India’s Digital Economy Projected to Contribute One-Fifth of GDP by 2030

Digital platforms, on the other hand, have grown exponentially, and according to estimates, are likely to increase around 30 per cent in the next coming years.  In 2022-23, according to the 'State of India's Digital Economy Report 2024', 14.67 million workers were employed in the digital economy.

India's digital economy is expected to account for nearly one-fifth of the country's overall economy by 2030, growing faster than traditional sectors, the government said.  Over the last decade, digital-enabling industries have grown at 17.3 per cent, much higher than the 11.8 per cent growth rate of the economy as a whole.

Digital platforms, on the other hand, have grown exponentially, and according to estimates, are likely to increase around 30 per cent in the next coming years.  In 2022-23, according to the 'State of India's Digital Economy Report 2024', 14.67 million workers were employed in the digital economy.

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This comprises 2.55 per cent of India's workforce. Of these workers, 58.07 per cent were engaged in the digital-enabling industry.

While men dominate the workforce, digital applications have further opened up jobs for women mainly in segments that were previously off-limits due to the constraints of mobility and security.

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India is the third largest country in the world in terms of economy-wide digitalisation, and 12th among the G20 countries in the level of digitalisation of individual users, IT Ministry said in the report.

India's digital economy is likely to grow almost two times faster than the overall economy. It is supposed to contribute around nearly one-fifth of the national income in 2029-30. That simply means, the share of the digital economy in less than six years will supersede that of agriculture or even manufacturing in the country.".

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India's digital economy has emerged as a significant contributor to its economic growth, accounting for 11.74 per cent of the GDP (Rs 31.64 lakh crore or $402 billion) in 2022-23.

The share of the digital economy in GVA is expected to rise to 20 per cent by 2029-30, surpassing agriculture and manufacturing.

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The Key growth drivers include rapid adoption of AI, cloud services, and the emergence of global capability centers (GCCs), of which India is home to 55 per cent of the world's GCCs.


India's digital economy is a significant driver both of economic growth and of employment-generating opportunities, increasingly playing an enabling role for women in the workforce and more broadly opening up new opportunities in almost all sectors.

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The rapid expansion of these platforms signals an ongoing transformation that is set to shape the future of work in India said the ministry.

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