The Future of India’s Internet Industry: Predicted to Reach $5 Trillion by 2030

The Future of India’s Internet Industry: Predicted to Reach $5 Trillion by 2030

India’s internet industry is on track to reach a valuation of $5 trillion by 2030, according to market intelligence firm Redseer Strategy Consultants.

In its report, “Looking Back at India’s Internet Economy in 2022,” Redseer states that India currently has the second largest internet user base in the world, with 780 million users, a majority of whom come from tier-2 cities.

Drivers of Growth

Redseer attributes the growth of India’s internet industry to an increase in digital consumption and penetration in tier-2 cities, as well as the adoption of short video commerce. As a result, the report predicts that India will see a significant increase in digital ad investments rather than driving sales.

The report also notes that the average Indian spends 7.3 hours per day on their smartphone, one of the highest amounts in the world, with a trend towards consuming more user-generated content compared to platform-generated content.

Gross Merchandise Value

Redseer predicts that India’s internet gross merchandise value (GMV) will reach around $1 trillion by 2030, equivalent to $5 trillion in public and private market cap. GMV, which is sometimes referred to as gross merchandise volume, is defined as the total volume of revenue generated over a given period of time.

Internet Users in India

In addition to Redseer’s report, the Internet and Mobile Association of India published a report in July 2022 stating that there will be 900 million internet users in India by 2025.

Competition for India’s Digital Future

The growth of India’s internet industry has sparked competition between two of Asia’s wealthiest men, Gautam Adani and Mukesh Ambani, for control of India’s digital future. Ambani’s company, Reliance Jio Infocomm Limited, currently holds the highest share in the internet service provider market in India, according to Statista.

Adani Data Network was granted a license for telecom services in 2022 and the Adani Group also entered the telecom sector by purchasing 5G spectrum worth Rs 212 crore in the August 2022 auctions.

Potential Impact of 5G

A report from NASSCOM predicts that 5G mobile subscriptions in India will see a compound annual growth rate of over 50% and have a revenue potential of $1.5 trillion by 2030. The report also states that 5G could contribute up to 2% of India’s gross domestic product by 2030.

Conclusion

India’s internet industry is on track for significant growth in the coming years, with a predicted valuation of $5 trillion by 2030. The growth is driven by an increase in digital consumption and penetration in tier-2 cities and the adoption of short video commerce.

The average Indian spends a significant amount of time on their smartphone, with a trend towards consuming more user-generated content.

The growth of India’s internet industry has also sparked competition between Gautam Adani and Mukesh Ambani for control of the country’s digital future.

The potential impact of 5G in India is significant, with predictions of a compound annual growth rate of over 50% and a revenue potential of $1.5 trillion by 2030.