This study aimed to explore the impact of digitization on economic performance in India. Using digital economy indicators such as internet penetration, smartphone ownership, GDP growth, and productivity, the study analyzed how digitization enhances productivity, business efficiency, and develops the Information Technology and Communication (IT-BPM) sector. It also examined digitization's role in creating direct and indirect employment opportunities, especially in the IT-BPM sector, and assessed the government initiatives in enhancing digital skills and providing job opportunities. The study highlighted governmental efforts to improve digital infrastructure and access to digital services, particularly in rural areas, and their impact on economic growth. The study employed the Generalized Method of Moments (GMM) to analyze data, using a dynamic model to determine how various aspects of digitization influence economic performance, including GDP, economic growth rate, and unemployment rate. Results showed a significant positive impact of digitization on economic growth, attributing it to improved digital service affordability, infrastructure reliability, network expansion, capacity increase, digital service usage, and human capital development. The study concluded that increasing investment in digital infrastructure and developing supportive policies for digital innovation can enhance economic performance. It provided recommendations to enhance digitization in India and discussed lessons applicable to the Arab Republic of Egypt, along with potential economic impacts of digitization on the Egyptian economy. Keywords: Digitization, economic performance, India, Generalized Method of Moments (GMM), GDP, Information Technology.