Internet services and devices industry to contribute 3.3 per cent of India’s GDP: Report
20 Dec 2012
The internet services and devices industry could potentially contribute around 3.3 per cent to India's gross domestic product by 2015, according to a report by McKinsey & Company.
The company said the internet currently contributed a modest 1.6 per cent to India's GDP in line with most aspiring countries, which could increase to 2.8-3.3 per cent by 2015, if India achieved its potential for growth in the number of internet users and internet technology related consumption and investment over the period.
With this the contribution to the GDP would grow from $30 billion now to nearly $100 billion in 2015.
According to the report, currently India's information and communication technology (ICT) exports were the most significant component of the internet's impact on GDP, however, private consumption and investment from private and public sector had greater potential to grow in the future, according to the report.
India having a user base of 120 million is the third largest internet market in the world and is poised to have up to 370 million users in 2015.
China with 480 million users has the largest internet user base in the world followed by the US with 245 million users as of 2011. China is expected to have 583 million users by 2015, while the US is expected to have 279 million users.