State of India’s Digital Economy (SIDE) 2026 Report
Report Overview
- Released by the ICRIER-Prosus Centre for Internet and Digital Economy (IPCIDE).
- The report evaluates digital economy performance across 71 countries.
India’s Global Ranking
- India has emerged as the 5th most digitalised economy in the world.
- Improved from 8th position in 2025 to 5th position in 2026.
- Ranked 4th globally in AI performance on the CHIPS-AI Index.
Global AI Adoption Trends
- 72% of global AI users are now located in developing countries.
- India and China together account for nearly two-fifths of worldwide AI adoption.
- Generative AI has spread faster than any previous technology and rapidly gained adoption in developing nations.
India’s Digital Economy Achievements
- Generated $328 billion in digitally delivered trade.
- Home to the world’s second-largest AI talent pool.
- Recognized as an emerging global AI powerhouse.
Factors Driving India’s Growth
- Strong digital connectivity.
- Expanding entrepreneurial ecosystem.
- Robust Digital Public Infrastructure (DPI).
- Growing AI capabilities and talent base.
Key Findings of the Report
- Digital Economy: India ranks as the fifth most digitized economy, following the US, China, Singapore, and the UK.
- AI Leadership: India ranks fourth globally in AI capability, trailing only the US, China, and Singapore.
- This growth is driven by expanding Digital Public Infrastructure (DPI), internet and smartphone access, the growth of startups, and the advantage of possessing the world’s second-largest AI talent pool.
- Geopolitical Shift: The world is transitioning toward a tri-polar digital order, where the Indo-Pacific region acts as a counter-balance to traditional North Atlantic technological leadership.
- AI Statistics: 72% of AI users are from developing nations; notably, India and China together account for nearly two-fifths of this usage.
Significance
- The SIDE 2026 report recognizes India as one of the world’s leading digital and AI-driven economies, highlighting its growing influence in shaping the future global digital landscape.
