India is considered to be a third world country. Per capita income is low, but there is a huge possibility available to earn from the Google AdSense.
Many people who are literate but do not have any special qualifications (and even some of those people who are qualified enough) look forward to launching their own website/blog as a means to make money. Some do it with a plan to generate a steady flow of income, and some do it just as a hobby. When aiming to make money from the blog, one of the most commonly known (but not the best) options in India is to place advertisements in the website/blog and hope that the reader clicks on them. This can be too difficult in the beginning as not many are aware of what would be needed to make any big profit from Google's Adsense program.
CPC in India:
One of the parameters which are used in the calculation of such advertisement earnings is CPC, i.e., cost-per-click. In India, Google Adsense has a low CPC. Why? One needs to realize that Adsense has evolved a lot over the years. Being under the illusion that what worked earlier will work today as well, won't help. Earlier what was sufficient to earn may not be sufficient today. You need to do more to catch the reader's attention.
Another fact is that Indians typically have been averse to spending money online, they would usually prefer to pay on delivery, whether by cash or card. Hence, paying online (which can generate income via Adsense) is not everyone's favorite choice in India. This applies not just to individuals but also to certain businesses. This brings down the advertiser's interest.
Social Media Marketing and CPC:
The third fact is that social media marketing is not taken seriously by many Indian businesses and hence not many are able to discover its true potential to generate sales online. In spite of India having more than a 100 million Internet users, a majority of whom use it over wireless, the advertiser's interest comes down, and that is because India is an extremely price-sensitive market where people will want to opt for a free trial instead of paying for the smallest unit available of a product. Because of this, you cannot convert your website's visitors easily. Naturally, the CPC in Google Adsense becomes low because the expected return on investment is also low.
What can be done about this? As stated earlier, most Indian businesses, even if they have a website and e-mail address(es), do not fully utilize the power of social media and online marketing. They need to be made aware that if appropriately planned with well-executed, frequent and timely engagements, this can give returns better than traditional forms of media.
Google AdSense Possibilities:
On the payments side, many payment gateway solution providers have come up in India who are trying their best to convince users of the safety of making payments online. As an intermediate solution, many bloggers in India target organic traffic originating from developed countries using high CPC keywords. This helps them better their prospects with Google Adsense. Another solution is to take advantage of the growing amount of discretionary expenditure by many Indians, especially those who have just started to earn, and to target that age group for selecting what type of advertisements to put on your website/blog.