The Centre projects that the share of digital economy to the overall economy will individually surpass that of agriculture or manufacturing in less than six years
While India’s digital economy accounted for 11.74% of the national income in FY23, MeitY expects the number to likely rise to 13.42% by FY25
Another key highlight of the report was that the homegrown digital economy employed 14.67 Mn workers in FY23, or 2.55% of India’s estimated workforce that fiscal
The Centre projects India’s digital economy to grow almost twice as fast as the overall economy by the financial year 2029-30 (FY30).
In a report titled “Estimation and Measurement of India’s Digital”, the electronics and information technology ministry (MeitY) said that the country’s digital economy is expected to contribute nearly a fifth of the total national income by FY30.
The report, released on Wednesday (January 22), estimates the value addition and employment generated from the local digital economy.
Interestingly, the report also projected that the share of the digital economy in the overall economy will individually surpass that of agriculture or manufacturing in less than six years. The government sees digital intermediaries and platforms as the biggest enablers of the Indian digital economy in the short run.
“Based on the projections in the report, India’s digital economy is expected to grow almost twice as fast as the overall economy, contributing to nearly one-fifth of national income by 2030… In the short run, the highest growth is likely to come from the growth of digital intermediaries and platforms, followed by higher digital diffusion and digitalisation of the rest of the economy,” the MeitY report said.
Shedding light on the current size of India’s digital economy, the report estimated that the homegrown online landscape accounted for 11.74% of the national income in FY23. As per the report, this number is likely to rise to 13.42% by FY25.
“In absolute numbers, the digital economy in 2022-23 was equivalent to INR 28.94 Lakh Cr ($368 Bn) in GVA (gross value added) and INR 31.64 Lakh Cr ($402 billion) in GDP,” added the report.
It also noted that sectors such as information and communication services, telecom, manufacturing of electronics, computers and communication equipment led the digital economy charts in FY23 and accounted for 7.83% of the national GVA. The report also underlined that big tech giants, digital platforms and intermediaries contributed nearly 2% to the total national GVA during the fiscal.
Another key highlight from the report is that the country’s digital economy employed 14.67 Mn workers in FY23, or 2.55% of India’s estimated workforce that fiscal.
It is pertinent to note that the then IT minister of state Rajeev Chandrasekhar last year said that the digital economy will contribute over 20% to India’s total gross domestic product (GDP) by 2026.
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