Telecom Lead India: The
Indian Internet economy has contributed Rs. 3.2 trillion to economy in 2010,
representing 4.1 percent of GDP.
The contribution is projected to rise to Rs 10.8 trillion by
2016, according to Boston Consulting Group.
By 2016 the total size of the G-20 Internet economy will be
$4.2 trillion, equivalent to 5.3 percent of GDP, up from $2.3 trillion or 4.1
percent in 2010.
If the Internet was a sector, it would be the 8th largest in
India, larger than mining and utilities. It is driven by exports of IT
services: net exports make up 59 percent of the Indian Internet economy, while
consumption is only 20 percent.
India’s Internet economy growth rate of 23.0 percent places
it as the second fastest across the G-20 and ahead of many other developing
nations in the G-20, which are growing at an average of 17.8 percent.
Projected growth rates elsewhere are: 24.3 percent in
Argentina, 18.3 percent in Russia and 15.6 percent in Mexico. In 2010 developed
markets contributed 76 percent of the G-20’s Internet economy; by 2016 that
will fall to 66 percent.
Consumption is the principal driver of Internet GDP in most
countries, representing more than 50 percent of the total in 2010. It will
remain the largest single driver through 2016.
China and India stand out for their enormous Internet
related exports- China in goods, India in services which propel their
internet-economy rankings toward the top of the chart,” said Arvind
Subramanian, a Mumbai-based BCG Partner.
“India is seeing one of the fastest rates of internet
adoption across the globe. It is up to all of us- users, businesses and the
government-to leverage the potential of the Internet to deliver value and
wealth. We see emerging opportunities for innovation in areas like mobile,
e-commerce and cloud and are committed to growing the market by offering more
locally relevant services,” said Rajan Anandan, VP – Sales and Operations
& managing director, Google India
In 2010, the share of total retail carried out online in
India was 0.9 percent but is projected to reach 4.5 percent by 2016.