According to a report by BCG-TiE, it is predicted that driven by sturdy addition in online users and volatile growth in data consumption, the India’s Internet economy is set to touch USD 250 billion. While, the India’s Internet economy is likely to grow from USD 100-130 billion (about 5 percent of GDP) to USD 215-265 billion (7.5 percent) by 2020 with e-commerce and financial services predictable to guide this growth, the report titled The USD 250 Billion Digital Volcano: Dormant No More said.
The E-commerce and financial services is likely to comprise USD 40-50 billion, e-commerce products USD 45-50 billion and digital media and advertising at USD 5-8 billion, the report added. A chief chunk of this is expected to come from private and government infrastructure spending (USD 50-60 billion), followed by that on connectivity (USD 45-55 billion) and devices (USD 30-40 billion).
In terms of mobile Internet users, recently India has already become the second highest in the country with about 391 million users. And, the graph is expected to rise speedily to about 650 million mobile Internet users by 2020. At the same time, the data use by 2020 could potentially augment 10-14 times. The average data consumption is projected to reach 7-10 GB per user per month by 2020.
“It is essential to understand the three forces that are now synergising to unlock Internet consumption in India – 4G enabled devices, reliable high speed data and proliferation of digital content,” Nimisha Jain, a BCG partner and report co-author said. The Increased high speed Internet adoption is probable to get bigger with spent online by 2020 to almost 3-4 times say the report. Furthermore, particularly determined by online media and the entertainment, the amount of video consumed online is on the climb.