Indian Economy News

India’s Digital Economy to Expand Through Tier-2, Tier-3 and Rural India

Google India Managing Director Ms. Preeti Lobana highlighted the growing role of small enterprises, farmers and workers in driving the next phase of India’s digital economy at the ET World Leaders Forum 2026. She emphasised that the benefits of Artificial Intelligence (AI) should extend beyond large corporations and reach businesses and communities across Tier-2, Tier-3 and rural India. According to Ms. Lobana, the country’s smaller enterprises, farmers and workers will be critical to powering India’s targeted US$ 1 trillion digital economy, with broader AI adoption expected to unlock significant economic value across the economy. She stressed that India’s digital transformation should encompass the wider economic base rather than remain concentrated among large enterprises and a limited group of users.

The discussion also highlighted the transition of companies from experimenting with AI towards its practical deployment and integration into business operations. AI can play an important role in strengthening cybersecurity for users and enterprises, while wider adoption will require adequate compute capacity and digital infrastructure across the country. Greater access to AI capabilities can help small businesses, agricultural communities and workers leverage technology for productivity and economic opportunities. The expansion of digital infrastructure and AI adoption across smaller cities and rural areas is therefore expected to support more inclusive digital growth and broaden participation in India’s technology-driven economy. With small enterprises, farmers and workers forming a significant part of the economic base, their greater integration into the digital ecosystem could become an important driver of India’s growth towards 2030.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.