India’s digital economy is projected to grow nearly twice as fast as the overall economy, contributing close to one-fifth of the country’s national income by 2030, according to a report from the Ministry of Electronics and Information Technology (MeitY).

The report, titled Estimation and Measurement of India’s Digital Economy, reveals that the digital sector accounted for 11.74% of national income, amounting to ₹31.64 lakh crore (approximately USD 402 billion) in GDP, in 2022-23.

The report highlights the pivotal role of digital technologies in transforming India’s economic landscape. It employs frameworks from the Organisation for Economic Cooperation and Development (OECD) and the Asian Development Bank (ADB) to measure the digital economy, placing India among a select group of nations globally—and the first among developing countries—to undertake such an extensive evaluation.

In addition to covering core digital industries like ICT services, telecommunications, and electronics manufacturing, the study also factors in traditional sectors such as banking, financial services, insurance (BFSI), trade, and education—areas not typically included in conventional estimates.

According to the findings, the digital-enabling industry contributed the largest share of the Gross Value Added (GVA), accounting for 7.83%. Emerging digital industries, including tech giants and online platforms, added 2%, while the digitalisation of traditional sectors such as BFSI and education also contributed 2%. This indicates a broader diffusion of digital technologies across India’s economy, extending beyond the confines of the ICT sector.

The report also sheds light on the employment potential of the digital economy, which supported 14.67 million workers in 2022-23, equivalent to 2.55% of the country’s workforce.

Projections indicate that India’s digital economy will grow almost twice as fast as the overall economy, with significant gains expected from digital platforms, intermediaries, and the increasing digitalisation of traditional industries.

However, the report acknowledges that its estimates remain conservative due to data gaps, particularly in smaller digital platforms, the informal sector, and industries like health and logistics.