Context (ET): ICRIER-Prosus Center for Internet and Digital Economy (IPCIDE)à Released the State of India’s Digital Economy (SIDE) 2026 report.

The study benchmarked 71 economies, covering 96% of global GDP, using the CHIPS (Connect, Harness, Innovate, Protect, Sustain) framework and AI indicators.

Key Findings of the Report

• Indiaà 5th most digitalized economy after the US, China, Singapore, and the UK.
• IndiaàRanks 4th globally on the AI capability index, after the U.S., China, and Singapore.
• The rise was driven by expanding Digital Public Infrastructure, internet-smartphone access, startup growth, and the advantage of having the world’s second-largest AI talent pool.
• Geopolitical Shift àThe world is shifting to a tri-polar digital order, with the Indo-Pacific counterbalancing traditional North Atlantic technology leadership.
• AI Demographyà Developing nations account for 72% of AI users, while India and China together account for nearly two-fifths of adoption.
• India still lags in private AI investment and high-performance computing infrastructure.