New Delhi: India’s internet industry is expected to grow and could reach a valuation of $5 trillion by 2030, market intelligence firm Redseer Strategy Consultants has predicted.
The country has the second largest internet user base in the world and is home to 780 million internet users, Redseer said in an article titled ‘Looking Back at India’s Internet Economy in 2022’. It added that most of the user base would continue to come from tier-2 cities.
“The drastic increase in digital consumption and increased digital penetration in tier-2+ cities are the primary growth drivers responsible for the spike in India’s digital advertising ecosystem. With an increasingly high flow of consumers from tier-2+ cities adopting short video commerce, India is likely to witness a massive surge in digital ad investments instead of driving sales,” it said.
The report, which was published on January 2, stressed that ‘digital’ will continue to play a significant role. It said that India’s Internet gross merchandise value (GMV) will grow to about $1 trillion by 2030, equivalent to $5 trillion in public and private market cap.
GMV is used interchangeably with “gross merchandise volume”, and is defined as the total volume of revenue generated across a given period of time.
An average Indian spends around 7.3 hours per day on their smartphone, one of the highest in the world. “There is a new trend in content consumption where the time spent on user-generated content is 2X of platform-generated content,” it said. India’s internet industry
Separately, another report by the Internet and Mobile Association of India, published in July 2022, said there will be 900 million internet users in India by 2025.
The reports come against the backdrop of a battle between two of Asia’s richest men – Gautam Adani and Mukesh Ambani – for India’s digital future. Reliance Jio Infocomm Limited, owned by Ambani, had the highest share in the internet service provider market in India as of March 2022, Statista reported. India’s internet industry
Adani Data Network was granted a licence for telecom services last year, Mint reported. The Adani Group also entered the telecom sector by buying 5G spectrum worth Rs 212 crore in the auctions in August 2022.
A NASSCOM report said that 5G mobile subscriptions are expected to grow at a compound annual growth rate of over 50% and are likely to enable a $1.5 trillion revenue potential by 2030. It added that 5G can boost up to 2% of India’s gross domestic product by 2030.
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