India’s internet economy is poised to experience a significant surge, with projections indicating a six-fold growth to reach USD 1 trillion by 2030, according to a joint report released by Google, Temasek, and Bain & Company. The report states that in 2022, India’s internet economy was estimated to be in the range of USD 155-175 billion.
The remarkable expansion is expected to be primarily driven by the e-commerce sector, particularly in the business-to-consumer (B2C) segment. However, other sectors such as business-to-business (B2B) e-commerce, software-as-a-service providers, and online media, including over-the-top players, will also contribute significantly to this growth.
Sanjay Gupta, the Country Manager and Vice President of Google India, highlighted that digital purchases will become increasingly prevalent, further solidifying the growth trajectory of India’s internet economy. He emphasized that while startups have been at the forefront of digital innovation, small and medium-sized businesses, as well as larger enterprises, have also embraced digital technologies to enhance their competitiveness, especially in the wake of the COVID-19 pandemic.
The report predicts that B2C e-commerce will witness a remarkable growth rate, expanding by 5-6 times to reach USD 350-380 billion by 2030, compared to around USD 60-65 billion in 2022. Similarly, B2B e-commerce is expected to experience a 13-14 fold increase, reaching USD 105-120 billion, up from approximately USD 8-9 billion in 2022. The software-as-a-service segment is also projected to grow significantly, with an estimated 5-6 times expansion to reach USD 65-75 billion by 2030, compared to USD 12-13 billion in 2022.
Vishesh Shrivastav, Managing Director (Investments) at Temasek, expressed optimism about India’s role in driving global GDP growth, presenting the country as a new beacon of hope in this regard.
The report’s findings paint a promising future for India’s internet economy, with a six-fold growth trajectory that is expected to propel it to a value of USD 1 trillion by 2030. The surge will be driven by various sectors, including e-commerce, software-as-a-service, and online media. With digital transactions becoming the norm, businesses of all sizes are increasingly leveraging digital technologies to stay competitive in the evolving landscape.
