Indian Internet Economy

The Internet has established its role as a powerful economic force multiplier . Its contribution in Indian GDP will explode to $100 billion with 350 million Netizens  & India will rank at 2^nd position by 2015 from $30 billion contribution in GDP with 120 million Netizens & 3^rd position in world at present . By 2015 , Internet Sector is projected to become bigger than the Education Sector & equal to Health Care Sector in terms of GDP contribution .

According to “ Impact of Internet on Indian Economy “ by McKinsey contribution of Internet to global GDP is near about 3 percent or $1.7 trillion and its performance in India will eventually mirror this trend .

The world currently has 2 billion Internet users , of whom 50 percent live out side the developed world . The global Internet Population will climb up to 2.6-2.9 billion by 2015 .

According to report , 30 aspiring countries with a very high economic growth have seen Internet users grow at 5 times the level in the developed world . In next 10 years , Netizens in these 30 countries are projected to grow at 10 times the pace in the developed world .

The growth are and will be boosted in future due comprehensive expansion of wireless . At present , only 15-20 percent of users access Internet on Wireless Technology in World while this data is near about 55% in India .

Indian Internet growth story seems promising , but Individual user yet to play their rightful role . Individual consumption is palced at 29% - much lower than the International figure 45% which means that there are some barriers in Internet Growth Trajectory .

First , Internet Econnomy in India continues to be driven by large companies . Second , Absence of Low Cost - High Speed connectivity in small cities and rural areas ,Total Cost of Ownership including Connectivity , Device , Appliances which is 4-6 times of China & Brazil and 20-30 higher than countries like Malaysia & Vietnam on Purchasing Power Parity terms . Third , Beyond reach & Affordability as well as Digital Literacy . Fourth , Widening & Expanding the application Service that are offered on Net . Fifth , Presence of Intermediaries between web & users .

Govt. of India has taken initiatives like BHARAT BROADBAND Network Program to reach 2.5 lakh village panchayats with 2013-14 . There is also a need to incorporate Public-Private Partnership to promote Digital Literacy & use of Net in Agriculture , Education , Healthcare & Public Information along with Entertainment Sector as a Pull Factor in future to boost the Internet Economy . Here Entrepreneurship is expected to play a crucial & key role in expanding the reach of Internet Service to Aam Adami . Govt. of India has to provide more Favourable Business Environment for online business by easing the ability of these business to start up , scale up & operate within predictable regime is crucial .