Government Forecasts India's Digital Economy At About 12% Of GDP
The government expects India's digital economy to expand as new digital industries and traditional sectors contribute to growth, targeting 20% of GDP by 2030.
The government on Wednesday estimated the size of India's digital economy at 11.7% of GDP, in a first-of-its-kind exercise.
The Ministry of Electronics and Information Technology, using the OECD framework, has produced the most up-to-date estimate for the size of its digital economy, pegging it at 11.7% of GDP or about $402 billion (Rs 31.64 lakh crore) in 2022-23.
According to the ministry, the IT/ITes and electronics manufacturing industry is the highest contributor, accounting for 7.83% of gross value added.
New digital industries, which include Big Tech players, other digital platforms and intermediaries, and firms dependent on digital intermediaries, account for nearly 2% of GVA.
The digital contribution of three traditional industries (BFSI, trade, and education), which are not part of the OECD framework but are included in the estimates, amounts to 2% of national GVA.
The estimates are "conservative" due to the unavailability of data on smaller digital platforms, digitalisation of the informal sector, and other traditional sectors such as health and logistics, which are not included under new digital businesses.
Further, the government estimates the digital economy to grow to about 20% of GDP by 2030.
"Accurate data on the digital economy will allow for more effective policy decisions, enabling targeted interventions and investments to support digital growth," it said.
