📲
Digital Economy • MeitY Report • National Income • ICT Sector • Employment Impact

India’s Digital Economy Contributes 11.74% to National Income: MeitY’s Landmark Report

India’s digital transformation continues to reshape its economic landscape. In a major development, the Ministry of Electronics and Information Technology (MeitY) has released a comprehensive report titled “Estimation and Measurement of India’s Digital Economy.” This study provides valuable insights into the size, scope, and growth potential of India’s digital ecosystem.

🌐 Defining the Digital Economy

The digital economy includes all economic activities that rely on digital technologies:

• New digital industries (e.g., e-commerce, online platforms, fintech)
• Digital components of traditional sectors (e.g., education tech, digital banking, online retail)
• Digital-enabling industries like ICT and telecom

Its blended structure makes it challenging to measure using traditional accounting methods.

💹 Key Findings from the 2022–23 Report

• Total contribution to national income: ₹31.64 lakh crore (USD 402 billion)
• Share of national income: 11.74%
• India is among the first developing countries to apply both the OECD framework and ADB’s input-output method for precise estimations.

📊 Sector-Wise Contributions

• Digital-Enabling Industry (ICT & telecom): 7.83% of GVA
• New Digital Industries (tech firms & platforms): 1.91%
• Digital components in traditional sectors (banking, education, trade): 2%

This reflects the pervasive role of digitalisation across industries.

👩‍💻 Employment Impact

• Total digital economy employment: 14.67 million workers
• Share of total workforce: 2.55%

While relatively modest now, the employment potential is significant, especially in platform-based jobs and tech-enabled services.

📈 Projections for 2030

India’s digital economy is expected to grow twice as fast as the overall economy, potentially contributing:

• Up to 20% of national income by 2030
• Driven by platforms, intermediaries, and further digitisation of sectors like healthcare, logistics, and manufacturing

⚠️ Data Gaps & Challenges

Despite being groundbreaking, the report acknowledges that its estimates are conservative due to:

• Limited data on informal sector digitalisation
• Inadequate tracking of small digital platforms
• Underrepresentation of digital spillovers in traditional sectors

📌 Why This Matters

For policymakers, the report provides a foundation for:

• Strategic investments in digital infrastructure
• Skilling initiatives for a tech-driven workforce
• Better allocation of incentives and subsidies

For businesses, it signals:

• Expanding opportunities in digital services
• Growing demand for digitally enabled supply chains
• The importance of data-driven decision-making

India’s digital economy is no longer an emerging component — it is fast becoming a pillar of national development. The path to Viksit Bharat @2047 runs through the digital frontier.