- Thursday, April 25, 2024
The confluence of three important forces has created an environment conducive for the acceleration of the internet economy, the report added.
By: Shubham Ghosh
In a news that would boost India’s internet consumers and market, a report by Google, Temasek and Bain & Company said a continued shift in the behaviour of consumers and the evolution of the business ecosystem will propel the growth of the country’s internet economy, from approximately $175 billion (£141.1 billion) of consumption in 2022 to $1 trillion (£806.6 billion) by 2030.
According to the report, named ‘The e-Conomy of a Billion Connected Indians’, the confluence of three important forces — digital-seeking behaviours among internet users in Tier 2+ locations; digitisation of large and traditional businesses along with a growing start-up ecosystem and the success of the South Asian nation’s homegrown digital public goods or ‘India Stack’ — has created an environment conducive for the acceleration of the internet economy, The Hindu businessline reported.
The report also added that the contribution of the internet economy towards India’s technology sector is also set to grow bigger, from the current 48 per cent to 62 per cent in another eight years, while its share in India’s GDP will grow from four to five per cent to almost 12-13 per cent.
“India’s Internet economy has remarkable potential and is expected to grow at 6x over the next decade, with B2C e-commerce driving 40 per cent of the digital GMV, followed by B2B sectors and SaaS,” The Hindu businessline quoted Parijat Ghosh, managing partner, Bain and Company (India), as saying.
He said the pace of digital disruption is likely to accelerate as traditional businesses and micro, small and medium enterprises increase investments in digitisation, besides startups continuing to play a robust role in pushing the internet economy forward.
The report has projected that B2C e-commerce will continue to dominate digital services, growing 5-6 times to $350-380 billion (£282.3-306.5 billion)by 2030.
The number of India’s online shoppers is expected to double by 2030, with currently more than 60 per cent of new shoppers located in smaller towns, and increasingly getting attracted to the Direct-to-Customers offerings and digital platforms’ accessibility features, the news outlet reported.
HealthTech and InsurTech, both of which are currently sized at or less than $2 billion (£1.6 billion), will see the largest expansion, to the tune of 9-15 times, it added.
