Business Week has a pretty comprehensive story on the impact of projects such as Bhoomi, which are slowly but surely bridging the digital divide in rural India. With entrepreneurial initiatives such as e-choupal, Simputer, and a multitude of other privately-funded projects also beginning to take root, the rural Indian (who comprises about 70% of India's population), is slowly inching his way into the information age. The rest of the third world is watching & waiting, and taking detailed notes :)
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