The latest report ‘Internet in India Report 2023’, jointly prepared by the Internet and Mobile Association of India (IAMAI) and KANTAR on the digital landscape in India sheds light on several noteworthy trends and patterns. Among online shoppers, a significant portion, precisely 26%, rely solely on Cash on Delivery (COD) as their preferred payment method. Meanwhile, the rest of the online shopper demographic demonstrates a diverse range of preferences towards various digital payment modes.
A substantial 71% of digital payment users predominantly reside in urban areas, with half of them belonging to the NCCS A category. Emerging trends in the digital ecosystem reveal a surge in the utilisation of music streaming services, with over 80% of overall OTT users engaging with music streaming apps within the past year. Notably, there has been an 8% growth in the user base of online music streaming services, indicating a rising preference for this form of entertainment.
The usage of voice-based commands across various activities is experiencing a surge in popularity among urban internet users. In the urban universe, which comprises approximately 517 million individuals, an estimated 130 million people, constituting about 25%, are actively engaging with voice-based commands.
Moreover, digital platforms have become the primary source for accessing news and information, with 65% of internet users relying on news apps, websites, social media platforms, and other digital channels for updates. The adoption of voice-based commands across various activities is also on the rise, facilitating tasks such as navigation, creating shopping lists, listening to news, and retrieving information through voice-enabled functions within mobile apps.
Communication and social media remain integral components of internet usage in India, with a substantial user base exceeding 621 million and 575 million, respectively. Rural India constitutes a significant portion of the user base for these services, contributing to over 50% of the total users for each category.
The report highlights a significant milestone in internet penetration, with the total number of active internet users surpassing 820 million in 2023, indicating a penetration rate of over 55% across the nation. Notably, rural areas account for more than half of the total user base, indicating the widespread adoption of digital technologies beyond urban centers.
The gender ratio among internet users has shown a notable shift, with the male-to-female ratio nearing parity at 54:46, aligning closely with the overall sex ratio of the country’s population. However, despite the remarkable growth, there has been a deceleration in growth rates, particularly in rural areas post-pandemic, although the absolute numbers continue to be substantial.
Addressing potential strategies for accelerating growth, the report suggests a focus on Indic languages, with 57% of users expressing a preference for accessing content in regional languages. States with lower internet penetration, such as Jharkhand and Bihar, are exhibiting above-average growth rates, indicating untapped potential in these regions.