Asperthe
of�icialrecords,thecoverageisalmost100%.This
variables while important doesn't provide any
variation in thedata, andhencedoesn't improve
themodel.
b. Aadhar card issued: the number of e-services
linkedtoAadharcardisstate-speci�ic.Therefore,
thenumbersarenotcomparableacrossstates.
c. E-books:isnotconsistentlyavailableacrossstates
atauniformtimepoint.
Arunachal Pradesh
Nagaland
Meghalaya
Manipur
MozoramTripura
I N D I AIndex of Government E-Services
Legend
E-Infrastructure Index
Low(Upto0.16)
Medium(0.16-0.33)
High(0.33-0.55)
VeryHigh(MoreThan0.55)
Puducherry
Goa
Lakshadweep
Jammu & Kashmir
Himach Pradesh
Punjab Chandigarh
Haryana
Delhi
Uttarakhand
Rajasthan Uttar PradeshAssam
Sikkim
Bihar
West BengalWest Bengal
Jharkhand
Odisha
Chandigarh
Madhya PradeshGujarat
Maharashtra
Telangana
Andhra Pradesh
Karnatka
Tamil NaduKerala
Top 5 Large States
1.HimachPradesh2.Gujarat3.Maharashtra4.AndhraPradesh5.Punjab
Top 3 Small States / Uts
1.Delhi2.Lakshadweep3.Andaman&NicobarIslands
Top 3 North-Eastern / States
1.Manipu2.Nagaland3.ArunachalPradesh
Andaman & Nicobar Islands
Figure17:IndexOfGovernmentE-services
Source:EstimatesofNielsen(India)
Government E- Services Index 27
LargeStates
l HimachalPradesh,Gujarat,Maharashtra,Andhra
Pradesh and Punjab are the leaders in the
governmentinitiatives.Inthesestates,thenumber
ofoperationalCommonServiceCentres(CSCs)and
expenditure incurred per CSC is substantially
abovetheotherstates.
l InHimachalPradesh,thereareabout46CSCper
lakhpopulationwhileonanaveragethereare10
CSC per lakh population in India. 18% of the
targeted kiosks are installed. The state has also
rolledout89e-servicesforcitizenparticipation.
l Conversely, Jammu&KashmirandBiharare the
worst performers in terms of the number of
governmentinitiatives.
SmallStates/UTs
l Delhi leads in this category fol lowed by
Lakshwadeep and Andaman & Nicobar Islands.
Dadra&NagarHaveli andDaman&Diu are the
worstperformerswiththelowestnumberofCSCs
and e-services rolled out by their respective
governments.
NEStates
l All states in this category have taken very few
initiatives in government e-services. Of these,
Manipur fare slightly better. In Manipur, 59 e-
serviceshavebeenrolledout.
DetailedAnalysisofKeyParameters
Overtheyearsalargenumberofinitiativeshavebeen
undertakenbyvariousstategovernmentsandcentral
ministriestousherinaneraofe-governance.Sustained
effortshavebeenmadeatmultiplelevelstoimprovethe
deliveryofpublicservicesandsimplifytheprocessof
assessing them. The National government e-services
Plan takes a holistic view of government e-services
initiativesacross thecountry, integrating them intoa
collectivevision.
KeyHighlights Inordertopromotegovernmente-servicesinaholistic
manner, various policy initiatives and projects have
been undertaken to develop core and support
infrastructure. The major core infrastructure
componentsareStateDataCentres(SDCs),StateWide
Area Networks (SWAN), Common Service Centres
(CSCs) and middleware gateways, i.e., National
government e-services Service Delivery Gateway
(NSDG),Stategovernmente-servicesServiceDelivery
Gateway (SSDG) and Mobile government e-services
ServiceDeliveryGateway(MSDG).
State Data Centre has been identi�ied as one of the
important element of core infrastructure for
supporting government e-services initiatives of
National government e-services Plan. State Data
Centreshasbeen setupand is operationalized in all
statessince2011.TheservicesintheStateDataCentre
are rendered through common delivery platform
seamless ly supported by core connect iv i ty
infrastructuresuchastheStateWideAreaNetworkand
Common Service Centres. SWAN has been made
operationalin34states.ImplementationofSWANisat
the �inal stage in Jammu&Kashmir andAndaman&
NicobarIslands.
A. Percentage of Kiosks installed: The state level
performancecanbegaugedbymeasuringthe%of
kiosks installed out of those targeted to be
installed.Instates,likeTamilNadu,Keralaalmost
97 -99% of the kiosks that were targeted were
installed. At the other extreme, in Andaman &
Nicobar Islands only 2% of the kiosks were
installed. InWestBengal,HimachalPradeshonly
11%and18%ofthekiosksareinstalled.Noneof
thenortheasternstateshaveankiosksinstalledin
theirterritory.[Figure18]
99%
TamilNadu
97%
Kerala Karnatka
89%
2%
Andaman&Nicobar
TOP 3 LARGE STATES
TOP SMALL STATES/UT
Figure18:PercentageofKiosksInstalled
Source:DepartmentofInformation&Technology(AccessedfromIndiastat)
Government E- Services Index 28
B. Common Service Centres: The “Common Service
Centres”isastrategiccornerstoneoftheNational
government e-services Plan, approved by the
governmentinMay,2006.Ason2016,apartfrom
Goa all states/ UTs in India have at least 1
ope ra t i ona l C ommon S e r v i c e C en t re s .
Maharashtra has the highest number of CSCs in
India,almost22%oftheCSCsinIndiaareinthis
state. [Figure19A]
However, the set-up of CSCs has not been
proportionatetothepopulationofthestate.Uttar
Pradesh, themost populous state in the country
has only 8 CSC per lakh population. Himachal
Pradeshhasthehighestdensitywith46CSCsper
lakhpopulation.MaharashtraandGujaratarethe
othertwoleadinglargestatesinIndiaabout26and
21CSCsper lakhpopulationrespectively.On the
otherhand,Haryana,Karnataka,TamilNaduhave
merely1CSCperlakhpopulation.
ThesetupofCSCsisnotuniformacrossthestates,
however a different picture emerges when one
looks at the expenditure incurred per CSC.
Haryana, with 228 CSCs, spends about Rs 3.07
crore per CSC. While Jammu and Kashmir with
1110 CSCs spends about 1.75 crores per CSC,
followedbyAssamthatspendsRs1.24croreper
CSC.[Figure19B]
With data on major small states not available,
Lakshadweep tops the list. Interestingly,Sikkim
spendsthehighestamountnotonlyamongstNE
states,butamongstallIndianstatesandUts.
C. E-services: The Government approved the
National government e-servicesPlan comprising
of27MissionModeProjectsand8componentson
2006.In2011,4projects-Health,Education,PDS
andPostswereintroducedtomakethelistof27
MMPsto31MMPs.No.ofe-servicesrolledoutfor
citizen participation is widely different across
states. In Andhra Pradesh, the leading state in
governmente-servicesinitiativeshasabout261e-
services rolledout forparticipation, followedby
Telangana,GujaratandMadhyaPradeshthathave
morethan200e-servicesrolledout.[Figure20]
Government E- Services Index 29
Manipur
14.4
Gujarat
20.545.7
Himachal Pradesh
Lakshwadeep
22.5
Maharashtra
25.6
TOP 3 LARGE STATES
TOP SMALL STATES/UT TOP NORTH EASTERN STATE
Source:DepartmentofInformation&Technology(AccessedfromIndiastat)
3.07
Haryana
1.75
Jammu & Kashmir
Lakshwadeep
0.31 5.16
Sikkim
1.24
Assam
TOP 3 LARGE STATES
TOP SMALL STATES/UT TOP NORTH EASTERN STATE
Figure19B:ExpenditureIncurredPerCsc(inRsCrores)
Source:DepartmentofInformation&Technology,ETAAL
224
Telangana
209
Gujarat
83
Delhi Tripura
68
TOP 3 LARGE STATES
TOP SMALL STATES/UT TOP NORTH EASTERN STATE
261
Andhra Pradesh
Figure20:No.ofE-services
Source:DepartmentofInformation&Technology,ETAAL
Figure19A:CommonServiceCentresPerLakhPopulation
Index
Internet-Readiness
Internet readiness index isa composite indexof four
c omponen t s , i . e . , E - I n f ra s t r u c t u re I ndex ,
E -Part ic ipat ion Index , IT-Environment and
GovernmentE-ServicesIndex.Allthefourcomponents
haveequalsigni�icanceintheinternetreadinessindex
model.
Therankingofthestatesbasedoninternetreadiness
indexdependsonseveralfactors.Thedrivingfactorsof
each state differ from others. For instance, in
Maharashtra,thoughe-infrastructureisrelativelylow
comparedtoKerala,KarnatakaandGujarat, thestate
surpassesothersonallothercomponentsmakingitthe
toprankede-readystate. Furthermore,inthecaseof
Karnataka, the participation of citizens in the ICT
environmentislowerthanthatofKeralaandGujarat,
yetthestatemakesittothesecondspot,primarilyon
account of high contribution of IT to the overall
economyandthesuccessofe-government initiatives.
Likewise,MadhyaPradesh, thoughhasahighrankin
terms of e-participation, ranks lowly on all other
components.
Internet-Readiness
Internet-Readiness Index 30
LargeStates
l Karnataka ranked second in terms of internet
readiness is also known as the Silicon State of
India.Itisoneofthemostattractivedestinations
forITbusiness.MostoftheITstart-upsinIndiais
concentrated in Karnataka. Karnataka IT policy
offersseveralincentivesforcompaniesthathelps
tocreateemploymentinInformationTechnology.
Concession bene�its in terms of areas of cost of
land, registration charges, zonal regulations etc.
are given to the companies that provide
employmenttomorethan200inBangaloreand
100inotherareas
l Maharashtra and Kerala with a similar level of
performance hold the third and fourth rank in
terms of internet readiness index . The
government e-services initiatives in the state of
Maharashtraarewidelyacknowledgedandhave
been awarded at various e-government related
KeyHighlights
forums and competitions (Directorate of
Information Technology, Govt. of Maharashtra).
Theoutcomeoftheinitiativesisseeninthehigh
indexation of Maharashtra in terms of internet
readiness.Keralathethirdrankedstateintermsof
internetreadinessindexisgallopingfastintheIT
service sector. According to the Industries-IT
Minister P.K. Kunhalikutty, Kerala is all set to
becomeanaggressiveandcompletee-statesoon.
ITpolicyinitiatedin2012hasbroughtinseveral
positivesteps.Severalincentivesandconcessional
powertariffweregiventoIT/ITESunits,Govt.IT
Parks,Akshayae-Centers.Speci�ic ICTPrograms
weredevelopedtocatertotheneedsofdifferent
sectionsofsociety.
l Tamil Nadu, Punjab, Gujarat, Telangana, and
Haryana are the aspirerswith their index value
higherthantheaverageindexvalueofallstates.
Severalinitiativeshavebeentakenbythestatesin
thisdirection.
Arunachal Pradesh
Nagaland
Meghalaya
Manipur
MozoramTripura
I N D I AInternet-readiness Index
Legend
E-Infrastructure Index
Low(Upto0.28)
Medium(0.28-0.53)
High(0.53-0.76)
VeryHigh(MoreThan0.76)
Puducherry
Goa
Lakshadweep
Jammu & Kashmir
Himach Pradesh
Punjab Chandigarh
Haryana
Delhi
Uttarakhand
Rajasthan Uttar PradeshAssam
Sikkim
Bihar
West BengalWest Bengal
Jharkhand
Odisha
Chandigarh
Madhya PradeshGujarat
Maharashtra
Telangana
Andhra Pradesh
Karnatka
Tamil NaduKerala
Top 5 Large States
1. Karnatka2. Tamil Nadu3. Kerala4. Maharashtra5. Punjab
Top 3 Small States / Uts
1. Delhi2. Chandigarh3. Puducherry
Top 3 North-Eastern / States
1. Nagaland2. Manipur3. Tripura
Andaman & Nicobar Islands
Source:EstimatesusingNielsen(India)
Figure21:Internet-readinessIndex
Internet-Readiness Index 31
Maharashtra • Ranked4thininternet • Themajorhighlightsofthe • Thestrategic readiness2016,down MaharashtraIT/ITeS driversfortheIT threespotsfromthe policy2015are: &ITESPolicy previousreport • Aimsatmakingthestatean providedirection • Maharashtraranks IT,animationandgaming totheState's secondinthecountry industryhubbyattracting commitmentto fortheexportsofIT Rs.50,000croreof createlong &ITES investmentandcreating termassets • LasttwoITpoliciesof 1millionjobsby2020. throughan statein2003and2009 • Promotesawalk-to-work expanding hadplayedimportant conceptbyproposingthe talentpool, roletoattractinvestment constructionofintegratedIT extensiveIT of3.24trillionrupees townshipsalongwith infrastructure andhadcreated465 residentialapartmentsand andathriving privateand37publicIT socialinfrastructuresuchas cultureof parksalongwith schools,hospitals, innovationand 748,000directjobs multiplexes,mallsand entrepreneurship • Maharashtraisthe parksetc. largestmarketforIT • Severalincentivesand hardwareandinternetin concessionsaregivento India promoteITParks
Karnataka • Leaderininternet • ThecurrentICTPolicyinthe • Thestrategic readiness,mainlydueto stateis'ICTPolicy-2015' driversofIT thebestITenvironment • Themajorhighlightofthe policyisto amongsttheIndian policyis: createatalent states. • SettingupofResearchhub poolanddevelop • Bangalore,thecapital toencourageentrepreneurs ITR&D. cityisacknowledgedas andstart-upcompanie • Toenable the'ITCapitalofIndia’ • Innovationarktobesetup Karnatakaasthe • TheITpolicyofthestate fortheMSME's mostpreferred
State CurrentStatus NewPolicyinitiatives Direction
Chandigarh is ranked second in both e-
infrastructure and e-participation. Puducherry
ranks after Chandigarh in measures of e-
infrastructureindex.
NorthEasternStates
o Nagalandtopsthelist,closelyfollowedbyManipur
and Tripura. Nagaland leads in IT environment
andperformsmoderatelywellinothercategories
togettothetop.
Each l ead ing s ta te has i t s own un ique
characteristicwhichmakesitstandabovetherest.
For instance, Maharashtra is the onewith the
largestmarketforIThardware,Karnatakaisatthe
forefrontinITservices,Keralaistheforerunnerin
the adoption of IT services and Gujarat is the
favouritedestinationforinvestment.Asummary
ofITpoliciesdrivingthestatetoane-readysociety
isgivenbelow.
SmallStatesandUTs
· Delhiisatthetop,evenwhenconsideredamongst
allthestatestogether.Infact,TheGovernmentof
NCT of Delhi have taken various steps to bring
openness and transparency in providing citizen
friendlyservices.Itinitiatedthefollowingaction
withemphasison“preventivevigilance”
l To set up a dynamic website leading to
government e-services for departments or
agencies
l Toprovideonlineservicesincludingservicesone-
applications
l To reduce citizen's visit to of�ices and provide
information electronically rather than over the
counter
l MakingDelhiacybercity
l DelhiisfollowedbyChandigarhandPuducherry
Internet-Readiness Index 32
helpedinthegrowthof • Incentivesfor destinationsfor ITindustries.Increased export-orientedenterpris MicroSmalland computerliteracyandIT Meduim penetrationthrough Enterprise Yuva.comCentres, Computerlabsingovt. schools,capacity buildingininstitutesof higherlearning,setting upofInternational InstituteofInformation Technologyat BangaloreandHubli wasinstrumentalin helpingthegrowthof ITindustry • TheITindustryinthe statehasemergedas oneofthelargestjob providingsector.The industryprovidesdirect employmenttoovera millionandindirect employmenttomore than1.5person
Kerala • Ranked3rdininternet • TheKeralaTechnology • Themajor readiness,primarilydue Start-UpPolicywas strategicdriver tothe2ndrankin declaredin2014 ofthepolicyisto e-infrastructureand1st • Thekeyhighlightsofthe developKerala ine-participation. policyare: astheNo.1 • Keralahasbeenthe • Governmentwillprovide Destinationin forerunneramongthe coreinfrastructurelikeplug IndiaforStartups statesofIndiainthe andplayincubationfacilities andamongstthe adoptionandapplication indifferentsectorsand top5startup ofICTservices/support differentlocationswithin ecosystemsin toitscitizenorenabling thestate theworld smootherfunctioningof • AllGovernmentownedIT thebusinesscommunity Parks,IndustrialParksand • ThebasicICT SMEClustersshallhave infrastructure,viz,State incubationfacilityforthe DataCentre,Kerala sectorsconcerned. StateWideArea • Thegovernmentwouldwork Network,MobileService withuniversities,educational DeliveryPlatforms, institutionsandtheindustry Akshaya,withitsinitial toprovidepre-trained emphasisonbridging manpowerinemerging thedigitaldividethrough technologiesandtofostera e-literacyprogramsand cultureofentrepreneurship callcenters inallsectors
Gujarat • Gujaratisranked6th • ThecurrentITPolicyofthe 1.Toincrease overall.Itgetsrank2in stateisthe'ITPolicy: thecurrent
State CurrentStatus NewPolicyinitiatives Direction
Internet-Readiness Index 33
governmente-services 2016-21' investmentin andrank3in • Thekeyhighlightsof IT/ITeSsectorby e-participation. thepolicy: 10times. • Gujaratisoneofthe o TheGovernmentwillduly 2.Toincreasethe moste-governedstates facilitateallotmentofland turnoverupto inthecountry forIT/ITeSunits/parks USD15Bn. • Gujarathasanumber investingintheState. 3.ToincreaseIT ofvibranttierIIcities IncentivesforITandItes exportsfromthe withadvantageslike parksintheformofcapital StateuptoUSD availabilityofskilled subsidy,registration/stamp 2Bn. resources dutyconcession,incentive 4.Topromoteand onpowertariffand develop electricityduty. employment o IncentivestoIT/ITeSunitsin opportunitiesin theformofcapitalsubsidy, theITandITeS registration/stampduty Sectorand concession,leaserental providedirect subsidy,interestsubsidy, employmentto VAT/CST/GSTincentive, 10lakhpersons. employmentgenerationvia 5.Tofocus,inter EPF,patentassistance, alia,onFinancial incentiveonpowertariffand Services,Mobile electricityduty.Etc.. Applications, Animation,3D- Gaming,Digital Entertainment, Cloud,Big-data andInternet- of-things.
Delhi • DevelopmentofIT • ThecurrentITPolicyofstate
infrastructureand is–ITPolicy2003'
promotinggovernment • Thenewpolicyis
e-serviceshasbrought beingdrafted
enormousbene�itsto
thepeopleofDelhi
• 'TeachtheTeachers'
Programmefor
upgradingtheIT
knowledgeandskills
hasbeenacatalystfor
thestatedevelopment
Puducherry • Puducherryhas • ThecurrentITpolicyofthe • Themajor emergedasahardware stateis'ITPolicy-2008 strategicdriver destinationofIndiaand • Increasethenumberof ofthispolicyis alsoacentreforIT registrationofITcompanies thatthe investmentin by50% government ITservices • Achieve100%ITliteracyin wouldmaximize • Amulti-productSpecial schoolsandcolleges theuseof EconomicZoneat • Allgovernmentdepartments technologyinall Sedarapet,ITParkat tobecomputerizedand itsprocesses. Kalapet,provideworld networked
Internet-Readiness Index 34
State CurrentStatus NewPolicyinitiatives Direction
classinfrastructureand • Everygovernmentemployee businesssupport toreceivetraininginbasic facilitiesfor ITusage IToperations • Increaseofatleast50%in earningsinforeignexchange • Increaseinemploymentby atleast50%inITsector
Chandigarh • RajivGandhi • ThecurrentITPolicyofthe • Themajor
ChandigarhTechnology stateis–'ITPolicy-2013. strategicdriver
Parkwhichstartedin Themajorhighlightsof ofthepolicyisto
2005hasemergedasa thepolicyare: improvethe
majorcentrefor • Enablingservicedelivery environmentfor
ITexportsfrom throughgovernment theITandITeS
theregion. e-servicesand industryby
• RGCTPpresentlyhosts m-governance givingseveral
around70companies • Creationofnextgeneration incentives.Also
fromtheITworldand ITinfrastructure toenhance
providesdirect • Toenhancetheavailability availabilityand
employmenttomore andqualityoftalentpoolof qualityoftalent
than20,000persons. ITprofessionalservices poolofIT
RGCTPitselfgenerates • TosupportMSME'sto professionals
exportsofaround establishandgrowin
Rs1750Crores variousverticalsofthe
annually.Chandigarh, ITindustry
asawhole,hasexports
ofaroundRs1850
Croresannually
Telangana • Telanganais4thin • ThecurrentITPolicyofthe • Toemergeasa
termsofITinfrastructure stateis'ICTpolicy rolemodelfor
and2ndintermsof framework2016'.The smartgovernance
e-participation. highlightsare: inthedeliveryof
• Creationofaclusterforthat citizenservices
initiative(Ex:GAMEpark, • Toposition
DataAnalyticspark,Data Telanganaasa
Centercampusetc.) leadingglobal
• Creationofspecialized hubfor
wingswithintheITE&C entrepreneurship
Departmenttofocus andinnovation
exclusivelyonspeci�icareas • Totransform
(Ex:PhotonicsValley Telanganainto
Corporation). themostpreferred
• Developmentofthematic destinationfor
trainingandinnovation ITcompanies
centersandCentersof • Toempower
Excellence(Ex:IoT citizensinutilising
InnovationCenter) emerging
• Thegovernmentwillalso opportunitiesinthe
notifyadditionalincentives digitalworld
forcompaniesthattakeup • Toestablishstate
Internet-Readiness Index 35
State CurrentStatus NewPolicyinitiatives Direction
R&Dandproduct astheleaderinkey
Developmentinthese emerging
emergingareas.
• Attractivebene�itsand
incentiveswillbeprovided
tothe�irst
fewanchorclientsforeach
oftheseareas.
TamilNadu • TamilNaduranks2ndin • TheICTpolicyofTamilNadu • TamilNadushall
internetreadiness,3rd is8yearsold.Thepolicy betheICTHub
inE-infrastructureand wasunveiledin2008-09. ofSouthAsiaby
ITEnvironment. creatinga
knowledge
driven
ecosystem,
leveraging
entrepreneurship
andpromoting
sociallyinclusive
growthto
achievea25%
productionshare
oftheIndian
ICTindustry.
Bihar • Biharisoneofweak • TheICTPolicywasunveiled • Toendeavourfor
statesininternet in2011. rapidexpansion
readiness,andneedsto andgrowthof
pullupsigni�icantlyto knowledge
beabletocompetewith basedeconomy
theotherstates. inthestate.
• Tobridgethe
digitaldivide
whichseparates
thecitizenin
urbanareasfrom
thoseinrural
areasby
creatingan
unparalleledIT
infrastructure&
deliveronline
servicestoevery
citizeninthestate
• TomakeBihar
thenext
destinationof
investmentin
theIT/ITES/EHM
industriesand
Internet-Readiness Index 36
State CurrentStatus NewPolicyinitiatives Direction
fuelthe
developmentof
thestate
• TomakeBihar
thefrontrunner
stateingood
governance
throughICT
(Informationand
Communication
Technology)
enablement.
UttarPradesh • UttarPradeshranks • Thepolicyiscalled • TouseITasa
14thininternet 'InformationTechnologyand vehiclefor
readinessamongst Start-upPolicy2016' economic
largestates.Itranked • Thepolicyshallbe developmentof
7thinITinfrastructure. implementedbasedona4 UttarPradesh
pointstrategy– withinclusive
ITinfrastructure growthtocreate
development,Human avibrantsociety
Capital/SkillDevelopment, withahigh
Incentivesand qualityoflife.
IndustryFacilitation.
Punjab • Punjabranks5thin • Thenewdraftreportonthe • Makeall internetreadiness,1st newICTpolicyisyet-to- Government ine-infrastructure,6th unveiled.Thepolicy services ine-participationand highlightsare(nospeci�ics): accessible24x7 5thingovernment • Toredesigngovernmental tothecommon forms,processesand manat structurestomakethem affordablecosts adaptabletoe-Governance andinhassle • Alltheof�icesofthePunjab freemanner,and Governmenttobe ensure inter-connected ef�iciency, • Each&everyGovernment transparency& employeeoftheStateshall reliabilityofsuch beICTtrained services. • ThePolicyaimstomaintain andstrengthenthe leadershipoftheStateinthe areaofe-Governanceand takeittowardscitizen centrice-Governance. • Thepolicywouldenable Governmenttofunction moreef�icientlyand effectivelyandmove towardsaless-Paper environment.
Source:FieldvisitsbyNielsenandstategovernmentwebsites.
Internet-Readiness Index 37
State CurrentStatus NewPolicyinitiatives Direction
Internet-Readiness
The above discussion on internet readiness index
bringsintofocussomeinterestinginsights.Thecrucial
dr ivers o f in ternet read iness index are e -
infrastructure, e-Participation, IT environment and
government e-services. However, government e-
services initiatives cannot harness bene�its unless
people have access to the network tools (e-
infrastructure) and the skills to participate in an e-
ready environment (e-participation). Therefore, an
important pre-requisite of an e-ready society is
developed IT infrastructure, honed skills to use IT
infrastructure and ability to utilize the government
initiatives.
Maharashtra, Karnataka,Delhi andTamilNaduhave
beenthebestperformingstates,howeveronemustnot
forgetthatthereasonsfortheirgoodperformancelie
inthepoliciesthattheyhaveenactedonaregularbasis.
Whilemost of the states do have an ICT policy, the
successliesinthesuccessfulimplementationofthese
policiesalongwitharegularreviewcyclethatkeeps
theprogressincheck.Thefollowinglistbasedonthe
policies of successful states can serve as a broad
roadmapfortheweakstates:
a. Aclear ITpolicyplanthatgetsupdatedevery
couple of years , so as to address the
shortcomings and promote the policies that
seemtobebearingfruits.
b. A regular review to see where the objectives
standtoensurethattheprogressisunderway.
c. Tohaveametricstomeasuretheperformance.
Thisisthemostcrucialofthelot.Whileitiseasy
tosaythataparticularstatewantstobecome
theIThubby2020,itisdif�iculttoputaroad
maptoitwithregularcheckpoints.
d. Beasobjectiveaspossible,morepreciseinstead
of vague statements. The policy statements
shouldreadlike“toachieveFDIworth$3million
by 2020” rather than “become the most
preferred FDI destination”. The former
statement ismore likely toact asbenchmark,
whilethelatteroneisopentointerpretations.
e. Aclearcutdemarcationofresponsibilitiesand
powers is necessary to ensure accountability.
Peopleresponsible forachievingcertaingoals
should provide a roadmap, and a proper
explanationiftheobjectivesarenotmet.
While it is important that the governments take
initiativestoeasetheaccesstopublicservicesforthe
citizens,itisequallyimportantthatsuchinitiativesare
takeninthelanguagethatthecitizensunderstand.For
example:apersonwhosenativelanguageisKannada
anddoesn'tspeak�luentEnglish,mustbeabletoaccess
websitesandapply forprovisions/connectionswith
equal ease. This forms one pillar for inclusive
development.Tounderstandwherestategovernments
standonthismeasure,thewebsitesofdifferentstate
governmentswererandomlyvisited.It'slaudablethat
mostwebsitesareavailablebothinEnglishandinthe
locallanguage.Whilethishasbeenalowhangingfruit
for most of the governments, there were initial
scepticalabouttheapplicationformsetc.thataremost
oftenthannotentirelyinEnglish.Theresearchteam
visitedwebsites(ofpublicservicessuchaselectricity
connection, water connection etc.) of Maharashtra,
Karnataka,Assam,Gujarat,Punjab,UttarPradeshand
Tripura. Theydownloaded forms randomly to check
whetherthecontentisavailableintheirlocallanguage
ornot.Thestudyfoundthattheformsareavailablein
thelocallanguageandEnglish.Thisisawelcomestep
thatwillensurethatthemassesgetaccesstoservices
online in their local languages that they understand
andcomprehend.
Internet-Readiness Index 38
IndexCore Internet
The internet readiness index captures the digital
preparednessandpotentialof thestatesbasedondifferent
metrics.Theindexisusefulinprovidingasenseofthestatus
quo of the states vis-a-vis each other. While the internet
readinessindextalksaboutthestatesinaverybroadsense,it
wasfeltthatanotherindexisrequiredthatprovidesasharper
perspective.Forexample:acompanyundergoingexpansion
wouldbeinterestedinknowingwhichstates/citiesofIndia
are ready to support/deliverdigitally.Withmoreandmore
start-ups focussing on the sharing economy and the
government'sstressontheuseoftechnologytodeliverbetter
services, it is crucial that before a company expands they
shouldbecognizantofwhattheyaregettinginto.Whilethere
aremultiplefactorsthathelpdecidethecompaniesontheir
expansion,internetinfrastructureisincreasingly
becoming an indispensable factor. The Core
Internet Index provides the �irst �ilter while
scanningforpotentialplacesforexpansion.
TheCore Internet indexcombines thevariables
already used in the sub-indices. The variables
used are a) mobile subscribers (a proxy for
existingconsumers),b)thepercentageofschools
with computer facility (a proxy for potential
consumers), c) the number of e-transactions in
business to citizen services (a proxy of current
magnitude of the e-commerce sector), d) the
number of e-transactions in statutory andnon-
statutoryservices(aproxyof internetadoption
rate),e)thenumberofFacebookusers(aproxy
for the regular users of the internet), f ) the
numberoftechnicalworkers(aproxyforsupport
staffavailable),g)thetotalnumberofe-services
(aproxyforthescaleofe-services),h)operational
CSCs (a proxy for government support), i) the
number of Aadhar card issued (a proxy for
government openness). All the variables were
standardisedtoensurethatthecomparisonsare
meaningful.
TherankingofthestatesonthebasisoftheCoreInternetIndexis:
Keralatopsthelistforthelargestatesprimarilyduetothehighest%ofschoolswithcomputerfacility,thehighestnumberofstatutoryandnon-statutoryservicesper100population,thehighestnumberofe-servicesper100populationandthehighestnumberofAadharcardsissued.Biharliesatthebottomendofthelist.Amongstthesmallstates/UTs,DelhitopsthelistfollowedbyChandigarh.IntheNorthEasternstates,Meghalayatopsthelist.
LargeStates
Kerala Himachal Pradesh Gujarat
Telangana AndhraPradesh Punjab
Maharashtra MadhyaPradesh Uttarakhand
TamilNadu Haryana Jammu&Kashmir
Karnataka Rajasthan Chhattisgarh
Odisha Jharkhand UttarPradesh
WestBengal Bihar
SmallStates/Uts
Delhi
Chandigarh
Lakshadweep
Daman&Diu
Puducherry
Andaman&NicobarIslands
Goa
Dadra&NagarHaveli
NorthEasternStates
Meghalaya
Nagaland
Sikkim
Mizoram
ArunachalPradesh
Tripura
Manipur
Core Internet Index 39
ConclusionInnutshell,thereportdrawsacomparisonbetweentheIndianstatesin
termsofinternet-readiness.Thisreportdivesdeepertounderstandthe
contribution and the current status of the Indian states in terms of
internet-readiness.SomeofthestatessuchasDelhi,Maharashtraand
Karnatakaarealreadyquiteadvanced,theotherstatessuchasBihar
andChhattisgarhneedsubstantialimprovement.
Inthisstudy,Internetreadinessindexismeasuredbyaggregatingfour
broad dimensions, viz., e-Infrastructure, e-Participation, IT
environment and government e-services. Each of these broad
dimensionsisacombinationofseveralrelevantsub-dimensions.
Overall,e-participationisveryhighinmanystates(~8states)i.e.more
andmoreindividualsareinutilizingITservicesandparticipatinginan
ITenvironment.However,whenoneexplores thee-infrastructure in
thesestatesonlyKerala,PunjabandDelhiseemtobeperformingwell.
Not surprisingly, the IT sector is concentrated in a few states –
Karnataka,MaharashtraandTamilNadu,whiletheotherstates/UTslag
behind.Notably,governmente-servicesarehigh/veryhighinalmostall
thestates,barringJ&Kandthenortheasternstates.
Major�indings:
a. Delhioccupiesthe�irstrankintermsofinternetreadinessindex,
notonlyamongstsmallstatesandUTsbutalsowhenallthestates
aretakentogether, followedbyKarnataka,Maharashtra,Kerala
andTamilNadu. Delhigetsthisrankprimarilybecauseofitstop
performanceine-infrastructureande-participationindex.Ithas
thehighesttele-density(238per1000population),thehighest
numberofmobilesubscribers(192per100population)andthe
highestrevenuepersubscriber(Rs200permobilesubscriber).
b. AmongstsmallstatesandUTs,Chandigarhgetsthesecondspot
withPuducherryaclosebehind.LikeDelhi,Chandigarhperforms
extremely well on two indices – e-participation and e-
infrastructure.
c. Nagalandparks itselfat thetopwithatoughcompetitionfrom
ManipurandNagaland.
Conclusion 40
AppendixDATACOLLECTIONANDANALYSIS
MethodofDataCollection
AnexhaustivesecondaryresearchwasconductedtocollectinformationrelatedtointernetreadinessofIndia.Basicdata
hasbeensourcedfromallof�icialgovernmentsourcessuchasTelecomRegulatoryAuthorityofIndia(TRAI),Department
of Information,CommunicationandTechnology,District InformationSystemforEducation(DISE), IndianCensusetc.
However,afewcriticalindicatorsthatwereessentialforevaluatingthequalitativeaspectofinternetreadinessofastate
couldnotbeobtainedfromsecondarysources.AnattemptwasthereforemadetocollectinformationfromtheStateIT
of�ices.
InformationCollectedfromSecondarySources
Table6providesinformationabouttheseriescollectedfromsecondarysources:
Table6:Indexparameters,theirsourcesandtheirlatestyear
Measure Source Year
Tele-Density TRAI 2015
Mobilesubscribersperpersonabove15yearsofage COAI 2015
Numberofinternetserviceproviders TRAI 2016
Mobilesubscriberswithinternetaccessperpersonabove15yearsofage TRAI 2015
Percentageofschoolswithcomputerfacility DISE 2014-15
Numberofpostof�icesunder'ProjectArrow'–postof�icesthatremodernized IndiaStat 2015andenabledwithITservices
Publicwi-�ihotspots IndianExpress 2016
RatioofNumberofadultscompletedprimaryorhigherlevelofeducationtototalpopulation AISHE 2014-15
Averagerevenueperuseronmobileservices COAI 2015-16
No.ofe-transactionsinUtilityBillpaymentsperlakhpersonabove15years eTAAL 2015-16
No.ofe-transactionsinBusinesstoCitizen(B2C)Servicesperlakhpersonabove15years eTAAL 2015-16
No.ofe-transactionsinInformationalServicesperlakhpersonabove15years eTAAL 2015-16
No.ofe-transactionsinStatutoryandNon-Statutoryservicesperlakhpersonabove15years eTAAL 2015-16
FacebookUsers Facebook 2015-16
No.ofITcompaniesper'000population NASSCOM 2015-16
RatioofITWorkerstoTotalWorkers MinistryofLabourandEmployment 2013-14
Numberofdigitalstart-ups NASSCOM 2015
Numberofdigitalstart-upincubators DepartmentofInformationandTechnologye 2015
%ofKiosksinstalledunderRuralWirelineBroadbandSchemeinIndia IndiaStat 2014-15
ExpenditureIncurredonOperationalCommonServiceCentersperperson DepartmentofInformationandTechnology 2014-15
No.ofe-servicesrolledoutforcitizenparticipation eTAAL 2015-16
NumbersofCSCs DepartmentofInformationandTechnology 2014-15
Appendix 41
Abriefdescriptionofthedifferentsourcesofdataused
isgivenbelow:
a. Telecom Regulatory Authority of India (TRAI,
http://www.trai.gov.in):TRAIwasestablishedwith
effect from 20th February, 1997 by an act of
parliament, called the Telecom Regulatory
Authority of India Act, 1997 to regulate telecom
services, including �ixation/revision of tarrifs, for
telecomserviceswhichwere earlier vested in the
centralgovernment.TheannualreportofTRAIgives
state level details of tele-density, broadband and
narrowbandsubscribersatthecirclelevel
b Electronic Transaction Aggregation and Analysis
Layer (eTaal; Department of Electronics and
InformationTechnology,http://etaal.gov.in):eTaal
isawebportal fordisseminationofe-Transaction
statistics of National level and State level
government e-services projects including Mission
ModeProjects.Itreceivestransactionstatisticsfrom
web based applications periodically on near real
time basis. eTaal presents quick analysis of
transaction counts by various government e-
servicesprojects.
c. All India Council for Technical Education (AICTE;
http://www.aicte-india.org): All India Council of
TechnicalEducationwassetupinNovember1945
asanational levelApexAdvisoryBodytoconduct
surveyonthefacilitiesontechnicaleducationandto
promote development in the country in a
coordinated and integratedmanner. It gives state
level reports on annual intake in technical
education.
d. National Association of Software and Service
Companies (NASSCOM; http://www.nasscom.in):
NASSCOM is a trade association of Indian
InformationTechnology(IT)andBusinessProcess
Outsourcingestablishedin1988.Thesurveybased
data of NASSCOM collects �inancial and other
information from its member companies and the
participatingcompanies.
e. District Information System for Education (DISE):
This is the only comprehensive database on
elementaryeducationinIndiawhichiscreatedby
theNationalUniversityofEducationalPlanningand
Administration with the �inancial support of
UNICEF.Thesurveycollectsinformationfromboth
primaryandupperprimaryschoolsofalldistrictsin
the country. In this analysis data on schoolswith
computerfacilityisused
f. Census of India, 2011: Census of India provides
detailed information on demography, economic
a c t i v i t y, e d u c a t i o n a n d o t h e r h o u s i n g
characteristics.TheOf�iceoftheRegistrarGeneral
and Census Commissioner, India under the Union
MinistryofHomeAffairsisthenodalauthorityfor
conductingdecennialCensusinthecountry.Dataon
internetpenetration isused fromCensusof India,
2011.
InformationCollectedfromStateITof�ices
States ITof�iceswerevisited inorder to collectboth
quantitative and qualitative information related to
internetreadiness.
A. QuantitativeInformation
• No.ofITParks
• EmploymentinITparks
• No.ofDepts.havingweb-siteinlocallanguages
• ExpenditureorBudgetdocumentofITdept.
• Apps launched by state governments for
consumerinterest
• Canyoupleaseprovidedatathatcanmeasurethe
successofNationalgovernmente-servicesPlan
• No. and percentage of Urban local bodies
completelycomputerized
• Percentageofsuccessesintrackingcrimesunder
the Crime and Criminal Tracking Networking
System (A scheme approved by the Cabinet
CommitteeonEconomicAffairsinJune,2009)
• No.andpercentageofPanchayatRajInstitutions
fullycomputerized
• No. of districts bene�itted by e-District project
(oneof31missionmodeprojectsunderNational
governmente-servicesPlan)
• No. and percentage of Road Transport Of�ices
computerized
• Howmanypostof�icesareconvertedintomulti-
service centres as per the e-Kranti digital
programmeoftheGovernment?
Appendix 42
B.QualitativeInformation
• WhenwastheICTPolicyinitiated?Howoftenis
theICTpolicyamended
• Is there any institutional mechanism to
implementandreviewprogressofICTpolicy
• PleaseshareadetaileddocumentonICTpolicyof
yourstate
• Any new initiative undertaken to promote
internetreadinesssince2013
• Pleasesharedocumentsshowcasingthesuccess
ofyourstateinthe�ieldofinternetreadiness
• State speci�ic policies to promote research in
electronicsandIT/ITeS
• State speci�ic policies to encourage set up of
digitalstart-up.
• Informationcontentavailableinlocallanguage.
Multiple attempts were made to collect information
fromallstates,particularlyforquanti�iableindicators.
Unfortunately,many states reported that theydonot
maintainanyrepositoryforsuchinformation.However,
qualitativeinformationcouldbeobtainedfrommostof
thestates.
Table7A:Parametersofthee-InfrastructureIndex
State TeleDensity MobileSubscribers No.ofinternet No.ofmobile NumberofPost %ofschoolswith (Telephone permillionpopulation serviceprovidersper subscriberswith Of�icesModernized computerfacility connectionsper inagegroup15-60 millionpopulation Internetaccess andUpgradedunder thousandpopulation) permillionpopulation ProjectArrowLook inagegroup15-60 andFeelActivityin Indiapermillion population
LargeStates
AndhraPradesh 49.08 60.63 21.00 29.54 2.29 0.30Assam 53.95 47.97 13.00 33.77 1.54 0.08Bihar 51.20 42.43 9.00 25.44 0.78 0.05Chhattisgarh 60.25 40.48 12.00 37.79 1.63 0.09Gujarat 95.61 72.7 70.00 39.69 1.84 0.73Haryana 82.67 50.76 20.00 47.73 2.04 0.44HimachalPradesh 114.52 75.07 23.00 47.26 6.16 0.22Jammu&Kashmir 76.93 57.03 11.00 44.55 2.73 0.16Jharkhand 51.20 42.62 9.00 25.44 0.78 0.09Karnataka 97.54 60.60 8.00 50.17 2.09 0.30Kerala 95.41 65.86 20.00 57.29 3.55 0.93MadhyaPradesh 60.25 40.69 0.00 37.79 1.64 0.13Maharashtra 80.75 53.48 9.00 38.64 0.21 0.51Odisha 66.85 46.71 12.00 34.83 2.43 0.11Punjab 103.79 69.17 15.00 62.5 52.69 0.52Rajasthan 77.76 60.46 13.00 34.48 2.76 0.23TamilNadu 117.52 63.39 24.00 47.75 3.19 0.54Telangana 49.08 60.26 20.00 56.33 2.28 0.50UttarPradesh 60.51 49.42 8.00 30.27 0.84 0.11Uttarakhand 60.51 49.39 22.00 30.27 0.83 0.32WestBengal 105.00 43.21 7.00 45.01 1.39 0.11
SmallStates/UnionTerritories
Andaman&NicobarIslands 105.00 43.68 6.00 45.01 1.40 0.53Chandigarh 82.67 51.11 0.00 47.73 2.05 0.96Dadra&NagarHaveli 95.61 68.78 0.00 39.69 1.74 0.36Daman&Diu 95.61 68.26 0.00 39.69 1.73 0.58Delhi 237.991 91.78 9.00 51.55 4.81 0.82Goa 80.75 54.34 30.00 38.64 0.21 0.39Lakshadweep 95.41 66.06 13.00 57.29 3.56 1.00Puducherry 117.52 61.88 0.00 47.75 3.11 0.96
NorthEasternStates
ArunachalPradesh 77.00 60.46 6.00 39.10 7.62 0.24
Appendix 43
Table7B:Parametersofe-ParticipationIndex
Manipur 77.00 61.66 35.00 39.10 7.77 0.25Meghalaya 77.00 60.68 8.00 39.10 7.64 0.08Mizoram 77.00 61.00 7.00 39.10 7.68 0.32Nagaland 77.00 63.19 6.00 39.10 7.96 0.35Sikkim 105.00 42.06 0.00 45.01 1.35 0.53Tripura 77.00 61.89 0.00 39.10 7.80 0.11
State No.ofEnrolledin No.ofFacebook AverageRevenue No.ofe-transactions No.ofe-transactions No.of
MA/M.Phil./PHD usersper100 perMobile inutilitybill ininformational e-transactionsin
per'00personinthe population Subscriber payments-Interactive servicespermillion businesstocitizen
agegroup20-35 Servicespermillion population servicespermillion
years population population
LargeStates
AndhraPradesh 483.00 16.96 235.16 219331.53 106160.64 67518.33Assam 205.17 5.63 161.43 17.65 2401.54 64389.32Bihar 107.19 2.28 103.45 7.61 3081.09 41834.73Chhattisgarh 195.06 3.87 119.86 87880.77 1001427.11 349155.82Gujarat 214.73 10.00 256.10 757438.22 2690557.51 26073.49Haryana 331.06 12.72 169.88 120982.93 10093.74 32588.92HimachalPradesh 408.27 14.52 257.97 522479.87 27847.81 67036.04Jammu&Kashmir 537.10 9.86 273.96 0.76 16367.29 19366.76Jharkhand 125.17 4.04 103.92 366.42 10077.91 93444.36Karnataka 364.26 11.74 303.48 560961.97 17116.38 69668.26Kerala 337.15 16.51 410.07 142336.43 1299790.10 18990.92MadhyaPradesh 286.69 5.56 120.46 57268.27 447103.74 552418.70Maharashtra 365.25 14.59 203.90 12252.52 22874.72 27512.17Odisha 114.83 5.04 111.05 4989.36 459595.47 54912.12Punjab 380.75 14.38 346.63 41704.14 206670.33 28585.43Rajasthan 246.96 6.87 200.59 178125.13 13921.29 85982.36TamilNadu 660.27 11.49 301.68 242986.87 1133632.39 20841.51Telangana 616.78 20.90 297.97 479864.42 1512.43 51402.37UttarPradesh 203.69 4.36 142.60 22064.45 882365.17 33943.66Uttarakhand 574.30 14.05 142.52 49487.10 6836.21 34354.70WestBengal 196.94 7.17 94.74 143.34 1251126.68 63852.75
SmallStates/UnionTerritories
Andaman&Nicobar
Islands 493.84 7.84 95.76 75.86 0.00 17495.64Chandigarh 2064.40 51.90 171.07 1696832.26 90257.98 26234.38
Dadra&Nagar
Haveli 72.44 12.88 242.08 38477.42 2668.11 44751.19Daman&Diu 0.00 41.41 240.22 35429.78 214.67 19716.83Delhi 736.71 40.50 1076.05 636028.73 109315.49 24503.06Goa 485.56 8.93 98.54 0.00 5673.44 4421.35Lakshadweep 37.60 8.42 411.29 7772527.91 15293279.56 3293.45Puducherry 1188.21 16.70 294.52 32.01 37895.07 13284.48
NorthEasternStates
ArunachalPradesh 350.21 5.99 217.21 12.73 928.85 21909.24Manipur 247.76 9.56 221.52 343.66 5027.14 49440.03Meghalaya 242.22 7.37 218.00 16617.81 7622.01 1305042.00Mizoram 319.99 19.12 219.13 0.83 245.27 44695.85Nagaland 338.65 6.53 227.02 0.00 5773.19 16160.90Sikkim 768.00 19.76 92.22 0.00 6756.40 1756.54Tripura 207.84 5.66 222.35 39.14 86540.46 50303.43
Table 7C: Parameters of IT Economy Index
State No.ofITcompaniesregistered %ofTechnicalworkersoutof No.ofdigitalstartups No.ofstart-upincubators withNASSCOMperlakh Totalworkers population
LargeStates
AndhraPradesh 13.00 2.24 0.00 4.00Assam 1.00 2.51 0.00 2.00Bihar 1.00 2.24 0.00 4.00Chhattisgarh 1.00 2.81 0.00 1.00Gujarat 45.00 2.87 0.00 14.00Haryana 143.00 3.06 0.00 3.00HimachalPradesh 0.00 3.27 0.00 0.00Jammu&Kashmir 0.00 5.61 0.00 1.00Jharkhand 0.00 2.22 0.00 1.00Karnataka 406.00 2.53 1092.00 27.00
Appendix 44
Kerala 68.00 4.40 0.00 16.00MadhyaPradesh 23.00 1.81 0.00 3.00Maharashtra 338.00 3.32 714.00 17.00Odisha 7.00 2.17 0.00 6.00Punjab 6.00 3.11 0.00 5.00Rajasthan 13.00 2.41 0.00 6.00TamilNadu 275.00 2.21 252.00 61.00Telangana 0.00 2.24 336.00 15.00UttarPradesh 307.00 2.50 0.00 25.00Uttarakhand 6.00 2.34 0.00 4.00WestBengal 81.00 2.42 0.00 11.00
SmallStates/UTs
Andaman&NicobarIslands 0.00 7.64 0.00 1.00Chandigarh 13.00 8.19 0.00 0.00Dadra&NagarHaveli 0.00 1.62 0.00 0.00Daman&Diu 0.00 5.24 0.00 0.00Delhi 88.00 4.80 966.00 9.00Goa 2.00 10.80 0.00 5.00Lakshadweep 0.00 8.28 0.00 0.00Puducherry 2.00 2.84 0.00 0.00
NorthEasternStates
ArunachalPradesh 1.00 5.76 0.00 0.00Manipur 0.00 4.15 0.00 1.00Meghalaya 1.00 4.11 0.00 0.00Mizoram 0.00 4.11 0.00 0.00Nagaland 0.00 4.75 0.00 0.00Sikkim 0.00 4.18 0.00 0.00Tripura 0.00 3.85 0.00 0.00
Table7D:ParametersofGovernmente-ServicesIndex
State %ofTargetKiosksthatwere OperationalCSCs(Rural+ ExpenditureincurredperCSC No.ofe-services
installed Urban+IntegratedKiosks)
perlakhpopulation
LargeStates
AndhraPradesh 0.46 8.05 0.52 261.00Assam 0.31 11.59 1.24 65.00Bihar 0.46 7.09 0.42 57.00Chhattisgarh 0.61 11.17 0.28 127.00Gujarat 0.26 20.55 0.11 209.00Haryana 0.74 0.81 3.07 100.00HimachalPradesh 0.18 45.70 0.45 89.00Jammu&Kashmir 0.27 8.42 1.75 57.00Jharkhand 0.46 12.84 0.36 88.00Karnataka 0.89 1.37 0.00 92.00Kerala 0.97 5.85 0.07 190.00MadhyaPradesh 0.66 16.53 0.26 206.00Maharashtra 0.43 25.64 0.05 138.00Odisha 0.79 14.24 0.51 104.00Punjab 0.88 11.99 0.20 172.00Rajasthan 0.76 9.46 0.30 116.00TamilNadu 0.99 1.44 0.65 113.00Telangana 0.00 9.26 0.00 224.00UttarPradesh 0.00 8.15 0.22 164.00Uttarakhand 0.27 18.77 0.30 75.00WestBengal 0.11 6.49 0.53 114.00
SmallStates/UTs
Andaman&Nicobar
Islands 0.02 1.00 0.00 32.00Chandigarh 0.00 2.41 0.00 56.00Dadra&NagarHaveli 0.00 1.84 0.28 35.00Daman&Diu 0.00 0.32 0.00 62.00Delhi 0.00 0.49 0.00 83.00Goa 0.00 0.00 0.00 27.00Lakshadweep 0.00 22.56 0.31 32.00Puducherry 0.00 3.90 0.12 60.00
SmallStates/UTs
ArunachalPradesh 0.00 12.73 1.85 38.00Manipur 0.00 14.41 2.66 59.00Meghalaya 0.00 6.75 1.186 0.00Mizoram 0.00 11.30 1.56 47.00Nagaland 0.00 10.89 1.69 58.00Sikkim 0.00 4.65 5.16 30.00Tripura 0.00 3.69 1.68 68.00
Appendix 45
The Internet and Mobile Association of India [IAMAI] is a young and vibrant association with ambitions of
representing the entire gamut of digital businesses in India. Itwas established in 2004 by the leading online
publishers,but in the last13yearshascometoeffectivelyaddress thechallenges facingthedigitalandonline
industry including online publishing, mobile advertising, online advertising, ecommerce, mobile content and
services,mobile&digitalpayments,andemergingsectorssuchas�in-tech,edu-techandhealth-tech,amongothers.
Thirteenyearsafteritsestablishment,theassociationisstilltheonlyprofessionalindustrybodyrepresentingthe
digitalandmobilecontentindustryinIndia.TheassociationisregisteredundertheSocietiesActandisarecognized
charity inMaharashtra.Withamembershipofover300IndianandMNCcompanies,andwithof�ices inDelhi,
Mumbai,BengaluruandKolkata,theassociationiswellplacedtoworktowardschartingagrowthpathforthedigital
industryinIndia.
Contact:DrAmitayuSengupta|[email protected]|+91-11-41766610
NielsenHoldingsplc(NYSE:NLSN)isaglobalperformancemanagementcompanythatprovidesacomprehensive
understandingofwhatconsumersWatchandBuy.TheCompany'sWatchsegmentprovidesmediaandadvertising
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Contact:Mr.DriptoMukhopadhyay|[email protected]