• The Indian digital economy is expected to be responsible for 20 percent of the country’s GDP by 2030
• Growth is driven by government initiatives, improved connectivity and a young, digitally native population
• Opportunities for overseas firms can be found in cybersecurity, workforce upskilling, fintech and solutions tailored to specific industries

With the Indian digital economy expected to surpass USD1 trillion in value by the decade’s end, foreign businesses are increasingly exploring how they can contribute to this growth. There are certainly widespread opportunities in a sector that is likely to contribute more to the country’s GDP than agriculture and manufacturing. Market entry success is determined by not only demand but also how overseas firms navigate existing obstacles. Asian Insiders India Partner Priti Verma offers insights into the Indian digital economy.

The story of India’s digital economy is one of massive growth and perhaps even greater potential. In 2013, the sector’s value was USD108 billion. According to the State of India’s Digital Economy Report, this had more than tripled in 2023, reaching USD370 billion. Projections for 2030 indicate the value will reach USD1 trillion.

In fact, 2030 is shaping up to be a milestone year for the Indian digital economy based on current estimates. The Ministry of Electronics and IT noted the sector is expected to contribute upwards of 20 percent of the country’s GDP by the end of the decade. The digital economy now accounts for roughly 13 percent of India’s GDP.

The Digital Economy Report also found it was nearly five times more productive than the rest of India’s economy. If projections hold true, it is likely to surpass agriculture and manufacturing in the coming years.

What’s driving growth?

When the Indian government launched the Digital India initiative in 2015, it provided both a roadmap and resources for widespread digitisation. The country’s digital economy has benefited greatly from these concerted efforts. However, this is not the only driver of growth.

The country’s market size is massive and features a large, digitally native population. India surpassed one billion internet subscribers in 2025, and there are now more than 650 million smartphone users in the country. A rapid rollout of both 4G and 5G networks has dramatically improved connectivity. 

To that effect, internet penetration rates increased from 15 percent in 2015 to 70 percent last year. Additionally, the digital divide between urban and rural areas in India continues to shrink. While work remains, this proliferation of internet access, as well as other digitisation measures, has caused habits to shift.

For example, the country has one of the highest digital payment totals in the world. Meanwhile, the Indian e-commerce sector recorded a compound annual growth of more than 20 percent between 2020 and 2025.

Indian digital economy opportunities

Major international players, including Microsoft, Google, and Amazon, are already active in the country, but there is now an increasing need for specialised solutions. The target is proven technology and services that ensure the Indian digital economy continues its upward trajectory. Here are a few areas of interest to overseas businesses.

Security – As India’s digital economy grows, so too does the need for security. This is especially true for SMEs who lack the resources to develop their own in-house protection. Notably, India has one of the highest rates of phishing attacks, and it has seen several high-profile data breaches in recent years.

As both the government and public demand robust cybersecurity from those involved in the digital economy, international firms are playing an increasing role in providing technology and knowledge.

Fintech – While digital payments are widespread in India, many financial institutions are seeking ways to integrate revenue-generating fintech products into their offerings. Cross-border solutions also remain in demand given the country’s dependence on remittances from overseas workers. According to the Reserve Bank of India, the country received more than USD31 billion in money transfers during the first quarter of 2026.

Industry-specific solutions – A growing Indian digital economy will impact and potentially disrupt numerous industries beyond retail and finance. Many companies are proactively seeking solutions to gain an edge amid increasing competition. A lot of attention is directed toward artificial intelligence tools, but advanced computing is of interest too. The key here is having a proven product with a track record of success in a specific industry.

Upskilling – There is a desire for skill development in India as the country seeks to ensure the workforce keeps pace with changes caused by a growing digital economy. The sector is already a major source of employment but many future roles will require specialised training.

A complex market

The adage goes that if something were easy, then everyone would do it. Given the size of India’s digital economy and potential for future growth, the assumption would be every overseas player would be clamouring to enter the market. In reality, challenges have caused hesitancy.

For instance, the Digital Personal Data Protection Act sets guidelines for the processing and storage of personal data. It is also superseded by any existing data protection regulations that carry more stringent requirements. These types of scenarios can cause confusion among businesses, especially those not familiar with operating in India.    

There are other unique policies in the country that impact the digital economy. Navigating these is not always a straightforward process when compared alongside other markets where regulations have been streamlined.

Finding opportunities, partnerships, and customers can be difficult for overseas firms considering India. Like other Asian markets, the country has a specific way of doing business. Success comes from understanding how this works and adapting where necessary. Even in the digital economy, many old practices remain.

Final thoughts

The hurdles of market entry are real but should not dissuade overseas businesses from considering India. On the contrary, the size of the digital economy and its potential for growth over the next few years should compel firms to find a way forward.

A discussion regarding market entry should start with an on-the-ground specialist such as Asian Insiders. We have the expertise and experience to determine if your company’s offering is a good fit in India. Once that’s been established, we work together to ensure obstacles are avoided and a pathway to success is identified.   

The Indian digital economy offers a plethora of opportunities to foreign companies. However, they must be willing to put in the effort to make it happen. A partnership with Asian Insiders eliminates the guesswork and uncertainty that the process can bring.

To learn more about opportunities in the Indian digital economy, please contact Jari Hietala, Managing Partner: jari.hietala(at)asianinsiders.com or Priti Verma, India Partner: priti.verma(at)asianinsiders.com