Data shows that 72 percent of global artificial intelligence users are now located in developing nations.
India Claims 5th Spot in Global Digital Economy, 4th in AI Adoption
The global digital landscape is undergoing a fundamental transformation, and India is currently at the center of this shift. According to the latest State of India’s Digital Economy 2026 report, produced by the ICRIER-Prosus Center for Internet and Digital Economy, the nation has now cemented its position as the world’s fifth-largest digital economy. This evaluation, which assessed the performance metrics of 71 different countries, provides a clear picture of how rapidly the local tech sector is maturing on the international stage.
One of the most compelling insights from the study is India's breakout performance in artificial intelligence. Ranking fourth on the global CHIPS-AI index, India has effectively surpassed several major, established economies in terms of AI competitiveness, including Canada, France, Japan, Germany, and the United Kingdom. This rapid adoption indicates that advanced AI is no longer a luxury but is becoming deeply integrated into the country's industrial and public service frameworks.
A key narrative emerging from the research is the migration of digital influence toward emerging markets. Data shows that 72 percent of global artificial intelligence users are now located in developing nations, a major deviation from previous years where technology trends were driven almost exclusively by the West.
The primary engines behind this transition are India and China, which together account for nearly two-thirds of the world's total AI adoption. This collective growth is setting a new standard for how modern economies scale.
Ultimately, India’s climb to the fifth spot serves as a testament to its long-term strategic investments in digital infrastructure. As the nation continues to refine its technological roadmap, it is not only boosting its internal competitiveness but is also providing a scalable model for other developing countries to follow in the years ahead.
