<p>The advent of the ‘Third Industrial Revolution’ in the late 1960s marked a pivotal shift toward digitalization and skill development, reshaping global economies. Over the past five decades, advancements in these domains have accelerated, laying the groundwork for the ongoing Fourth Industrial Revolution, where digitalization is central to growth and productivity. As the global order evolves with increasing reliance on digital frameworks, virtual trade in services has emerged as a crucial aspect of the digital economy, demanding nuanced exploration. BRICS, a coalition comprising over one-third of global GDP and 40% of the world’s population, holds significant potential to dominate the global economy. Thus, understanding the economic dynamics of these nations is imperative. While existing literature extensively discusses digitalization and technological advancements, limited theoretical and empirical studies examine the structural transformations induced by digitalization, particularly in emerging economies. Addressing this gap, the present study develops a trade-theoretic general equilibrium framework, underpinned by empirical evidence from BRICS nations. Key transformative factors, such as global value chains, international fragmentation, wage disparity and intricate dimensions of digital trade and growth, are central to this analysis. Utilizing secondary data from the World Development Indicators (2000–2018), the study employs panel data analysis to explore the short- and long-term relationships between digitalization, skill development, and economic growth. Findings confirm that digitalization and skill enhancement significantly contribute to economic development, with a pronounced long-term impact on GDP within the BRICS economies.</p>