A recent joint report by Google, Temasek, and Bain & Company has projected remarkable growth for India’s internet economy, estimating that it will expand six-fold and reach a staggering $1 trillion by the year 2030. This significant surge will primarily be driven by the e-commerce sector, signaling a transformative digital landscape in the country.
In 2022, India’s internet economy was already valued at an impressive range of $155-175 billion, according to the report. However, the forecasted growth indicates a monumental leap over the next decade, placing India at the forefront of the global digital revolution.
The report identifies the business-to-consumer (B2C) e-commerce segment as the primary catalyst for this exponential growth, closely followed by business-to-business (B2B) e-commerce, software-as-a-service providers, and online media, particularly driven by over-the-top (OTT) players.
Sanjay Gupta, Country Manager & Vice President of Google India, shared insights from the report, stating that the future of commerce in India will predominantly be digital. The convenience, accessibility, and wide array of options offered by online platforms are expected to attract a growing number of consumers, shaping their purchasing habits.
One noteworthy finding from the report is the instrumental role played by startups in driving digital innovation. However, it is not just startups that have embraced this technological transformation. Small and medium-sized businesses, as well as large enterprises, have also recognized the need to leverage digital technologies to enhance their competitiveness, particularly in the post-pandemic era.
The B2C e-commerce segment is projected to experience remarkable growth, estimated to increase five to six times and reach a value of $350-380 billion by 2030, a substantial increase from approximately $60-65 billion in 2022. Similarly, the B2B e-commerce sector is expected to expand by 13-14 times, reaching $105-120 billion by 2030, compared to around $8-9 billion in 2022.
Another key sector highlighted in the report is software-as-a-service (SaaS). This segment is anticipated to grow five to six times, reaching a value of $65-75 billion by 2030, up from $12-13 billion in 2022. The increasing reliance on digital tools and cloud-based solutions by businesses across various industries will drive this substantial growth.
The report’s findings paint a promising picture of India’s internet economy, highlighting its potential to become a global powerhouse in the digital realm. The projected growth underscores the need for robust digital infrastructure, policies that foster innovation, and a supportive ecosystem for entrepreneurs and businesses alike.
As India’s internet economy continues to expand and evolve, it is crucial for stakeholders to collaborate and invest in building a sustainable and inclusive digital ecosystem. By leveraging the power of technology, India can unlock tremendous economic opportunities, create jobs, and improve the lives of its citizens in the digital age.
