BENGALURU: India’s internet economy is expected to grow sixfold to $1 trillion by 2030 from $175 billion in 2022, a report from Google, Temasek and Bain & Company showed.
The report said confluence of three crucial forces — digital-seeking behaviours among 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 or the India Stack — has positioned the internet economy for acceleration.
The contribution of the internet economy to India’s technology sector is set to expand, from the present 48% to 62% in 2030, while its share in India’s GDP will increase from 4-5% to nearly 12-13%.
Sanjay Gupta, country head and VP of Google India, said, “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 $1 trillion by 2030.”
Parijat Ghosh, managing partner of Bain & Company’s India offices, said B2C e-commerce is driving 40% of the digital GMV, followed by B2B sectors and SaaS.
With India’s 700 million internet users transacting more via real-time digital payments and spending more time on online video-streaming services and social media than global averages, the internet economy is set to expand beyond its current base.
“This growth will be founded on consumers seeing their household incomes double by 2030 from approximately $2,500 to $5,500 by 2030. Tier-2 consumers indicated a greater openness to experimentation with new brands and products, and to directing their increased spending towards personalization and premiumization, especially for healthtech and edtech,” the report said.
The report said confluence of three crucial forces — digital-seeking behaviours among 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 or the India Stack — has positioned the internet economy for acceleration.
The contribution of the internet economy to India’s technology sector is set to expand, from the present 48% to 62% in 2030, while its share in India’s GDP will increase from 4-5% to nearly 12-13%.
Sanjay Gupta, country head and VP of Google India, said, “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 $1 trillion by 2030.”
Parijat Ghosh, managing partner of Bain & Company’s India offices, said B2C e-commerce is driving 40% of the digital GMV, followed by B2B sectors and SaaS.
With India’s 700 million internet users transacting more via real-time digital payments and spending more time on online video-streaming services and social media than global averages, the internet economy is set to expand beyond its current base.
“This growth will be founded on consumers seeing their household incomes double by 2030 from approximately $2,500 to $5,500 by 2030. Tier-2 consumers indicated a greater openness to experimentation with new brands and products, and to directing their increased spending towards personalization and premiumization, especially for healthtech and edtech,” the report said.