New Delhi

India has emerged as the world’s fifth most digitalised economy and ranks fourth globally in artificial intelligence performance, according to the latest State of India’s Digital Economy (SIDE) 2026 report released by the Indian Council for Research on International Economic Relations-Prosus Centre for Internet and Digital Economy (IPCIDE).

The report, which benchmarked 71 countries, said India now outpaces countries such as Germany, France, Japan, United Kingdom and Canada in the global AI race.

According to the findings, India climbed from eighth place in 2025 to fifth place globally in overall digital economy rankings, while securing the fourth position 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 are now in developing countries. India and China together account for nearly two-fifths of worldwide AI adoption.

It also stated that India generated USD 328 billion in digitally delivered trade and possesses the world’s second-largest AI talent pool.

The study observed that generative AI has spread faster than any previous technology, becoming a developing-country-driven phenomenon almost immediately after launch.

Calling it a “structural shift” in global digital leadership, the report said three of the world’s top five digital economies — China, Singapore and India — are now from the Indo-Pacific region, indicating the emergence of a “tripolar digital order” alongside the traditional North Atlantic dominance.

Pramod Bhasin said India has built strong foundations through connectivity, entrepreneurship and digital public infrastructure, but added that the next phase of growth would depend on leveraging AI effectively, strengthening innovation capabilities and building digital trust.

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