The Indian economy has been digitalising at a remarkable pace over the last decade. According to the State of India’s Digital Economy Report 2024, 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. Yet, there are no credible and up-to-date estimates on the contribution of the digital economy to national income and employment.
Quantifying and understanding the role of the digital economy in driving economic growth, employment, and sustainable development are essential for both policymakers and the private sector. This can help align resources and adopt appropriate growth strategies. However, the cross-cutting and integrated nature of digital technologies makes the concept of a distinct digital economy difficult to define and measure. Moreover, the conventional system of national accounts does not lend itself directly to the measurement of the new economy. The problem is not unique to India. Few countries have attempted to size up their digital economy and even these efforts are works in progress.
