Total value of $1 trillion! E-commerce drives the rise of India's Internet economy

As India becomes the world's most populous country, more and more companies are realizing the importance of this emerging market.

Google , Bain and Temasek jointly released a report. The report mentioned that by 2030, the total value of goods in India's Internet economy will reach 1 trillion US dollars , including financial technology, SaaS, B2C and B2B e-commerce . This is mainly due to the growth of private consumption in the country's second-tier regions, the construction of digital public infrastructure and global investment in India's technology industry.

The total value of the Internet economy continues to increase

The report mentioned that the value of India's Internet economy in 2022 is about 155 billion to 175 billion US dollars. The report emphasizes that the growth of the Internet economy will be mainly driven by B2C e-commerce, followed by the growth of B2B e-commerce, SaaS suppliers and online media platforms , especially the contribution of OTT (online television).

Sanjay Gupta, Google India Manager and Vice President, shared insights from the report that India’s internet economy is expected to increase six times from its current value to reach $1 trillion by 2030. Gupta further stated that he believes that most of the transactions in India will be conducted digitally in the future .

Gupta also affirmed the significant contributions made by start-ups in digital innovation . He also expressed his views on how companies of all sizes can use digital technology to improve their competitiveness in the post-epidemic era.

B2C e-commerce is growing rapidly

The report also predicts that India's B2C e-commerce will also grow significantly , with an estimated growth of 5 to 6 times to reach US$350 billion to US$380 billion by 2030 , compared to approximately US$60 billion to US$65 billion in 2022.

The report also predicts that B2B e-commerce is expected to grow 1.3 to 1.4 billion times, reaching $105 billion to $120 billion in 2030 , up from $8.9 billion in 2022.

SaaS e-commerce is also expected to experience significant growth, increasing five to six times to $65-75 billion by 2030 , from $12-13 billion in 2022.

Vishesh Shrivastav , managing director of Temasek Investments , is optimistic about India's potential and sees it as a new hope for global GDP growth.

Overall, the report’s findings indicate that India’s internet economy holds promising prospects , underscoring its huge scope for growth and emphasizing the important role that the internet economy will play in the country’s overall economic landscape.

India

E-commerce

Internet Economy