Page 23 - Policy Economic Report_Jan 25

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

? With India doing exceptionally well in integrating AI into its workforce, the QS analysis underscores
the country’s readiness to adopt AI, digital, and green technologies, ahead of many countries.

10. India’s digital economy set to drive one-fifth of GDP by 2030: (Ministry of Electronics and
Information Technology) MeitY report

? India’s digital economy is projected to grow nearly twice as fast as the overall economy,
contributing close to one-fifth of the country’s national income by 2030, according to a report
from the Ministry of Electronics and Information Technology (MeitY).

? The report, titled Estimation and Measurement of India’s Digital Economy, reveals that the digital
sector accounted for 11.74% of national income, amounting to ?31.64 lakh crore (approximately
USD 402 billion) in GDP, in 2022-23.

? The report highlights the pivotal role of digital technologies in transforming India’s economic
landscape. It employs frameworks from the Organisation for Economic Cooperation and
Development (OECD) and the Asian Development Bank (ADB) to measure the digital economy,
placing India among a select group of nations globally—and the first among developing
countries—to undertake such an extensive evaluation.

? In addition to covering core digital industries like ICT services, telecommunications, and
electronics manufacturing, the study also factors in traditional sectors such as banking, financial
services, insurance (BFSI), trade, and education—areas not typically included in conventional
estimates.

? According to the findings, the digital-enabling industry contributed the largest share of the Gross
Value Added (GVA), accounting for 7.83%. Emerging digital industries, including tech giants and
online platforms, added 2%, while the digitalisation of traditional sectors such as BFSI and
education also contributed 2%. This indicates a broader diffusion of digital technologies across
India’s economy, extending beyond the confines of the ICT sector.

? The report also sheds light on the employment potential of the digital economy, which supported
14.67 million workers in 2022-23, equivalent to 2.55% of the country’s workforce.

January 2025 Page | 22