India Becomes Fifth Most Digitalised Economy Globally, Surpasses Major Advanced Nations

New Delhi, May 30 (KNN) India has emerged as the world’s fifth most digitalised economy in 2026, surpassing several advanced economies including Germany, France, Japan and Canada, according to the State of India’s Digital Economy Report 2026 released by the Indian Council for Research on International Economic Relations (ICRIER) and the Prosus Centre for Internet and Digital Economy (IPCIDE).

The report also ranked India fourth globally in the Connect, Harness, Innovate, Protect and Sustain (CHIPS) index for artificial intelligence (AI), behind only the United States, China and Singapore, reported Business Standard.

India Accounts For 26% Of Global AI Users 

According to the report, India accounts for nearly 26 percent of global AI users and possesses the world’s second-largest AI talent pool. However, it noted that the country continues to lag in areas such as private AI investment, computer infrastructure and commercialisation capabilities.

“India's long-term competitiveness depends on mobilising risk capital, expanding computer access, strengthening university-startup linkages and building AI commercialisation pathways,” the report stated.

Infrastructure And Investment Gaps Remain A Concern

The report observed that despite rapid global adoption of AI technologies, advanced semiconductor chips, high-end compute infrastructure and large language models remain concentrated among a limited number of countries and companies.

It highlighted that strengthening domestic capabilities in AI infrastructure and innovation ecosystems would be critical for India to sustain its digital growth momentum and improve its position in the global AI landscape.

(KNN Bureau)