Digital divide threatens India's 2047 tech vision; warns GSMA

Over the past decade, India’s digital economy has expanded significantly. However, several structural weaknesses remain, according to new findings presented by the Global System for Mobile Communications Association (GSMA) at the India Mobile Congress (IMC) 2025.

The GSMA report warns that, without timely intervention, India risks experiencing what it terms a “brain drain dividend”, where the country’s most talented individuals end up contributing to the growth of global competitors rather than fostering innovation domestically.

Nearly half of the population remains offline

One of the most pressing challenges is the digital divide. The GSMA report highlights that 47% of Indians still lack internet access. Among the most concerning disparities is the gender gap in digital usage, women in India use the internet at a rate 33% lower than men. Without closing this gap, the goal of inclusive and equitable digital development could be severely compromised.

As a global industry partner at IMC 2025, the GSMA has called for greater collaboration and innovation to accelerate India’s digital transformation, particularly by improving access and participation for underserved communities.

Despite notable progress in developing Digital Public Infrastructure (DPI) and expanding mobile connectivity, the report identifies innovation as a critical shortfall. India lags in research and development investment, private-sector innovation, and talent retention. These issues, if left unaddressed, could undermine long-term competitiveness.

Growth continues, but the 2047 vision is at risk

India’s digital economy has seen considerable growth, from USD 108 billion in 2013 to nearly USD 370 billion in 2023. The national target is to exceed USD 1 trillion by 2030. However, the GSMA report raises concerns about the sustainability of this growth trajectory.

It warns that India’s ambition to achieve "digital sovereignty" by 2047 may be in jeopardy unless urgent action is taken to address the innovation gap and digital exclusion.

Vivek Badrinath, Director General at GSMA, commented, “India has become a digital powerhouse over the past decade, with world-leading innovation in digital public infrastructure and 5G rollout. But to sustain this momentum, India must focus on innovation, boost R&D, strengthen data governance, and ensure every citizen, especially women and rural communities, can benefit. True digital sovereignty means leaving no one behind.”