January 28, 2025
The digital economy’s share of national income, which stood at 11.74% in 2022-23, is projected to rise to 13.42% by 2024-25
Information and communication services, telecom, and electronics manufacturing are the largest contributors, at 7.83% of national GVA
Digital platforms, Big Tech, and intermediaries comprise nearly 2% of India’s Gross Value Added, alongside sectors like BFSI, trade, and education
In 2022-23, the digital economy employed 14.67 million workers, comprising 2.55% of India’s total workforce, a significant share compared to agriculture’s 45.8% and manufacturing’s 11.4%.
India’s digital economy is poised for extraordinary growth, outpacing the overall economy and contributing nearly one-fifth of the country’s national income by 2029-2030, according to a new report by the Ministry of Electronics and Information Technology (MeitY) titled ‘Estimation and Measurement of India’s Digital Economy’. The report is the first comprehensive effort to quantify the value addition and employment generated by India’s rapidly growing digital sector.
The report highlights the digital economy’s transformative potential, noting that its contribution is expected to surpass agriculture and manufacturing in the next six years. It forecasts that the highest growth in the short term will come from digital intermediaries and platforms, followed by increased digital diffusion across the economy. As the sector matures, the share of digitally enabling ICT industries will gradually decrease.
In the fiscal year 2022-23, the digital economy contributed 11.74% of India’s national income, equivalent to Rs 28.94 trillion ($368 billion) in Gross Value Added (GVA) and Rs 31.64 trillion ($402 billion) in GDP. According to MeitY’s estimates, this share is projected to rise to 13.42% by 2024-25.
The largest contribution to the digital economy comes from information and communication services, telecom, and the manufacturing of electronics, computers, and communication equipment, accounting for 7.83% of the national GVA. Digital platforms, Big Tech companies, and intermediaries contributed nearly 2% of GVA, while other sectors such as banking, financial services, insurance (BFSI), trade, and education added another 2%.
The digital economy also plays a crucial role in employment, with an estimated 14.67 million people working in the sector in 2022-23. This represents 2.55% of India’s total workforce. While agriculture remains the largest employer, with 263.6 million workers (45.8% of the workforce), manufacturing employed 65.6 million workers (11.4%).
As India’s digital economy continues to expand, it is set to play an increasingly significant role in driving the country’s growth, creating new jobs, and reshaping traditional sectors.
Source: Business Standard