India’s internet economy is expected to grow to $1 trillion by 2030, a significant growth from its current value of $175 billion in 2022, according to a joint report released by Google, Temasek, and Bain & Company. The report, titled ‘The e-Conomy of a Billion Connected Indians,’ highlights the impact of evolving consumer behaviour and the expansion of the business ecosystem on India’s internet economy.
The study take into account the key sectors contributing in the growth of the internet economy such as e-commerce, online travel, food delivery, and ride-hailing. Three crucial factors—increasing digital adoption in Tier 2+ locations, the digitisation of traditional businesses, and the success of India’s digital public goods or ‘India Stack’—is expected to accelerate the growth of the internet economy.
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“Structural shifts in consumption potential are opening up a vast opportunity for startups, large businesses and MSMEs to power India’s internet economy towards a projected growth of 6x, reaching a trillion dollars by 2030. We’re pleased to join Bain and Temasek in this first-of-its-kind multidimensional view of the digital landscape, and are confident and committed to partner India in this extraordinary opportunity,” said Sanjay Gupta, country head, Google India.
The internet economy sectors are experiencing positive growth, with B2C e-commerce playing a significant role by contributing approximately one-third of the value. This growth is mainly driven by increased usage in smaller towns and cities. Currently, B2C e-commerce has a Gross Merchandise Value (GMV) of $65 billion, and it is expected to expand six-fold and reach $380 billion by 2030.
Similarly, other sectors like online travel and ride-hailing are projected to follow similar growth paths, with a high probability of scaling at least four to five times over the next decade. Furthermore, the acceptance of digital tools and solutions by consumers and merchants is increasing, which will lead to promising growth in digital financial services. This sector is expected to grow between 8% to 13% Compound Annual Growth Rate (CAGR) from 2022 to 2030, covering areas such as payments, lending, investments, and insurance.
