The present study is an exploration into the historical development of digital economy and its implications in Indian context. The study adopted explorative cum analytical research approach to garner insights into the subject matter. Secondary data sources including journals, books and government reports are main stay of the research to draw the precise inferences. In this context, the key inferences of the study have outlined that the advent of technology advancements has significantly altered global socio-economic interactions. The evolution of the digital economy in India showcases a transformative journey marked by technological advancements, policy initiatives, and changing consumer behavior. India is quickly becoming the world’s leading country in the digital economy. Digital technologies, industries, and services exert a substantial influence as stabilizers, lubricants, and enhancers in comparison to the physical economy. As a result, they are regarded as pivotal approaches to mitigate the crisis and drivers of economic growth. Through a number of programmes, including Made in India, Startup India, and Digital India, the Indian government has been aggressively encouraging the use of digital technologies. These programmes seek to improve the adoption of digital technology across a range of industries, including healthcare, education, and agriculture, while also fostering an atmosphere that supports the growth of start-ups. India’s economy and society have been greatly impacted by the digital economy. It has increased production, produced jobs, and given more people access to opportunities and services. E-commerce, digital payments, and online education are just a few of the new industries and business models that have emerged as a result of the expansion of the digital economy.