‘Internet economy to hit $1 trillion by 2030’

Source: The post is based on the article “‘Internet economy to hit $1 trillion by 2030’” published in The Hindu on 7th June 2023

What is the News?

According to a report e-Conomy published by Google, Bain & Company and Temasek, India’s Internet economy will hit $1 trillion in value by 2030, up from $175 billion in 2022. At $1 trillion, the “online” economy would contribute 12-13% of gross domestic product (GDP), implying an economy of more than $8 trillion.

What is the Internet economy?

The Digital Economy refers to an Economy in which digital computing technologies are used in Economic Activities. It is also referred to as the New Economy, Internet Economy or Web Economy. It comprises of B2C e-commerce firms, online service providers, ed-tech companies, and so on.

What are the findings of the report?

Reason for the boom: The growth would be driven by more Indians starting to transact online and the overall expansion of digital businesses.

Small towns are key: The key thrust would come from “Tier 2+ locations.” The changes were expected to be the most pronounced in smaller towns and rural areas in terms of impact on the value of the Internet economy, as only 13% of the Indians lived in metro and tier 1 cities.

Key sectors: HealthTech and InsurTech, both sized at or less than $2 billion today, will demonstrate the largest expansion.