Theme: Digital Economy| How accurate are current global Indices in helping assess digitalisation?

In this episode of the State of the Economy podcast, businessline’s Anjana PV discusses various methods of measuring India's digital economy. The podcast is joined by Deepak Mishra, Director and CE of the Indian Council for Research on International Economic Relations (ICRIER), and Mansi Kedia, Senior Fellow at ICRIER. The discussion explores the need for a new framework to assess digitalisation and the gaps in existing global indices.  Deepak and Mansi introduce the CHIPS framework, developed by ICRIER, as a comprehensive approach to measuring digitalisation in India. CHIPS stands for Connect, Harness, Innovate, Protect, and Sustainability, representing the key pillars of digitalisation. This framework offers a holistic view of digital transformation, considering connectivity, impact, innovation, protection, and sustainability factors.  The CHIPS framework addresses the limitations of traditional indices by incorporating outcome variables and reducing the risk of double-counting, particularly benefiting developing countries like India. It emphasises the importance of understanding both linear and non-linear paths of digital development and highlights dimensions such as cybersecurity, privacy protection, and environmental sustainability.  The CHIPS framework provides policymakers, researchers, and practitioners with a nuanced understanding of India's digital economy, enabling informed decision-making and effective policy interventions. The conversation highlights the importance of understanding the diverse pathways of digitalisation and the need for nuanced frameworks to capture its complexities. The episode offers valuable insights into the evolving landscape of digitalisation in India and its implications for economic growth and development. Tune in to learn more about the CHIPS framework and its role in shaping policy interventions and driving inclusive digital transformation.   (Host, producer & edits: Anjana PV)