State of India’s Digital Economy Report 2025

State of India’s Digital Economy Report 2025

The State of India’s Digital Economy (SIDE) Report 2025, published by the Indian Council for Research on International Economic Relations (ICRIER), reveals that although India is the third-largest global economy, it ranks only 28th in terms of digital user spending, pointing to a disparity in per capita digital adoption.

The report uses the Connect-Harness-Innovate-Protect-Sustain (CHIPS) framework to evaluate digitalization, focusing on technological, economic, and societal factors.

Key Findings:

• Rapid Digital Growth: India's digital economy is growing at twice the pace of its overall economy and is expected to contribute 20% to GDP by 2029.
• Internet vs. Digital Spending: Despite strong internet penetration, India's digital spending is below global averages, highlighting a gap in economic participation.
• India’s AI Standing: India ranks 11th in AI research and 16th in AI infrastructure, with countries like the US, China, South Korea, Singapore, and the Netherlands leading in AI innovation.
• Global Ranking: When factoring both economic size and digital user economy, India is ranked 8th globally.

ICRIER: An independent think tank, ICRIER conducts policy research on economic growth, trade, the digital economy, and climate change to aid India’s development.

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