India's Internet Economy To Touch US$ 1 Trillion By 2030 By CIOTechOutlook Team

India's Internet Economy To Touch US$ 1 Trillion By 2030

CIOTechOutlook Team | Tuesday, 06 June 2023, 11:14 IST

As per the report titled "The e-Conomy of a Billion Connected Indians" published today by Google, Temasek, and Bain & Company, the growth of India's internet economy, from approximately $175 billion in consumption in 2022 to about $1 trillion by 2030, will be supported by a continued shift in consumer behaviour and evolution of the business ecosystem.

The research offers insights into the core areas of the internet economy powered by digital consumption, including e-commerce, online travel, food delivery, ride-hailing, and more. It is based on investor and consumer surveys as well as Bain & Company analyses.

The success of India's domestic digital public goods, or the "India Stack," has placed the internet economy for acceleration due to the convergence of three key forces: the digital-seeking behaviours of internet users in Tier 2+ locations, the digitization of large, traditional businesses along with a growing startup ecosystem, and the success of India's homegrown digital public goods.

The report points out that the internet economy's contribution to India's technology sector is expected to grow from its current level of 48% to 62% in 2030, while its percentage of India's GDP will rise from 4-5% to over 12-13%.

Sanjay Gupta, country head and vice president, Google India said, “Three foundational forces – deepening consumer digital adoption, technology investments by businesses, and digital democratization with the India Stack – has placed India at a turning point in its digital transformation. Structural shifts in consumption potential are opening up a vast opportunity for startups, large businesses and MSMEs to power India’s internet economy towards a projected growth of 6x, reaching a trillion dollars by 2030. We’re pleased to join Bain and Temasek in this first-of-its-kind multidimensional view of the digital landscape, and are confident and committed to partner India in this extraordinary opportunity.”