Digital Economy in India Fuels Unprecedented Growth, Jobs, and Innovation

CIOTechOutlook Team | Thursday, 30 January 2025, 02:13 IST

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India's digital economy has experienced an extraordinary surge in the past ten years, emerging as a major catalyst for growth, jobs, and innovation. The State of India’s Digital Economy Report 2024 indicates that India holds the position of the third most digitalised nation globally regarding overall economic digitalisation, and ranks 12th among G20 countries for individual digital adoption.

By 2029-30, it is estimated that the digital economy will account for almost 20 percent of the national GDP, outpacing conventional sectors such as agriculture and manufacturing. This increase is driven by AI, cloud technology, and the swift growth of Global Capability Centers (GCCs)—India currently has 55 percent of the world’s GCCs, establishing it as a global tech leader.

In 2022-23, the digital economy generated INR 31.64 lakh crore ($402 billion), representing 11.74 percent of GDP and providing jobs for 14.67 million individuals. Notably, positions in the digital economy are five times as productive as those in other sectors. Digital platforms have enhanced job prospects for women, overcoming conventional mobility and safety obstacles.

As digital platforms expand at an estimated 30 percent each year, India's digital economy is poised to become a worldwide frontrunner. The emphasis now turns to closing digital divides within various sectors, improving AI-based automation, and securing sustainable digital infrastructure to sustain this positive trend.

By 2030, India's economy will appear significantly transformed—characterized by digital services, AI-powered industries, and technology-focused innovation, shaping the nation's forthcoming phase of economic leadership.

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