according to
Data from investment promotion and facilitation agency Invest India shows India in the lead.
Spread of the Internet and expansion of the digital economy
Internet penetration is growing significantly and by September 2023, more than 60% of India's population (918 million people) will be using the internet. Furthermore, it is predicted that an estimated 87% of Indian households will have access to the internet by as early as 2025. Access to the internet via mobile devices also increased by 21% compared to 2019.
Data affordability in India is a key factor, with 1 gigabyte of data priced around USD 0.17 (Rs 13.5), encouraging a large portion of the population to go online.
By 2026, it is predicted that 1.18 billion people, or over 80% of India's population, will have access to smartphones across the country. The increasing number of smartphone users and average data consumption per user will drive the digital economy. Unified Payments Interface (UPI) will become a major player in digital payments, and by 2022 it will process transactions worth USD 1.5 trillion.
The availability of local language and mobile-first content has increased significantly, with approximately 73 percent of Indian internet users using Indian languages. As a result, his estimated regional language user base is 540 million, creating a market worth $53 billion.
Digital infrastructure such as UPI, eKYC, and Aadhaar has reduced consumer onboarding time by 80% and improved the digital experience. Open Network for Digital Commerce (ONDC) is another notable initiative by the Indian government launched in 2022. It aims to provide equal opportunity to his MSMEs to thrive in digital commerce and democratize e-commerce.
Changes associated with growth
Government electronic marketplaces (GeMs) recorded a record GMV of $201.1 billion in fiscal 2022-23, according to Invest India data. The growth in online shoppers in India is significant, with a compound annual growth rate (CAGR) of 22 per cent to 88 million in rural India and 15 per cent to 263 million in urban areas from 2019 to 2026. It is predicted that it will become a person.
The shift towards rural-focused value e-commerce is significant, with over 60% of demand expected to come from tier 2 to 4 towns and rural India by 2026. Government programs such as the National Logistics Policy are designed to streamline shipping to India. Improve the efficiency and cost-effectiveness of logistics in remote locations.
The quick commerce market in the hyperlocal mobility sector in India is also growing rapidly and is predicted to reach a market size of USD 5.5 billion by 2025. While big players like Swiggy and Zomato are at the forefront of the market, startups like Zepto have also captured a sizeable market share.
The e-commerce space has seen major mergers and acquisitions, with companies like Zomato and PhonePe taking strategic decisions to strengthen their positions. Government schemes like Jan Dhan Yojana, BharatNet project and introduction of Goods and Services Tax (GST) have helped shape India's digital economy.
(With inputs from ANI)
