India’s digital economy has witnessed remarkable growth and is poised to expand even further in the coming years. India’s digital economy is projected to grow by over five times and reach a staggering $1 trillion by 2030, as per a collaborative research report by Google, Temasek, and Bain and Company. This growth is driven by the increasing demand for digital products and services, particularly in smaller cities across the country.
The report, titled ‘India e-Conomy Report’, highlights that India is currently in its ‘Digital Decade’, with the internet economy projected to contribute 12-13 per cent of the country’s GDP by the end of the decade, up from the current 4-5 per cent. India’s remarkable surge in online activities has positioned it ahead of several global economic powerhouses.
One of the key factors driving this growth is the growing interest of consumers from Tier 2+ towns and cities in digital offerings. Additionally, the rapid digitization of large businesses, micro, small, and medium enterprises (MSMEs), and the success of India’s national digital infrastructure have contributed to this expansion.
The report emphasizes the pivotal role played by key digital services such as Aadhar, United Payments Interface (UPI), and Digilocker in unlocking the potential of India’s internet economy. These services have revolutionized various aspects of daily life, enabling easier access to financial services, digital payments, and secure storage of important documents.
The report also highlights the performance and potential of various digital sectors in India, including business-to-consumer (B2C) and business-to-business (B2B) e-commerce, online travel, food delivery, media, ride-hailing, tech, health tech, and Software-as-a-Service (SaaS).
It predicts that business-to-consumer e-commerce will continue to dominate digital services, with a projected growth of five to six times to reach $350 billion-$380 billion by 2030. The number of online shoppers is also expected to double, reaching 500 million-550 million.
Overall, India’s digital economy is experiencing a transformative phase, driven by increasing internet penetration, favourable government policies, and a thriving digital ecosystem. This growth presents immense opportunities for businesses, entrepreneurs, and consumers, shaping India’s future as a digital technology leader on the global stage.
According to a joint research report by Google, Temasek, and Bain and Company, India’s digital economy is projected to grow more than fivefold, reaching USD 1 trillion by 2030.
The report, titled ‘India e-Conomy Report’, highlights the increasing demand for digital products and services, particularly in smaller cities, as the driving force behind this growth. It states that India is currently in its ‘Digital Decade’, with the Internet economy expected to contribute 12-13 per cent of the country’s GDP by the end of the decade, compared to the current 4-5 per cent.
India has witnessed a remarkable surge in online activities for everyday life, surpassing some of the world’s largest economies. As household consumption in India is set to double by 2030, the report predicts that digital commerce will become even more deeply ingrained in the daily experiences of Indians. The success of India’s national digital infrastructure, coupled with the rapid digitization of large businesses and micro, small, and medium enterprises (MSMEs), has contributed to this growth. Digital services such as Aadhar, United Payments Interface (UPI), and Digilocker have been instrumental in harnessing the potential of India’s internet economy.
The report focuses on various sectors of the digital economy, including business-to-consumer (B2C) and business-to-business (B2B) e-commerce, online travel, food delivery, media, ride-hailing, ed tech, health tech, and Software-as-a-Service (SaaS). It outlines the opportunities, challenges, and factors enabling growth in these sectors.
Business-to-consumer e-commerce is expected to continue dominating digital services, with a projected growth of five to six times, reaching USD 350 billion-380 billion by 2030. Additionally, the number of online shoppers in India is anticipated to double, reaching 500 million-550 million.
The report highlights that Software as a Service (SaaS), eCommerce, and EdTech will lead the upswing in India’s digital exports. Furthermore, global interest in adopting India’s digital frameworks solidifies the country’s position as a digital technology leader.
Overall, the report underscores the immense potential of India’s digital economy and the significant role it will play in driving economic growth in the coming years. With the increasing adoption of digital products and services across various sectors, India is well-positioned to capitalize on this digital revolution and establish itself as a global leader in the digital domain.
