Ronnie05's Blog

India iGDP set to break through $100billion with 300mln+ connections by 2015: McKinsey

Posted in Industry updates, Technology impact on economy and population by Manas Ganguly on March 20, 2013

The Internet Economy in India is future waiting to happen. With approximately 200 million new users connecting to the internet in the next 3-4 years horizon Internet is the next big economic and commercial business opportunity. On a cummulative basis the internet economy’s contribution to India’s GDP (i-GDP) is set to break the $100 bln mark (a 3X growth compared to 2012)

1. Number of internet subscribers in India expected to grow from 135 million (Exit 2012) to 330 million (2015).
2. At the same time, Internet’s contribution from India’s GDP to grow from 1.6% in 2011 to 3.4% in 2015.
3. Thus India’s i-GDP (internet contribution to GDP) is expected to hit about $100 billion by 2015 – making it one of the most attractive investment locations and industries globally. Refer to the Chart below for the Assumptions and Calculations

Source: McKinsey's "India Internet Opportunity" March 2013

4. Device Convergence; low cost device innovations; reach and affordability of data networks; Increasing digital literacy; access relevant apps and services on the net are factors that are driving the growth of Internet networks in India.

Whats now required is a comprehensive government policy roadmap for the Telecom sector which has been adrift following a few bad calls by the government.

Source of Data: McKinsey Report March 2013 – India’s Internet Opportunity.

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