New Delhi: India’s digital economy is projected to contribute nearly one-fifth of the country’s overall economy by 2030, outpacing the growth of traditional sectors, the government has said.
Over the past decade, digital-enabling industries have grown at 17.3 per cent, significantly higher than the 11.8 per cent growth rate of the economy as a whole.
Digital platforms, in particular, have expanded rapidly, with an anticipated growth rate of approximately 30 per cent in the coming years.
In 2022-23, the digital economy accounted for 14.67 million workers, or 2.55 per cent of India’s workforce, with the majority of these jobs (58.07 per cent) in the digital-enabling industry, according to the ‘State of India’s Digital Economy Report 2024’.
Though the workforce is predominantly male, digital platforms have contributed to increasing job opportunities for women, especially in sectors where mobility and safety concerns were previously barriers.
According to the report, India is the third largest digitalised country in the world in terms of economy-wide digitalisation, and 12th among the G20 countries in the level of digitalisation of individual users, said the IT Ministry.
“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 2029-30. This means that, in less than six years, the share of digital economy will become larger than that of agriculture or manufacturing in the country,” the ministry emphasised.
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.
Projections indicate the digital economy’s share will grow to 20 per cent of gross value added (GVA) by 2029-30, outpacing agriculture and manufacturing.
Key growth drivers include the rapid adoption of AI, cloud services, and the rise of global capability centers (GCCs), with India hosting 55 per cent of the world’s GCCs.
India’s digital economy is a key driver of both economic growth and employment, with an increasing role in empowering women in the workforce and creating new opportunities across various sectors.
The rapid expansion of digital platforms signals an ongoing transformation that is set to shape the future of work in India, said the ministry.
(IANS)
