According to a report by Google, Temasek and Bain & Company, India’s internet economy is expected to grow sixfold to a trillion dollars by 2030, with household income doubling over the next seven years.
The share of the internet economy in India’s GDP will increase from 4-5% to nearly 12-13% by 2030, with 350 million digital payment users and 220 million online shoppers leading the growth, the report said.
The contribution of ‘e-Conomy’ to the Indian technology sector is expected to increase from 48% in 2022 to 62% in 2030.
The report titled ‘The e-Conomy of a Billion Connected Indians’ states that India’s internet economy will “roar” to a trillion by 2022 from about $175 billion in consumption, reflecting a continued shift in consumer behavior and the evolution of the business ecosystem.
This growth will be based on consumers seeing their household income double by 2030 from about $2,500 to $5,500 by the end of this decade, it said.
The report, based on consumer and investor surveys and analysis by Bain & Company, added that demand for digital services and products in Tier 2+ cities is in line with demand in metro and Tier-1 cities.
The report predicted that business-to-consumer (B2C) e-commerce will continue to hold a leading share of digital services, growing five to six times to about $350-380 billion by 2030.
The number of online shoppers in India is also expected to double by then.
“Three fundamental forces – deepening consumer digital adoption, corporate technology investment and digital democratization with the India Stack – have placed India at a turning point in its digital transformation. Structural shifts in consumption potential open up a huge opportunity for start-ups ups, large companies and msmes to propel India’s internet economy to an expected six-fold growth rate,” said Sanjay Gupta, head of country and vice president of Google India.
Vishesh Shrivastav, managing director, Investment (India), Temasek said, “Widespread digital adoption among consumers and businesses is accelerating the growth of India’s internet economy at an unprecedented pace.”
India’s internet economy has remarkable potential and is expected to grow six times over the next ten years, with B2C e-commerce accounting for 40% of the digital gross trade value (GMV), followed by B2B (business-to-business ) industries and SaaS (software-as-a-service),” said Parijat Ghosh, managing partner, Bain & Company (India).