Indias Internet economy is expected to grow sixfold to $1 trillion by 2030 from $175 billion in 2022, a report fromGoogle, 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 Indias homegrown digital public goods or the India Stack — has positioned the internet economy for acceleration.
The contribution of the internet economy to Indias technology sector is set to expand, from the present 48% to 62% in 2030, while its share in Indias GDP will increase from 4-5% to nearly 12-13%.
With Indias 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.