India’s digital economy to reach 20% of GDP by 2030: Report

India’s digital economy is projected to contribute nearly 20% of the country’s gross domestic product by 2030, up from about 13% currently, driven by growth rates significantly outpacing the broader economy, a senior government official said.

Speaking at the Nasscom Global Confluence 2026, Ministry of Electronics and IT (MeitY) Secretary S Krishnan said the digital economy—covering IT services, IT-enabled services and electronics—has been expanding at roughly twice the pace of overall economic growth, according to PTI.

“Currently at about 13% of India’s GDP, we are growing twice as fast as the rest of the economy,” Krishnan said, adding that the sector is on track to approach a one-fifth share of GDP by the end of the decade.

The projection underscores the increasing centrality of technology-driven sectors in India’s economic trajectory. The expansion is expected to be further accelerated by the adoption of artificial intelligence across industries, as businesses integrate digital tools into operations, customer engagement and decision-making processes.

Government-backed initiatives are playing a key role in enabling this shift. Under the India AI Mission, the government has made compute infrastructure available to startups and researchers at significantly subsidised rates—about one-third of prevailing market prices—while also releasing more than 10,000 datasets and indigenous AI models to support innovation.

Krishnan also highlighted India’s growing global footprint in digital infrastructure. The country has signed agreements with more than 53 nations to export its Digital Public Infrastructure (DPI) model, which includes systems for digital identity, payments and data exchange. These partnerships span countries across the Global South as well as parts of Europe and Russia.

The DPI framework, combined with AI-led innovation, is positioning India as a provider of scalable and cost-effective digital solutions globally. Industry observers note that this model could become a key lever for both economic growth and geopolitical influence in the coming years.

At the same time, India’s software services exports—currently valued at around $250 billion—are expected to undergo a structural shift rather than decline, as demand evolves towards higher-value, AI-enabled services.

The outlook reflects broader changes in the global technology landscape, where countries are investing heavily in digital ecosystems to drive productivity and competitiveness. For India, the convergence of AI, digital infrastructure and export capabilities is likely to define its next phase of economic expansion.

Looking ahead, the challenge will lie in sustaining this momentum—balancing rapid technological adoption with workforce readiness, regulatory frameworks and infrastructure capacity—as the digital economy moves towards becoming a central pillar of national growth.