india-ranks-4th-in-ai-5th-in-digital-economy-globally

India has emerged as the world’s fifth most digitalised economy and ranked fourth globally in artificial intelligence performance, according to a report released on Friday by the ICRIER-Prosus Centre for Internet and Digital Economy.

 

The State of India’s Digital Economy (SIDE) 2026 report, which benchmarked 71 countries, said India had overtaken countries such as Germany, France, Japan, United Kingdom and Canada in the global AI race.

 

According to the report, India ranked fourth on the CHIPS-AI index, behind only the United States, China and Singapore.

 

The report highlighted a major shift in the global digital landscape, noting that 72 per cent of AI users were now based in developing countries, with India and China together accounting for nearly two-fifths of global AI adoption.

 

It also observed that generative AI had spread faster than any previous technology and had become a developing-country phenomenon almost immediately after its launch.

 

India generated USD 328 billion in digitally delivered trade and is home to the world’s second-largest AI talent pool, the report said.

 

The findings also pointed to what the report described as a “structural shift” in global digital leadership.

 

“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 said.

 

India climbed to fifth position in the global digital economy rankings from eighth place in 2025, reflecting rapid digital growth in an increasingly competitive environment.

 

Pramod Bhasin said India had built strong foundations through connectivity, entrepreneurship and digital public infrastructure.

 

“The next phase of growth depends on effectively leveraging AI, deepening innovation capabilities and strengthening digital trust,” Bhasin said.

 

Sehraj Singh said India was evolving beyond being merely a large digital market.

 

“India is no longer just a large digital market — it is emerging as one of the world’s most influential AI economies,” Singh said.