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India's Digital Economy Drives Growth, Projected to Contribute 20% of GDP by 2030

The sector also employed over 14.67 million people, or 2.55% of the workforce, cementing its role as a vital economic engine.

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India's Digital Economy Drives Growth, Projected to Contribute 20% of GDP by 2030

India's Digital Economy Drives Growth, Projected to Contribute 20% of GDP by 2030

India's digital economy reached significant milestones in 2022-23, contributing 11.74% of the nation's GDP, equivalent to Rs 31.64 lakh crore ($402 billion), according to the State of India’s Digital Economy Report 2024. The sector also employed over 14.67 million people, or 2.55% of the workforce, cementing its role as a vital economic engine. The rapid digitalisation has positioned India as the third-largest digital economy globally, driving growth, employment, and sustainable development.

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Looking ahead, India's digital economy is projected to contribute nearly one-fifth of the national income by 2029-30, surpassing traditional sectors like agriculture and manufacturing. The report highlights the digital sector's remarkable productivity, being almost five times more efficient than other areas of the economy. Key contributors include digitally enabling industries like ICT services and electronics manufacturing, which alone contributed 7.83% of Gross Value Added (GVA).

The expansion of digital platforms and intermediaries, particularly in artificial intelligence (AI), cloud services, and global capability centers (GCCs), is expected to fuel the sector's growth. India now hosts 55% of the world’s GCCs, solidifying its role in global IT support and business process management.

In sectors like retail, banking, and education, significant digital shifts are underway. Retail is embracing omni-channel models, integrating e-commerce with physical stores, while banking has fully digitised transactions. Education is adopting hybrid models that blend online and offline learning.

By 2030, India's digital economy is projected to account for 20% of the country's economic output. Over the past decade, digital-enabling industries have grown at 17.3%, outpacing the overall economic growth of 11.8%. Digital platforms are set to see substantial growth, with a projected rate of 30% in the coming years.

Also Read: Industry Leaders Optimistic About 6-7% Growth in FY 2025-26: Survey

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