Internet Penetration in India Has Crossed the 800-Million Mark

The new ‘Internet in India Report 2023’ by Internet and Mobile Association of India (IAMAI) and marketing data firm KANTAR has revealed a new milestone: India now records well over 800 million internet users across all its states. More than 90,000 households were asked about whether and how they use the internet as part of the ICUBE 2023 study. The results were presented at the India Digital Summit 2024, which unveiled lots of insightful data. A couple of results stood out the most, as rural India is leading the charge in the country’s growing internet penetration, while online entertainment is the most favoured activity of Indian netizens.  

India’s Number of Netizens Is Growing

The report published by the IAMAI, the organization that represents the country’s digital services industry with more than 500 corporations as its members, reveals how more and more citizens are now active online. A total of 820 million people, which is more than half the entire population, logged into the World Wide Web in 2023. Out of its roughly 1.4 billion citizens, 55% now surf the web, which represents an 8% increase compared to the same period in the previous year.

Something that stands out, is the fact that rural areas in the country play a major role in driving this trend. With 442 million people (53% of the total internet users nationwide), more than half of the netizens live in rural areas, compared to 378 million (47%) located in urban India. Moreover, the number of female users has been on the rise. While in 2015 male users accounted for 71% of the overall netizens in the country, this number has dropped to just 54% in 2023, while females now account for 46% of India’s internet users.

Online Entertainment Consumption Is on the Rise  

The way people use the internet in India has been changing significantly, particularly since 2020 when the use of the internet first shot through the roof across the country. Online entertainment reigns supreme, as the majority of the total user base engages in Over-the-Top audio and video services. Roughly 707 million users, more than 86% of all netizens, use these types of online entertainment.

This trend has surged not only on mobile devices and computers but also on various non-traditional devices, including smart TVs, smart speakers, gaming consoles, and devices such as the Firestick. The way people in India watch TV has also shifted in favour of the World Wide Web. Now, 208 million individuals only watch video content online, compared to 181 million who consume this type of entertainment via linear TV services.

Gaming Continues to See Growth

Another significant part of the online entertainment realm that has seen a surge in recent years and further bolsters this trend is the online gaming market. As one of the largest segments of the Indian Media and Entertainment sector, gaming is expected to reach INR388 billion by 2026. Gaming has become much more accessible, as internet connectivity has improved, data plans remain fairly cheap, and more affordable smartphones have hit the market. The report states that 438 million netizens engage with gaming services when they are online, making it another top use-case of the internet.

From casual gaming to partaking in esports online, the gaming scene in India has been growing and diversifying significantly, further driving online adoption. Game providers have long identified this development and upped their presence in the market by offering services and games geared toward the Indian market. Riot Games, for instance, has recently added an Indian character to its Valorant online game, appealing to the growing Indian market. Krafton released PUBG: Battlegrounds Mobile India exclusively for players in that region. This trend is also visible in the casual and traditional gaming market, where providers of online casino games are offering platforms geared towards players in India specifically. Some of the best-rated providers offer popular games such as Teen Patti and provide platforms in various Indian languages to appeal to this growing market. The report has shown that more than half of the netizens in India prefer engaging with content in their own regional language. These types of localizations could therefore positively affect internet penetration and may be a way to drive growth in the future.

More of India is going online, as the newest ‘Internet in India Report 2023’ report has unveiled. The internet is becoming an increasingly important part of everyday life around the world and in India, as internet penetration continues to reach new heights.

(Devdiscourse's journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)