Digital Readiness Index (DRI) also referred to as Networked Readiness Index or Technology Index indicates the status and growth of information and communications technologies (ICT) and how it is effectively used to achieve maximum benefits to the country and its citizens. DRI explains the status of digital sovereignty of a nation and is used to monitor and compare developments in ICT domain. The Index is designed to understand the ICT Development Index (IDI) of a country, by which it can be ascertained the level of ‘digital readiness’ of the nation. The importance of ICT for digital India and E-Governance has been well brought out in the National Digital Communication Policy (NDCP) 2018 by Government of India. Development of Digital Readiness Index has been envisaged in the NDCP document. In this paper, important aspects of NDCP for making India digitally sovereign have been explained. The government policy on E-governance in ICT sector for making the country as ‘digital India’ has been explained in this article. The parameters of DRI and their significance for empowering the Nation has been brought out in this article. Methods by which these parameters could be measured and the difficulties involved therein are elaborated. Further, the importance of developing DRI and socio-economic impacts of measuring the index are explained in this article. The benefits to the people, to the States and the nation as a whole, by bringing out DRI of the States are brought out in this paper. © 2020 Elsevier B.V., All rights reserved.