India ranks among top digital economies, strong in AI performance
India has climbed to fifth place in global digital economy rankings and ranked fourth on the CHIPS-AI index, marking accelerating digital momentum in an increasingly competitive environment, a report said on Friday.
The report from the ICRIER-Prosus Centre for Internet and Digital Economy (IPCIDE) said that the study among 71 countries, covering 96 per cent of global GDP, revealed that "India outpaced major developed economies, including Germany, France, Japan and Canada, in digital performance."
India generated $328 billion in digitally delivered trade AND hosts the world’s second-largest AI talent pool, it said.
In addition, the country represents roughly 50 per cent of BRICS digitally delivered services. The country ranked behind only the United States, China and Singapore in AI performance.
Among the world's top five digital economies, three -- China, Singapore and India -- are now from the Indo-Pacific region, signalling the emergence of a tripolar digital order alongside the traditional North Atlantic pole.
The report documented a fundamental shift in the global digital landscape, with 72 per cent of AI users now in developing countries. India and China together accounted for nearly two-fifths of worldwide AI adoption.
“India has built strong foundations through connectivity, entrepreneurship and digital public infrastructure. The next phase of growth depends on how effectively we leverage AI, deepen innovation capabilities and strengthen digital trust,” said Pramod Bhasin, Chairperson, ICRIER.
India commands 26 per cent of global AI users but just 1 per cent of global private AI investment, reflecting a crucial gap.
Moreover, the nation ranks second globally in AI talent after the United States but lacks comparable levels of long-term venture capital and computing infrastructure, reflecting both challenge and opportunity.
India's long-term competitiveness depends on mobilising risk capital, expanding compute access, strengthening university-startup linkages and building AI commercialisation pathways, the report noted.
While AI adoption spreads rapidly, advanced chips, compute infrastructure and large language models remain concentrated among a small group of countries and firms.
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