<p>Digital skills are an essential component influencing the development of individuals, and the ability to utilize information and communication technology has been the need of the hour in this digital era. The widening digital gap has been highlighted in the literature. However, it mainly relates to basic digital skills acquired by the individuals. Hence, the present goes beyond it and captures intermediate and advanced digital skills with the help of the unit-level data of the National Sample Survey 78th round (2020–21). The authors assess the level of readiness of the Indian youth and adults with respect to the digital skills acquired by them. Though past literature emphasizes the Indian rural–urban digital divide, the current study sheds light on the factors that have been significantly causing this divide with the help of Fairlie’s decomposition analysis technique. The findings demonstrate a significant association between the place of habitation and digital skills in India. The digital skills have been significantly pro-urban as acquiring those in rural areas has been a challenge due to a lack of education and poor infrastructural availability, like internet connectivity (especially broadband service) and mobile phones. The other factors determining the capability to develop digital skills were gender, age, and social group. Hence, the policy implications that follow from the study are improving access to education and broadband/wireless services to effectively reduce the rural–urban digital disparities. These initiatives will complement the efforts made by the Indian government in achieving the SDGs, viz. quality education (SDG 4); gender equality (SDG 5); and reduced inequalities (SDG 10).</p>