Abstract

This study investigates the relationship between Information and Communication Technology (ICT) diffusion, economic growth, and development in India, with a specific focus on Uttar Pradesh. Despite extensive national-level research, limited empirical work explores state-level variations in ICT’s impact, particularly in digitally lagging regions. Using annual data from 2000–2023, the study employs a panel vector autoregression (PVAR) model estimated through the Generalized Method of Moments (GMM) to examine long-run relationships and causality. The results reveal a stable equilibrium among ICT diffusion, growth, and development. At the national level, ICT significantly promotes economic growth through IT exports, digital payments, and startup activity. In Uttar Pradesh, ICT has stronger effects on development indicators such as financial inclusion, digital education, and e-governance, while its direct impact on growth is modest due to infrastructural and skill-related constraints. The study underscores the need for state-specific digital infrastructure and capacity-building initiatives to harness ICT’s full potential for inclusive and sustainable development.

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