Prosus Centre for Internet and Digital Economy (CIDE)/प्रोसेस सेंटर फॉर इंटरनेट एंड डिजिटल इकॉनमी (CIDE) की रिपोर्ट-2025

Why in News ? Despite being the third-largest economy in the world, India ranks 28th in the digital user economy, according to a report by the Indian Council for Research on International Economic Relations (ICRIER) and the Prosus Centre for Internet and Digital Economy (CIDE).

The report highlights a significant disparity between India’s overall level of digitalization and the level of digitalization experienced by the average Indian user. While India has achieved a high degree of digitalization at the aggregate level, user spending within the digital economy remains modest in comparison to other countries.

Key Findings

• Internet Connectivity vs. Spending:
  Although India’s internet connectivity density is comparable to other nations, the relative size of the digital economy in terms of user spending is much lower.

• Potential for Growth:
  The report emphasizes significant potential for greater investments in improving digital penetration across the country. It notes that India’s digital economy is growing at twice the rate of its overall economy and is projected to constitute one-fifth of the economy by 2029.

• CHIPS Framework Ranking:
  Using a ‘CHIPS’ framework, which evaluates factors such as access quality and artificial intelligence integration, the report ranks India eighth in a combined assessment of its overall economy and digital user economy.

Supporting Observations:

The report echoes findings from an earlier ICRIER study conducted with the Ministry of Electronics and Information Technology, released in January 2024. That study also highlighted the rapid growth of India’s digital economy and its potential to drive significant economic transformation.

Conclusion:

While India’s digital economy showcases strong growth and potential, the relatively low ranking in user-level digitalization calls for targeted efforts to bridge the gap. Enhanced investments and policy measures could unlock greater opportunities for digital penetration and user engagement in the coming years.