Kantar’s Biswapriya Bhattacharjee on how short-form video and social commerce are driving rural purchase

For years, India's digital economy has been synonymous with urban metros and tech-savvy city dwellers. But the numbers now tell a different story. Rural India has quietly become the engine of internet growth, adding users at four times the pace of urban areas and changing how brands need to think about online commerce.

India crossed 958 million internet users in 2025, with 548 million coming from rural areas, according to Kantar and IAMAI’s Internet in India report. There’s a shift in the country's digital landscape. Rural internet users now outnumber their urban counterparts and continue to grow at a much faster pace. Yet this growth raises important questions: Are rural users engaging with digital platforms the same way urban consumers do? What drives their purchasing decisions? And perhaps most critically for brands, how can companies monetise this massive and rapidly expanding audience?

According to Biswapriya Bhattacharjee, Director of B2B Technology at Kantar's Insights Division, the answers lie in understanding the distinct factors shaping rural digital behaviour. While urban internet penetration hovers around 70-75%, rural areas remain at 45-50%, he notes, indicating room for expansion. More importantly, the motivations and usage patterns differ significantly from what drives urban adoption.

The growth trajectory tells a compelling story. The report states that rural India witnessed a 12% year-on-year increase in internet users between 2019 and 2025, outpacing urban growth of just 3% during the same period. This 4x faster growth rate reflects improving connectivity infrastructure and rising digital familiarity across smaller towns and villages.

Regional variations in internet adoption remain stark. Kerala leads with 81% penetration, followed by Maharashtra and Goa at 75%, and Delhi at 83%. On the other end, Bihar and Jharkhand lag at 49% penetration, while Uttar Pradesh stands at 50%. Bhattacharjee notes that these differences largely mirror urbanisation levels rather than fundamental behavioural distinctions. 

Social commerce and short videos create new pathways to purchase

How rural users actually engage with the internet reveals patterns distinct from urban behaviour. Short video format apps have captured 588 million users nationally, representing 61% of all active internet users. Notably, rural areas account for 302 million of these users, slightly surpassing urban short video consumption of 286 million. This preference becomes even more pronounced among younger demographics. Users aged 15-24 show a 21% higher-than-average engagement with short video formats compared to the overall internet user base, while those aged 25-44 index 8% higher.

Social commerce has emerged as a natural extension of this content consumption behaviour, particularly among younger users. 

While penetration levels are higher in urban India, social commerce has seen strong traction in rural India. “In many cases, commerce is being driven not just by traditional e-commerce platforms but through social channels, which feel more accessible and familiar. This model aligns well with rural consumer behaviour and is contributing meaningfully to digital commerce growth.”

Bhattacharjee explains that the model simplifies the overall shopping experience by reducing friction in discovery and purchase, making it feel more intuitive than traditional e-commerce platforms.

"Social commerce platforms push curated and personalised product recommendations based on a user's social behaviour and interests. This reduces the time spent searching for products," Bhattacharjee notes. "Additionally, these platforms allow users to share, discuss, and engage around products—something Gen Z particularly values but cannot always do seamlessly on standard e-commerce platforms."

The numbers support this observation. Among urban online shoppers, 43 million have engaged in social media commerce, representing 19% penetration. Quick commerce, by comparison, reaches 46 million users or 20% of urban shoppers, while traditional marketplaces like Amazon, Flipkart, and Meesho dominate with 209 million users representing 91% penetration.

What drives rural consumers to make purchases through these channels involves a combination of factors. Bhattacharjee identifies aspiration as playing a primary role, noting that when a product builds aspiration through movies, entertainment, or popular culture, consumers are more likely to want to own it. 

“Second is endorsement. Recommendations from celebrities, local influencers, or even digital creators that consumers follow can significantly influence purchase consideration. Familiar faces help reduce hesitation and increase credibility,” he continues. Novelty also contributes, as the experience of ordering online itself appeals to many rural consumers, particularly for low-value items.

This stands in sharp contrast to urban e-commerce, which Bhattacharjee explains is largely driven by convenience and time-saving. Travelling even a short distance in a city like Bengaluru can take 30 minutes to an hour, making online shopping attractive for efficiency. In rural areas, time-saving and convenience are not equally strong drivers. Instead, access and aspiration fuel growth.

For essential items, rural consumers largely continue to rely on nearby retail stores. Payment behaviour has evolved alongside these shopping patterns. While cash on delivery has reduced compared to earlier years, QR-based payments on delivery have become increasingly common, integrating naturally with the digital-first behaviour that social commerce encourages.

However, Bhattacharjee suggests that quick commerce players will likely continue focusing on metros and larger towns with populations above one million, since that's where most revenue currently originates.

“In smaller cities, the model may evolve. Instead of dark stores in every pin code with 10-minute delivery promises, companies may adopt a hub-and-spoke or warehouse-led approach, which could mean longer delivery timelines.”

Companies may prioritise a select set of additional cities, perhaps 30 to 40 beyond the top 50, with these priority markets differing from player to player depending on their strengths and regional presence.

AI-enabled shopping builds confidence as multi-device usage expands

Interestingly, artificial intelligence has reached mass adoption in India, with 44% of active internet users engaging with AI in some form. Urban areas lead with 49% adoption, while rural India follows at 39%. The technology particularly resonates with younger audiences, with 57% of users aged 15-24 using AI features, compared to 52% for those aged 25-44 and 44% for users over 44.

AI's impact on shopping behaviour appears substantial. Among AI users, 61% have engaged in AI-enabled shopping and commerce activities. These include using images to search products on shopping websites, utilising virtual try-on features while shopping online, and making purchases based on personalised recommendations. Content creation and image enhancement through AI filters also sees 61% adoption among AI users.

Consumers have historically struggled with the inability to try on clothes, see how spectacles look on their face, or physically evaluate products before purchasing online. Bhattacharjee explains that the technology is addressing the experience gap that has long distinguished online shopping from physical retail. 

"AI is enhancing the online shopping experience in meaningful ways. Features like image-based search or virtual try-ons help make the buying process more realistic," Bhattacharjee shares. "If a consumer can virtually try on multiple frames on a website and see how they look, it begins to replicate the in-store experience. AI is narrowing the gap between online and offline shopping by making digital experiences more immersive and interactive."

Rather than directly increasing purchase intent, Bhattacharjee suggests that AI improves confidence and reduces friction in the shopping journey. When this enhanced experience combines with e-commerce's inherent advantages of convenience, home delivery, and often discounted pricing, it strengthens the overall value proposition of online shopping. The ability to visualise products before committing to a purchase is essential for rural consumers and only fuels aspiration-led purchases. 

Additionally, multi-device internet users have grown from 124 million in 2023 to 193 million in 2025, with a 17% year-on-year increase. While multi-device usage remains more prevalent in urban India, one in every five rural internet users now qualifies as a multi-device user, making up to 65 million rural Indians, representing 12% of rural internet users. These individuals are likely to be early adopters of new technologies and demonstrate higher engagement across digital platforms.

Here, the younger generations influence consumption. Bhattacharjee observes that children's influence in household decision-making has existed for decades, but this dynamic continues to strengthen as families become more nuclear. In many households, children occupy a central position in discussions and decisions, giving their preferences significant weight.

"This shift is driven more by broader social and cultural changes than by e-commerce itself. Digital platforms may amplify exposure, but the underlying influence of Gen Z and Gen Alpha within households is part of a larger societal dynamic that is only expected to strengthen," Bhattacharjee comments.

As monetisation remains urban-heavy for now, rural markets are steadily building momentum, supported by improving connectivity, rising digital familiarity, and evolving commerce models. The combination of social commerce, AI-enabled shopping experiences, and multi-device adoption suggests rural India will continue reshaping the country's digital economy. For brands looking to capture this growth, understanding the aspiration-driven, endorsement-influenced nature of rural purchases becomes essential.