India's digital revolution is rapidly transforming from a metropolitan phenomenon to a nationwide reality, permeating households across the country. The Economic Survey 2025-26, presented to Parliament on Thursday, January 29, underscores the significant strides made in expanding digital access, particularly in rural areas. This expansion is fueled by increasing internet penetration, widespread smartphone adoption, and the development of public digital infrastructure.
Digital Growth at Scale
The digital economy's contribution to India's national income has grown significantly over the past decade. The Economic Survey estimates that the digital economy accounted for almost 12% of national income in 2022–23, and it is projected to exceed 13% by 2024–25. This growth is attributed to affordable data plans, increased smartphone usage, and the expansion of public digital infrastructure. Internet connections have increased nearly fourfold since 2014, reaching almost one billion by 2024. The rollout of 5G services and the BharatNet initiative, which aims to connect over two lakh gram panchayats with fiber connectivity, have been crucial in extending digital access to remote areas. By 2025, over 85% of households owned at least one smartphone, indicating near-universal reach.
Usage patterns reflect this expansion, with nearly half of all internet users consuming online video content. Social media, email, music streaming, and digital payments are also widely used, with tens of crores of Indians engaging with digital platforms daily. This widespread adoption highlights the increasing integration of digital technologies into daily life. The Digital India program aims to digitally empower citizens by focusing on digital literacy and providing digital resources and services in Indian languages.
Concerns Regarding Digital Addiction
While the Economic Survey highlights the benefits of increased digital access, it also raises concerns about the potential negative impacts of excessive digital engagement, especially among young people. The Survey defines digital addiction as a pattern of persistent, excessive, or compulsive use of digital devices and online activities that leads to psychological distress and functional impairment. This behavior can manifest as reduced concentration, sleep deprivation, anxiety, and declining performance in academic or professional settings.
The report warns that excessive engagement with smartphones, social media, gaming, and online platforms is beginning to take a measurable toll on wellbeing, learning outcomes, and long-term economic productivity. Compulsive digital use is closely linked to anxiety, stress, depression, and sleep disorders, particularly among students facing academic pressure and those exposed to cyberbullying. The Survey also points to wider economic costs, including financial losses from impulsive online spending and reduced employability due to lower productivity.
Addressing the Challenges
The Economic Survey emphasizes the need for a balanced approach, maximizing the benefits of digital technologies while mitigating potential risks. It suggests that governments and communities should create offline youth hubs in urban slums and rural areas. The survey also draws attention to the lack of comprehensive nationwide data on mental health risks from digital usage, including standardized metrics for screen time issues like sleep debt, anxiety, productivity impacts, and cyberbullying, as well as limited adult-focused programs.
To ensure global standards and model interoperability, international collaboration with institutions like the UK's AI Security Institute and the US National Institute of Standards and Technology is encouraged.
The Digital India initiative has significantly expanded digital access and inclusion, contributing to economic growth and empowering citizens. The challenge now lies in addressing the potential downsides of excessive digital engagement and ensuring that the digital revolution benefits all segments of society.
