Rapid Fire
State of India’s Digital Economy Report 2025
- 03 Mar 2025
- 2 min read
A State of India’s Digital Economy (SIDE) Report, 2025, report by Indian Council for Research on International Economic Relations (ICRIER) highlights that while India is the 3rd- largest global economy, it ranks only 28th in digital user spending, reflecting a gap in per capita digital adoption.
- The report uses the Connect-Harness-Innovate-Protect-Sustain (CHIPS) framework to measure digitalisation, focusing on technological, economic, and societal factors.
- Key Findings:
- Rapid Digital Growth: India’s digital economy is growing twice as fast as its overall economy and is projected to contribute 20% of GDP by 2029.
- Internet vs. Digital Spending: While India has strong internet penetration, actual digital spending remains lower than global standards, highlighting an economic participation gap.
- India’s AI Positioning: India is 11th in AI research and 16th in AI infrastructure.
- The US, China, South Korea, Singapore, and the Netherlands lead in AI innovation.
- When considering both economic size and digital user economy, India ranks 8th globally.
- ICRIER: It is an independent Indian think tank, providing policy research on economic growth, trade, digital economy, and climate change to support India’s development.
| Read more: Navigating India's Digital Growth |
