In today’s era of technology, digital literacy is a mandatory skill for everyone so that they can access all the essential services. But due to unequal distribution of digital technology, a gap is created between individuals, especially those who have access to digital technology and those who do not. Disparity in the opportunities to access information and communication technologies (ICTs) is known as digital divide. Now, the question arises what will be the implications of this digital divide as technology is being used in different spheres of life whether it is healthcare, education or governance. For this purpose, this research paper intends to find out the various causes of digital divide. Apart from it, this study seeks to know the consequences of the digital divide as well. It will also provide the recommendations with the help of which this gap can be reduced. Under this study, it is concluded that ensuring digital inclusion is essential for achieving equitable and sustainable economic development. For which comprehensive policies which emphasize on infrastructure, digital literacy and affordability is required.