The ICRIER Prosus Centre has released the State of India's #Digital #Economy (SIDE) 2025 #Report, showcasing India's remarkable progress in #digital transformation using the #CHIPS #framework - Connect, Harness, Innovate, Protect, and Sustain 🚀
Key insights include:
1. India is the third most #digitalized country, after the US & China, and leads digitalization in the Global South.
2. India ranks 11th in #AI #research and 16th in AI #infrastructure.
3. Key data trends:
a. #Digital economy growing twice as fast as overall economy.
b. #Mobile internet dominates; low fixed-line #broadband penetration.
4. CHIPS Framework:
a. Connect - Second-largest #internet user base; 40% still offline.
b. Harness - 3rd in #ICT services exports; strong digital infrastructure.
c. Innovate - 9th in digital innovation; 13th in AI adoption due to low infra availability & lack of competing #deep tech research
d. Protect & Sustain - 25th in #cybersecurity preparedness & green tech adoption.
5. Challenges: Risks from #cyber threats & #environmental degradation; Need for better AI infrastructure & #investment in deep tech to compete globally.
Interestingly, CHIPS framework has been used on purpose:
a. The IMF’s #Artificial #Intelligence Preparedness Index (AIPI) in mid-2024 ranked 174 countries, placing #China at 30 and several developed nations like #Denmark, #Netherlands, #Estonia, #Finland, #Switzerland, #Germany & #Sweden in the top 10. This, including few other traditional digitalisation #indices, have been criticized for underestimating the digital potential of emerging economies while favoring high-income countries.
b. These rankings suffer from methodological flaws, including failure to account for economies of scale in large #developing nations, a narrow focus on selective aspects of #digitalisation & double counting of inputs & outcomes.
c. Meanwhile, countries like #India, #Brazil & #Nigeria are driving innovation through #DPI (e.g., UPI, Pix, neo-banking) and new connectivity solutions like #Airfibre. The launch of #Deepseek, chinese AI model rivaling #ChatGPT with lower computational costs, highlights how emerging economies are becoming global digital leaders.
d. As developing nations now constitute majority of #internet users & digital consumers, such indices fail to reflect the shifting digital landscape, while #Europe faces declining #competitiveness due to outdated growth models.
Link to the full report: https://lnkd.in/gHz9WTJG
#DigitalIndia #SIDE2025 #Innovation