ROLE OF INTERNET AND SELF-HELP GROUPS IN RURAL TRANSFORMATION

Abstract

This study focuses on internet connectivity and the contribution of Self-Help Groups (SHGs) in the overall rural transformation process in India, especially on household economic well-being, basic amenities, infrastructure and social protection aspects. The approach was quantitative cross-sectional, and the empirical analysis was carried out with the tools of the so-called survey-weighted descriptive statistics, group comparisons and multivariate regression models. Broadband access was treated as the main and primary digital indicator, and rural transformation was measured by the usual monthly consumer expenditure, in addition to a composite Rural Transformation Index which included non-digital indicators including protection against health risks, drinking water, sanitation, hygiene, electricity, road connectivity, and rural consumer spending. The results indicate that broadband users' consumer expenditures were significantly higher, and their socioeconomic situation significantly better than broadband non-users. These associations were independent of household characteristics and regional effects. The results also show that digitalisation in rural areas is mainly achieved through mobile devices; mobile-phone ownership is much higher than tablet, laptop and computer ownership. The study also places SHGs among the important financial inclusion, women empowerment, collective decision-making and rural development institutional mechanisms. The results, however, as the participation in SHG was not directly measured in the empirical data, offer mainly direct evidence for the dimension of rural transformation related to the internet. Digital inclusion and community-based institutions are complementary pillars of inclusive and sustainable rural development, concluded the study.