India’s internet economy to double to $250 bn by 2020: study

08 Apr 2017

Driven by ecommerce and financial services, India's internet economy is expected to double from $125 billion to $250 billion - growing from the current 5 per cent to 7.5 per cent of the country's GDP by 2020, a joint report by The Boston Consulting Group (BCG) and The Indus Entrepreneurs (TiE) said on Friday.

With over 391 million users, India is already the second highest country in terms of mobile internet users.

According to the report titled The $250 Billion Digital Volcano: Dormant No More, the users are expected to grow rapidly to 650 million mobile internet users by 2020.

At the same time, data consumption by 2020 could potentially increase 10 to 14 times.

"Firstly, by 2020, 4G enabled devices are expected to grow six times to 550 million devices, constituting 70 per cent devices in use. Secondly, reliable high speed data is becoming both ubiquitous as well as mass affordable," said Nimisha Jain, a BCG partner and co-author of the report.

High-speed mobile internet adoption is set to reach 550 million users by 2020, almost 85 per cent of the total mobile internet users, the findings showed.

Average data consumption is projected to reach 7-10GB per user per month by 2020.

"Innovation is what leads to sustainability and sustainable growth in the current entrepreneurship ecosystem will enable India to chart its own success story," said Geetika Dayal, executive director, TiE Delhi-NCR.