India is currently standing at a financial figure of $175 billion as of 2022, and a report has arrived that ‘The e-Conomy of a Billion Connected Indians’ by Google, Temasek and Bain & Company combined has claimed that India is going to receive an expected $1 Trillion by 2030.
As per the report, the expansion will be primarily driven by the B2C e-commerce sector, with the B2B e-commerce, software-as-a-service (SaaS) providers, and online media following suit, spearheaded by over-the-top (OTT) players.
India’s internet economy is expected to grow 6 x to USD 1 trillion by 2030.
Google India, Country Manager & Vice President, Sanjay Gupta said while sharing details of the report.
The report suggests that by 2030, the internet economy will witness a significant increase in its contribution to India’s technology sector, expanding from 48% in 2022 to 62%. Additionally, it predicts that the internet economy will constitute around 12-13% of India’s GDP, a substantial rise compared to the 4-5% recorded in 2022. The report attributes this growth to the escalating digital demand in tier 2+ cities, the digitization of conventional businesses, and the achievements of India Stack.
B2C e-commerce is expected to grow 5-6 times to USD 350-380 billion by 2030, from around USD 60-65 billion in 2022. According to Gupta, digital innovation has been primarily driven by startups, but in the post-pandemic scenario, small and medium businesses, as well as large enterprises, have also embraced digital technologies to enhance their competitiveness.
Sanjay Gupta, Country Head and Vice President of Google India, stated that India has reached a crucial juncture in its digital transformation due to three key factors: the increasing adoption of digital technologies by consumers, business investments in technology, and the digital democratization facilitated by India Stack.
B2C e-commerce will drive 40% of the digital GMV, followed by B2B sectors and SaaS.
Parijat Ghosh, Managing Partner of Bain and Company (India), added on to this.
