New Delhi: By 2030, India's digital economy will have increased by more than five times, reaching USD 1 trillion, a report read.
As per a joint research report released on Tuesday by Google, Temasek, and Bain and Company, India's digital economy is expected to increase more than fivefold to USD 1 trillion by 2030, driven by a growing hunger for digital goods and services, especially in the country's smaller towns.
The report, titled "India e-Conomy Report," says that India is in its "Digital Decade" and that its Internet economy will increase from its present percentage of 4-5 percent of GDP to 12-13 percent by the end of the decade. India has significantly outpaced some of the major economies in the world when it comes to daily online activities.
The report stated that while India experiences a "dramatic boom" that will result in a doubling of family consumption by 2030, "digital commerce will invariably become even more entrenched in Indians' everyday experience." The first report on India was motivated by the country's potential: the rapid digitisation of large businesses and micro, small, and medium enterprises (MSMEs), and the success of India's national digital infrastructure. Consumers from Tier 2+ towns and cities are becoming more interested in digital products and services. Aadhar, United Payments Interface (UPI), and Digilocker are just a few of the services that have helped India's digital economy reach its full potential.
The report outlined the opportunities, challenges, and growth-enabling factors for the key digital sectors of business-to-consumer (B2C) and business-to-business (B2B) e-commerce, online travel, food delivery, media, ride-hailing, edtech, healthtech, and Software-as-a-Service (SaaS).
In the report, it is predicted that business-to-consumer e-commerce would continue to dominate digital services, increasing five to six times to USD 350 billion to USD 380 billion by 2030. It is also predicted that the number of online shoppers will double to 500 million to 550 million. The increase in digital exports from India is anticipated to be led by Software as a Service, eCommerce, and EdTech.
"Global interest in adopting India's digital frameworks is cementing the country's position as a digital technology leader," it said.
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