Internet economy set to be $1 trn by 2030
B2C, B2B, SaaS segments to propel 6-fold growth: Report
image for illustrative purpose
New Delhi India’s internet economy is expected to register six-fold growth and touch $1 trillion by 2030, mainly driven by the e-commerce vertical, according to a joint report by Google, Temasek and Bain & Company, released on Tuesday.
The report estimates that India’s internet-economy was in the range of $155-175 billion in 2022. According to the report, the growth will be led by the B2C e-commerce segment, followed by B2B e-commerce, software-as-a-service providers and online media led by over-the-top players.
“India’s internet economy is expected to grow 6 x to $1 trillion by 2030,” said Sanjay Gupta, Google India, Country Manager & vice-president, while sharing details of the report.
The internet economy’s contribution to India’s technology sector is expected to grow from 48 per cent to 62 per cent by 2030, while its share of India’s GDP will rise from 4-5 per cent to nearly 12-13 per cent, according to the report.
He said most of the purchases in future will take place digitally. Gupta said while startups have led the path on digital innovation, small and medium businesses and large enterprises after the pandemic have started to use digital technologies to become more competitive.
According to the report, B2C e-commerce is expected to grow 5-6 times to $350-380 billion by 2030, from around $60-65 billion in 2022. The report estimates B2B e-commerce to grow 13-14 times to $105-120 billion, from around $8-9 billion in 2022. The software-as-a-service segment is expected to grow 5-6 times to $65-75 billion by 2030, from $12-13 billion in 2022. Temasek, Managing Director (Investments), Vishesh Shrivastav said “India is now a new hope for the growth of global GDP.”
“Three foundational forces - deepening consumer digital adoption, technology investments by businesses, and digital democratisation with the India Stack - has placed India at a turning point in its digital transformation,” added Gupta.
Presenting a 2030 outlook across 10 key consumer sectors, the report predicts that B2C e-commerce will continue to maintain a leading share of digital services, growing 5-6x to $350-380 billion by 2030
Rising Contribution to GDP
- Internet segment to enhance value addition to GDP
- Technology sector may grow from 48% to 62% by 2030
- Its share of India’s GDP will rise from 4-5% to 12-13%
- B2C e-commerce to grow 6x to $380 bn by 2030
- B2B e-commerce to grow 14x to $120 bn
- Software-as-a-service segment to grow 6x to $75 bn by 2030
