The Digital India Vision: A Foundation for Social Change

The year 2015 marked the launch of the ‘Digital India’ initiative with the ambition to transform India into a digitally empowered society and knowledge economy. The core focus areas were developing robust digital infrastructure, delivering government services digitally, and enhancing digital literacy¹. This vision laid the foundation for a plethora of digital innovations to flourish, reaching even the remotest corners of the country.

Key pillars that have directly impacted the social sector include:

• Aadhaar: This unique identification system has become a foundational element for administering various social welfare schemes, ensuring transparency and reducing leakages by enabling direct benefit transfers (DBT) to beneficiaries’ bank accounts. As of April 2025, over 1.4 billion Aadhaar IDs have been generated, significantly increasing financial inclusion².
• Unified Payments Interface (UPI): UPI has revolutionised digital payments, making financial transactions seamless and accessible even for those in rural areas. It has redefined how money moves, contributing to an 83% share of all digital payments in India as of early 2025². This financial inclusion is crucial for empowering vulnerable communities.
• MyGov.in & UMANG: These platforms foster citizen engagement in governance and provide a consolidated mobile platform for accessing over 1,000 government services, from bill payments to healthcare, simplifying interactions and making services more citizen-centric¹.
• Common Service Centers (CSCs): These digital access points, especially in rural and remote areas, provide essential services like healthcare, financial services, and education, bridging the digital divide at the grassroots level¹.

Impact Stories: Digital Catalysts for Social Good

The theoretical framework of Digital India translates into tangible impact through various initiatives and the tireless efforts of social purpose organisations (SPOs).

Public Health In public health, digital tools are enhancing program delivery at scale. FMCH effectively reached over 147,000 families in 2023–24 by integrating health guidelines and real-time dashboards. This digital approach empowered field teams for proactive care delivery and demonstrated high adoption rates among first-time users, including Anganwadi workers.

Challenges and Opportunities

Despite the remarkable progress, the journey of digital transformation in India’s social sector is not without its hurdles:

• Infrastructure and Connectivity: Challenges remain in ensuring consistent high-speed internet access across all villages, with issues of non-functional broadband points and slow internet speeds in certain areas.
• Digital Literacy: A high level of digital illiteracy, especially in rural areas, remains a significant barrier to the effective adoption and utilisation of digital tools. Initiatives like the National Digital Literacy Mission are addressing this by certifying millions of rural citizens.
• Data Privacy and Security: The increasing reliance on digital platforms necessitates robust measures for data privacy and security, as concerns around data management and misuse intensify.
• Funding and Scalability: Many social initiatives struggle with funding constraints and the challenge of scaling successful pilot projects for broader impact. Donors are increasingly being urged to view digital capabilities as core infrastructure costs rather than just overhead.

However, these challenges present significant opportunities. The momentum is shifting, with more social purpose organisations actively seeking digital solutions and funders becoming more open to supporting technological infrastructure. The ‘India Stack’ model, with its interoperable, inclusive, and scalable digital public infrastructure, is being studied and adopted globally, showcasing India’s potential to lead in responsible technology development².

The Future is Digital and Inclusive

The future of digital innovation in India’s social sector is promising. Emerging technologies like Artificial Intelligence (AI) and Machine Learning (ML) are being deployed to analyse vast datasets, predict trends, and tailor interventions in areas like poverty, disease outbreaks, and environmental degradation³.

The emphasis is on building an inclusive digital future, where technology empowers individuals, enhances service delivery, fosters collaboration, and provides data-driven insights for evidence-based policymaking⁴. India’s journey demonstrates that digital transformation is not merely about adopting new technologies but about reimagining how we learn, interact, work, and deliver value to communities, ultimately striving for a more equitable and sustainable world.

About the Author

Mehak Jain

With over 5 years of Experience, Mehak is deeply passionate about reshaping the landscape of higher education in India. She has previously worked as a consultant at 9.9 Education setting up higher education institutions from scratch of idea to implementation. She is a Young India fellow from Ashoka University, and also an alumni of University of Hyderabad and University of Delhi.

Reference articles:

1. India-briefing.com. “India’s Digital Transformation.
2. Vision IAS. “Digital India: Transforming a Nation Through Technology Revolution.
3. NGOFeed.com. “Digital Dividends: How NGOs Are Leveraging Technology to Maximize Social Impact.
4. Digitalsocialinnovation.org. “The Challenges and Opportunities of Digital Social Innovation.

The post Transforming India through Digital Innovation in the Social Sector appeared first on India Leaders for Social Sector.

For example, digital tools now enable nonprofits like Pratham, to reach remote communities with educational resources. According to a Forbes article from 2021, they have improved learning outcomes for more than 75 million children in over 22 Indian states and in recent years its model has been replicated in ten African countries. Digital skills and technology have expanded their reach even in the most remote corners of India. Additionally, CRM platforms such as Salesforce have helped organisations streamline donor management, while data visualisation tools enable nonprofits like Goonj to measure and communicate their impact effectively. This evolution underscores the growing indispensability of technology in achieving scalable and sustainable outcomes. Digital transformation is no longer just about adopting new tools; it’s about reshaping how nonprofits work, innovate, and create impact at scale.

‘The best way to predict the future is to create it.’
– Peter Drucker

Several key trends are set to redefine the digital landscape for nonprofits. These trends aren’t just technological shifts; they also represent opportunities for the sector to overcome persistent challenges and reach underserved communities.

1. AI-Driven Insights for Program Impact

Artificial intelligence (AI) has been making waves across industries, and nonprofits are no exception. In 2025, AI will play a crucial role in helping organisations analyse complex datasets, predict outcomes, and make data-driven decisions. Tools like machine learning models can support everything from identifying donor patterns to tailoring program interventions for maximum impact. GivingTuesday conducted a survey to assess how well Indian nonprofits have adapted to AI. Compared to the global average, Indian organisations were more comfortable using AI at work — 29% gave it a score of 10 on a scale of 0–10.

AI-based tools help nonprofits tailor their interventions for marginalised communities by analysing community-specific needs and predicting outcomes. However, nonprofits must balance these opportunities with ethical considerations around data privacy and bias. For example, the misuse of sensitive beneficiary data could lead to unintended harm, such as stigmatisation or exclusion from services. Additionally, biases in AI algorithms might reinforce existing inequities, disproportionately affecting marginalised communities.

2. Digital Platforms for Collaboration

The rise of digital ecosystems is enabling nonprofits to collaborate more effectively with peers, donors, and beneficiaries. Platforms tailored for the social sector, such as the Digital Toolbook for Social Impact – DiTSI, have the potential for becoming central hubs for resource sharing, peer learning, and community building. In 2025, the Koita Centre for Digital Transformation (KCDT) at the ILSS plans to expand its functionality, integrating tools for real-time impact tracking, sharing knowledge products and creating a dynamic community for nonprofits. This shift will empower nonprofits to work in a more connected and coordinated manner, amplifying collective impact.

Another example is TechSoup India, which helps nonprofits collaborate through shared resources and digital tools, fostering collective impact and making technology accessible to smaller organisations.

3. Inclusion through Low-Tech Solutions

While high-tech innovations dominate conversations, low-tech solutions will remain critical in bridging the digital divide. Many grassroots organisations operate in areas with limited access to the internet or high-end devices. Low-tech tools, such as SMS-based communication platforms, offline mobile apps, and solar-powered devices, will continue to support inclusive digital transformation.

According to insights from this American blog, text messages have an open rate of about 99% compared to only 20% for emails — and that statistic only applies to emails that make it to an individual’s inbox. These solutions ensure that even the most marginalised communities can benefit from technology-driven initiatives without requiring significant infrastructural investments.

5. Human-Centred Design in Tech Adoption

The emphasis on human-centred design will grow stronger in 2025. Technology solutions tailored to the specific needs of nonprofits and their stakeholders will take precedence over one-size-fits-all approaches. Tools designed with empathy and inclusivity will help organisations enhance beneficiary experiences and streamline internal workflows. For instance, Wadhwani AI shared field insights on a human centred design approach for a specific use case – for designing better training material for farmers and field facilitators.

6. Hybrid Work Models and Virtual Operations

Hybrid work models are here to stay. Gallup’s latest insights show that the majority of remote-capable employees are currently working in a hybrid or exclusively remote arrangement, and the ability to work in a hybrid arrangement is what a majority of remote-capable employees want. This approach has proven to enhance staff retention and expand the talent pool by enabling recruitment from diverse geographic locations.

Nonprofits will continue to invest in tools that enable seamless remote work and virtual operations, ensuring staff productivity and collaboration across locations. Cloud-based platforms, virtual event tools, and digital workflows will become integral to day-to-day operations, reducing operational costs and increasing efficiency.

7. Enhanced Digital Fundraising Techniques

Fundraising is being transformed by digital tools, with nonprofits increasingly leveraging AI-driven donor insights, personalised outreach, and innovative campaigns. Crowdfunding platforms, virtual events, and blockchain for transparent donations are expected to see significant growth in 2025. These tools not only expand fundraising avenues but also build trust with donors through transparency and accountability. This IDR article provides guidance to nonprofits looking to design their digital crowdfunding campaigns.

8. Data-Driven Decision-Making

The ability to collect, analyse, and act on data will be a game-changer in 2025. Nonprofits will increasingly use data to monitor program effectiveness, track beneficiary outcomes, and inform strategic decisions. Tools for real-time data visualisation and impact reporting will become more accessible, enabling organisations to showcase their impact to donors and stakeholders effectively. Katalyst India and Milaan Foundation are examples of nonprofits that use data analytics to track the success of their programs and improve outcomes for women in India.

9. Green Tech and Sustainable Practices

Sustainability will take centre stage as nonprofits adopt green technology to minimise their carbon footprint. From energy-efficient data centres to paperless workflows, technology will support environmentally conscious operations. Nonprofits involved in climate action will also leverage technologies like predictive analytics for climate risk assessment.

10. Upskilling and Digital Readiness

Digital transformation requires digital-ready teams. In 2025, nonprofits will prioritise upskilling their workforce in digital tools, data literacy, and cybersecurity. Training programs, peer learning opportunities, and partnerships with tech providers will help build the capacity needed to sustain digital transformation efforts. For example, CEQUE — a nonprofit based in Maharashtra, has extensively invested in capacity-building initiatives and data literacy for its staff and field workers, ensuring they can effectively use digital in their work.

A Call to Action

The journey of digital transformation is dynamic, filled with opportunities such as enhanced program delivery and data-driven decision-making, alongside challenges like ethical considerations, cybersecurity risks, and the digital divide. By addressing these hurdles head-on, nonprofits can unlock the full potential of technology to drive meaningful social change. Nonprofits that stay ahead of these trends will be better positioned to create lasting social impact. As we embark on this year, let’s not just focus on adopting technology but on harnessing it to build a more equitable and just world.

The ILSS Digital Transformation for Social Impact (DTSI) Program is designed to support nonprofits in navigating these trends. Applications are now live for the second cohort of the Program which will begin in May 2025. Apply now and take the next step in your digital transformation journey.

About the Author

Roohi Sharma
Associate Director – Programs, ILSS

Roohi Sharma leads the Digital Transformation for Social Impact (DTSI) program at the India Leaders for Social Sector (ILSS), bringing together a background in technology and a deep commitment to education reform. She began her career as an IBM Application Developer before shifting to policy and strategy roles, including bridging gaps for students with learning disabilities at ChangeInkk Foundation in Delhi and shaping charter school systems in the U.S. with the Center on Reinventing Public Education and the Washington State Charter Schools Association. Her experience spans teaching with Teach For India in Pune, strategising with Education Pioneers in Boston, and serving on boards of League of Education Voters in Seattle and Fig Education Labs in Virginia. Roohi is also a women-centric and leadership coach, supporting individuals and organisations through transformational growth.

The post Future-Proofing Nonprofits: Digital Skills for the Social Sector appeared first on India Leaders for Social Sector.

At the outset of our journey into the complex landscape of digital transformation, ILSS made it a priority to deeply listen. We conducted a comprehensive study to understand the landscape of digital transformation in the social impact space, speaking to over 40 nonprofits and 15 industry and domain experts. Our research also included extensive secondary research such as articles, reports, research papers, lectures, and podcasts. The primary tool for the research was a survey covering a wide range of topics, from demographics to the current use of technology and capacity-building needs.

In The State of the Sector Report on Digital Transformation for Nonprofits in India, we learned that, despite their diverse goals, organisations face common technology challenges. While great strides have been made in some areas, we need cohesive effort to generate transformative impact in digital. Digital transformation requires a deep understanding of the digital along with a shift in mindset and collaboration among stakeholders. One of our most prominent findings was that 87.5% of organisations expressed a need for structured mentorship from industry experts, highlighting the demand for capacity-building programs.

Need for Technology Intervention over the Next 3 Years

As the graph suggests, participants identified “Programs” and “Dashboards and Reporting”, as the most crucial areas that need technology interventions over the next three years.

After multiple rounds of internal brainstorming and consultations with sector and domain experts, we designed The ILSS Digital Transformation for Social Impact Program, that aims to equip nonprofit leaders with the knowledge and practical skills to adopt and implement digital transformation effectively. We designed the curriculum with a two-pronged approach. We carefully curated topics that address common needs and thus can be delivered in the form of standardised sessions by respective specialists. At the same time, we understood that many organisations have specific issues that need customisation and customised support. To achieve that, we established a pool of mentors to provide personalised guidance and supervise the learning and adoption journey of participants.

The program is built around the five stages of Digital Transformation life-cycle

The program, thus, is predicated on the following themes that were by our research and expert consultations:

1. Empowering the Senior Leadership

Our research shows that successful digital transformation must be driven from the top. Designing a program for senior leadership of nonprofits required striking a fine balance between rigour and practicality. While digital is complicated, we believe it is more difficult to talk about it simply and without jargon. In this program, we empower participants to approach technology with confidence, free from fear.

2. Structured Learning Journey

The program begins with introducing participants to both digital transformation and the program itself. It highlights the importance of digital transformation in the social sector, focusing on improving both program outcomes and organisational efficiency. The curriculum moves from conceptual understanding (e.g., “What is digital transformation?”) to practical application (e.g., case studies and individual problem-solving).

3. Real-life Case Studies

Expert talks and real-world case studies from a diverse set of NGOs are integrated into the program, providing participants with insights into successful and not-so-successful digital transformation efforts.

This includes a peek into their journey beginning with identifying the gap and sharpening the problem statement. As highlighted in the study, questions like build vs. buy, selecting the right vendors, funding through grants and reallocated resources, change management, and capacity building are also included in the presentation. These case studies could serve as adaptable models for participants.

4. Mentorship and Hands-On Learning

Participants work on real-life challenges of their organisations, applying digital tools and strategies to solve these problems. Mentors guide and support them throughout this process. The participants are also provided with a compendium of tools, technologies, and service providers to assist in their digital transformation journey.

Also watch: Navigating Digital Transformation in the Social Sector – Insights and Strategies

5. Collaborative Learning and Ecosystem Building

The program emphasises collaborative learning, with open discussions, individual reflections, and group sharing. Participants reflect on their learning through online classrooms and weekly sessions, fostering peer knowledge exchange.

We are creating an ecosystem of nonprofits and tech experts who can learn from each other and then collaborate and co-create. The sector will flourish with more communities of practice.

Through this structured approach, the program equips nonprofit leaders to accelerate their impact, minimise duplication of efforts, build digital capability, lead their organisations through digital transformation, and be part of a growing community they can lean on.

Learn more about the program here.

About the Author

Shraddha Upadhyay
Consultant

Shraddha Upadhyay has worked at the intersection of public health and urban governance, previously contributing to Janaagraha and the childcare team at Lok Swasthya SEWA Trust, where she strengthened evidence for policy advocacy. She has also served as a Research Associate with Knowledge Management and Innovations for Change, a partnership between IIM Ahmedabad and UNICEF. Shraddha holds a BA, LL.B (Hons.) with a specialisation in Constitutional Law from Rajiv Gandhi National University of Law, Punjab, and has pursued the Young India Fellowship at Ashoka University.

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