India’s Digital Economy: ICRIER Report Projects 20% of GDP
Why in the news
ICRIER, working with the Ministry of Electronics and Information Technology, released the first official attempt to size India’s digital economy, projecting nearly 20% of GDP by 2030.
Key facts
| Year | Digital economy share |
|---|---|
| 2022-23 | 11.74% of national income |
| 2024-25 (projected) | 13.42% of GDP |
| 2030 (projected) | Nearly 20% of GDP |
- Growth: expected at twice the pace of the whole economy.
- Definition: blends OECD and ADB approaches and counts digital activity within traditional sectors such as BFSI, trade and education.
- The traditional ICT sector remains the largest part.
Background
Growth is driven by better ICT infrastructure, rising internet use and a digital-first approach in banking, education and services.
Significance
- First full attempt to quantify the sector’s size.
- Gives a data-led base for government investment and incentive decisions.
- Reinforces India’s image as a digital innovation hub, drawing foreign investment into ICT.
Exam angle
- Report by: ICRIER with MeitY.
- Definition draws on OECD and ADB.
- Target: nearly 20% of GDP by 2030.