India's Internet Economy To Hit $1 Trillion By 2030: Google, Bain, And Temasek

A new study suggests that India is on track to hit a $1 trillion (₹82,64,240 crore) consumer internet economy by 2030, fueled by changing consumer and merchant behaviour and strong investor confidence.

What Happened? The ‘India e-Conomy Report’ — jointly created by Google, Bain & Company, and Temasek — indicates that over 700 million Indians use the internet regularly, including 350 million who use digital payment platforms and 220 million who shop online.

The report actively forecasts a doubling of India’s household consumption by 2030, with digital commerce taking a more central role in daily life. Shifts in income and consumption are driving this growth, benefiting sectors such as e-commerce, software services, online travel, online media, food delivery, edtech, healthtech, and insuretech.

India currently leads globally in online video streaming, digital payments, and time spent on social media, while trailing closely behind the US in overall daily internet usage. The report notes that Indian consumers increasingly prefer digital interactions, value convenience, and consider sustainability in their choices, indicating a shift from traditional methods.

Large cities aren’t the only ones experiencing this changing landscape. Tier 2+ cities in India, with their sizable populations and growing internet user bases, are also significant contributors to this digital transformation. However, these cities present challenges that demand joint effort from the government and private sector.

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Digital Adoption Plays A Major Catalyst

As of 2022, India’s internet economy was valued at $155-175 billion, roughly 48% of the technology sector and 4-5% of India’s GDP. The report forecasts this will grow to $700 billion-$1 trillion by 2030, making up 62% of the tech sector and 12-13% of India’s GDP.

Services like Aadhaar, United Payments Interface (UPI), and Digilocker have been crucial in the growth of India’s internet economy, per research. These services, along with open networks like the Open Network for Digital Commerce (ONDC), Open Credit Enablement Network (OCEN), and Unified Health Interface (UHI), have created new opportunities in established and emerging sectors.

Lastly, the report highlights the adoption of digital financial services by consumers and merchants. It anticipates that sub-sectors such as payments, lending, investments, and insurance can expect a compound annual growth rate (CAGR) of 8-13% between 2022 and 2030.

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