India's internet economy to grow 6-fold to USD 1 trillion by 2030: Report

India's internet economy is expected to register six-fold growth and touch USD 1 trillion in terms of online transaction value by 2030, mainly driven by the e-commerce vertical, a joint report by Google, Temasek and Bain & Company released on Tuesday said.

The report estimates that India's internet economy was in the range of USD 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 travel segment.

''India's internet economy is expected to grow 6x to USD 1 trillion by 2030,'' Google India Country Manager & Vice President Sanjay Gupta said while sharing details of the report.

He said most of the purchases in future will take place digitally.

Gupta said while startups have led the path of digital innovation, small and medium businesses and large enterprises after the pandemic have started to use digital technologies to become more competitive.

''This is going to be a secular growth across many different parts of the economy. B2C Commerce will be one of the largest, 30-40 per cent of the overall total. We think this growth will be driven by a range of players. Start-ups will continue to play an important role but we also see established corporates as well as MSME will be unlocking engines of this growth opportunity,'' Bain & Company, Managing Partner, Parijat Ghosh said.

According to the report, B2C e-commerce is expected to grow 5-6 times to USD 350-380 billion by 2030 from around USD 60-65 billion in 2022.

The report estimates B2B e-commerce to grow 13-14 times to USD 105-120 billion from around USD 8-9 billion in 2022.

The software-as-a-service segment is expected to grow 5-6 times to USD 65-75 billion by 2030 from USD 12-13 billion in 2022.

The report estimates that the online travel segment will grow 4-5 times to USD 55-60 billion by 2030 from USD 13-15 billion in 2022.

According to the report, the internet economy share will grow to 12-13 per cent in GDP from 4-5 per cent in 2022.

Temasek, Managing Director (Investments), Vishesh Shrivastav said India is now a new hope for the growth of global GDP.

The report estimates that India's edtech players have a sizable opportunity for global expansion because they hold significant cost advantages due to high English proficiency among teachers and parallels to the K-12 curricula used in many parts of the world.

As per the report, tier 2 and beyond cities are expected to play a material role in unlocking the USD 1 trillion internet economy.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)