The Economic Survey 2025–26 has highlighted how India’s digital expansion has reached household scale, extending beyond cities into rural areas through the internet, smartphones and public digital infrastructure. With connectivity now widespread across villages and small towns, the Survey notes that digital access is no longer the main barrier, but also notes that excessive and compulsive use of digital platforms is emerging as a growing behavioural and public health concern, particularly among young people. Union Finance Minister Nirmala Sitharaman tabled the Survey in Parliament on Thursday, 29 January.
Digital growth at scale
India’s digital economy has expanded sharply over the past decade. The Survey estimates that it contributed close to 12% of national income in 2022–23, with its share projected to rise above 13% by 2024–25. This growth has been driven by low-cost data, mass smartphone adoption and the steady build-out of public digital infrastructure.
Internet connections have increased nearly fourfold since 2014, reaching almost one billion by 2024. The rollout of 5G services and BharatNet fibre connectivity to more than two lakh gram panchayats has played a key role in extending digital access deep into rural India. By 2025, over 85% of households owned at least one smartphone, signalling near-universal reach.
Usage patterns reflect this scale. Nearly half of all internet users consume online video content, while social media, email, music streaming and digital payments are widely used. In absolute terms, this amounts to several tens of crores of Indians engaging with digital platforms on a daily basis.
Youth in an always-online environment
The Survey points out that young Indians, particularly those aged 15 to 29, are now growing up in an intensely digital environment. With mobile and internet access almost universal in this age group, the challenge has shifted from connectivity to the consequences of high-intensity use.
The report highlights risks linked to compulsive digital behaviour, including loss of study time, reduced productivity at work and financial losses from impulsive online activity, gaming and fraud. Over time, such trends could affect employability, lifetime earnings and overall economic output.
Understanding digital addiction
Digital addiction, the Survey explains, refers to excessive or compulsive engagement with digital devices and online activities that causes distress and interferes with daily functioning. This can include smartphones, social media, online gaming, streaming platforms and broader internet use.
Such behaviour can impair concentration, disrupt sleep and weaken offline social skills. The Survey also notes that prolonged screen time may erode social capital by reducing face-to-face interaction and participation in community life.
