What Happened?
As per the State of India’s Digital Economy Report 2024, India’s digital economy will contribute nearly one-fifth of the national income by 2029-30, surpassing agriculture and manufacturing in less than six years. With an 11.74% share in GDP in 2022-23 (INR 31.64 lakh crore or USD 402 billion), the digital economy has emerged as a key driver of economic growth.
Why it matters to India?
As per the report, India is now the third-largest digitalised country globally in terms of economy-wide digitalisation and ranks 12th among G20 countries for individual user digitalisation. Key growth drivers include artificial intelligence (AI) adoption, cloud services, and the rise of global capability centres (GCCs), with India hosting 55% of the world’s GCCs. These centres, established by multinational corporations, provide research and development (R&D) services, IT support, and business process management. In 2022-23, the digital economy employed 14.67 million people, with 58.07% of these jobs in digital-enabling industries.