BUSINESS

‘Digitisation to help boost GDP growth’

Interlinking India’s growth to the government’s Digital India programme, IT and Communications Minister Ravi Shankar Prasad on Wednesday said increased computer literacy and growing use of mobile Internet would help push India’s Internet economy to $200 billion by 2020.

The Minister was speaking at the release of a report by IAMAI and The Boston Consulting Group. According to the report ‘India@Digital.Bharat’, India is headed towards an Internet economy worth $200 billion by 2020, that will contribute 5 per cent of the GDP.

In 2013 alone, it contributed $60 billion or 2.7 per cent of India’s GDP.

“For this, we need to move at a fast pace towards computer literacy. The other key area, which will help the Internet economy to grow, is mobile Internet,” Mr. Prasad said, adding that the government was committed to digitisation and was looking extensive PPP for successful implementation.

The Minister said there was a need to create hubs in rural India that would help grow e-commerce. “Unless connectivity reaches every village of India, the dynamics of growth will remain unchanged…It took 30 years to cover 10 lakh km of optic fibre laying, and in just next three years seven lakh km will be added, making rural connectivity a reality,” the Minister said.

According to the report, Internet users in India will jump from 190 million as on June, 2014, to over 550 million by 2018.



India is headed towards an Internet economy worth $200 billion by 2020.



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