A vendor displays multiple payment methods – a testament to India’s growing digital economy (file used for representation purposes only) | Photo credit: The Hindu
According to a joint research report released on June 6 by Google, Temasek and Bain and Company, India’s digital economy is expected to grow more than fivefold to $1 trillion by 2030, driven by a growing appetite for digital products and services, especially in its small towns.
Title India e-Conomy report, the research indicates that India is in its “digital decade” and its internet economy will grow to 12-13% of its GDP by the end of the decade, up from 4-5% currently. A phenomenal increase in online activities for daily life has put India well ahead of some of the biggest economies in the world.
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“As India experiences a dramatic boom that will see household consumption double by 2030, digital commerce will invariably become even more embedded in the daily experience of Indians,” the report said.
India’s inaugural report was driven by its potential: growing consumer interest in Tier 2+ cities in digital products and services, rapid digitization of large corporations and micro, small and medium enterprises (MSMEs) and the success of India’s national digital infrastructure.
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Services such as Aadhaar, United Payments Interface (UPI) and Digilocker have helped unlock the potential of India’s digital economy. The report tracked the performance of key digital sectors – business-to-consumer (B2C) and business-to-business (B2B), online travel, food delivery, media, ride-sharing, edtech, healthcare, and Software-as-a-Service (SaaS). ) — and describes opportunities, challenges, and catalysts for growth.
According to the report, B2B will continue to dominate digital services, growing five to six times to reach $350 billion to $380 billion by 2030; the number of online shoppers is expected to double to 500-550 million. Software as a service, e-commerce and EdTech are expected to lead India’s digital export recovery.
“Global interest in the adoption of India’s digital frameworks strengthens the country’s position as a leader in digital technology,” the report adds.