Information and Communication Technology (ICT), has changed the way people learn, live, interact and work. Information Technology (IT) has also created divide in the digital society among "haves" and "havenots" in the technology access and the ability to use ICT among rural. There is a vast impact of ICT on the rural areas and rural lives. The paper investigates extent of ICT diffusion and digital divide across the selected Indian states. Various determinants of Digital Divide and ICT diffusion have been discussed. The paper also discusses the initiatives of bridging the digital divide in rural development and implications for rural development.