India’s internet economy is set to grow six-fold in the next eight years to reach $1 trillion by 2030, says a recent report by Google, Temasek, and Bain & Company.
The report, ‘The e-Conomy of a Billion Connected Indians’ says that a continuous shift in consumer and merchant behaviour, matched with strong investor confidence, has led India into its ‘Digital Decade’ and put its internet economy on the path to reach $1 trillion from approximately $175 billion currently.
Digital services have become vital to India’s 700 million plus internet users, including the 350-million digital payment users and 220-million online shoppers. With the country expected to see household consumption doubling by 2030, e-commerce will become even more ingrained in the daily lives of Indians.
The report says that all internet sectors are on positive growth paths, with business-to-consumer (B2C) e-commerce contributing about a third of the value, largely driven by increased penetration in smaller towns and cities. B2C’s gross merchandise value at present stands at $65 billion, and is expected to grow six times to reach $380 billion by 2030.
Other e-commerce sectors such as online travel and ride-hailing are also projected to follow similar trajectories with a high probability of increasing at least four to five times over the decade, added the report. Eventually, mainstreaming of digital tools and solutions will lead to promising growth in digital financial services from 8 to 13 percent CAGR between 2022-2030 across subsectors, such as payments, lending, investments and insurance.