Synopsis
India's digital economy is projected to reach nearly one-fifth of the total economy by 2030, with rapid growth in digital sectors outpacing traditional industries. This transformation is expected to create job opportunities and empower women in the workforce.Key Takeaways
- Projected contribution of digital economy: 20% by 2030
- Digital-enabling sectors growth rate: 17.3%
- Majority of jobs in digital industry: 58.07%
- India ranks 3rd in global digitalisation
- Digital economy share in GDP: 11.74%
New Delhi, Jan 29 (NationPress) India's digital economy is on track to make up nearly one-fifth of the nation's total economy by 2030, surpassing traditional sector growth, as reported by the government.
In the past decade, industries enabled by digital technologies have experienced a growth rate of 17.3%, which is markedly higher than the overall economic growth rate of 11.8%.
Digital platforms have particularly shown remarkable growth, with an expected increase of around 30% in the forthcoming years.
As of 2022-23, the digital economy represented 14.67 million jobs, or 2.55% of India's total workforce, with the majority (58.07%) employed in digital-enabling industries, according to the ‘State of India’s Digital Economy Report 2024’.
While the workforce is largely male, digital platforms have played a crucial role in enhancing job opportunities for women, especially in areas where mobility and safety were previously concerns.
The report indicates that India ranks as the third-largest country globally regarding economy-wide digitalisation, and 12th among G20 nations for individual user digitalisation levels, as stated by the IT Ministry.
“India's digital economy is projected to expand almost twice as fast as the overall economy, contributing to nearly one-fifth of national income by 2029-30. This implies that, in under six years, the digital economy's share will surpass that of agriculture or manufacturing,” the ministry highlighted.
In the fiscal year 2022-23, the digital economy accounted for 11.74% of the GDP (Rs 31.64 lakh crore or $402 billion).
Forecasts suggest that the digital economy's contribution might rise to 20% of gross value added (GVA) by 2029-30, outpacing both agriculture and manufacturing.
Key factors driving this growth include the swift adoption of AI, cloud services, and the emergence of Global Capability Centers (GCCs), with India hosting 55% of the world's GCCs.
India's digital economy is crucial for both economic advancement and job creation, increasingly empowering women and generating fresh opportunities across diverse sectors.
The rapid growth of digital platforms indicates a transformative shift that is poised to redefine the future of work in India, according to the ministry.
