Net to contribute $100 bn to Indias GDP by 2015

Written by Press Trust of India | New Delhi | Updated: Dec 20 2012, 07:29am hrs
Internet services and devices industry has the potential to increase its contribution to up to $100 billion (about R5.5 lakh crore) to India's GDP and generate about 2.2 crore jobs by 2015, a report by McKinsey & Company said.

Internet-related technology industry includes personal computers and smartphone sales, e-commerce, broadband subscription, and investment in technologies like cloud and websites.

According to the report titled 'Online and Upcoming: The Internet's Impact on India', Internet generated 1.6% of the GDP or about $30 billion in 2011.

"The Internet currently contributes a modest 1.6% to India's GDP. This could grow to 2.8-3.3% by 2015, if India achieves its potential for growth in the number of Internet users and Internet technology-related consumption and investment," McKinsey & Company Partner Chandra Gnasambandam told reporters.

This would increase Internet's contribution to GDP from $30 billion now to nearly $100 billion in 2015, he said. "And while it facilitates about six million direct and indirect jobs at present, this could grow to 22 million by 2015, if India follows an inclusive path of Internet expansion." Gnasambandam said.

India with a user base of 120 million is the world's third largest Internet market and is poised to garner up to 370 million users in 2015, the report said.