Dipak Kurmi
In the digital age, where nations compete not only in terms of economic growth but in their ability to disseminate technology equitably, India has emerged as a unique experiment in making digital infrastructure a public good. While nations across the world struggle with digital divides, India has forged a different path—one that combines innovation, inclusivity, and entrepreneurship, especially in its hinterlands. At the heart of this transformation is a quiet revolution led by the Common Service Centre (CSC) programme—a government-backed, citizen-empowered initiative that is redefining digital and financial inclusion for more than a billion Indians.
India has not only created a sophisticated digital public infrastructure—Aadhaar, Unified Payments Interface (UPI), DigiLocker, CoWIN, among others—but is also one of the few countries to offer these open-source, scalable models to other developing nations. These tools have played a disruptive role globally in reimagining service delivery, particularly in economies with poor digital penetration. However, beyond these headline innovations, it is India’s grassroots digital entrepreneurship model through CSCs that offers a sustainable blueprint for inclusive growth.
Launched in 2006, the CSC programme was a modest initiative to connect citizens with government services electronically. But it was only after 2014, when the Digital India initiative gave it political and institutional backing, that CSCs evolved from service nodes into instruments of rural empowerment. The programme grew from 68,000 functional centres in 2014 to over 600,000 by March 2025, making it the world’s largest last-mile digital service delivery network. This was not achieved through government funding alone—each CSC involved an average private investment of about Rs 2 lakh, cumulatively attracting Rs 12,000 crore in grassroots capital.
The government's approach was noteworthy: instead of providing direct capital assistance, it created an enabling ecosystem where digital services became a revenue model for rural entrepreneurs, known as Village Level Entrepreneurs (VLEs). This model drew private capital into remote corners of the country, particularly by encouraging women-led ICT-enabled enterprises. Today, over 100,000 CSCs are operated and managed by women, making this network not just a digital enterprise but a gender-inclusive social transformation.
CSCs initially found their viability in Aadhaar enrolment and updates. Over 20 crore Aadhaar registrations were carried out through CSCs, building community trust and offering substantial revenue for the entrepreneurs. At one point, around 40,000 centres were engaged in Aadhaar enrolment alone. This not only plugged a critical identity gap in rural communities but also brought the first wave of digital credibility to the VLEs. Unfortunately, this service was discontinued, causing significant economic setbacks, as each Aadhaar kit represented an upfront investment of Rs 3 lakh. Currently, only select CSCs acting as Banking Correspondents (BCs) are authorised to do Aadhaar updates—a policy decision that begs reconsideration.
G2C (Government-to-Citizen) services form the backbone of CSC operations. Yet, their revenues were never sufficient to build a sustainable business. VLEs had to diversify quickly into B2C (Business-to-Consumer) and financial services. The turning point came when public and private banks began recognising CSCs as credible partners. HDFC Bank, in particular, played a leading role, setting up dedicated teams to collaborate with CSCs for delivering banking and insurance services. Through partnerships with firms like HDFC Ergo and India First, CSCs were integrated into India’s formal financial network. The Insurance Regulatory and Development Authority of India (IRDAI) even allowed CSCs to operate as brokers, giving citizens access to a full suite of life and non-life insurance products.
Beyond financial services, the CSC network has transformed into a vehicle for digital literacy. The Pradhan Mantri Gramin Digital Saksharta Abhiyan (PMGDISA) trained over six crore citizens through CSCs, transforming them into local knowledge hubs. This catalysed the development of robust infrastructure—5 to 10 computers per centre—and opened up new service verticals in education. Prestigious institutions such as NIELIT, NIOS, IGNOU, Symbiosis, and IIT Mumbai began offering courses through CSCs. The initiative of Bal Vidyalayas—more than 3,000 to date—is especially notable, as it introduces technology-enabled, facilitator-led learning in rural settings. These centres cater to school dropouts, children denied access to formal education, and young women constrained by geography or social norms. Through remote proctoring and flexible examination systems, CSCs brought formal learning within reach of those who needed it most.
Educational services through CSCs have become an equaliser, reaching Scheduled Castes (SC), Scheduled Tribes (ST), Other Backward Classes (OBC), and minority groups. The digital literacy drive, complemented by online and hybrid educational models, has opened up new possibilities for upward mobility in communities where traditional learning pathways were inaccessible.
Equally transformative is the CSC network’s role in delivering products and services for private enterprises. Companies like Tata, IFFCO, UNIBIC, Crompton, and Symphony have used the CSCs as distribution channels, especially in regions where setting up a retail infrastructure is difficult. For new and emerging brands, this offers a cost-effective route to reach rural consumers, while for VLEs it opens up a new revenue stream. This has redefined the very nature of rural retail and proved how digital nodes can become physical storefronts in underserved regions.
Yet challenges remain. Despite the wide network and proven efficacy, service charges for CSCs have remained stagnant since their inception. Inflation, increased infrastructure maintenance costs, and higher service delivery expectations have squeezed margins, threatening the sustainability of these rural enterprises. A recalibration of service charges by State Governments is not only necessary but urgent to maintain momentum.
Another untapped opportunity lies in BharatNet’s Phase I infrastructure. CSCs could be entrusted with maintaining and managing the last-mile optical fibre network. As the first users and local stakeholders, VLEs are best placed to ensure uptime and quality. This is a departure from the current model that relies on large contractors, often disconnected from the village ecosystem. Empowering CSCs in fibre maintenance would be a win-win for citizens, ISPs, and the government.
Looking ahead, the role of CSCs in democratising emerging technologies such as Artificial Intelligence (AI) and cybersecurity awareness is immense. A national programme, akin to PMGDISA, aimed at educating rural citizens in AI fundamentals, safe online behaviour, and digital tools for livelihood can transform CSCs into true Digital Knowledge Hubs. This vision aligns with India’s larger ambitions of building a digitally inclusive and cyber-resilient society.
Moreover, the earlier Government idea of “Digital Villages” deserves a fresh push. CSCs, with their embedded community trust and expanding portfolio of services, are well-positioned to serve as the fulcrum of digital transformation in every village. Startups, particularly those working on agritech, fintech, healthtech, and edtech solutions, can leverage this vast network for product distribution, pilot testing, and feedback loops. The digital reach of CSCs, combined with localised insights, creates a rare hybrid ecosystem where modern innovation meets ground realities.
Importantly, CSCs directly and indirectly employ over 2 million individuals—a powerful testament to their economic significance in rural India. With a little more policy support and service integration, they can become one of the largest decentralized startup ecosystems in the world. By registering CSCs as startups and offering the incentives applicable under the startup policy, India can lead the way in creating a grassroots entrepreneurship movement that blends profit with purpose.
The CSC programme is no longer just a government initiative; it is a rural tech renaissance. It embodies the principles of Atmanirbhar Bharat and Gram Swaraj by nurturing local skills, fostering economic independence, and bridging the urban-rural digital divide. Its journey from Aadhaar enrolment booths to multi-service digital hubs is a case study in sustainable development, scalable innovation, and inclusive governance. If India is to maintain its momentum as a digital superpower with a human face, the story and spirit of its Common Service Centres must be celebrated, strengthened, and scaled.
(The writer can be reached at dipakkurmiglpltd@gmail.com)
