Business EconomyPosted at: Dec 11 2025 4:09PM


India’s march towards trillion-dollar digital economy gathering speed: Report

New Delhi, Dec 11 (UNI) India’s march towards a trillion-dollar digital economy is gathering speed, but a new national assessment shows that there is glaring gap among Indian states in digital readiness.
The ‘Technology Readiness Index 2025’ released by Koan Advisory Group and PHD Chamber of Commerce and Industry (PHDCCI) here reveals a sharp divide between the digitally advanced states of South and West and the slower-moving regions of East and Northeast.’
Based on 25 indicators covering access, infrastructure, business ecosystems and policy frameworks, the Index offers a rare, comprehensive view of how well states are positioned to participate in India’s technology-driven growth.
Tamil Nadu emerges as the most tech-ready state in the country with a composite score of 80.75. The report credits the state’s top position to its strong digital and industrial backbone, widespread fibre coverage, a high number of operational Special Economic Zones (SEZs), a large pool of skilled technique manpower and robust innovation output reflected in patent filings.
Karnataka ranks second, which is driven by country’s most mature tech business ecosystems. High foreign investment, the largest concentration of STPI units and strong startup culture and extensive digital infrastructure.
Maharashtra follows in third place, driven by its economic scale, highest share of national FDI, deep urban digital capacity and a wide smart city network that supports technology adoption at scale.
Telangana and Delhi complete the top five, each backed by distinct strengths—Telangana by a perfect score in policy preparedness across emerging technologies and Delhi by the strongest digital access score in the country.
The report makes it clear that states in the South and West are driving India’s digital transformation. Tamil Nadu, Karnataka, Telangana, Kerala, Andhra Pradesh, Maharashtra, Gujarat and Goa dominate the top ranks. Years of investment in connectivity, education, industrial infrastructure and technology-oriented policies have helped these states build strong digital foundations.
The study notes that these regions have created “virtuous cycles” where good infrastructure attracts investment, investment deepens business ecosystems, and business demand strengthens policy frameworks—pushing them further ahead each year.
In contrast, northern states cluster mostly in the middle of the table. Punjab, Uttar Pradesh, Rajasthan, Madhya Pradesh, Uttarakhand and Himachal Pradesh show reasonable progress in digital access through mobile penetration and UPI adoption, but their digital infrastructure and tech-oriented business ecosystem remain uneven.
Delhi and Haryana stand out as positive exceptions, entering the top ten due to the strength of the NCR’s services and technology economy. However, the report warns that without stronger execution on infrastructure rollout, higher-education pipelines and innovation ecosystems, the northern region may struggle to keep pace with the southern and western leaders.
The analysis highlights that India’s digital divide is widest in infrastructure and access. The gaps in fibre coverage, 5G tower deployment, EV charging density, online public services and SEZ availability are substantial. Access indicators—such as internet subscriptions, median 4G speed, digital payments and frequency of internet shutdowns—also show large disparities.
A handful of states have reached near-frontier levels, while many others lag far behind. The business ecosystem indicators show similar concentration, with Bengaluru, Hyderabad, Chennai, Pune–Mumbai and Delhi-NCR forming the country’s major technology clusters. The only area with relatively lower inequality is institutional frameworks, as most states now have at least some formal policies on IT, cybersecurity or digital skilling.
The report also examines how economic strength and human development relate to technology readiness. There is a strong correlation between state income levels and digital preparedness, with larger economies like Tamil Nadu, Karnataka, Maharashtra and Gujarat performing well. Yet, the relationship is not uniform.
Goa performs far above what its economic size predicts, while Uttar Pradesh and West Bengal fall below expectations despite being major economies. This shows that political choices and governance priorities play a decisive role in shaping digital outcomes.
The link between human development and tech readiness is surprisingly weak, suggesting that digital progress today is driven more by targeted investments and policy focus than by underlying socio-economic indicators. Over time, however, the report expects both to reinforce each other.
The Technology Readiness Index concludes that while India is one of the world’s fastest-digitising nations, the pace of progress varies sharply across states. Those that have invested consistently in digital infrastructure, education and policy frameworks are now pulling ahead rapidly.
UNI SAS KK
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