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.
