India's digital economy set to overtake agriculture, mfg by 2030: MeitY

India's digital economy is expected to grow almost twice as fast as the overall economy, contributing to nearly one-fifth of national income by 2030, according to a MeitY report

India’s digital economy is poised to grow nearly twice as fast as the overall economy, contributing nearly one-fifth of the country’s national income by 2029-2030, according to a report by the Ministry of Electronics and Information Technology (MeitY).

 

The report, titled ‘Estimation and Measurement of India's Digital Economy’, released on January 22, is the first of its kind to quantify the value addition and employment generated by India’s burgeoning digital sector.

 

Highlighting the sector’s transformative potential, the report states that the digital economy’s share is expected to surpass agriculture and manufacturing in less than six years. “In the short run, the highest growth is likely to come from the growth of digital intermediaries and platforms, followed by higher digital diffusion and digitalisation of the rest of the economy. This will eventually lower the share of digitally enabling ICT industries in the digital economy,” the report noted.

   

Current contribution and projections

 

As of 2022-23, the digital economy contributed 11.74 per cent of India’s national income, equivalent to Rs 28.94 trillion ($368 billion) in Gross Value Added (GVA) and Rs 31.64 trillion ($402 billion) in GDP. This share is projected to rise to 13.42 per cent by 2024-25, according to the MeitY report.

 

The largest contribution—7.83 per cent of the national GVA—comes from sectors such as information and communication services, telecom, and the manufacturing of electronics, computers, and communication equipment. Big Tech players, digital platforms, and intermediaries account for nearly 2 per cent of the GVA, while industries like BFSI (banking, financial services, and insurance), trade, and education add another 2 per cent.

   

Employment in the digital economy

 

The report estimates that the digital economy employed 14.67 million workers in 2022-23, accounting for 2.55 per cent of India’s total workforce. By comparison, agriculture remained the largest employer, with 263.6 million workers (45.8 per cent of the workforce), while manufacturing employed 65.6 million workers (11.4 per cent).