India's digital economy to account for one-fifth of GDP by 2029: Report

New Delhi: India’s digital economy is growing at twice the pace of the overall economy and is projected to become one-fifth of the country’s economy by 2029, as per a report by Dutch investment firm Prosus and think tank Indian Council for Research on International Economic Relations (ICRIER).

According to the ‘State of India’s Digital Economy (SIDE) 2025’ report, India ranks as the world’s third most digitised nation, following the United States and China.

“India’s digital transformation is rapidly redefining its economy and global standing. The SIDE 2025 report offers valuable insights into how India can leverage its digital strengths while tackling critical challenges such as AI readiness, cybersecurity, and broader digital adoption,” said Prosus managing director Sehraj Singh.

India effectively leverages technology due to its large, young population keen on adopting new technologies, growing mobile internet penetration, and the successful implementation of digital public infrastructures like Aadhaar, Unified Payment Interface (UPI), and Digilocker, it said.

India has significant ground to cover in the artificial intelligence (AI) race to compete with the US and China.