India’s digital economy is expected to provide almost one-fifth of the nation’s income by 2029–2030, growing at a rate that is almost twice as rapid as the economy as a whole.
In less than six years, the digital economy’s share is predicted to overtake manufacturing and agriculture, highlighting the sector’s revolutionary potential. The expansion of digital platforms and intermediaries is anticipated to have the greatest growth in the near future, followed by more digital diffusion and the digitalization of the rest of the economy. Eventually, this will reduce the proportion of ICT industries that enable the digital economy.
As of 2022–2023, the digital economy accounted for 11.74 percent of India’s total income, which is equal to Rs 31.64 trillion ($402 billion) in GDP and Rs 28.94 trillion ($368 billion) in GVA. By 2024–2025, this percentage is expected to increase to 13.42%.
The sectors that contribute the most to the national GVA—7.83 percent—include telecom, information and communication services, and the production of computers, electronics, and communication devices. Digital platforms, intermediates, and big tech companies make for over 2% of the GVA, with the remaining 2% coming from BFSI (banking, financial services, and insurance), trade, and education.
In 2022–2023, 14.67 million people were employed in the digital sector, making about 2.55% of India’s total workforce. With 263.6 million employees (45.8% of the workforce), agriculture continued to be the largest employer, followed by manufacturing with 65.6 million employees (11.4%).