Indian digital economy ranked 28th on user spending: report

Indian digital economy ranked 28th on user spending: report

Sub : Eco

Sec: National Income

Why in News?

• A State of India’s Digital Economy (SIDE) Report, 2025 published by ICRIER Prosus Centre for Internet and Digital Economy (CIDE) highlights that India ranks 28th globally in digital user spending despite being the third-largest economy.
• The report assesses India’s digital progress using the CHIPS framework, considering factors like internet access, AI readiness, and digital investments.

Key Findings:

• India’s Digital Economy Growth:
  • India’s digital economy is expanding at twice the rate of its overall economy.
  • It is expected to contribute 20% of GDP by 2029.
• Disparity Between Economic Size & User Digital Spending:
  • India is the third-largest global economy but ranks 28th in terms of digital user spending, suggesting high digitalization at the national level but low per capita digital consumption.
• Internet Penetration vs. Digital Spending:
  • Internet connectivity is comparable to global standards, but user spending remains low, indicating a gap between digital access and economic participation.
• Global Digital Economy Ranking:
  • India is ranked 8th when combining both economic size and digital user economy rankings.