The SIDE 2026 report shows India rising from eighth to fifth in global digital economy rankings and placing fourth in the CHIPS-AI index, behind the United States, China, and Singapore.

India now outpaces several developed economies in AI performance, including Germany, France, Japan, the United Kingdom, and Canada.

The joint ICRIER and IPCIDE report ranks India as the fifth most digitalised economy globally in 2026, surpassing Germany, France, Japan, and Canada.

Long-term competitiveness will hinge on mobilising risk capital, expanding compute access, strengthening university-startup linkages, and building AI commercialization pathways.

Prosus reiterates its commitment to supporting India's digital ecosystem as a long-term innovation partner.

ICRIER chair urges leveraging AI, deepening innovation, and strengthening digital trust to sustain India's growth.

Experts say India’s digital leadership depends on stronger institutions, greater investment in research ecosystems, and proactive policy planning.

Generative AI diffusion is accelerating and is seen as a developing-country phenomenon, signaling a tripolar digital order in the Indo-Pacific alongside the North Atlantic.

India hosts a large talent pool and accounts for about 26% of global AI users, yet faces gaps in private AI investment and compute infrastructure.

India’s digital transformation is fueled by AI adoption, fintech innovation, and a vibrant startup scene, with about $328 billion in digitally delivered trade.

Last Updated: May 29, 2026, 7:41 PM IST.

Industry voices see India moving from a large digital market to one of the world’s most influential AI economies.