State of India’s Digital Economy: A Subnational Perspective, 2025

India is undergoing a multi-speed digital transformation at the subnational level. In some states, residents are experiencing rapid, robust, and well-balanced digital progress—approaching developed-country standards in many respects. At the other end of the spectrum are states where digitalisation remains slow, fragile, and uneven. The encouraging sign is that many states in the middle are beginning to take off and appear well positioned to catch up with the leaders.

 

Using the Connect-Harness-Innovate-Protect-Sustain (CHIPS) framework this study identifies four distinct tiers of digital progress: Advanced Digitalisers, Assured Digitalisers, Ascending Digitalisers, and Aspirational Digitalisers. Advanced Digitalisers ( Delhi, Kerala, Karnataka, Maharashtra and Haryana) show the most balanced progress, while Assured Digitalisers (Tamil Nadu, Telangana, Punjab, Andhra Pradesh and Gujarat) follow a similar pattern but with less consistency across pillars. Ascending digitalisers (Uttarakhand, Rajasthan, Madhya Pradesh, Uttar Pradesh, Himachal Pradesh, Jammu & Kashmir, and West Bengal) are gaining momentum through increased adoption of online services and a few emerging innovation hubs. Aspirational digitalisers (Odisha, Bihar, Assam, Chhattisgarh, and Jharkhand) lag behind across most pillars, reflecting deep foundational constraints. Enabling the weak digitalisers to converge with the rest of the country is essential for India to realise its ambition of becoming a global digital powerhouse.