India’s digital economy to grow almost twice as fast as overall economy: Report
The Indian economy has been digitalising at a remarkable pace over the last decade. Quantifying and understanding the role of the digital economy in driving economic growth, employment and sustainable development are essential for both policymakers and the private sector. According to the State of India’s Digital Economy Report 2024, India is the third largest digitalised country in the world in terms of economy-wide digitalisation, and 12th among the G20 countries in the level of digitalisation of individual users.
India’s digital economy is expected to grow almost twice as fast as the overall economy, contributing to nearly one-fifth of national income by 2029-30. This means that, in less than six years, the share of digital economy will become larger than that of agriculture or manufacturing in the country. In the short run, the highest growth is likely to come from the growth of digital intermediaries and platforms, followed by higher digital diffusion and digitalisation of the rest of the economy. This will eventually lower the share of digitally enabling ICT industries in the digital economy.
India’s digital economy has emerged as a significant contributor to its economic growth, accounting for 11.74% of the GDP (INR 31.64 lakh crore or USD 402 billion) in 2022-23. Employing 14.67 million workers (2.55% of the workforce), the digital economy is nearly five times more productive than the rest of the economy, highlighted an official release.
source: Exim News Service: New Delhi, Jan. 29