State of India’s Digital Economy (SIDE) 2023 Report

The State of India’s Digital Economy (SIDE) 2023 was released by ICRIER-Prosus Centre for Internet and Digital Economy (IPCIDE) in Feb 2023. What does the report say about India’s digital economy and its progress? Know more in this article for the IAS exam Indian economy segment.

India’s Digital Economy 2023 Report

Key Finding of the Report:

• During the period 2014-21, mobile broadband subscriptions increased at a rate of more than 40% per year.
• Internet connectivity divides small and large businesses that were closed during the pandemic years.
• Smaller businesses aren’t leveraging digital tools as much as larger businesses: the post-pandemic gap in digital tool use increased to 26% for online sales, 33% for websites, 12% for online marketing, and 21% for social media presence.
• Although 3G mobile broadband is available to 99% of Indians, it is not used by all.
• While rural India has twice the population of urban India, the number of active internet users is roughly half.
• In rural India, less than one-third of women use the internet.
• The success of Co-Win, which registered over a billion users in 13 months, is not an isolated success story; many Digital Public Infrastructure Platforms (DPIPs) are rapidly scaling up.
• Unless properly regulated, DPIPs can lead to monopolies and the exclusion of the vulnerable, worsening the digital divide.

Key Findings on the Gender Divide:

• The gender gap in mobile ownership in India has shrunk from around 75 in 2014 to more than 50 in 2021. Indonesia and South Africa were both lower than India in 2014, but both have since surpassed India and improved their scores. 
  • South Africa has seen a dramatic improvement, with scores rising from 20 to over 70 between 2014 and 2021. 
  • Except for Japan, which has fallen, all other countries, including Turkey, Mexico, and Saudi Arabia, have made significant progress on this front.
• According to the report, only 29% of rural women use the internet, which is significantly lower than 40% of men. 
• While women’s access to mobile phones has increased from 46% in 2015 to 54% in 2021, the gender gap in mobile phone use has increased. 
  • When comparing the percentage of women who use the internet across countries, India clearly falls at the bottom of the list.
• In terms of income, the share of women on the internet is lower than in lower-middle-income countries, but higher than in the least developed and low-income countries.
  • Of course, the digital divide between rural and urban areas remains. In 2021, only 37% of the rural population was internet-connected, compared to 69% in urban areas.

State of India’s Digital Economy (SIDE) 2023 Report:- Download PDF Here