According to a joint report released by Google, Temasek, and Bain & Company on Tuesday, India’s internet economy is expected to witness a remarkable six-fold growth and reach a staggering $1 trillion (approximately Rs. 82,58,950 crore) by 2030. The report highlights that the e-commerce sector will be the primary driver of this growth.
In 2022, the estimated value of India’s internet economy ranged between $155-175 billion, as per the report. However, it predicts exponential growth in the coming years, primarily led by the B2C e-commerce segment. The report also identifies B2B e-commerce, software-as-a-service (SaaS) providers, and online media, including over-the-top (OTT) players, as significant contributors to the anticipated expansion.
Sanjay Gupta, Country Manager & Vice President of Google India, shared insights from the report, stating, “India’s internet economy is expected to grow 6x to $1 trillion (approximately Rs. 82,58,950 crore) by 2030.” Gupta emphasized that a majority of future transactions will occur digitally.
Gupta further acknowledged the pivotal role of startups in driving digital innovation, but also highlighted the increasing adoption of digital technologies by small and medium businesses, as well as large enterprises, to enhance competitiveness following the pandemic.
The report’s projections indicate that B2C e-commerce is expected to witness a growth of 5-6 times, reaching $350-380 billion by 2030, compared to approximately $60-65 billion in 2022. Furthermore, B2B e-commerce is anticipated to grow 13-14 times, reaching $105-120 billion, from the current $8-9 billion in 2022. The software-as-a-service (SaaS) segment is predicted to expand by 5-6 times, reaching $65-75 billion by 2030, up from $12-13 billion in 2022.
Vishesh Shrivastav, Managing Director (Investments) at Temasek, expressed optimism about India’s economic contribution, stating that it now represents a beacon of hope for global GDP growth.
The projected growth of India’s internet economy signals a transformative period ahead, characterized by increased digitalization and opportunities across various sectors. As the e-commerce landscape expands and digital technologies continue to evolve, businesses in India are poised to capitalize on this significant growth trajectory.