India’s internet economy is predicted to reach $1 trillion by 2030, thanks to the growing internet adoption by consumers, digitalization efforts by enterprises, and government initiatives. The “The e-Conomy India 2023 – The economy of a billion connected Indians” report, jointly released by Google, Bain & Company, and Temasek on June 6, reveals that India’s internet economy is projected to grow from $155-175 billion in 2022 to $900-1,000 billion by 2030. During the same period, the contribution of the internet economy to the country’s GDP is expected to increase from 4-5% to 12-13%.
Sanjay Gupta, the country head and vice president of Google India, states that India is currently experiencing a pivotal moment in its digital transformation journey, driven by the widespread adoption of digital technologies by consumers, investments in technology by businesses, and the democratization of digital access through programs like India Stake.
Parijat Ghosh, the managing partner at Bain and Company India, predicts that India’s internet economy will grow six-fold in the next decade, with digital disruption accelerating as traditional businesses, micro, small, and medium enterprises (MSMEs), and startups increase their digital investments.
The report highlights that India’s global digital exports are currently at a modest 2.4%, despite having 17.6% of the global population. However, it foresees Software as a Service (SaaS) playing a significant role in driving Indian digital exports, with export revenues projected to increase from $9-10 billion in 2022 to $20-25 billion in 2025. Additionally, India’s edtech and e-commerce industries are expected to contribute to the growth of digital exports.
As of December 2023, the Telecom Regulatory Authority of India (TRAI) reports that India has 865.90 million internet subscribers, with 832.20 million using broadband connections. TRAI has proposed raising the definition of broadband speed from 512Kbps to 2Mbps to meet the evolving needs of internet users.
