Indirect Impact of Telecommunication Use on Economic Performances : A Study of Indian States Through Mediation Model

India sets its economic target based on digitization as ‘Digital Economy’. Several existing studies can be found regarding direct positive impact of internet and digital communication on the economic performances of a country. But, studies on indirect impact are very much scanty, especially in Indian context and on the states level. Present study is an initiative to understand about that indirect impact of such digital and internet communication on the economic performances of Indian states. Taking sixteen states data on the telecommunication and internet subscribers, it is found that there are significantly positive indirect impact on the economic performances of the states. For that purpose, Innovation Index score has been used as mediator in the Hayes Mediation model. The study would be very much effective in policy making and significantly useful to realise indirect impact telecommunication use on Indian economy