India’s Rank in Top Digital Economies

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. 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. 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. A recent 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 the nation leverage AI, deepen innovation capabilities and strengthen digital trust. 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.