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Digital divide may affect possibility of improvements for Indian companies

Smaller businesses in India are least likely to have a key marker of digitisation, such as a website, according to the recent "State of India's Digital Economy 2024" report from ICRIER

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Only a third of services firms and a fifth of manufacturing firms had an internet connection in 2016

Ashli Varghese New Delhi

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A study of handmade carpet-makers in Egypt noted that exports helped improve quality. This was because they were able to improve their product based on information they began to get from international buyers. Online competition and access to additional customers and information may spur similar improvements, noted a study of businesses on the Bangladesh e-commerce platform Chaldal. It helped improve product quality and the adoption of better inventory and logistics management systems. A digital divide may affect the possibility of such improvements for Indian companies, especially those at the bottom of the pyramid.

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