The number of Internet users in India is likely to more than double to 730 million by 2020, according to a new report. As per the report ‘The Future of Internet in India’, compiled by Nasscom and Akamai Technologies, there were about 330 million Internet users in the country as of December 2015.
India, which has an Internet user base next only to China, will remain the fastest growing market, the report’s authors wrote, adding that 75 per cent of the new users would come from rural areas. Interestingly, a majority (75 per cent) of new users are expected to consume data in local languages.
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Overall, the e-commerce market in India, which was valued at $17 billion in 2015-16, is expected to double to $34 billion by 2020. The number of online shoppers is likely to more than triple to 175 million in that time, from 50 million in 2015.
“By 2020, India will have an estimated 702 million smartphones in use and mobile phones will emerge as the preferred device for shopping, accounting for 70 per cent of total online shopping,” the report’ authors wrote. “India’s Internet consumption has already exceeded the U.S. to become number two globally,” Nasscom President R. Chandrashekhar said. “By 2020, the Internet is expected to penetrate deeper in the hinterlands of the country, helping create more opportunities for everyone.”
Sidharth Malik, VP & MD India, Akamai Technologies, said this will also present a great opportunity for enterprises to harness the power of the Internet to innovate and scale up operations.
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Currently, online ticketing and room booking facilities are used by more than 50 million Indians on a regular basis. By 2020, online travel is estimated to account for 40-50 per cent of all travel-related transactions, up from 12 per cent in 2015, according to the report. The growth is being driven by demand as a larger, younger population comes online.
The report estimates that in 2016, the fintech market will be worth $8 billion, having grown 20 per cent.