The State of India's Digital Economy Report 2025

While digitalisation has altered the ways in which nations produce and consume, pathways to greater digitalisation have varied across countries. Global indices that often rely on the approaches adopted by developed countries, overlooking the unique pathways chosen by the developing world. The Connect–Harness–Innovate–Protect– Sustain (CHIPS) framework introduced in the State of India's Digital Economy (SIDE) 2023 report, and fine-tuned in the SIDE 2024 report, provides a realistic assessment of the global digital landscape. Through a multi-layered structure, it better captures elements that define the breadth and depth of digitalisation than that of traditional global indices. In this edition of SIDE, we make two important improvements. First, we merge the two indices introduced in SIDE 2024 – CHIPS Economy and CHIPS User – to produce CHIPS Combined, which provides a single measure of the state of digitalisation of a country. CHIPS Economy measures digitalisation at an aggregate level and CHIPS User measures digitalisation at the level of a representative unit. CHIPS Economy is akin to the idea of measuring a country's GDP and provides an estimate of the scale (breadth) of digitalisation. CHIPS User can be understood as equivalent to measuring the per capita income, assessing the intensity (depth) of digitalisation at the unit level. CHIPS Combined accounts in equal proportion for both, scale economies, as well as user-level outcomes. Second, we expand the list of countries to 32 from the 19 analysed in SIDE 2024.