India's Digital Economy and AI Performance
India has emerged as the world's fifth most digitalized economy and ranks fourth globally in AI performance, as reported by the ICRIER-Prosus Centre for Internet and Digital Economy (IPCIDE).
Key Findings from the Report
- India surpasses Germany, France, Japan, the UK, and Canada in the AI race with 72% of global AI users now found in developing countries.
- The State of India's Digital Economy (SIDE) 2026 report ranks India fifth on the CHIPS-AI index.
- India and China together account for nearly two-fifths of worldwide AI adoption.
- The country has generated $328 billion in digitally delivered trade and possesses the world's second-largest AI talent pool.
- Generative AI has rapidly become a dominant technology in developing countries.
Global Digital Leadership
- A structural shift in global digital leadership is noted, with China, Singapore, and India forming a tripolar digital order alongside the traditional North Atlantic pole.
- India's digital momentum has accelerated, propelling it to fifth in global rankings, previously eighth in 2025.
- The country's standalone AI index ranking of 4th is only behind the United States, China, and Singapore.
Future Prospects and Insights
- India's strong foundations are attributed to connectivity, entrepreneurship, and digital public infrastructure.
- The future growth phase will depend on effectively leveraging AI, enhancing innovation capabilities, and strengthening digital trust.
- India is transitioning from being merely a large digital market to an influential global AI economy.
