India has emerged as the world’s fifth most digitalised economy, driven by the rapid expansion of its digital public infrastructure (DPI), according to the State of India’s Digital Economy (SIDE) Report 2026 released by the Indian Council for Research on International Economic Relations (ICRIER).
The report places India fifth among 71 economies assessed under ICRIER’s digitalisation index, which covers countries accounting for 96 per cent of global GDP, 86 per cent of internet users and 83 per cent of the world’s population.
The top 10 digitalised economies are the United States, China, Singapore, the Netherlands, India, South Korea, the United Kingdom, Japan, Germany, and Sweden. Among India’s neighbours, China ranks second, while Bangladesh, Sri Lanka, Nepal, Pakistan, and Bhutan are placed considerably lower in the rankings, reflecting varying levels of digital infrastructure development, digital adoption, and innovation capacity.
Digital public infrastructure underpins India’s digital growth
According to the report, India’s rise has been supported by the widespread adoption of public digital platforms including Aadhaar, Unified Payments Interface (UPI), DigiLocker and CoWIN. These platforms form the backbone of India’s digital public infrastructure and have enabled digital services to be delivered at scale across sectors.
The report notes that Aadhaar has facilitated digital identity verification for a large share of the population, while UPI has expanded access to real-time digital payments for consumers and businesses. DigiLocker has enabled digital storage and access to official documents, and CoWIN demonstrated the ability of public digital systems to support large-scale service delivery.
ICRIER states that India’s digitalisation model differs from that of many advanced economies because it relies on interoperable public digital infrastructure that can be used by governments, businesses and citizens.
The report adds that this model has contributed to widespread digital adoption despite India’s lower per-capita income relative to several economies ranked around it.
India ranks fifth in the expanded assessment of 71 economies
The 2026 edition of the SIDE Report expands its coverage to 71 countries, making it one of the broadest comparative assessments of digital economies globally.
Countries were evaluated using ICRIER’s CHIPS framework, which measures performance across five pillars: Connect, Harness, Innovate, Protect and Sustain. These pillars assess digital connectivity, the use of digital technologies, innovation capabilities, cybersecurity and trust, and sustainability.
According to the report, the broader framework captures multiple dimensions of digital development rather than relying solely on measures such as internet penetration or mobile subscriptions.
India’s performance across these indicators contributed to its position among the world’s five most digitalised economies, the report states.
AI and innovation emerge as key indicators of future competitiveness
The report introduces artificial intelligence-related indicators into its assessment methodology, reflecting the growing role of AI in shaping digital economies.
According to ICRIER, countries are increasingly being evaluated on their ability to develop AI capabilities, foster innovation ecosystems, strengthen digital skills and improve cybersecurity preparedness.
It adds that digital infrastructure, data ecosystems and technological capabilities are increasingly viewed as strategic national assets. The report concludes that future digital progress will depend not only on expanding connectivity but also on strengthening innovation, resilience and technological capacity.
India’s fifth-place ranking in the 2026 assessment, according to the report, reflects the scale and reach of its digital public infrastructure and the growing adoption of digital services across the economy.
